Findings from a NSW Ombudsman report into Intensive Therapeutic Care (ITC) reveal serious and ongoing failures, underscoring the need for an independent Child Safety and Wellbeing Commission.
The comments from AbSec — the peak body for Indigenous children in NSW — come after the Ombudsman's report found many children in ITC "experienced placement disruptions and instability", which negatively affects their ability to recover from trauma and "undermines therapeutic outcomes".
The report identified widespread failures in oversight, accountability, and basic safeguards, putting children with the most complex needs — many of them Indigenous — at serious and ongoing risk.
"The Inquiry concluded that the ITC program is not operating as intended," the report said. "A range of longstanding systemic and ITC program-related challenges are impacting on the effectiveness, efficiency and quality of services for children.
"These unresolved issues undermine the long-term ability of the ITC program to meet the needs of children."
AbSec chief executive John Leha said children are "falling through gaps," with no independent checks to ensure decisions are safe or appropriate.
"These findings make clear that internal oversight is not working," he said.
Of the 700 children in ITC as of 30 June 2024, 39 per cent were Indigenous.
The Ombudsman found a lack of independent advocacy for children in placement decisions, citing housing market constraints and persistent workforce shortages that cause "significant disruptions to relationships, schooling and support for children". It also highlighted inefficiencies in the Department of Communities and Justice's (DCJ's) referral process for placing children with ITC providers.
Access to therapeutic, health, education, and cultural supports were found to be inadequate.
Only 13 per cent of children were confirmed as attending education, just 42 per cent of Aboriginal children had an approved or in-progress cultural plan, and DCJ does not routinely monitor whether providers are implementing the 10 Essential Elements of Therapeutic Care, the report said.
Mr Leha said children remain exposed without an independent mechanism to review placement decisions.
"This report makes it clear that the current Intensive Therapeutic Care system is failing all children; including particularly Aboriginal and Torres Strait Islander children," he said.
"NSW must stop propping up a broken model and invest in Aboriginal-led solutions that have long been proven to work."
The Ombudsman recommended fundamental reform, calling for changes to program design, stronger oversight and advocacy for children, improved stability measures, and clearer accountability to ensure children's voices and best interests are central to all placement decisions.
"Fundamental changes in program design and operation are required for the ITC system to respond effectively to children's changing needs and to give their voices prominence in all decisions that affect their care experience and life beyond care," the Ombudsman said.
AbSec called for the "immediate establishment of a Child Safety and Wellbeing Commission in NSW to make government actions visible and accountable in a way that DCJ internal processes cannot."
"This is crucial to building public trust in a system that another inquiry has found is not protecting our state's most traumatised children, and at most risk of exploitation and poor outcomes but placing them at risk," AbSec said.
