Australia must raise the age of criminal responsibility to 14, do more to monitor children in state care and introduce a National Children's Act.
So says United Nations Special Rapporteur on the sale, sexual exploitation and sexual abuse of children Mama Fatima Singhateh.
While the UN recommends a minimum criminal responsibility age of 14, it is as low as 10 in some Australian states.
"It goes without saying that the long-term effect of incarcerating minors will be far reaching for the child and the country as a whole," Ms Singhateh said in Melbourne on Friday.
"It is therefore crucial the age be raised to the minimum age of criminal responsibility in accordance with the Convention on the Rights of the Child and the international standards."
The age has been lifted to 12 in the Northern Territory and ACT, while Victoria is moving towards 14 and Tasmanian has pledged to raise the minimum age of detention to 14.
The federal government invited Ms Singhateh to Australia to assess the scope of the sale, exploitation and abuse of children, probe their prevention and examine assistance available to young victims.
She praised work already underway but preliminary findings released on Friday also highlight gaps.
Stronger oversight of children in care is recommended, along with stronger funding of child protection programs based on areas of greatest need, more shelters for abused children and better data collection.
"I learned with concern there is limited oversight by child protection agencies after children have been placed in out-of-home care, detention or locked facilities," Ms Singhateh said.
"This exposes children within custody of the state to risk of abuse, maltreatment, neglect or high incidences of reported missing children.
"There is therefore the need for stronger independent oversight and monitoring of the human rights of children in each state and territory."
She said the absence of a National Children's Act or national action plan for children made it difficult to ensure laws were consistent, and highlighted particular risks to children in poverty and from minority groups.
The UN official also highlighted what she described as an emerging trend of young people in residential care being trafficked via taxis or rideshare vehicles to other locations for sexual exploitation.
"This phenomenon requires urgent attention and rapid response," she warned.
Ms Singhateh said she was encouraged by work already done in ratifying international agreements, introducing a National Office for Child Safety and the Australian Federal Police's Centre to Counter Child Exploitation.
A formal report will be delivered to the United Nations Human Rights Council in March 2025.
A spokesperson for Acting Attorney-General Michelle Rowland said the government was striving with the states to raise the age of criminal responsibility and had already seen "welcome moves" from the territories.
The attorney-general and Minister for Indigenous Australians Linda Burney were also pursuing outcomes within the National Agreement on Closing the Gap including reducing overrepresentation of Aboriginal and Torres Strait Islander children by 30 per cent by 2031.