Ask Mandy
Guides  /  Foster & kinship carers
Foster & kinship carers

Foster care allowance: how it works

The short answer

The foster care allowance, often called the care allowance, is money paid to foster and kinship carers to help meet the day to day costs of caring for a child. It is set and paid by each state or territory child protection department, not by the Australian Government, so the rules and rates vary depending on where you live.

Sources
State and territory child protection departments
NSW Government (DCJ), care allowance rates

Who pays it and why

Each state and territory runs its own out of home care system under its child protection framework. The department, or an agency working with it, pays the allowance to help cover the everyday costs of raising a child in care. It is a contribution towards the child's needs rather than income or a wage for the carer, and it is generally not treated as taxable income.

How much it is

The amount usually depends on the child's age, with older children attracting a higher rate, and it can increase where a child has extra needs. Because each department sets its own rates and adjusts them over time, the figure differs across the country. Always check the current rate with your local department.

How to get it

You generally need to be an authorised or approved carer with a child formally placed in your care through the department or an agency. Speak to your caseworker or agency about your entitlement, when payments start, and any extra financial support that may apply to your situation.

Ask Mandy this, and thousands more.

Get instant, cited answers on the NDIS, aged care, health and more, in plain English.

Try Ask Mandy
Ask Mandy
Cited by askmandy.app against current legislation. Last reviewed September 2026. Information only, not legal, tax or financial advice. Always check the current source before you act.