CREATE Foundation’s NSW Budget Response

Young people met with Minister Washington in July to talk about whether the New South Wales’ budget meet the needs of children and young people living with a care experience.

With the NSW government unveiling its spending and saving plans for the coming financial year, it has been announced that the government have invested a record $1.2 billion for a child protection package which aims to ensure children and young people living with an out-of-home care experience are front and centre of this budget.

CREATE Foundation Board Member, Emily Hikaiti and Young Consultant, Lachlan (pictured) were at Parliament House for the announcement of  NSW’s largest investment in child protection and out-of-home care in the state’s history. 

The CREATE Foundation acknowledges the NSW Government’s vision “to rebuild a world class out-of-home care system that enables children to thrive in supportive, stable environments, with greater transparency and accountability at every level,” (NSW Communities and Justice, 2025). 

The Minister’s pledge to sustain a child protection system which prioritises stability, safety and security are all crucial in achieving a system which is empowered for and by the very people living in it, children and young people living with a care experience.  

Children and young people are often removed from their families through circumstances beyond their control. For the 13,541 children and young people living in out-of-home care across NSW, the NSW Government is urged to reflect on whether they acknowledge the critical responsibility they hold in ensuring children and young people’s needs are being met with the same care, attention and opportunity any parent would provide.

Listening to children and young people

Children and young people at CREATE share invaluable insights into what they believe every child should receive, to allow them to grow, develop and thrive. Common themes include the right to feel safe, supported and connected so that they may thrive and achieve desirable life outcomes. The reality can be starkly different for many children and young people living with an out-of-home care experience, particularly where children and young people are forced to fend for themselves, and navigate larger systems such as housing, employment, health and wellbeing, and connection to culture and community.

CREATE Young Consultants hosted a conversation with Minister Washington focusing on the NSW budget and what this will mean for children and young people in care.

On Tuesday, 22 July CREATE Young Consultants met with Minister Kate Washington to discuss the budget and the reform plan. Young Consultants drew on critical themes which included considerations relating to:

  • Housing stability
  • Safety and security (access to health and mental health support)
  • Belonging and connection (culture and community)
  • Personal development & capability (education, training and work)
  • Fulfillment & long-term wellbeing

To create a better life for children and young people in care, CREATE has, in consultation with children and young people, identified key areas that require improvement, which will be referred to as the CREATE Foundation’s advocacy priorities.

Transition to independence or transition to adulthood

A key advocacy priority CREATE supports is transition independence. This priority proposes that every child and young person leaving care should have access to the support, resources and stability needed for a successful transition.

Children and young people recognise the NSW Government’s commitment to invest $49.2 million to establish better housing for children and young people over the age of 12. The government has vowed to build or upgrade 44 government owned, purpose-built or upgraded residential care homes that will aim to deliver children and young people over the age of 12 years of age, with complex needs, a safe and stable place to live.

Children and young people would like to see a commitment from the government to revise and increase access to Foyer Central (The Foyer Model). Foyer Central is a purpose-built accommodation and learning centre that provides young people with experience of out-of-home care with a stable home and tailored strengths-based support to develop skills to lead independent and fulfilling lives. It is the first Foyer model globally to be funded as a social impact bond, and the first Foyer model solely focused on people with experience of out-of-home care (NSW Government, 2023).

In meeting with the Minster, children and young people expressed the need for the NSW Government to revise current costs for housing for children and young people living with a care experience and consider a need to set caps to the cost of housing, in line with the increased cost of living.

One young person shared:

“I’ve spent the last year homeless and the requirements to actually maintain housing from like prices to like the constantly having to go into the office, having to go to six inspections a week and make six applications just for like 3 days’ worth of an extension makes it like basically unable to do anything other than just keep on top of your housing requirements. I’ve been on the priority housing list for like five years.
I feel like yeah, there should be a like allocated, sort of priority allocation for OOHC especially.”

Further insights from a young person included:

“I’ve pushed back my studies by at minimum 12 months, and I’m trying to focus more on work, but its kind of hard to find a place to work when I don’t know where I’m going to be living. If I have to move to a whole different suburb, then I’m going to have to find a new job anyway, because I wont be able to get to work”.

While another young person shared:

“I recently secured housing and like a house, its not just the stability, it’s the roof you have, a place that is in a lot of ways a safe place, its having that sense of that psychological safety net as well.”
Residential care reform

Residential care continues to remain a priority in the CREATE Foundations key advocacy priorities, focused on family preservation and early intervention as essential to avoid children entering care. When kids do enter care, home-based models are best suited to help kids thrive. Where residential care is necessary, it should provide meaningful relationships between care workers and young people, stability, therapeutic models, positive and responsive home environments, and holistic supports.

With $191.5 million set to hire 200 new caseworkers, and to fund more training for case workers and increased pay. The children and young people expressed concerns to the Minister relating to training, retention of case workers and organisational culture. The children and young people also highlighted that:

“There were certain things that the workers were supposed to do, and my Case Manager, Team Manager was to do, and they weren’t doing it. And then when I said its supposed to be done like, this is your responsibility, they told me. And I’m like, I’m 16, you’re in an employed position. Why should I be reminding you to do your job?”
“Because in the past, they’ve treated me wrong, and they haven’t done the right thing…They brought me to respite without my consent or permission.”
“There is limited communication between case workers, case managers and workers.”
Safety and stability in care

A significant advocacy priority the CREATE Foundation highlights is safety and stability in care. The priority implies that every child and young person in care deserves a stable, safe and supportive home that prioritises their needs, relationships, and community ties.

The NSW Government has committed to a $797.6 million investment into the continuation of supports for children and young people, and $10 million to support the continuation of the work of the Office of the Children’s Guardian who will receive continued funding to oversee organisations and uphold children’s rights to remain safe. Young people shared the following insights on the safety and stability budget considerations…

“Feeling safe is just as important as being safe.”
 “We need people who support us… without these supports it can damage the young person living in care.”
“Accountability is to be shared… collaboration is key for increased access to services.”
Relationships

A key priority for advocacy for children and young people living with a care experience continues to be relationships, and sibling, kin and family connection. Safe, consistent, and meaningful relationships are the foundation of safety and wellbeing for children and young people in care and strong sibling, kin, and family connections are essential for identity, belonging, and emotional resilience for young people in care. During the meeting with Minister Washington, one young person shared,

“I wish I could see my siblings once a week, not once a month… It’s pretty fun when I see my sisters, they are fun to play with… Family time often gets cancelled.”

Children would like to see continued collaboration by agencies, and service providers. Children and young people urged for the system to “stop working in silo!” and “…learn to work together.”

The NSW budget saw a $143.9 million boost for Foster Carers (for the first time in two decades) who will receive more money to care for children and young people. Some questions highlighted by children and young people included:

“How will the government monitor the way this money is used, and whether this money is being used for the child or young person?”
“Will the Foster Carer be supported to increase their skillset and knowledge in supporting children and young people, overtime?”
CREATE Young Consultants highlighted the gaps in mental health responses, access and care to Minister Washington

Children and young people shared that further considerations must be made to allow for mental health support provisions for children and young people living with an out-of-home care experience. Research has consistently demonstrated that children and young people living with an out-of-home care experience have an amplified risk of developing mental health concerns and are also more likely to experience long-term adverse psychosocial outcomes. While negative outcomes are not inevitable, experiences faced by children and young people while residing in an out-of-home care arrangement are highly heterogeneous, and mental health outcomes can be influenced by an intricate combination of risk and protective factors that function at several socioecological levels.

The lack of mental-health services and subsequent accessibility limitations continue to act as a major barrier for children and young people in being able to access appropriate mental health services, as is health professionals’ lack of understanding of the structures, processes and legal requirements of out-of-home care systems. Children and young people living with a care experience should be provided priority access to mental-health services, there should be a shift in focus by the NSW Government to prevention and early intervention and there is to be a shared understanding between out-of-home care service providers and healthcare providers.

A diversified understanding of the complex factors that impact mental health outcomes for children and young people living with an out-of-home care experience, and a child-centred approach that acknowledges and listens to the voice of children and young people is necessary to inform effective mental health support. Without continued collaboration and listening children and young people will continue to face mental health challenges throughout their lifespan. Young Consultants shared their experiences and how they would like to be supported by the NSW Government…

“Mental health support is a hard thing to access in NSW I use self-care apps”
 “I believe that the government should invest in mental support that is specifically for people who have been through the system and have traumatic backgrounds”
“More mental health training for carers and kinship carers and have more funding for children to seek mental health support”
CREATE Young Consultants highlighted their experiences of disconnection from their culture and communities through out-of-home care, and disappointment with the low investment in reducing over-representation of First Nations children in care.

CREATE recognises First Nations peoples as the traditional custodians of Australia including its lands and waterways. CREATE supports a just and equitable Australia where respect for First Nations peoples is afforded, and where all Australians can move forward together in the spirit of equity and justice.

CREATE deeply respects the rights of First Nations peoples to maintain their culture and to be involved and participate in decisions that affect their lives and future in a manner consistent with the United Nations Declaration on the Rights of Indigenous Peoples and the UN Convention of the Rights of the Child. CREATE is committed to improving the lives of all children and young people with a care experience and acknowledges the impact of colonisation and the stolen generation in the community and the resulting impact of the over-representation of Aboriginal and Torres Strait Islander children and young people within the out-of-home care system.

Aboriginal and Torres Strait Islander self-determination continues to remain as a key priority for children and young people living with a care experience. Aboriginal and Torres Strait Islander children have a right to connection, culture, and community through self-determined, culturally-informed care. Nationally, 22,908 Aboriginal and Torres Strait Islander children are living in out-of-home care, amounting to approximately 41% of all children and young people in care (AIWH, 2024; SNAICC, 2024, p.16). In keeping with our role as a consumer body and advocate, the CREATE Foundation hear directly from First Nations young people about their over-representation in statutory care systems and the changes they believe will achieve progress on this.

CREATE Foundation continues to advocate for full implementation of the National Agreement on Closing the Gap Outcome 12 Target, to reduce the rate of over-representation of Aboriginal and Torres Strait Islander children and young people in out-of-home care arrangements by 45% by 2031.

The CREATE Foundation acknowledges our positionality as a non-Indigenous organisation and the limitations of our voice in relation to conversations about Closing the Gap. The CREATE Foundation is committed to working as an ally, advocating for self-determination for First Nations communities and the community-controlled sector, as the paramount guiding principle in relation to the safety and wellbeing of Aboriginal and Torres Strait Islander children, young people and their families. The CREATE Foundation acknowledges that the community-controlled sector are the experts when it comes to achieving outcomes for communities and their children and young people.

CREATE young consultants acknowledge the $33.4 million cash boost for Aboriginal Throughcare and therapeutic support pathways, and investments in First Nations-led initiatives: language programs, suicide prevention, student support and cultural mentoring. However, this investment does not go nearly far enough to advance self-determination or reduce the child protection systems continued removal of Aboriginal and Torres Strait Islander children and young people, leading to over-representation and disconnection from family, culture and community.

CREATE young consultants would like to see the NSW Government dig deeper into how the budget can better drive to meaningful change and self-determination for Aboriginal and Torres Strait Islander children, with enhanced support for families led by Aboriginal organisations to keep children safe, thriving and connected to culture. CREATE young consultants would like to see the NSW Government:

  • Listen to Aboriginal and Torres Strait Islander children and young people and ensure their right to participate in decisions that impact them. Children and young people have shared,
“Culture is important, because without it, I wouldn’t be me. My culture is important but I wish I had the chance to understand it more growing up in care.”
“I would like to be more connected with my culture. I don’t know what that looks like though.”
“Listen to us about how we are feeling and how we want to change something or see something. Just listen and sit there.”
  • Listen to community and the community-controlled sector, and implement the many Aboriginal-led system reviews, inquiries and recommendations already developed.
  • Implement Safe and Supported: The National Framework for Protecting Australia’s Children 2021-2031, with full prioritisation and resourcing of the Aboriginal and Torres Strait Islander First Action Plan 2023-2026, which outlines the steps needed to reduce over-representation. CREATE Submission on Measuring Outcomes for First Nations Communities
  • Invest in self-determination by investing in the Aboriginal community-controlled sector, including implementation of Delegated Authority models in all jurisdictions, and investment in flexible, culturally-informed and community-led service responses to the needs of children and families.
  • Ensure compliance with the Aboriginal and Torres Strait Islander Child Placement Principle and implementation of Aboriginal Family-Led Decision Making in all jurisdictions.
  • Ensure all jurisdictions have a Commissioner for Aboriginal and Torres Strait Islander Children and Young People with full authority under legislation, adequate resourcing, and direct access to all relevant information to ensure an effective oversight function.
  • Invest in early intervention to reduce entries into care by addressing the issues contributing to child protection involvement, including investment in family support services and family preservation.
  • Address the social drivers linked to child protection involvement, including poverty, family violence, intergenerational trauma, lack of safe and affordable housing, disability related needs, substance issues and mental health.
  • Act quickly. Current trends require urgent action to correct. This is critical to improve life outcomes for children and young people and avoid the grief of separation for children, families and community.
  • Strengthen data reporting and public accountability, guided by principles of data sovereignty and Aboriginal knowledge and evidence.
CREATE Foundation welcomes the additional investment and commitment to act to reduce the number of children criminalised while they are in the care of government, however it does not go nearly far enough.

The CREATE Foundation believes that reforming youth justice systems is essential to break cycles of criminalisation and ensure children are supported, not detained. The NSW government has committed to a $5.5 million investment for youth justice diversion programs. This investment is not aligned with the stark over-representation of children in care in youth justice and the failure of government to provide responsive care and support for children and young people in care to keep them safe and out of trouble, as a good parent would. Children and young people feel that continued reform and commitment by the NSW Government is required to further support children and young people in order to reduce the cycle of youth criminalisation.

CREATE Young Consultants appreciated the Minister’s time to share her priorities and achievements to date, and look forward to continuing to provide the NSW Government with their lived experience expertise and system insights.

Children and young people welcome the Government’s commitment to improve the lives and children and young people during her time in office over the past two years. In this time, Minister Washington has shared that she has successfully:

  • Ended unaccredited emergency accommodation (hotels, motels and caravan parks with rotating shift workers) for children and young people living in out of home care in NSW as of April 2025
  • A reduction of children and young people living in High-Cost Emergency Arrangements (HCEA) by 25 percent since November 2023
  • Continuation of critical programs to recruit foster carers, which has resulted in the recruitment of more than 240 emergency care placements, who have ensured hundreds of children and young people have not had to enter emergency arrangements.
  • The government have delivered a record $350 million worth of family preservation programs delivered by Aboriginal Community Controlled Organisations.
  • The government have established Department of Communities and Justice-managed Waratah Care Cottages to support children and young people, and their siblings remain together in a safe and stable environment.
  • The government have replaced casework specialists to children a young people facing duties, allowing an additional 300 children and young people necessary supports.
  • The government has insourced 300 family time workers, directly employed to keep children and young people living with an out of home care experience connected to their parents and caregivers.
  • The Minster has released a comprehensive roadmap for reform, which includes the reinstatement of oversight and accountability of service delivery to the government.

The voices of children and young people in care must be prioritised to ensure this work and investment delivers the outcomes that matter most to children in the care of the NSW government. While the budget has made headlines as one of the largest budgets in New South Wales’ history, continued revision and listening to children and young people with lived experience of the care system is required, to ensure the system continues to act in the best interest of those it is intended to serve. The CREATE Foundation welcomes the clear commitment for children and young people living with an out of home care experience to remain front and centre of this budget, and we are committed to ensuring that the voices of children and young people in care continue to influence policy, program and investment decisions across all portfolios that shape their lives.

References

Reform plan: transforming the out-of-home care system in NSW Communities and Justice. (2025). Available at: https://dcj.nsw.gov.au/documents/service-providers/out-of-home-care-and-permanency-support-program/oohc-resources/OOHC-Reform-Plan.pdf.

Foyer Central. (2023). NSW Government. Available at: https://www.nsw.gov.au/departments-and-agencies/osii/social-impact-investments/foyer-central.