Australians fork out billions each year to fix mess caused by late intervention

Failing to identify health and developmental issues early in young people is now costing Australians more than $22 billion annually, a new report has revealed – up almost 50 per cent in just six years.

WA’s Minderoo Foundation has released its Cost of Late Intervention report, compiled by The Front Project, which shows late intervention costs $838 per Australian every year.

That is a 47 per cent rise in spending from $15.2 billion when the last study was published in 2019.

Late intervention, according to the report, refers to the spending on statutory, acute, and essential services and benefits provided when children or young people are in crisis or facing serious issues.

Minderoo Foundation co-founder Nicola Forrest said early intervention, before crisis point, “not only reduces long-term costs but also improves life outcomes for hundreds of thousands of children and young people”.

“This is a clear case of opportunity cost. 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,” she said.

“When a child shows signs of developmental delay, every moment counts. Early intervention isn’t just beneficial — it’s essential. It can mean the difference between a lifetime of struggle and a future full of possibility.”

The new report revealed the largest share of late intervention spending was on child protection at $10.2 billion – a 72 per cent increase since 2019 – while spending on family violence had more than doubled.

Youth crime and unemployment were the second and third most costly.

“There is a huge social cost when children’s wellbeing needs are not met,” the report states.

“For every child and young person who needs intensive services, there is a significant impact on families and communities.”

The report draws on The Nest – a framework developed by the Australian Research Alliance for Children and Youth, and also highlights the work of the Early Years Catalyst, which has mapped 10 key systems – ranging from health and early learning to housing and social security – that underpin early childhood development.

It states there is a need for coordinated investment across all levels of government to address issues before they escalate, and that while late intervention will always be necessary, governments could save money by acting earlier.

State governments bear the brunt of short-term costs, but the federal government stands to gain long-term benefits from early intervention through increased tax revenue and reduced reliance on welfare, the report notes.

“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,” Forrest said.

“This isn’t about spending more – it’s a wake-up call. Australia must view and invest in the early years holistically – it’s one of the smartest actions we can take as a society.

New partnerships between government, communities, philanthropy and the social sector are critical for intergenerational change.”

The Front Project chief executive Dr Caroline Croser-Barlow said acting early would also strengthen the economy.

“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 Cost of Late Intervention report lead researcher Megan O’Connell said the analysis showed the cost of late intervention “far outpaced inflation and population growth”.

“This is a clear signal that the problem is worsening, not improving,” she said.

“One of the biggest barriers to effective change is the lack of regular, transparent data that tracks early intervention spending and outcomes.

“Without it, we can’t know if policies are working — or if resources are being used effectively.”

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