For the first time in over two decades, foster and kinship carers across NSW have received a 20 per cent increase to their care allowance, as part of the Minns Labor Government’s landmark reforms to strengthen support for carers and vulnerable children in out-of-home care (OOHC).
The tax-free allowance increase, which commenced from 1 January 2026, is designed to help carers manage rising cost of living pressures and support the children and young people in their care.
The increase has been welcomed by South Coast based William Campbell Foundation CEO Sonia Liddicoat.
The increase will make a real difference in the day-to-day expenses of caring for children, with a carer of a typical 14-year-old to receive $4,576 more per year, and a carer of a typical 5-year-old to receive an additional $3,411 per year.
These payments are part of the Minns Labor Government’s landmark $1.2 billion child protection package to reform the child protection system and better support foster carers.
Significant work has been undertaken to transform the recruitment, training and support provided for carers, with the first NSW OOHC Carer Strategy to be released early in 2026.
