Damning results in a report by the Auditor General into the protection of NSW's most vulnerable children found services to be "inefficient, ineffective, and unsustainable".
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Case workers across the New England walked off the job in recent weeks, citing poor staffing levels that led to kids having to wait longer to be seen.
The report, published on June 6, found the Department of Communities and Justice (DCJ) doesn't proactively support families at their earliest point of contact with the child protection system, but rather waits until families are in crisis increasing the likelihood children will be removed from their parents.
The report found that privatisation of DCJ services in the last decade had led to 471 children living in costly and damaging environments like hotels and motels for months or years at a time at a cost of $300 million per year rather than with foster parents or in group homes as was the system pre privatisation
Public Service Association (PSA) general secretary Stewart Little said the report confirmed what child protection caseworkers have been saying for years.
"Child protection caseworkers have been saying for years the child protection system in NSW is in crisis and today this report has proved them right," said Mr Little.
"Most people would be shocked to learn only one in four kids reported as at risk of serious harm to child protection services by police, nurses or teachers is actually seen because there simply aren't enough child protection caseworkers.
"So that means child protection caseworkers only see the very worst cases."
Mr Little said that meant for a majority of families needing support "they arrive on the doorstep months later when there is no chance of salvaging the situation, which often means they end up taking kids away".
"The public would be outraged to learn if they call child protection services to report little Johnny is always covered in bruises and never looks like he's had a proper feed that it's only a one in four chance anyone will check on him."
Mr Little said that one-in-two caseworkers leave the role in less than two years.
Former Moree caseworker Tom Hooper counts himself among those statistics and said the situation has not improved for those who stay in the job.
"Their workload is horrific," he said. "Burn-out is a big problem. Caseworkers need to be respected and funded properly," Mr Hooper said.
Mr Little said the current process was 'perverse'.
"The foster care system has been left to wither and die because we privatised the care of children removed from homes, it's absolutely perverse," Mr Little said.
"Ten years ago the DCJ used to directly recruit, train and support foster carers, we need to return to that and cancel the contracts of for-profit and not-for-profit providers who have got their tentacles into the system."
"I can't put it any more clearly than this, out of home care (OOHC) providers, as they are called, need to be completely removed from the child protection system, they are getting in the way of child protection caseworkers looking after kids, and to add insult to injury they are costing more than the old system."
Mr Little said the cost of housing vulnerable kids in hotels and motels at $300million per year was more than the service cost before it was privatised.
"It's just madness ...we know of one child which cost taxpayers $1.2 million to put up in hotels and motels, that's crazy, that money could have sustained an army of foster parents," Mr Little said.
Lastly Mr Little said caseworkers were overloaded with tedious paperwork instead of being able to meet and help families.
The Auditor General's report agreed, stating that 'DCJ's assessments of child protection reports are labour intensive and repetitive, reducing the time that caseworkers have to support families with services'.
