Queensland residential care chiefs pocket up to $679k as sector balloons to $1.12 billion

Senior executives in Queensland's non-family-based residential care sector are commanding salaries exceeding $679,000 annually while providers invest public funds in gold and cryptocurrency, according to a damning financial review commissioned by the state's child safety inquiry.

The Financial Review of Non-Family-Based Residential Care, prepared by KPMG for the Commission of Inquiry into Child Safety System, exposes significant cost blowouts and governance concerns across the sector tasked with caring for the state's most vulnerable children.

Costs spiral sixfold in a decade

The report reveals that residential care expenditure has surged from approximately $200 million annually a decade ago to $1.12 billion in the most recent financial year—a sixfold increase that has sparked alarm among state officials.

Minister for Child Safety Amanda Camm described the findings as "nothing short of disgraceful", flagging serious questions about stewardship of public resources allocated to child protection.

"It should cause Queenslanders real concern when it comes to our state's most vulnerable children and the way they have been cared for over the past decade," Ms Camm said.

Investment practices questioned

Beyond executive remuneration, the KPMG review identified concerning investment decisions by residential care providers, including allocations towards precious metals and cryptocurrency—asset classes considerably removed from the sector's core mission of providing safe, stable accommodation and support services.

These findings raise questions about accountability mechanisms and board-level oversight within organisations receiving substantial government funding.

Inquiry proceedings intensify

The revelations emerge as the Commission of Inquiry into Child Safety System prepares for two weeks of focused hearings specifically examining residential care costs. These proceedings represent a critical juncture for scrutinising how Queensland manages its child protection expenditure.

The timing underscores growing political pressure on the state government to demonstrate financial discipline within child safety services, particularly following the establishment of the broader Commission of Inquiry into the child safety system.

Structural concerns in a reformed sector

Queensland's residential care sector underwent significant transformation following the privatisation and deregulation of services over the past decade. The sector now operates through a mixed model involving government-funded non-government organisations and private providers.

The KPMG report suggests that rapid expansion and structural changes may not have been accompanied by proportionate strengthening of financial governance and oversight mechanisms.

What's next

The Commission of Inquiry will use the KPMG findings as a foundation for examining whether current cost trajectories are justified by outcomes achieved for children in care. Public hearings will likely probe executive compensation structures, provider procurement processes, and whether funding mechanisms adequately distinguish between operational needs and discretionary expenditure.

The review also provides context for broader child safety reform discussions, positioning cost control as a central consideration alongside service quality and child outcomes.

Source: ABC News