Australia now spends more than $1.1 billion a year imprisoning children and young people, as detention numbers rise and more First Nations children are locked up — a trajectory that exposes a costly and devastating policy failure across the country.
The latest Report on Government Services (RoGS), released by the Productivity Commission late Thursday, shows youth detention spending has surged by almost $400 million in just five years, rising from $720 million in 2019-20 and more than doubling over the past decade.
Youth detention now costs an average of $1.3 million per child per year — or more than $3,600 a day. In Victoria, the cost exceeds $2.6 million per child per year.
Anne Hollonds AO, former National Children’s Commissioner and spokesperson for the Justice Reform Initiative, said governments are pouring record funds into a system that increases harm and fails to reduce crime. A suite of reports—including Ms Hollonds’ major Help Way Earlier! report in 2024 and supplementary paper in 2025—have reinforced the urgent need for systemic reform and national leadership.
“We are spending record amounts on a system that almost all children come back to. Around 85% of children released from detention return to sentenced supervision within 12 months. That is not success — it is a devastating policy failure that we continue to pay a growing premium for,” Ms Hollonds said.
“Instead of reducing crime or promoting community safety, detention compounds trauma, disconnects children from education, family and community, and increases the likelihood they will continue to commit crimes. Yet governments are doubling down on the most expensive and least effective response.”
On an average day, 734 children are imprisoned across Australia. Over the course of the year, 4,742 children cycled through detention.
First Nations children continue to be the most impacted. On an average day, 61.7% of all children in detention nationally are First Nations. The number of First Nations children in detention has surged across multiple jurisdictions, including an 86% increase in NSW in four years. In the Northern Territory, 95.2% of children in detention are First Nations.
“You cannot claim to be serious about Closing the Gap while expanding a system that disproportionately harms Aboriginal and Torres Strait Islander children,” Ms Hollonds said.
“What works is developmentally and age-appropriate prevention, early intervention, diversion, bail support and First Nations place based and community-led programs. These approaches reduce offending and build safer communities, but they remain underfunded while detention budgets balloon.”
Ms Hollonds said the sharpest increases are now occurring in jurisdictions that had previously reduced youth detention. Victoria has seen a 37% rise in the average number of children imprisoned on an average day and now spends almost $350 million annually — the highest of any jurisdiction. South Australia and New South Wales have also increased the number of children in detention, up 23% and 5% respectively, and the number moving through detention centres over the year.
Key insights from the RoGS data include:
- Australia now spends over $1.1 billion a year incarcerating children and young people — an increase of $100 million in one year.
- On an average day, Australia incarcerates 734 children (up from 711 the previous year), however there are 4,742 children imprisoned over the course of the year.
- Victoria recorded the sharpest rise, with the number of children imprisoned on an average day up 37% in one year. Victoria now spends close to $350 million a year on youth detention — the highest of any jurisdiction.
- Queensland continues to detain the most children on an average night (290) and now spends almost $300 million a year on youth detention.
- New South Wales continues to incarcerate more children and young people than anywhere else over the year (1,561), and both New South Wales and South Australia recorded increases in children incarcerated on an average day and children imprisoned over the course of the year.
- First Nations children remain over-represented. On an average day, 61.7% of all children in detention nationally are First Nations.
- The number of First Nations children in detention has surged: New South Wales up 86% since 2020-21, Queensland up 50% since 2019-20, Northern Territory up 74% since 2019-20, where 95.2% of children detained are First Nations.
“These figures show the spread of ‘tough on crime’ politics into states that had been moving in a smarter direction,” Ms Hollonds said.
“In Victoria, youth detention numbers were falling just two years ago. Now we are seeing a rapid reversal as punitive policies take hold. This is the same failed path we have already seen elsewhere.”
Ms Hollonds said there is a clear need for major systemic change and national leadership to drive that change, including progressing the Federal Senate inquiry into youth justice to deliver accountability for evidence-based action across the federation.
“Australians deserve a smarter approach and a better return on their tax dollars. We know that evidence-based early intervention programs can reduce crime at a population level by 5% to 31% and lower reoffending rates among children by 50%,” she said.
“If even a fraction of this $1.1 billion was invested in prevention, early intervention and community-led solutions, including those led by First Nations groups, we would see far better outcomes for children and for community safety.”
The Justice Reform Initiative has recently provided a submission to the Federal Inquiry on Australia’s Youth Justice and Incarceration System and maintains that the Australian Government must show leadership by implementing all recommendations of the Help Way Earlier! Report. These include establishing a National Taskforce, appointing a Cabinet Minister for Children, and creating a Ministerial Council for Child Wellbeing. A priority of the Taskforce should be a National Child Justice Action Plan to urgently reform the justice system for children and young people across Australia.
Contact details:
Amy Price, 0437 027 156