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New data reveals Victoria's most vulnerable children in state residential care are continuing to be harmed by organised and opportunistic sexual exploitation almost two years after an inquiry by the Commission for Children and Young People made recommendations to the Victorian government to tackle the scourge.

Victoria's Commissioner for Children and Young People, Liana Buchanan, said on Wednesday that it is clear that without stronger action, children in residential care remain at extreme risk of harm due to criminal activity by adults.

"In the lead up to next month's State Budget, we are sharing this data to make clear the continuing consequences of under-investment and limited action," she said.

Data released Wednesday (5 April) shows that from July 2021 to the end of March this year, 423 incidents of sexual exploitation in residential care were reported to the Commission, involving a total of 165 children.

Of these, 64 per cent, or 241 incidents, involved sexual exploitation and abuse of children under 16, and 11 incidents involved nine children under 12.

"Behind these figures are 165 of Victoria's most vulnerable and victimised children – children who have already suffered trauma, been removed from their families and are now in the care of the state," Commissioner Buchanan said.

Reports received by the Commission indicate perpetrators are targeting children in residential care and offering drugs and/or money if the children leave care to meet up with them in cars, homes or hotels. Sexual abuse and assaults are common occurrences for these children.

According to the Report on Government Services data, as at 30 June 2022, Aboriginal children are 21.7 times more likely to be in out of home care than non-Indigenous children in Victoria.

Commissioner for Aboriginal Children and Young People Meena Singh said: "Every day that government and the responsible agencies fail to act on our recommendations to protect these children is a day they face further serious, and possibly lifelong, harm."

"These harms are compounded for Aboriginal children and young people, who remain over-represented in residential care and the broader child protection system," Commissioner Singh said.

In June 2021, the Commission's report, Out of sight: Systemic inquiry into children and young people who are absent or missing from residential care was tabled in the Parliament of Victoria.

The report found an alarmingly high number of children and young people who are absent or missing from residential care are sexually exploited, abused and assaulted, often by adult men. This exploitation, abuse and assault can continue over long periods, and has devastating and long-term consequences.

The Commission's inquiry also concluded that sexual exploitation was significantly under-reported in a fragmented and inconsistent approach across the state.

In that report, nearly two years ago, the Commission called on the government and Victoria Police to commit to and maintain "a joint, targeted response" to child sexual exploitation, noting a previous pilot, the 2016 Child Sexual Exploitation Enhanced Response Model, was discontinued despite a positive evaluation in 2017. The model piloted "a consistent, coordinated approach" to tackling sexual exploitation of children in residential care.

Commissioner Buchanan said: "It is sad enough that we continue to see children in state care sexually abused and victimised. It is worse still for me as Commissioner to have seen state agencies step away from a concerted, joined-up effort that was helping to protect these children."

The Commission is also calling for stronger action on other recommendations from Out of sight, including better reporting and monitoring of sexual exploitation and government funding for a complete overhaul of the residential care system.

Repeated Commission inquiries have found that residential care is not adequate to meet children's needs and too often means children experience further trauma and harm in the system.

Following recommendations in its previous In our own words inquiry (2019), Out of sight recommended a therapeutic residential care model that addresses and heals trauma and provides children with safe, stable homes.

"We've simply seen too little progress. Numerous inquiries have highlighted that there is a dire and urgent need to improve the quality of care. This is a crucial part of keeping children in placement and safe from exploitation," said Commissioner Buchanan.

"It is also clear that action to better identify and protect children at risk of sexual exploitation and abuse is overdue and that children are suffering as a result."

A Victorian government spokesperson told National Indigenous Times that the government apologises "unreservedly to children who have been exploited by community perpetrators following an out-of-home care placement".

"The exploitation of any child is unacceptable, and we're taking action – employing sexual exploitation practice leaders to work with Child Protection and Victoria Police, and introducing specialised training for frontline workers to help staff and service providers better identify and prevent these tragic incidents," they said.

Child Protection staff and service providers are required to report all allegations of a criminal nature to Victoria Police for investigation.

It is understood that the Department of Families, Fairness and Housing works closely with Victoria Police to identify emerging risks and take preventative action.

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