FAQs for carers - Increases to the DCJ care allowance rates
Yes. The 2025-26 NSW Budget provides $143.9 million for a major increase to the care allowance to recognise the critical role of carers to keep children safe.
The new DCJ care allowance rates will come into effect from 1 January 2026.
The new increased DCJ rates will apply to statutory and supported out-of-home care (OOHC) allowances, as well as guardianship and adoption allowances.
The Independent Living Allowance, Aftercare Allowance, Staying On Allowance and Post Care Education Financial Support payments, will increase in line with the Consumer Price Index (CPI).
The DCJ standard care allowance rate is increasing by 20 per cent. The CPI increase for the 2025-26 financial year has been rolled up in the new rates.
Based on DCJ standard rates, the tax-free allowance will be:
Age | Current rate | New rate from 1 January 2026 |
|---|---|---|
0 to 4 years | $581 | $697.20 |
5 to 13 years | $656 | $787.20 |
14 to 15 years | $880 | $1,056 |
16 to 17 years | $586 | $703.20 |
The DCJ rates for Care +1 and +2 will increase by $160 per fortnight from 1 January 2026.
Based on DCJ rates, the tax-free allowance will be:
Age | Current rate per fortnight Care + 1 | New rate per fortnight Care + 1 | Current rate per fortnight Care + 2 | New rate per fortnight Care + 2 |
|---|---|---|---|---|
0 to 4 years | $873 | $1,033 | $1,153 | $1,313 |
5 to 13 years | $983 | $1,143 | $1,294 | $1,454 |
14 to 15 years | $1,317 | $1,477 | $1,736 | $1,896 |
16 to 17 years | $1,023 | $1,183 | $1,447 | $1,607 |
Yes. The care allowance will continue to increase each year in line with the Consumer Price Index (CPI) escalation rate, subject to NSW Treasury approval.
The increases apply to the DCJ standard care allowance rates.
While non-government providers are required to pay a minimum of the DCJ standard care allowance (by age), there is no universal rate of allowances across the sector. Carers with non-government providers could currently be receiving a range of care allowance rates that differ from the DCJ rates.
The increase as it applies to individual cases may vary from provider-to-provider. Please contact your provider if you would like more information on what this will mean for your allowance rate.
The NSW Government is considering standardising care allowances across government and non-government providers.
Non-government providers have been asked to consider this when implementing the allowance uplift within organisational policies.
The current care allowance system is complex. The government pays for all care allowances, but half of all foster carers are actually paid through non-government providers. There are a range of different care allowance rates paid by non-government providers. Additionally, there are a range of other supplements and additional payments that may apply.
Yes. The Teenage Education Payment (TEP) will continue to be available for carers and guardians of young peple who are 16 or 17 and engaged in school or other education and training. This will continue to be available up to $6,000 per year.
Sometimes, the child or young person in your care may need support in addition to what the care allowance covers. In these cases, you may be able to access contingency payments for additional financial help such as for tutoring, dental or optical services, professional therapy, or travel.
Establishment payments may also be available and help cover the cost of buying essential items for a child or young person when they first come to live with you.
Always speak to your caseworker before spending money you want to be reimbursed for.
Existing care allowance rates have been increased annually in line with the CPI.
This is the first formal review of the DCJ standard care allowance rates in nearly two decades. The new rates reflect updated cost-of-living data and the real expenses faced by carers.
DCJ currently pays the third highest baseline care allowance rate in Australia. The increase to care allowance base rates means that NSW will be paying the highest care allowance base rate in Australia for most children in OOHC.
Care allowance rates are not directly comparable across jurisdictions due to variances in age, loadings, the range of additional payments and eligibility criteria.
In June 2025, the NSW Government announced a landmark $1.2 billion investment in child protection and OOHC as part of the 2025–26 Budget. This is the largest investment in NSW history and will enable DCJ to overhaul the services and support delivered to families, children and young people needing support.
This includes end-to-end reforms that will improve statutory responses in child protection, shape a high performing and financially stable OOHC system, and move our focus from crisis responses to early family support services.