One Queensland teen in care costs state $2.6m: inquiry to probe ‘unscrupulous’ sector operators

Queensland government to launch probe into out-of-home care sector amid revelations that include how one private firm given tens of millions of taxpayer dollars siphoned off $5m for its three owners.

Child Safety Minister Amanda Camm has slammed the action of some private operators who rake in profits while vulnerable kids in state care suffer. Picture: Steve Pohlner

A private company was paid tens of millions of dollars in Queensland taxpayer money to care for vulnerable children but siphoned off more than $5m to its three owners last financial year.

Child Safety Minister Amanda Camm has ordered a forensic audit into the unnamed company, which also increased its management fees by 1000 per cent, prompting Ms Camm to accuse “unscrupulous people of lining their pockets as children in care languish”.

Premier David Crisafulli and Ms Camm will on Sunday announce a sweeping commission of inquiry into the billion-dollar children-in-care sector in the state, revealing taxpayers were paying $2.6m annually to look after just one teenager with particularly complex needs.

There will also be an examination of rules allowing unlicensed operators – subject to very little oversight – to care for vulnerable children who are removed from their homes for their own safety.

Recently retired Federal Court judge Paul Anastassiou has been tapped to lead the inquiry, which will be ordered to “prosecute failures” of the former Labor government and its ministers.

Queensland Premier David Crisafulli, above, and Ms Camm will on announce a sweeping commission of inquiry into the state’s billion-dollar children-in-care sector. Picture: John Gass

The latest figures from December 2024 reveal there are 12,497 children in government-funded care in Queensland – including 4173 in foster care, 6112 in kinship care, and 2212 in residential care, of which 116 are aged five or younger.

While the numbers of children in foster care have remained relatively steady in the past decade, the demand for kinship and residential care has exploded in the same period.

In June 2015, there were 8415 children in government care, of which only 663 were in residential care; 4204 were in foster care and 3548 were in kinship care.

The strain on the budget from residential care has also increased exponentially. In 2014-15, the service cost the state $200m; this financial year, the cost is forecast to hit $1.12bn.

Temporary placements, including at hotels, for vulnerable children is a rapidly growing industry, costing the budget $82m in 2014-15 and $766m this financial year.

The LNP government is focusing the inquiry on the past decade, from former Labor premier Annastacia Palaszczuk’s election in early 2015.

But major changes in the system occurred as early as 2013 – under LNP premier Campbell Newman’s one-term reign – after the Carmody child protection inquiry made major recommendations for an overhaul.

The Carmody inquiry warned even then that the cost of government-funded privately provided out-of-home care was rapidly growing, forcing an enormous blowout in the overall child protection budget.

Ms Camm said the government had uncovered systemic failures in the six months since it was elected in October, prompting the “extraordinary step” of calling the commission of inquiry.

“We have only scratched the surface of neglect, disarray, and morally questionable actions of some of the people and organisations that operate in the out-of-home care system,” Ms Camm said.

“The former Labor government created this billion-dollar residential care industry that has traumatised children and devastated communities in its wake. Their egregious lack of oversight allowed this to happen.”

She said there needed to be more scrutiny on how taxpayers’ money was being spent.

A census of children in care taken last year showed 22 per cent had attempted suicide, 44 per cent were harming themselves, 51 per cent had a diagnosed or suspected disability and 40 per cent had a diagnosed or suspected mental illness.

The government says almost a third of children in care are not being properly treated for their mental health issues and 20 per cent were not getting sufficient care for their disabilities.