Beyond Inflation: The Adequacy of Out‐of‐Home Care Allowances in Australia

Abstract

ABSTRACT Research Question This study examines whether home‐based (foster, kinship or relative) out‐of‐home care (OOHC) allowances in New South Wales, Australia, adequately reflect the contemporary costs of caring for children. Research Findings We find that real median expenditure among families with children increased by 23%–30% between 2006 and 2022, after adjusting for inflation and sociodemographic factors. These increases suggest that household spending needs have changed in ways not fully captured by CPI indexation. As a result, current OOHC allowanc..