NSW government to put $1.2bn in funding for child protection sector

The NSW government will put $1.2bn into the child protection system, saying it is the first time in decades kids are not left to sleep in motels.

This NSW budget will include $1.2bn to help children in need find shelter, with the government saying it will end the cycle of kids “sleeping in motels with barely adequate supervision.”

During his budget speech, NSW treasurer Daniel Mookhey announced the major funding boost to help the 17,000 children left in the system.

“Today I announce the biggest investment in child protection in New South Wales history,” he said.

“$797.6 million of additional funding will fix what was a chronically and tragically underfunded system.”

Mr Mookhey said for the first time in decades, children were no longer left sleeping in motels.

Mr Mookhey said the Minns government had been able to reform the “broken” child protection system. Photo: NewsWire/ Gaye Gerard

“In March 2023, more than 100 children cared for by the state of New South Wales were sleeping in motels,” he said.

“Unaccredited emergency accommodation, no proper support, barely adequate supervision.”

Mr Mookhey said two years of reforms had enabled the government to fix a “broken system”, meaning the state could “invest more in kids”.

He said there would also be a pay bump included in the budget to help boost the workforce needed to help supervise children.

Child protection caseworkers walked off the job last year to draw attention to the risk to child safety in NSW. Picture: NewsWire / Gaye Gerard

“$191 million is set aside to give 2125 caseworkers a pay rise, helping us fill the 200 caseworker positions.

“(It also lets) us create 100 new leading case worker roles, paid for by mutual gains bargaining.”

Mr Mookhey said the extra funding was created by no longer needing to pay labour hire firms to care for kids in motels.

The government will also announce the first significant increase in the foster care allowance in 20 years. It will rise by 20 per cent from January 1, 2026.

This means a foster carer of a five-year-old would receive $3411.20 extra a year – or an increase from $656 to $787.20 each fortnight – with the boost for the carer of a 14-year-old to hit $4576 each year.

Originally published as NSW government to put $1.2bn in funding for child protection sector