Researchers and practitioners in the child welfare sector have frequently discussed the behavioural, emotional and mental health outcomes of children and young people in care. In fact, the majority of out-of-home care research conducted in Australia focuses on the outcomes for the children and young people while in care. In this paper, we review Australian research investigating the outcomes for children and young people who are currently in care (i.e., the short-term outcomes for children). For a review of the Australian research investigating the long-term outcomes for children after they have left care and made the transition to independent living, see Osborn and Bromfield (2007). Outcomes relate to the physical, psychological functioning and educational levels of children and young people in care, and whether time in care has positively or negatively impacted on their functioning.