Financial assistance for all authorised foster, relative & kinship carers

The Care Allowance is paid out of each child’s funding package and covers typical costs for household expenses and child-related expenses including:

• food
• shelter
• utiities
• dental and medical
• pharmaceuticals
• general hygene needs/personal care
• clothing and footwear
• haircuts
• pocket money and hobbies
• daily travel
• music lessons
• sporting activities
• household provisions
• holidays and recreational activities
• general educational expenses
• school excursions and camps
• gifts
• pocket money
• household items and costs
• suitable car restraints

Carers manage their Care Allowance budget and can speak with their caseworker about reasonable costs that are considered above and beyond this list. 

The Care Allowance:

• is not taxable income
• is not means-tested
• increases each year to keep up with the cost of living, with increases backdated where needed
• You do not need to keep receipts to show how the Care Allowance is spent.
• Non-government agencies follow similar procedures—check with your caseworker for any differences.
• Receipts are usually required for out-of-pocket expenses related to the child’s Case Plan, such as:
  • Healthcare costs
  • Childcare
  • Certain education services

Note about eligibility

Eligibility for Statutory care allowances is limited to children and young people who are subject to a care order made in the NSW Children's Court re-allocating parental responsibility to the Minister for DCJ or another suitable (non-relative) person.

Eligibility for Supported care allowances is limited to children and young people who are subject to a care order made in the NSW Children's Court allocating parental responsibility to a relative/kin. Eligibility also includes children and young people who are subject to a family law order conferring parental responsibility on a person, when DCJ has intervened in proceedings in the Federal Circuit Court or Family Court of Australia.

Financial support for families who adopt -  Carers often see adoption as a way of making a lifelong emotional and practical commitment to a child.  New adoptive parents may be eligible for financial support.  For more information about Adoption

Guardians receive an allowance to enable them to meet the needs of the child or young person. This allowance is the same rate as the DCJ Statutory Care Allowance.  For more information about Guardianship, Guardianship Financial Guidelines factsheet

Post-care education financial support helps young people aged 18 to 24 complete their NSW Higher School Certificate (HSC).

It is a non-means tested payment paid to the carer to help maintain stable living and support arrangements while the young person finishes school.

DCJ reviews this allowance rate each year through its indexation process.

This rate applies from 1 July 2025 and is paid per fortnight.

Information for young people explaining indexation (PDF 81.07KB) can help support conversations about aftercare allowances.

Post-care education financial support helps young people aged 18 to 24 complete their NSW Higher School Certificate (HSC).

It is a non-means tested payment paid to the carer to help maintain stable living and support arrangements while the young person finishes school.

DCJ reviews this allowance rate each year through its indexation process.

This rate applies from 1 July 2025 and is paid per fortnight.

Information for young people explaining indexation (PDF 81.07KB) can help support conversations about aftercare allowances.

This allowance is for carers of young people who ‘stay on’ with them after they turn 18. Alternatively, the young person may opt to receive the Independent Living Allowance.  For more information about the Staying on allowance.

DCJ reviews this allowance rate each year through its indexation process.

This rate applies from 1 July 2025 and is paid per fortnight.

Information for young people explaining indexation (PDF 81.07KB) can help support conversations about aftercare allowances.

This allowance is available for young people who have been in statutory care, and are aged 18 to 20. For more information about the Independent living allowance.

When discussing the Independent Living Allowance with young people, it is important to explain that the amount changes due to indexation, so they understand what the change in their allowance amount means.

DCJ reviews this allowance rate each year through its indexation process.

This rate applies from 1 July 2025 and is paid per fortnight.

Information for young people explaining indexation (PDF 81.07KB) can help support conversations about aftercare allowances.

This allowance is a time-limited payment available to older care leavers aged 21 to 24 who are undertaking full-time training or education, and who would be at risk of homelessness if financial assistance was not provided. The allowance provides short-term assistance up to three months at a time.  For more information about the various aftercare allowances, please see the After care allowance guidelines.

DCJ reviews this allowance rate each year through its indexation process.

This rate applies from 1 July 2025 and is paid per fortnight.

Information for young people explaining indexation (PDF 81.07KB) can help support conversations about aftercare allowances.

If your Care Allowance stops unexpectedly or you believe you are being underpaid, contact your caseworker as soon as possible. They’ll organise a back payment for any amount owing

Overpayments can occur when a child’s age changes or a placement ends.
These must be repaid to DCJ or your agency. Repayment options may include:

• deductions from future payments, or
• repayment over an agreed period.

If your banking details change, let your caseworker know as soon as possible.
It can take several working days to process updates, and delays may affect your payments.

Each year, carers of children and young people in statutory care in NSW receive a Carer Supports Letter outlining the funding supports in place for the children in their care.

This includes:

• foster carers
• relative and kinship carers
• Therapeutic Home-Based Care (THBC) carers
• Therapeutic Sibling Option Placement (TSOP) carers

Emergency and respite carers do not receive a letter and can discuss available supports with their caseworker.

• DCJ carers receive a letter from DCJ
• PSP carers receive a letter from their Permanency Support Program provider

More detailed information about the letter and PSP funding is available in the Q&A carer supports and PSP funding factsheet

You may be able to access contingency payments or exceptional supports for approved expenses, such as:

• family contact
• childcare
• tutoring
• dental or optical services
• professional therapy
• respite
• additional travel
• establishment costs
• maintaining culture and identity

Always talk to your caseworker before spending money you want reimbursed.
Approved expenses should be included in the child or young person’s Case Plan, and receipts must be kept.

Sometimes, the child or young person in your care may need support that costs more than what the regular Care allowance covers. In these cases, you may be able to access contingency payments for additional financial help such as:

• family contact visits
• laptops
• tutoring
• dental or optical services
• professional therapy (e.g. counselling, speech therapy)
• professional reports (e.g. psychological assessments)
• respite care
• travel (excluding holidays)
• activities or services that support a child’s culture and identity

Important: Always speak to your caseworker before spending money you want to be reimbursed for. Approval must be given in advance, and the expense should be included in the child or young person’s Case Plan.
Keep all receipts for approved expenses to ensure proper reimbursement.

Establishment payments help cover the cost of essential items when a child or young person first comes into your care, such as:

• school uniforms
• bedroom furniture and bed linen
• clothing and footwear
• baby capsules, booster seats or prams
• nappies, formula and personal items

Establishment payments are not automatic.
Speak with your caseworker before making a purchase. Where approved, payment is usually made directly to the supplier.

Items purchased belong to the child or young person and should go with them, where practical, if they leave your care.

With DCJ approval, a child in your care can attend a child care centre for a set number of hours and days. 

The authorised carer may receive assistance to cover the cost gap between the Child Care Subsidy (CCS) and the Additional Child Care Subsidy (ACCS) (child wellbeing). In most cases, DCJ covers the full cost of child care. The need to pay a gap depends on the provider’s fees. 

This support is not available for adoptions.

The continuation of the Care Allowance depends on who holds parental responsibility:

• Minister holds or shares parental responsibility
  The Care Allowance continues until the care order is transferred to the new state.
• Relative or kinship carers holding parental responsibility
  The Care Allowance usually continues for up to three months to support the transition.
  Any payment beyond this period is at the discretion of DCJ or the relevant agency.

If the placement was arranged with an interstate carer, DCJ may continue paying the allowance until the child turns 18 or the care order is transferred.

Contact your caseworker as soon as possible after an incident. They will explain:

• what information is required
• how to lodge a claim
• what happens next

ABSTUDY assistance is for Aboriginal and Torres Strait Islander kids who are secondary school students aged 15 or under on 1 January in the year of study, or who are primary school students aged 14 or older on 1 January in the year of study. ABSTUDY helps cover the cost of study and living expenses, as well as travel to and from the place of study each term or semester if the place of study is far from home.

For more information: ABSTUDY

Select your circumstance to learn more on the Services Australia website:

• parent or guardian of a school child living at home
• parent or guardian of a child living away from home to go to school
• student in high school, university or other higher education
• apprentice
• student or apprentice in custody

To get this, your child must meet specific living, age and study requirements. They also need to meet one of the following:

• is geographically isolated
• has a disability or special education need
• has no reasonable access to a government school.

For more information:  Assistance for isolated children scheme.  

Read the full conditions under who can get it.

The Carer Allowance is a supplementary payment if you care for someone who needs daily support.

This is different from the Statutory or Supported Care Allowance that you receive as a carer to cover the costs of caring for a child or young person. It is not means tested and can be paid in addition to wages or other income support payments such as a Carer Payment or Age Pension. 

The Carer Allowance is provided as either a fortnightly payment and a Health Care Card for the child, or a Health Care Card alone. Which of these you receive depends on the care needs of the child or young person. 

The disability or condition must be recognised in the Disability Care Load Assessment (Child) Determination 2010 (DCLA Determination). It can apply if you are: 

• providing additional daily care for a child under 16, with a disability or medical condition
• providing additional daily care for two dependent children with disabilities or medical conditions, who do not individually qualify for a Carer Allowance, but together create a substantial caring responsibility. 

The National Disability Insurance Scheme (NDIS) may change the arrangements for payments made to those who care for children with disabilities. Speak to your caseworker for more information.

For more information: Carer allowance

The Carer Payment provides income support to people who are unable to support themselves through paid employment because they are providing constant care to someone with a severe disability or medical condition. 

The Carer Payment is means tested. 

The disability or condition must be recognised in the Disability Care Load Assessment (Child) Determination 2010 (DCLA Determination). It can apply if you are: 

• providing constant care for a child under 16, with a severe disability or medical condition.
• providing constant care for two to four children under 16 with disabilities or medical conditions, whose combined care needs are equal to that of a single child under 16 with a severe disability or medical condition.

For more information: Carer payment

Assistance to help with the cost of approved or registered child-care (means tested).  For more information: Child care subsidy

To find an approved childcare centre near you go to the Australian Government’s Starting Blocks website https://www.startingblocks.gov.au. This site also provides information about childcare centre fees, vacancies and quality ratings that are located near you by entering your suburb/town.

Additional child care subsidy

Additional subsidy that covers the full cost of approved childcare for up to 100 hours per child per week. Available to people who meet certain conditions:

• a grandparent on income support payments
• transitioning from income support payments to work
• experiencing temporary financial hardship
• caring for a child who is vulnerable or at risk of harm, neglect or abuse

For more information: Additional child care subsidy

Keeping on top of payments and entitlements can be hard for some grandparents. 

Grandparent Advisers support grandparents who are caring for their grandchildren. (This is a national service from the Aus Gov). They offer tailored information about payments and support services, arrange appointments with specialist staff such as social workers, and help provide access to government services including Centrelink and Medicare. 

They can also arrange referrals to other federal, state and community service providers who can help. Call the Grandparent Adviser Line on Freecall 1800 245 965 (or 1800 810 586 for TTY service for the hearing or speech impaired).

For more information: Grandparent foster and kinship advisors

Covers part or the full cost of some basic dental services for eligible children. 

For more information: Child dental benefits schedule (CDBS)

Helps with the cost of raising children (means-tested). It is made up of two parts:

• Family tax benefit (FTB) part A is paid per child. The amount you get depends on your family’s circumstances.  You can also find out about the income test for FTB Part A.
• Family tax benefit (FTB) part B is paid per family. This payment gives extra help to families and single parents with one main income.  ou can also find out about the income test for FTB Part B.

For more information: Family tax benefit

Support for carers (non-means tested) to cheaper medicines under the Pharmaceutical Benefits Scheme (PBS) for children in their care. The card is issued to an individual foster child and is non-transferrable.  

For more information: Foster child health care card

A Health Care Card provides access to cheaper prescription medicines under the Pharmaceutical Benefits Scheme (PBS). It may also provide access to various concessions from the Australian Government, including: 

• bulk billing for doctor’s appointments, as decided by your doctor
• more refunds for medical expenses through the Medicare Safety Net
• assistance with hearing services through the Office of Hearing Services
• discounted mail redirection through Australia Post. 

If you are receiving certain Centrelink payments or supplements, or the maximum rate of Family Tax Benefit Part A, you will automatically receive a Health Care Card. Partners and children may also be covered by the card.

For more information: Health care card

The NDIS provides funding to eligible people with disability to gain more time with family and friends, greater independence, access to new skills, jobs, or volunteering in their community, and an improved quality of life.  

For more information: National Disability Insurance Scheme (NDIS)

A lump sum and an increase to your Family Tax Benefit Part A payment when you start caring for a baby or child that's recently come into your care.  

For more information: Newborn upfront payment and newborn supplement

Payment to help families taking time off work to care for a newborn or newly adopted child. If eligible, you could get up to 18 weeks of Parental Leave Pay at the rate of the National Minimum Wage. Parental Leave Pay is taxable and may be paid by the government or by your employer, depending on your circumstances.

For more information: Parental leave pay

To get this payment all of the following must apply:

• you’re under the income and asset test limits
• you meet principal carer rules for a child under 14 if you’re single, or under 6 if you have a partner
• you meet residence rules
• your partner is not currently getting Parenting Payment.

If you’re single and your youngest child is 6 or over, you’ll need to meet mutual obligation requirements unless we give you an exemption.

Read the full conditions under Who can get it.

Parenting Payment is a separate payment from Family Tax Benefit and Parental Leave Pay. There are also other payments for families you may be able to get.

For more information: Parenting payment

Carers can check with their caseworker that an application has been made for a young person in their care to receive the Commonwealth Government’s one-off allowance of up to $1,500.  This allowance is available to eligible young people aged 15–25 who are leaving statutory OOHC and is intended to support their transition to independent living.  

For more information: Transition to independent living allowance (TILA)

To receive some government payments, including the Parenting Payment, primary carers may be required to meet Mutual Obligation Requirements for part-time work or training. However, authorised carers can apply for a Mutual Obligation Requirements Exemption from Centrelink. This includes relative or kinship carers and emergency and respite carers who care for children or young people on an irregular basis. 

Each June, DCJ mails a letter and 12-month Certificate of Eligibility and Special Family Circumstances Exemption from Mutual Obligation Requirements to all DCJ carers who have received either a statutory or supported Care Allowance within the last six months. 

Carers can use the certificate to apply for an exemption, however, Centrelink determines whether you’re eligible based on your individual circumstances. 

If you were entitled to an exemption, but your approval to be a carer was subsequently terminated or withdrawn, you must notify Centrelink. If you don’t, you could be fined. 

If you are with a non-government agency, you will need to request an exemption certificate annually from your caseworker.

For more information: mututal obligations requirmenets exemption, Exemptions for principal carers