Child sexual exploitation rife in Vic residential care

The Victorian government concedes children in residential care need more protection after it was revealed 165 in the system have been sexually exploited in the last two years.

Data released on Wednesday shows 423 incidents of exploitation were reported to the Commission for Children and Young People between July 2021 and March this year.

More than 240 incidents involved sexual exploitation and abuse of children aged under 16, while 11 incidents involved nine children under the age of 12.

"Behind these figures are 165 of Victoria's most vulnerable and victimised children," Commissioner Liana Buchanan said.

"Children who have already suffered trauma, been removed from their families and are now in the care of the state."

Stronger action and investment from the Victorian government is needed to ensure children were safe in residential care, Ms Buchanan said.

Attorney-General Jaclyn Symes said the government was investing in child protection to reform the sector and staff were trained to identify the risk of exploitation.

"It's devastating to read such stories but we know that this is happening," she told reporters on Wednesday.

"We know that vulnerable children in out-of-home care have been targeted by the most heinous people in our community.

"There's always more to do in relation to child protection."

A 2021 report from the commission found an alarmingly high number of children who were absent or missing from residential care were sexually abused, often by adult men.

Sexual exploitation was also significantly under-reported because of the fragmented and inconsistent approach across the state, the report found.

The commission previously recommended a complete overhaul of Victoria's residential care system and better reporting and monitoring of sexual exploitation.

It was important to highlight the ongoing issues in the lead-up to May's state budget, Ms Buchanan said.

"We've simply seen too little progress," she said.

"Numerous inquiries have highlighted that there is a dire and urgent need to improve the quality of care.

"It is also clear that action to better identify and protect children at risk of sexual exploitation and abuse is overdue and that children are suffering as a result."

Opposition child protection spokesman Matthew Bach said the government has for years failed to listen to the commission and experts.

"Now, according to the commissioner, we've reached a complete crisis point," he told reporters.