In the first national study of its kind, the Australian Institute of Health and Welfare has examined the link between out-of-home care and government income support.

At June last year around 46,000 Australian children were living in accommodation which had been provided to them because they couldn't live with their parents. More than a quarter of people in the child protection system live in out-of-home care.

The new study, to be published on Wednesday, tracked data on about 32,100 young people born between 1990 and 1998, who has spent at least a week in out-of-home care.

The research revealed that about 60 per cent of the group received income support, compared to 21 per cent for the wider Australian population of the same age.

The group was far more likely to receive to crisis payments (12 times the rate of the general population), disability support pension (five times) and parent and unemployment payments (four times), according to the AIHW's research.

The report emphasised that the findings did not imply a link between a young person's experience in care and their subsequent reliance on income support.

"Children who are placed in out-of-home care are often the subject of complex circumstances, such as exposure to trauma, neglect and systemic vulnerability and disadvantage," the report said.

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"These circumstances may lead to their placement in care, but may also influence their experiences in later life and likelihood of income support receipt."

The report said there had been a dearth of reliable national data on the topic, which was needed to help develop policies across all levels of government. It suggested future studies could track young adults up to the age of 28 and include more child protection data to paint a more "complete picture" of their experience in care.

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