Young people transitioning from out‐of‐home care are a particularly vulnerable and disadvantaged group. In recent years, there have been significant improvements in Victorian policy and legislation providing support to care leavers. However, these supports remain discretionary rather than mandatory, and many care leavers experience difficult transitions in key areas such as housing, health, education and employment. This study reports on a research project based on a partnership between Monash University and seven non‐government child and youth welfare agencies. A key aim was to identify practices and policies that could reduce the over‐representation of young people transitioning from out‐of‐home care in the youth justice system. The interviews and focus groups conducted with 77 stakeholders revealed major limitations in the application of leaving care policy and legislation, and associated deficits in the availability of appropriate housing. Some key implications for policy and practice reform are identified. Copyright © 2013 John Wiley & Sons, Ltd. ‘many care leavers experience difficult transitions in key areas such as housing, health, education and employment’ Key Practitioner Messages Many care leavers have difficult transitions from out of home care due to the absence of a safety net. Post‐care supports should be mandatory, not discretionary. Care leavers should be assisted according to their developmental needs, rather than a random chronological age