Specialist homelessness services annual report 2024–25

People leaving care arrangements – including young people transitioning from out-of-home care (foster or residential care) and individuals leaving health care settings (hospitals, psychiatric hospitals, rehabilitation, or aged-care) – can be particularly vulnerable to homelessness. 

In 2023–24, around 1,700 young people aged 15–17 were discharged from out-of-home care in Australia (AIHW 2025), corresponding with the end of formal support in the child protection system. Around 1 in 3 (30%) young people leaving out-of-home care experience homelessness at some stage within their first year after leaving care, 37% of these for 6 months or more (McDowall 2020). A study of care leavers in Victoria found that more than half (54%) experienced homelessness within 4 years of leaving out-of-home care (Martin et al. 2021).

Young people leaving care face barriers to accessing the same opportunities as their non-care peers, who increasingly rely on parental resources in young adulthood (Wilkins et al. 2019). During this accelerated transition to independence, they require adequate support to access safe and stable housing, education, employment, financial security, supportive relationships and networks, and life skills (FaHCSIA 2011).

People transitioning from health care settings are also at risk of being discharged into homelessness. In a study of people who have experienced homelessness, 17% had been admitted to hospital for a mental health diagnosis in the previous 2 years (Wood et al. 2016). 

Discharge from a psychiatric hospital has been identified as a key pathway into homelessness among people with mental health issues (Nielssen et al. 2018). This can be due to inadequate transition planning, undertaking discharge assessments in time or resource-pressured environments and limited options for exit into suitable and secure housing (Brackertz et al. 2018).

Client characteristics

To compare selected characteristics and experiences across the SHS client groups presented in this report, please refer to the Client group comparison visualisations.

Housing situation at the beginning of support

In 2024–25, of the 6,200 SHS clients who were leaving care and stated their dwelling type at the beginning of support (Supplementary table LCARE.7):

• around 1,700 clients (27%) were living in independent housing (house/townhouse/flat)
• around 1,200 (20%) were staying in a psychiatric hospital or unit
• just above 1,000 (16%) were staying in a hospital (excluding psychiatric).

New or returning clients

Around one-third (31% or 1,900) of clients leaving care were new to SHS services in 2024–25, and two-thirds (69% or 4,300 clients) were returning clients, having previously been assisted by a SHS agency at some point since the SHSC began in July 2011 (Supplementary table CLIENTS.42).

• More than half (57% or 680) of clients under 18 years were returning clients.
• More than two-thirds (71% or 790) of clients aged 18–24 were returning clients. These age groups include young people who may have left foster care or other out-of-home care arrangements.

Service use patterns

In 2024–25, clients leaving care received a median of 76 days of support, up from 75 days in 2020–21, an average of 1.9 support periods per client, and a median of 51 nights of accommodation (Supplementary table CLIENTS.48).

Client needs and main reason for assistance

Main reasons for seeking assistance

The main reason SHS clients leaving care sought assistance was different for those experiencing homelessness compared with those presenting to services at risk of homelessness.

In 2024–25, among the 1,700 SHS clients leaving care who were experiencing homelessness, the main reasons for seeking assistance were (Supplementary tables CLIENTS.12 and LCARE.6):

• transition from other care arrangements (19% or 320 clients)
• housing crisis (13% or 220 clients).
• inadequate or inappropriate dwelling conditions (12% or 200 clients)

In 2024–25, among the 4,500 SHS clients leaving care who were at risk of homelessness, the main reasons for seeking assistance were:

• housing crisis (17% or 750 clients)
• mental health issues (11% or 490 clients)
• family and domestic violence (9.5% or 425 clients).

Services needed and provided

Services provided to clients range from the direct provision of accommodation, such as a bed in a shelter, to more specialised services such as counselling and legal support. These services are either provided to the client directly by the agency or the client is referred to another SHS agency or specialised service.

Clients leaving care were more likely than all SHS clients to need services including (Supplementary tables LCARE.2, CLIENTS.24):

• living skills/personal development (29% or 1,800 clients, compared with 15% of all SHS clients), with 1,600 clients receiving this service
• transport (26% or 1,600 clients, compared with 16%), with 1,500 clients receiving this service
• assistance with challenging social/behavioural problems (20% or 1,300 clients, compared with 10%), with 1,100 clients receiving this service
• mental health services (approximately 17% or 1,100 clients, compared with 7.7%), with 610 clients receiving this service and a further 180 referred.

Housing situation and outcomes

This section highlights changes in clients’ housing situation between the start and end of support. That is, the place they were living before and after receiving assistance from a SHS agency. The data includes only clients who ceased receiving SHS support during the financial year and were no longer receiving ongoing support from a SHS agency. 

Specifically, it compares clients’ housing at the start of their first support period in 2024–25 with the end of their last support period in 2024–25. It does not capture changes that occurred during a support period, nor changes throughout the year between different support periods.

The most common housing situation for clients leaving care, both at the start and end of SHS support, was institutional settings (Supplementary table LCARE.3). These include hospitals, psychiatric units, rehabilitation, and aged care facilities, reflecting either support received while in these settings or a return to them.

• Around 2,500 clients (62%) were housed in institutional settings at the beginning of support
• Around 1,000 clients (27%) were housed in institutional settings at the end of support. 

By the end of support, some clients had achieved or progressed towards a more positive housing solution, however, for some clients transitioning from institutional settings can be challenging. 

In 2024–25, of the approximately 1,100 clients leaving care who were known to be experiencing homelessness at the start of support (Supplementary table LCARE.3):

• 600 clients were homeless when their support ended.
• most clients were either in short-term accommodation (295 clients) or couch surfing (200 clients) when support ended.
• 180 clients were in private housing when support ended.

In 2024–25, of the approximately 3,100 clients leaving care who were known to be at risk of homelessness at the start of support (Supplementary table LCARE.3):

• most were housed in institutional settings at the start of support (2,500 clients) and, of these, around 940 clients were in institutional settings when support ended.
• around 1 in 4 (27%) were experiencing homelessness when support ended.