Abused and suicidal children have been betrayed by a state child safety system being exploited for profits.
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Former Federal Court judge Paul Anastassiou KC has been appointed to lead a 17-month commission of inquiry into Queensland's out-of-home care sector after a census report revealed widespread failings.
The report showed 46 per cent of the more than 3000 children entering the state system had been physically abused and 11 per cent sexually abused.
More than four out of five suffered emotional abuse, almost nine out of 10 were neglected and nearly seven out of 10 exposed to domestic violence.
Alarmingly, 22 per cent had attempted suicide and 44 per cent self-harmed now or in the past.
There was no coincidence Queensland's child safety system was "broken" amid a youth crime crisis, Premier David Crisafulli said.
"We are determined to take action on both," he told reporters on Sunday.
"This is about compassion and about strength - compassion for kids in care and strength to keep the community safe when things don't go right."
Almost 12,500 children were living in out-of-home care in Queensland as of December, including 6112 with kinship carers and 4173 with foster carers.
Numbers in residential care have skyrocketed to 2212, up from 650 in December 2015, and their average placement was 341 days.
The cost of residential care services for Queensland taxpayers has blown out from $200 million in 2014/15 to $1.12 billion this financial year.
Child Safety Minister Amanda Camm said the decline of kinship and foster care, presided over by the former state Labor government, was leading to growing costs and worse outcomes for kids.
"The average cost of a child in residential care is $350,000 per annum as opposed to family-based foster care of $35,000 per annum," she said.
"Children are not receiving the care, the support or a chance for hope when they are placed in residential care."
In one example, a residential care provider paid dividends to three shareholders totalling $5.25 million last financial year after increasing its "management fees" by 1000 per cent.
The Crisafulli government has ordered a forensic audit into the unnamed company.
Ms Camm slammed the provider for profiting from vulnerable children and taking advantage of the broken system.
The inquiry's terms of reference will also allow it to investigate the case work and case loads of child safety officers.
Shadow treasurer Shannon Fentiman, a former child safety minister, said the inquiry should be broadened further to probe the root causes of children coming into the system.
She dismissed claims the Labor government, under former premiers Annastacia Palaszczuk and Steven Miles, "abandoned" foster carers.
"We had 1700 new foster carers entering the system (in 2023/24)," she said.
"(But) if you continue to see overwhelming rates of children coming into the care of the department, we were always going to facing an uphill battle."
Any review that can guide people, communities and government on improved ways to keep kids safe should be supported, said nationwide charity Act for Kids.
"Sadly, many stories have emerged of children being harmed in Queensland's out-of-home care system," it said.
"This is unacceptable and requires urgent action to address."
The inquiry will begin its work on July 1 and provide interim reports, before delivering final recommendations to the government in November 2026.
Its budget is yet to be finalised.
KEY STATS FROM THE 2024 CHILDREN IN CARE CENSUS:
* 42 per cent have limited to severely limited intellectual functioning/developmental delay
* 51 per cent have a diagnosed or suspected disability
* 40 per cent have a diagnosed or suspected mental illness
* 48 per cent have extreme instability/extreme emotional responses that limit functioning
* 44 per cent self-harm now or in the past
* 22 per cent have attempted suicide
* 61 per cent have been excluded or suspended from an education facility in the past
* 52 per cent have poor social skills/disconnected from peers
Lifeline 13 11 14
Kids Helpline 1800 55 1800 (for people aged 5 to 25)
Australian Associated Press