ACWA has played a central role in representing NSW’s non government OOHC sector throughout the Independent Pricing and Regulatory Tribunal’s review of Out of Home Care costs and pricing, which commenced in early 2024.

Our advocacy has ensured that provider insights, operational realities, and the voices of children, young people and carers remained central to the review process.

Our Submissions and Sector Input

ACWA prepared a series of detailed submissions to IPART, informed by extensive contributions from member agencies across NSW. These submissions highlighted:

• The significant cost pressures affecting the delivery of OOHC services
• Real world case studies demonstrating how agencies support children and young people with complex needs
• The long-term value of high quality, therapeutic, relationship based care
• The need for fair, transparent and sustainable pricing settings that reflect the true cost of delivering safe, effective services

Following the release of IPART’s Interim Report in September 2024, ACWA submitted an additional written response and presented at the public hearings, where former CEO Maree Walk provided a clear sector wide perspective on quality, cost and outcomes.

Intensive Therapeutic Care (ITC) Advice

In February 2025, IPART requested further technical advice focused specifically on the cost of delivering Intensive Therapeutic Care. Working closely with ITC providers, ACWA supplied comprehensive operational data and analysis. Due to its commercial-in-confidence nature, this material was provided directly to IPART and not publicly released.

Ongoing Engagement

With the publication of IPART’s Draft Report in March 2025, ACWA continued its advocacy through a final submission shaped by provider consultations, sector forums and specialist working groups. Throughout the process, ACWA emphasised:

• The need to examine both government and non government delivery
• The importance of considering service quality and outcomes, not cost alone
• The long term value of early intervention and therapeutic models
• The critical role of the OOHC workforce and the increasing cost of meeting regulatory, therapeutic and safety expectations

Looking Ahead

IPART’s Final Report on Out-of-Home Care Costs and Pricing was released in September 2025 and tabled in Parliament on 20 October 2025.

ACWA welcomes the report’s progress in:

• Establishing clearer benchmarks for efficient, sustainable service delivery
• Acknowledging the increasing complexity of children’s needs and the funding models required to support them
• Highlighting the importance of transparency and fair pricing to sustain carers and non government providers
• Listening to and incorporating ACWA and member feedback

We also welcome the recommendation to increase allowances for carers after more than 20 years of stagnancy, an overdue and important step in recognising the essential role carers play in the system. While the increase has been announced, it will not take effect until 1 January 2026.

However, the findings also reflect what our members consistently experience:

• Persistent carer shortages, workforce pressures and rising living costs continue to strain service capacity
• Aboriginal and Torres Strait Islander children remain overrepresented, with current pricing not adequately capturing the cost of culturally responsive care
• A one size fits all model cannot meet the diverse and changing needs of children and families
• The SCHADS 3.4 model adopted by IPART does not reflect the complexity and intensity of work undertaken by residential care staff

ACWA is committed to working with government, providers and carers to ensure this review leads to meaningful reform. Our priorities include:

• Embedding flexibility in funding so children receive the right support at the right time
• Ensuring cost modelling reflects the true complexity of care
• Championing the wellbeing of children, young people and carers at the centre of every reform decision

This is about more than pricing. It is about building a system that is sustainable, fair and focused on children.

ACWA will continue to advocate for a policy and funding environment that supports high quality care for children and young people, and pricing arrangements that recognise the true cost of delivering safe, stable and therapeutic services.

Read the full report: ipart.nsw.gov.au