Foster and family carers, special guardian carers and grandcarers will receive $500 for the first child in their care and $250 for each additional child in the household as part of the WA Recovery Plan.
An estimated 7,359 children living in carer households, including children in the care of MercyCare foster carers, are expected to benefit from the $3.68 million financial boost.
The payment will be provided directly to foster and family carers, community sector organisation foster carers, special guardian carers and grandcarers in September.
Child Protection Minister Simone McGurk said the payment will go some way to helping carers out and acknowledging their often unsung work.
"Foster carers, grandcarers and special guardian carers do incredible work day in and day out, and we know that work became more challenging at the height of the pandemic,” Minister McGurk said.
"It will also help to reduce the strain on these households at a time of need, offering greater support to carers seeking to create stable placements for the children they look after.”
As part of the WA Recovery Plan, the State Government will also provide more than $300,000 for additional therapeutic and consultation support for foster and family carers.
The service will provide up to eight consultation and support sessions for carers, to assist with out-of-home care support and provide strategies to aid stabilisation for children and families once a placement commences.