This interim report sets out analysis and preliminary findings on key issues in the out-of-home care (OOHC) system and focuses on the rising cost of providing out of home care. The report finds that changes to the funding arrangements and pricing levels for OOHC could help facilitate the move away from high-cost emergency arrangements and improve the experience of children and young people in care.

Economy-wide factors are contributing to caseworker and care-worker shortages and increasing costs for care providers. Increased costs have put pressure on the system and contributed to the use of expensive emergency arrangements which further raise the cost of OOHC.

The report focuses on the current costs to government and the variation in cost and outcomes between services that are government-delivered and those outsourced to non-government providers through the Permanency Support Program (PSP).

Findings

• The PSP has increased administrative burden without increased visibility of services delivered or outcomes achieved. 
• Non-government providers spend around $13,000 more per child than DCJ.
• Current funding may be inadequate to deliver quality OOHC services.
• Funding levels do not meet the needs and rights of Aboriginal children or of children with higher needs.
• When packages are misaligned with the needs of children, there can be a significant impact on children and their carers.

IPART invites comment on this document and encourages all interested parties to provide submissions addressing the matters discussed. Submissions are due by Tuesday, 29 October 2024.