NSW backs Aboriginal organisations with record $350 million to keep families together

The NSW Government has committed a record $350 million to Aboriginal Community Controlled Organisations over five years to deliver family preservation services – the largest investment of its kind in the state, aimed at reducing the number of Aboriginal children entering out-of-home care.

The funding forms part of a broader $900 million family preservation reform package. For the first time in NSW history, nearly 40 per cent of that total investment will go directly to Aboriginal-controlled organisations — a deliberate shift designed to bring the delivery of services closer to the communities they serve.

Tender outcomes are due to be announced this month, with new contracts set to begin on 1 July 2026.

Family preservation services provide intensive support to families identified as being at risk of child protection intervention — building parenting skills, creating safer home environments, and working to keep children safely with their families. Services currently support more than 4,000 at-risk families across NSW each year.

Aboriginal children remain vastly overrepresented in the state’s child protection system. The investment is explicitly framed as part of the NSW Government’s Closing the Gap commitments.

NSW Minister for Families and Communities Kate Washington said change was overdue.

“Far too many Aboriginal children are growing up in the foster care system. We all know that must change. Aboriginal-led, designed and delivered programs are going to help drive that desperately needed change.” Ms Washington said.

Minister for Aboriginal Affairs David Harris said the funding would turn commitments into concrete action.

“For too long, Aboriginal communities haven’t had a real say in the decisions that affect their children—this funding changes that, by backing solutions designed and delivered by ACCOs.” Mr Harris said.

AbSec (the NSW Child, Family and Community Peak Aboriginal Corporation) described the initiative as a step toward genuine self-determination. AbSec CEO John Leha said the approach was more than a policy shift.

“This is more than a policy shift — it is an act of justice. It restores our communities’ right to care for our children and young people in ways that reflect who we are, where we come from, and what we need to thrive” Mr Leha said.

The reform was developed in partnership with AbSec and co-designed with Aboriginal families, communities, and ACCOs. A dedicated tender process engaged 35 established, emerging, and new Aboriginal organisations across the state – a level of sector engagement that AbSec described as a strong signal of both need and capacity.