This is the first of a two-part discussion of the place of residential care services in Australia, which highlights the issues that are likely to influence the development of these services into the future. This paper explores service trends over the past few decades, the current place and focus of residential care services, the nature of the young people being placed into such services, and the imperative for developing a more needs-based approach to service delivery. It concludes with a review of recent calls for the development of therapeutic or treatment-orientated models and the initial steps in this direction that have been taken around the country.

This is the second of a two-part discussion about the development of residential care services in Australia. It contains a review of some of the recent literature on residential care from Australia, the UK, Canada and the USA. It concludes with a look at the major themes and issues that emerge from this literature as well as the service trends and developments canvassed in Part I.

Recently the Department of Community Services in New South Wales and the Department for Child Safety in Queensland have both released information about funding and the award of contracts for group homes and other residential services. In addition, in the 2008 discussion about out-of-home care at the Wood Commission of Inquiry into the Child Protection Services in New South Wales, group homes were discussed in terms of them being less demanding environments than foster care. The view presented was that group homes are appropriate for some young people who are either unsuitable for foster care or who want a less intimate setting than that provided by foster care. This article argues that group homes or residential programs, against the New South Wales and Queensland descriptions, fail to respond to the need for quality residential programs for children and youth. This is partly due to the low level of training for staff in group homes and high staff turnover.