Report: Carer Payments Fail to Meet Children's Needs

A report from the Australian Institute of Family Studies has quantified a significant shortfall in payments for foster and kinship carers. The allowances provided by state governments are falling 'significantly short of a meaningful contribution' towards the expenses of looking after children in out-of-home care. The study estimated that the cost of providing a basic standard of living for an eight-year-old girl in care could reach $850 per week. This figure far exceeds the average national care allowance of $292 per week, and is four times the lowest minimum rate in Victoria.

Kinship carers, who are often older relatives taking on unexpected responsibilities, are experiencing particularly acute financial strain. They frequently receive lower payments than foster carers despite similar needs. The report, commissioned by the federal government and released on August 14, 2026, recommends nationally consistent minimum care allowance rates and assessments for child needs. While the federal government is 'carefully considering' the 38 recommendations for broad reform, state governments are also allocating some funds for cost-of-living relief for carers.