67% of sexual abuse incidents reported to the department involved children in residential care.
A Commission of Inquiry into Queensland's child safety system has heard evidence regarding the provision of funding to unlicensed residential care providers, the financial practices of some providers, and the state government's response to the sector's challenges.
The inquiry, announced in May 2023, was established to review systemic issues within the child safety sector. Its final report, titled "From Pressure to Purpose," containing 52 recommendations, was handed to the government on May 22.
Funding and Licensing of Providers
Distribution of Funds
- For the 2024-25 financial year, 163 providers received an average of $7.2 million each in funding for residential care services in Queensland.
- The top 15 providers received half of the total residential care funding.
Unlicensed Providers
- Of the 163 providers, 125 were unlicensed, accounting for 77% of all providers. This group has increased in size over the past four years.
- The inquiry heard that the Department of Child Safety provided tens of millions of dollars to unlicensed providers. One unnamed provider, which has been a department provider since December 2022 and cares for nearly 80 children, received an estimated $35 million in funding without holding a license.
Licensing Context
In Queensland, residential care providers can operate as licensed or unlicensed entities. Licensed services are certified under the Human Services Quality Framework (HSQF). Unlicensed providers, often used for immediate or specialized placements, are regulated and monitored by the department but are not subject to the same certification assessment processes. They must still comply with minimum accreditation standards.
Deputy director-general Bernadette Harvey stated that obtaining a license can be a lengthy process. She told the inquiry that since 2013, less than one Individual Placement and Support-only provider has been licensed per year. Ms. Harvey reported that 67% of children in care are with licensed providers, while 8% are with unlicensed providers.
Department Statements on Licensing Activity
When asked about a reported increase in licensing activity since the inquiry was announced, Ms. Harvey denied a direct link. She acknowledged that the department "did increase staffing to the licensing team… that provided some capacity for that work to occur."
Financial Practices and Compensation
A Financial Review of Non-Family-Based Residential Care, prepared by KPMG for the commission, provided data on executive compensation and provider investments. The report did not name specific providers.
- CEO Salaries: Some CEOs in the sector earned between $400,000 and $679,000 annually. In one instance, a CEO's salary constituted 21% of the provider's total revenue.
- Investments: One provider was noted for investing $242,000 in gold and $100,000 in cryptocurrency, owning two Mercedes-Benz vehicles, and paying $140,000 in dividends to its owners.
- Financial Performance: The report indicated that reported profits by providers were an unreliable measure of financial performance, complicating the analysis of service delivery.
Sector Costs
Residential care costs in Queensland have risen from $200 million to $1.2 billion per year over the last decade. Approximately 12,500 to 13,568 children are in out-of-home care in Queensland, with about 2,200 to 2,258 of them in residential care.
Government Response and Policy Changes
"The challenges did not emerge overnight and require serious reform that will take time." — Minister Amanda Camm
Child Safety Minister Amanda Camm described the report's findings on salaries and investments as concerning. She stated that the government is transitioning from high-cost, for-profit individual placement supports to longer-term contracts. Ms. Camm acknowledged risks associated with ending existing contracts and emphasized the need to grow licensed and fostering kinship care placements.
Contractual Actions
The government has terminated one provider's contract and stated it will refer any uncovered corrupt or criminal behavior to appropriate authorities.
Policy Announcement
Following the release of the Commission of Inquiry report, the government announced that no children under the age of five will remain in residential care in Queensland. This decision affects 78 children under five currently in residential care.
Government Implementation
Attorney-General Deb Frecklington stated that the government will establish a cabinet sub-committee to respond to the report within two months. Minister Camm acknowledged that the challenges "did not emerge overnight" and require "serious reform that will take time."
Commission of Inquiry Recommendations
The Commission of Inquiry into Child Safety made 52 recommendations in its report, "From Pressure to Purpose." Key recommendations include:
- Care Placement: Prioritize family-based care over residential care, including adoption where appropriate; study the feasibility of delivering "simple adoption" for children in out-of-home care; and immediately suspend the practice of placing children in hotels and motels, except in tightly defined emergency circumstances.
- Department Restructure: Redesign and restructure the department within six months.
- Provider Licensing: Overhaul the licensing of providers.
- Legal Framework: Simplify child protection orders and establish an independent, child-centered complaints and escalation framework.
- Vulnerable Groups: Introduce a strategy to prevent the exploitation of girls.
- Service Delivery: Study the feasibility of the department becoming a direct service provider in non-family-based care.
Commissioner's Statement on Adoption
Commissioner Paul Anastassiou KC recommended that adoption should not be limited by cultural background or ethnicity. He stated that "allowing historical wrongs to foreclose consideration of adoption entirely risks substituting one form of harm for another."
Incident Data
The Commission found that 67% of reported incidents of sexual abuse to the Department of Child Safety involved children placed in residential care.
Opposition Response
Opposition Leader Steven Miles called for the minister's removal but stated that the report's recommendations would "enhance protections for Queensland children" if implemented.