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Understanding Children
Australia’s soaring cost of late intervention highlights urgent need for early action
Fiona Alston
Aug 27, 2025
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Australia is paying a steep and growing price for failing to identify and respond to the early signs of developmental, social and health challenges in children and young people.
According to the newly released Cost of Late Intervention (COLI) report by Minderoo Foundation, in collaboration with The Front Project, the annual cost of late intervention has surged by 47 per cent since 2019, rising from $15.2 billion to $22.3 billion. This equates to $838 for every Australian, or $2,704 for every child and young person aged 0–24.Late intervention refers to the costly statutory, acute and crisis-driven responses that become necessary when earlier, more effective support has not been provided. These include services related to child protection, youth justice, family violence and unemployment, areas where unresolved challenges have escalated.
The report reveals that the largest single expenditure is child protection, which now accounts for $10.2 billion, a 72 per cent increase since the last COLI report. Spending on family violence has more than doubled in the same timeframe. Other high-cost areas include youth crime and youth unemployment.
State-by-state analysis shows that New South Wales incurs the highest total cost at $6.4 billion, followed by Victoria ($5.3 billion) and Queensland ($5 billion). However, per capita costs are highest in the Northern Territory at $2,808, nearly triple that of South Australia and significantly more than Queensland.
“This is a clear case of opportunity cost,” said Nicola Forrest AO, Chair and Co-Founder of Minderoo Foundation. “By failing to intervene early, we miss the chance to achieve better outcomes for children and young people and a better return on investment for society.”
Ms Forrest emphasised that the earlier a child receives help for developmental or wellbeing concerns, the greater the likelihood of a positive outcome: “Developmental challenges don’t resolve themselves. Without timely support, they often escalate into more complex issues that are harder and more expensive to address later.”
The report draws on The Nest, a national framework developed by the Australian Research Alliance for Children and Youth (ARACY), which outlines six key areas of wellbeing. It also references the work of the Early Years Catalyst, which has mapped 10 interconnected systems essential to children’s development from health and early learning to housing and social security.
Dr Caroline Croser-Barlow, CEO of The Front Project, described early intervention as “a necessity, not a nice-to-have”, noting the significant economic and social returns that stem from investment in the early years.
“Every year we delay shifting to earlier support, we lock in billions in avoidable costs,” she said. “A coordinated national approach is the only way to reverse this trend and deliver the change our children deserve.”
The report also highlights a systemic imbalance: while state governments bear the cost of late intervention, the Commonwealth Government stands to benefit most from early action through increased tax revenue and reduced welfare dependency.
Megan O’Connell, Lead Researcher for the report, noted a persistent lack of transparency and consistent data collection as a major barrier to reform.
“Without regular, transparent tracking of early intervention spending and outcomes, we cannot know if policies are working or if resources are being used effectively,” she said.
In response, the report calls for a whole-of-government commitment to embed early intervention principles across policy areas and to invest in evidence-based models that deliver measurable impact. It also urges more frequent data collection and better mechanisms to monitor what works.
While the need for acute responses will never fully disappear, the report makes clear that early intervention is a smart investment that reduces human and economic costs over time.
“Australia’s greatest resource is its people,” Ms Forrest said. “Investment in the early years is an investment in Australia’s future.”
Access the Cost of Late Intervention (COLI) report by Minderoo Foundation here.
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