Historic Child Protection Overhaul, $1 Billion Housing Guarantee Scheme in Budget
- NSW Treasurer Daniel Mookhey announced a $1.2 billion funding boost in the 2025 state budget to overhaul child protection and housing support.
- This investment follows decades of systemic underfunding, with over 100 children sleeping in motels as of March 2023, though none have stayed there since April 2025.
- The funding includes $191.5 million to recruit over 200 new caseworkers, $49 million for 44 care homes including in the Hunter, and a 20 percent foster care allowance increase effective January 1, 2026.
- Mookhey said this marks the first time in decades children are not housed in motels, calling the prior system "chronically and tragically underfunded," while a carers' representative praised recognizing a "system in crisis."
- The reforms aim to ensure stability and safety for the 17,000 children in care and suggest ongoing improvements, though carers stress continued challenges despite significant new resources.
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Historic child protection overhaul, $1 billion housing guarantee scheme in budget
The NSW Labor government will make the largest investment in child protection in the state’s history, spending $1.2 billion to overhaul the troubled system, which will include increasing the foster care allowance, employing more caseworkers and ensuring children needing out-of-home care are not housed in motels with minimal supervision.
·Sydney, Australia
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·Kristiansand, Norway
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