Resource Sheet
Number 8 March 2008

Foster care

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What is foster care?

Foster care is a form of out-of-home care for children and young people up to 18 years of age who are unable to live with their families (generally because such children have been maltreated). It involves the placement of a young person with caregivers, who then look after the young person in their own homes on a short- or long-term basis. Caregivers are volunteers but are reimbursed by state/territory governments for the care of the child. In kinship care, the caregiver is known to the child and/or family (i.e., based on a pre-existing relationship), such as an aunt, grandparent or family friend (Victorian Government Department of Human Services, 2003).

Australia has a long history of using both foster and institutional care (i.e., orphanages) since shortly after the first white settlements. The settlements' abandoned and neglected children, or children whose parents were considered "socially inadequate" were boarded out with approved families, or later, resided in orphanages, the first of which was established on Norfolk Island in 1795 (Liddell, 1993).

Since the 1800s, the provision of alternative care has swung between the housing of maltreated children in institutional settings or in some form of family-based care, such as foster care.

In the 1980s and 1990s, there was widespread closure of residential settings in Australia, resulting in a heavy (and currently ongoing) reliance on foster care for children requiring out-of-home placements.

How many children live in out-of-home care in Australia?

The most recent statistics from the Australian Institute of Health and Welfare (AIHW, 2008) suggest that, as of 30 June 2007, there were 28,441 Australian children living in out-of-home care. Table 1 shows the number of children in Australia admitted to out-of-home care, by age group, in each state and territory in 2006-07.

Table 1: Children admitted to out-of-home care by age group, states and territories, 2006-07.

Age (years)	NSW	Vic.1	Qld2	WA	SA	Tas.	ACT	NT	Total Number
<1	605	408	n.a.	209	130	63	32	50	..
1-4	1,123	729	n.a.	281	189	96	45	111	..
5-9	1,119	693	n.a.	239	167	95	47	89	..
10-14	1,151	806	n.a.	221	172	99	65	99	..
15-17	333	358	n.a.	40	70	19	18	35	..
Unknown	3	-	n.a.	-	-	-	-	-	..
Total	4,334	2,994	..	990	728	372	207	384	..
	Per cent
<1	14.0	13.6	..	21.1	17.9	16.9	15.5	13.0	..
1-4	25.9	24.3	..	28.4	26.0	25.8	21.7	28.9	..
5-9	25.8	23.1	..	24.1	22.9	25.5	22.7	23.2	..
10-14	26.6	26.9	..	22.3	23.6	26.6	31.4	25.8	..
15-17	7.7	12.0	..	4.0	9.6	5.1	8.7	9.1	..
Total	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	..

Notes: (1) Due to new service and data reporting arrangements, the Victorian child protection data for 2006-07 may not be fully comparable with previous years' data. (2) Data have not been provided due to the recent transition to a new information management system.
The table includes all children admitted to out-of-home care for the first time, as well as those children returning to care who had exited care more than two months previously. Children admitted to out-of-home care more than once during the year were only counted at the first admission. Percentages exclude children of unknown age. Percentages in tables may not add to 100 due to rounding.

Source: Australian Institute of Health and Welfare (2008, p. 54)

The number of children in out-of-home care has risen every year over the last 11 years (AIHW, 2008). Since 30 June1997, the number of children in out-of-home care has increased by 102%. The numbers rose 12% in the year to 30 June 2007. At 30 June 2007, the rate of children aged 0-17 years in out-of-home care was 5.8 children per 1000, compared to a rate of 3 per 1000 at 30 June 1997 (AIHW, 2008).

What percentage of children in out-of-home care live in foster care in Australia?

Australian Institute of Health and Welfare statistics show that 95% of all children living in out-of-home care in Australia are in home-based care (see Figure 1). Of that figure, 50% are in foster care, 44% are in relative/kinship care and 1% in a different kind of home-based care (AIHW, 2008).

Of children in out-of-home care, the Northern Territory has a relatively high proportion in foster care (64.5%), and New South Wales has a relatively high proportion placed with relatives or kin (57.2%) compared to other states and territories (AIHW, 2008).

Notes
1. Due to new service and data reporting arrangements, the Victorian child protection data for 2006-07 may not be fully comparable with previous years' data.
2. 2006-07 data for Queensland are interim and will be revised in 2008.

Source: Australian Institute of Health and Welfare (2008, p. 58).

Figure 1: Children in out-of-home care, by living arrangements, states and territories, as at 30 June 2007

How many Indigenous children live in out-of-home care?

As of August 2006, Aboriginal and Torres Strait Islander children comprised 4.2% of children aged 0-17 years in Australia (Australian Bureau of Statistics [ABS], 2007) yet constituted 25.8% of those placed in out-of-home care. As of June 2007, there were 7,892 Aboriginal children in out-of-home care in Australia, a placement rate of 36.1 per 1,000 Aboriginal and Torres Strait Islander children aged 0-17 years. There was substantial variation across the states and territories, with the placement rate varying from 10.8 per 1,000 in the Northern Territory to 57.0 per 1,000 in New South Wales (AIHW, 2008).

In all jurisdictions, the proportion of Indigenous children on placement orders was higher than that for other children. The national rate of Indigenous children in out-of-home care was over 8 times the rate for other children (AIHW, 2008).

What is the Aboriginal and Torres Strait Islander Child Placement Principle?

All Australian states and territories have adopted the Aboriginal and Torres Strait Islander Child Placement Principle that guides the placement of Indigenous children when they are placed in care (Lock, 1997).

The principle lays down the placement preferences to be followed when placing an Indigenous child in out-of-home care. Consideration must first be given to a placement with kin (extended family), then to other families in the child's community (kith), and then other Indigenous carers. Placement with non-Indigenous carers is therefore the placement of last resort (Lock, 1997).

In what types of placements do Indigenous children live?

As of June 2007, in all states except Tasmania, at least 56% of Aboriginal and Torres Strait Islander children in out-of home care were in the care of an Indigenous family member or relative (see Figure 2; AIHW, 2008).

Notes
1. Due to new service and data reporting arrangements, the Victorian child protection data for 2006-07 may not be fully comparable with previous years' data.
2. 2006-07 data for Queensland are interim and will be revised in 2008.

Source: Australian Institute of Health and Welfare (2008, p. 63).

Figure 2: Aboriginal and Torres Strait Islander children in out-of-home care, states and territories, 30 June 2007

The number of children placed with relatives/kin, other Indigenous caregivers or Indigenous residential care varies significantly across the states and territories. The proportion of all Aboriginal and Torres Strait Islander children placed with kith or kin or in Indigenous care ranged from 37% in Tasmania to 86.4% of placements in New South Wales (AIHW, 2008).

How are foster carers reimbursed?

State and territory governments pay foster care subsidies to carers. The size of the subsidy varies between the states and territories. With the exception of NSW, subsidies increase with the age of the young person in care. Table 2  shows the rates of subsidies provided to foster carers across each Australian state and territory as at 1 July 2006.

Table 2: Standard subsidy rates to foster carers across states and territories, as at 1 July 2006

Age	TAS1 (1/7/05)2,3	WA1 (1/3/06)2	NT1 (1/7/06)2	SA1 (1/7/06)2	VIC1 (1/7/06)2	ACT1,4 (1/7/06)2	QLD1 (1/7/06)2	NSW1,5 (1/7/06)2
2	130	109	114	94	119	122	135	187
3	86	109	114	94	119	122	135	187
4	86	109	114	94	119	122	135	187
5	110	109	123	101	119	138	135	210
6	110	109	123	101	119	138	158	210
7	110	137	123	101	119	138	158	210
8	110	137	148	108	124	161	158	210
9	110	137	148	108	124	161	158	210
10	129	137	148	108	124	161	158	210
11	129	137	148	108	141	161	192	210
12	129	137	167	131	141	184	192	210
13	129	165	167	131	190	184	192	210
14	169	165	167	131	190	184	192	282
15	169	165	201	161	190	222	192	282
16	169	165	201	161	190	222	182	282
17	138	165	201	161	190	222	182	282

Notes: (1) All amounts quoted above are rounded to the nearest dollar. These figures are only one component of many carer payments. State/territory policies and payments for contingencies and other child-related costs must also be considered in the broader payment context. (2) Indicates date on which payment first became operative. (3) The Tasmanian CPI is calculated in September-October each year and then back-dated and back-paid to 1 July. (4) The ACT rate was increased on 1 July 2006 by $5 across the board, as a fuel compensation, on 1 July 2006. (5) New NSW subsidy payments and contingency payment arrangements were announced on 10 September 2006 and were back-dated to 1 July 2006.

Source: Australian Foster Care Association (AFCA), 2006

Some carers may be able to access additional payments from state governments; for example, if a child has been classified as having very high needs.

In addition, caregivers may be entitled to a range of benefits funded by the Commonwealth Government. For example, foster carers can access Family Tax Benefits and Health Care Cards for foster children in their care, regardless of means testing (Australian Foster Care Association, Centrelink, & Department of Family and Community Services, 2004; Australian Government Centrelink, 2007; Higgins et al., 2005).

What does foster care cost?

Recurrent expenditure on child protection and out-of-home care services was at least $1.4 billion across Australia in 2005-06. Nationally, out-of-home care services accounted for the majority (61.9%, or $479.4 million) of this expenditure (Steering Committee for the Review of Government Service Provision, 2007). A study by the Social Policy Research Centre (McHugh, 2002) found that the cost of caring for children in foster care is, on average, 52% higher than the costs of caring for other children not in care.

What are some of the key issues/challenges in foster care in Australia today?

Many children in out-of-home-care still experience multiple placement changes (Ainsworth, 2001; Delfabbro, Barber, & Cooper, 2000; Forde, 1999).

Within the general shift to a foster-care based alternative care system, there is a rapid increase in the proportion of children in kinship care (Ainsworth & Maluccio, 1998; Leslie et al., 2000). It is now often considered to be the preferred option of alternative care for the child (Beeman & Boisen, 1999). However, at this stage, there is insufficient research evidence to demonstrate whether or not kinship care produces better outcomes for children (Bromfield & Osborn, 2007a, 2007b).

Recruiting enough carers to cope with the increased demand for foster carers is a concern for most states and territories (Rhodes, Orme, Bern, & Buehler, 2001; Rindefleisch, Bean, & Denby, 1998). Some are advocating for the professionalisation of foster carers in a bid to facilitate recruitment and help the increasing number of children coming into the system with complex and challenging behaviour problems (Butcher, 2005).

References

Ainsworth, F. (2001). After ideology: The effectiveness of residential programs for "at risk" adolescents. Children Australia, 26(2), 11-18.

Ainsworth, F., & Maluccio, A. N. (1998). Kinship care: False dawn or new hope? Australian Social Work, 51(4), 3-8.

Australian Bureau of Statistics. (2007). 2006 Census tables: Australia. Age by Indigenous status and sex, July 2007 (Catalogue No. 20680). Canberra: Author. Retrieved 27 November 2007, from: http://www.censusdata.abs.gov.au

Australian Foster Care Association. (2006). Comparison of state and territory foster care payments. Canberra: Author. Retrieved 27 November 2007, from: http://www.fostercare.org.au/docs/2006basicsubsidycomp270906.pdf

Australian Foster Care Association, Centrelink, & Department of Family and Community Services. (2004). Australian Government financial support for foster families. Canberra: Australian Foster Care Association. Retrieved 27 November 2007, from: http://www.fostercare.org.au/info.html

Australian Institute of Health and Welfare. (2008). Child protection Australia 2006-07 (Child Welfare Series No. 43). Canberra: Author.

Beeman, S., & Boisen, L. (1999). Child welfare professionals' attitudes toward kinship foster care. Child Welfare, 78, 315-337.

Bromfield, L. M., & Osborn, A. (2007a). Australian out-of-home care research: Kinship care (Research Brief No. 8). Retrieved 27 November 2007, from: http://www.aifs.gov.au/nch/pubs/brief/rb10/rb10.html

Bromfield, L. M., & Osborn, A. (2007b). "Getting the big picture": A synopsis and critique of Australian out-of-home care research (Child Abuse Prevention Issues No. 26). Retrieved 27 November 2007, from: http://www.aifs.gov.au/nch/pubs/issues/issues26/issues26.html

Butcher, A. (2005). Upping the ante! The training and status of foster carers in Queensland. Children Australia, 30, 25-30.

Delfabbro, P., Barber, J., & Cooper, L. (2000). Placement disruption and dislocation in South Australian substitute care. Children Australia, 25(2), 16-20.

Forde, L. (1999). Commission of Inquiry into Abuse of Children in Queensland Institutions. Brisbane: Queensland Government.

Leslie, L. K., Landsverk, J., Horton, M. B., Ganger, W., & Newton, R. R. (2000). The heterogeneity of children and their experiences in kinship care. Child Welfare, 79(3), 315-334.

Liddell, M. J. (1993). Child welfare and care in Australia: Understanding the past to influence the future. In C. R. Goddard & R. Carew (Eds.), Responding to children: Child welfare practice (pp. 28-62). Melbourne: Longman Cheshire.

Lock, J. (1997). The Aboriginal Child Placement Principle. Sydney: New South Law Reform Commission.

McHugh, M. (2002). The costs of caring: A study of appropriate foster care payments for stable and adequate out-of-home care in Australia. Sydney: NSW Association of Childrens Welfare Agencies.

Rhodes, K. W., Orme, J. G., & Buehler, C. (2001). A comparison of family foster parents who quit, consider quitting and plan to continue fostering. Social Services Review, 75, 45-49.

Rindefleisch, N., Bean, G., & Denby, K. (1998). Why foster parents continue or cease to foster. Journal of Sociology and Social Welfare, 15, 5-24.

Steering Committee for the Review of Government Service Provision. (2007). Report on government services 2007. Vol. 2: Health, community services, housing. Melbourne: Productivity Commission.

Victorian Government Department of Human Services (2003). The home-based care handbook. Melbourne: Community Care Division, Victorian Government Department of Human Services. Retrieved 17 March 2008, from: http://www.office-for-children.vic.gov.au/placement-support/library/publications/placement/home-based_handbook

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