This report sets out draft decisions, findings and recommendations from a review of the cost of delivering out-of-home care and the pricing arrangements with non-government providers who deliver care under contract with the NSW Government. It recommends a simplified approach to pricing, increased financial support for carers, and increased accountability and visibility across the system. 

The report covers:

• efficient costs for the NSW Department of Communities and Justice and non-government providers of providing out-of-home care
• benchmark costs for caring for children with varying needs in out-of-home care across the different types of placements
• appropriate pricing structures and levels for the efficient delivery of quality services
• a methodology for adjusting prices paid to non-government providers
• an appropriate care allowance for providing care and support to children and young people in out-of-home care.

The draft recommendations in the report are designed to:

• improve the performance and long-term sustainability of the system
• better target funding to the areas where it is needed
• reduce administration costs
• help deliver goals to close the gap for Aboriginal children, who are substantially overrepresented in care.