A new financial review has revealed that executives in the Queensland residential care sector CEO pay landscape are earning as much as $679,000 annually, while some providers have diverted public funds into cryptocurrency, gold, and luxury vehicles.
The findings, detailed in the Financial Review of Non-Family-Based Residential Care prepared by KPMG, paint a picture of a system where the cost of caring for the state’s most vulnerable children has spiraled from $200 million to $1.2 billion per annum over the last decade.
Minister for Child Safety Amanda Camm described the report’s revelations as “nothing short of disgraceful,” suggesting that a broken child safety system has allowed shareholders and executives to profit from a market built on the vulnerabilities of children.
The report arrives as the Commission of Inquiry into the Child Safety System prepares for two weeks of hearings focused specifically on the escalating costs associated with residential care.
The cost of care and executive windfall
From a financial analysis perspective, the scale of the expenditure growth is stark. The transition to a market-based model for residential care has coincided with a massive increase in executive compensation and an opaque approach to profit reporting.
According to the KPMG review, some CEOs received salaries ranging from $400,000 to $679,000. In one particularly acute instance, a single executive’s salary accounted for 21 per cent of the provider’s total revenue.
“The creation of that market has led to CEOs being paid over $600,000, children and their vulnerabilities being traded for cryptocurrency and gold,” Ms Camm said.
The review highlighted one specific provider that invested $242,000 in gold and $100,000 in cryptocurrency. That same provider maintained two Mercedes-Benz vehicles and distributed $140,000 in dividends to its owners.
The report noted that the profits reported by these providers were often an “unreliable indicator” of actual financial performance, which has historically made it difficult for regulators to analyze whether funding was actually improving service delivery for the children in care.
Market concentration and the rise of unlicensed providers
The distribution of funding within the sector is heavily skewed. During the 2024/25 financial year, a total of 163 providers received an average of $7.2 million in funding. However, a small elite of just 15 providers captured half of the total residential care funding available in the state.
Equally concerning is the regulatory gap. The review found that 125 of the 163 providers—approximately 77 per cent—are unlicensed. This group has grown steadily over the past four years.
While licensed services must be certified under the Human Services Quality Framework (HSQF), unlicensed providers are often used for immediate or specialized placements. Although they are monitored by the department, they are not subject to the same rigorous certification assessment processes as their licensed counterparts.
| Metric | Detail |
|---|---|
| Total Providers | 163 |
| Unlicensed Providers | 125 (77%) |
| Funding Concentration | Top 15 providers receive 50% of funding |
| Average Funding per Provider | $7.2 million |
A strategic shift toward kinship care
The Queensland government is now attempting to dismantle the reliance on high-cost, for-profit individual placement supports. The goal is to transition children into longer-term contracts and increase the number of fostering and kinship care placements.
Ms Camm acknowledged that this transition is fraught with risk, as the government cannot simply terminate contracts without ensuring a safe destination for the children involved.
“Each individual contract represents a child in care,” Ms Camm said.
The Minister stated that the government is working to grow licensed placement numbers to ensure children are moved into stable environments where their best interests are prioritized over the “profiting interests of shareholders.”
The government has already terminated the contract of one provider. Ms Camm indicated that if the ongoing inquiry uncovers evidence of criminal or corrupt behavior, the matter will be referred to the appropriate authorities.
Commissioner Paul Anastassiou KC will release a report and recommendations next month.
The broader impact of these findings involves roughly 2,200 young people currently in residential care, part of a larger group of 12,500 children living in out-of-home care across Queensland.
Disclaimer: This article discusses financial reviews and government policy. This proves provided for informational purposes and does not constitute financial or legal advice.
The next critical milestone for the sector will occur on May 22, when Commissioner Paul Anastassiou KC is scheduled to release his final report and comprehensive recommendations for the child safety system.
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