Out-of-home care is provided to children or young people who cannot live with their own families. In NSW, it is provided by the Department of Communities and Justice, as well as by non-government providers including Aboriginal community-controlled organisations.
The NSW Government asked IPART to investigate and report on the costs and pricing of out-of-home care, as it was seeking to improve the performance and financial sustainability of the out-of-home care system. Our Terms of Reference asked us to make decisions and recommendations on:
- the efficient costs for the Department of Communities and Justice (DCJ) and non-government providers of providing out-of-home care
- benchmark costs for caring for children with varying needs in out-of-home care across the different types of placements
- appropriate pricing structures and levels for the efficient delivery of quality services
- a methodology for adjusting prices paid to non-government providers
- an appropriate care allowance for providing care and support to children and young people in out-of-home care.
We completed our review and submitted our Final Report to the Premier and the Minister for Families and Communities on 19 September 2025.
The Premier tabled the Final Report in Parliament on 20 October 2025 and it is available here.