Response to State budget - 20 May 2025

The Foster Care Association of Victoria welcomes several positive measures in today’s Victorian State Budget, including the announcement of free public transport for children under 18, the extension of the Camps, Sports and Excursion Fund, and the continuation of Get Active vouchers to support extracurricular activities. These initiatives will support all families across the state and are steps toward easing cost-of-living pressures.

However, foster carers are disappointed that the Victorian Government has not taken the opportunity to increase cost of living supports for the most vulnerable children in our community, those living in state care. Despite consistent and growing calls from carers, peak bodies, and child welfare experts, there is still no commitment to increasing the Care Allowance, which has the lowest  base rate of any jurisdiction in Australia. The allowance is intended to cover the essential, everyday costs of raising a child in care, yet it continues to fall far short of meeting even basic needs.

 As a result, carers continue to shoulder the shortfall, subsidising the system with their own finances on top of the resources, time, and emotional labour they provide on behalf of Victoria.
Read more on the Care Allowance campaign: https://www.fcav.org.au/news/petition-to-increase-the-care-allowance

From the Victorian Council of Social Services Budget Analysis: https://vcoss.org.au/vicbudget/2025-victorian-budget/

“Foster and kinship carers play a vital role in creating safe, enriching, and therapeutic environments for children and young people. The majority of Victorian carers report that providing care is highly rewarding, but mounting cost-of-living pressures are taking a toll. While Victoria provides carers a fortnightly allowance to contribute to care costs, Victoria’s base rate is the lowest in the country. This is contributing to carer dissatisfaction, carer churn and a significant long-term decline in the overall number of foster carers. The loss of experienced carers creates instability for children and young people, reduces options for home-based care, and leads to greater use of contingency care (e.g. hotel rooms with workers) and residential care. VCOSS is disappointed that this Budget did not raise – and appropriately index – the Care Allowance to cover the true costs of providing a safe and therapeutic environment, nor did it provide equity in the rates and levels of Care Allowance provided for children and young people in care based on their needs, not placement type.”