Foster carers in Victoria receive the lowest allowance in Australia, and the payment does not cover the actual cost of caring for a child, according to a new report.
Allowance falls short of real costs
The report, released by the Victorian Council of Social Service (VCOSS), found that the daily allowance for foster carers in Victoria is $72.50, the lowest of any state or territory. This amount is meant to cover food, clothing, transport, and other everyday expenses, but the report says it falls well short.
VCOSS calculated that the real cost of caring for a child in out-of-home care is around $120 per day, meaning carers are left to cover the difference themselves. For a full year, this shortfall can amount to more than $17,000 per child.
Carers forced to dip into own pockets
The report highlights that many foster carers are forced to use their own income to meet the basic needs of the children in their care. This financial pressure is a major reason why carers give up the role, contributing to a shortage of foster placements across the state.
VCOSS is calling on the Victorian government to increase the allowance to reflect the true cost of care, and to index it annually so it keeps pace with rising expenses. The organisation argues that without adequate financial support, the state's foster care system will continue to struggle to recruit and retain carers.
Impact on children and the system
The report warns that the low allowance not only affects carers but also has a direct impact on children. When carers cannot afford to meet costs, children may miss out on activities and opportunities that are essential for their development.
The findings come as the Victorian government reviews its out-of-home care funding. VCOSS says the review is an opportunity to address the gap and ensure that foster carers are properly supported.
