The cost of failing to identify these issues has also surged almost 50 per cent to $22.3 billion annually, according to Minderoo Foundation's latest Cost of Late Intervention report.
Late intervention now costs $838 per Australian every year, or $2704 for every child and young person aged zero to 24.
It's a 47 per cent rise in spending from $15.2 billion identified in the last corresponding study published in 2019, significantly exceeding inflation and population growth.
Late intervention includes spending on statutory, acute and essential services and benefits for children or young people who are in crisis or facing serious issues, and is largely funded by governments.
By failing to intervene early, Australia was missing the chance to achieve better outcomes for children and young people, Minderoo Foundation founder Nicola Forrest said.
"When a child shows signs of developmental delay, every moment counts," she said.
"Early intervention isn't just beneficial, it's essential. It can mean the difference between a lifetime of struggle and a future full of possibility."
The report found the largest amount of late intervention spending - $10.2 billion - is on child protection, while spending on family violence has more than doubled since 2019.
Youth crime and unemployment are the second and third most-expensive costs.
State governments are bearing the brunt of short-term costs, but the federal government could gain long-term benefits from early intervention through increased tax revenue and reduced reliance on welfare.
NSW has the highest overall late intervention expenditure at $6.4 billion, followed by Victoria ($5.3 billion) and Queensland ($5 billion).
But spending per capita is highest in the Northern Territory at $2808, nearly triple what is spent in South Australia.
The report says co-ordinated investment across all levels of government must address issues before they escalate.
While late intervention will always be necessary, governments can not only save money but also spare considerable hardship for people by acting earlier.
"There is a huge social cost when children's wellbeing needs are not met," the report warns.
"For every child and young person who needs intensive services, there is a significant impact on families and communities."
Ms Forrest said Australia had made good progress on early childhood support in recent years.
"But the job is far from done. As problems evolve so, too, must our approach and ability to collaborate," she said.
"This isn't about spending more - it's a wake-up call.
"Australia must view and invest in the early years holistically. It's one of the smartest actions we can take as a society."
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