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CAFS Contract Negotiations and Federal Reforms: Aiming for Better Outcomes for Children and Families

November 11, 2025•5 Minutes

Negotiations for the NSW Child and Family Services (CAFS) contracts are underway as the federal government announces major reforms to integrate and strengthen family support programs. These changes aim to streamline services, improve coordination, and ensure better outcomes for children, families, and young people through greater collaboration across government and the NGO sector.

Written by Jacquie Cheetham, Sector Development Lead (TEI/CAFS)

We are continuing negotiations on the Child and Family Services (CAFS) program, the NSW state government initiative under the Department of Communities and Justice, that plays a vital role in supporting children, families, young people and communities. The negotiations should all be concluded by December so that the CAFS programs can commence in January 2026.

On 23 October 2025, the Minister for Social Services, the Hon Tanya Plibersek MP, announced significant reforms to the federally funded programs aimed at improving the service system for families and young people. These reforms the Government is proposing are to streamline five funded programs into a single new national program (replacing the: Child and Parenting Support; Communities for Children – Facilitating Partners; Family and Relationship Services; Specialised Family Violence Services; and Family Mental Health Support Services).

Key highlights of the proposed reforms include: Enhanced service coordination to reduce duplication and improve accessibility; Greater investment in early intervention and prevention programs to support families before crises occur; Stronger accountability and performance measures to ensure quality and effectiveness; Improved workforce support and training to deliver consistent, high-quality care.

In the media release the Minister highlighted the crucial role of the NGO sector, particularly in driving innovation:

 “The not for profit sector has always been a source of innovation, and government must be willing to learn from you.”

While CAFS remains a state-led program, the proposed federal changes highlight the need for strong coordination of services at a regional level – to connect providers who work to support individuals and communities across state, local, and Commonwealth-funded services. By working together, we can ensure that families and young people receive seamless, effective support regardless of which level of government funds the program.

Next Steps: How you can contribute

Minister Plibersek announced that consultation will be a key part of shaping the reforms of the Federally funded programs. Stakeholders – including NGOs, service providers, and community representatives – are encouraged to:

• Engage in upcoming consultation sessions: Details will be released shortly by the Department of Social Services.
• Provide feedback on proposed reforms: Share insights on how changes can best support families and young people.
• Highlight innovative practices: Showcase examples of successful programs and approaches that could inform future service design.
• Collaborate across sectors: Work with state, local, and federal partners to identify opportunities for integration and improved coordination.

Your voice matters.

Have your say in shaping the future of services for children, families, and young people.

• Stay informed: Register your interest and keep updated on the consultation at A new approach to children and family programs.
• Prepare your input: Gather examples, ideas, and feedback from your teams and communities.
• Connect with us: We’ll share updates and opportunities to contribute as soon as they’re available.

In addition to these reforms, as we have mentioned in previous Hello Sector articles, planning is continuing for the Thriving Kids initiative, a joint federal and state government initiative focused on improving outcomes and provide early intervention and supports for children under 9 with autism and developmental delay.

We will continue to keep you informed throughout the final stages of the CAFS negotiations progress and as federal reform implementation and initiatives unfold.

We look forward to partnering with you to ensure these reforms reflect the voices and needs of the communities we serve, and that initiatives like CAFS work hand-in-hand with other programs to build a truly connected service system—one that connects government and the NGO sector to support families holistically, deliver better outcomes for every child, family, and young person.

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Navigating the Shift: Supporting Older Australians from CHSP to Home Care Packages

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Australian Charities
Acknowledgment of Country ⸺

We acknowledge and pay our respects to the traditional owners of the lands across the areas we service, particularly the Gadigal people of the Eora Nation, traditional owners of the land on which our office is located.

We pay our respects to Elders past and present.

WARNING: Aboriginal and Torres Strait Islander people are warned that this website may contain images or names of deceased persons.

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