FOR the first time in more than two decades, foster and kinship carers across NSW have received a 20 percent increase to their care allowance.
The increase aims to ease cost-of-living pressures and strengthen support for vulnerable children in out-of-home care.
The tax-free increase took effect from 1 January 2026 and applies to authorised carers receiving statutory care, supported care, guardianship or adoption allowances through the Department of Communities and Justice or accredited non-government organisations.
Minister for Families and Communities and Port Stephens MP Kate Washington said, “When we came to government foster carers were telling me that they hadn’t felt valued in years.
“This increase to the foster care allowance is a powerful recognition of the vital work foster carers do every day across NSW providing safe and loving homes for the children who need it most.”
The increase translates into an additional $4,576 per year for carers of a typical 14-year-old and $3,411 more annually for carers of a typical five-year-old.
The additional funds aim to help cover everyday costs such as food, clothing, education and activities.
Ms Washington said, “We are undertaking significant reform of the child protection system, a critical part of which is looking after our foster carers better.
“We value the wonderful people who step up and become foster carers, and we will continue to support them so they can support the kids in their care.”
The allowance rise forms part of the Minns Labor Government’s $1.2 billion child protection reform package.
The reform includes banning unaccredited care providers, introducing paid foster leave for NSW Government employees, and establishing government-run Waratah Care Cottages.
The government will also be recruiting more than 300 family time workers to help children stay connected with their birth families.
Secretary of the Department of Communities and Justice Michael Tidball said, “Foster carers make a huge difference every single day.
“Their commitment and kindness help change the trajectory of children’s lives.
“We are making sure our carers have the support they need, and we are actively welcoming new carers from all backgrounds.
“If you have room in your heart and your home, please consider joining our foster care community.”
More information about becoming a foster or kinship carer is available at nsw.gov.au/fostercare.
You can help your local paper.
Make a small once-off, or (if you can) a regular donation.
We are an independent family owned business and our newspapers are free to collect and our news stories are free online.
Help support us into the future.
