Thousands of children are stuck in institutional housing as Australia’s adoption rates keep plummeting

More than 260 children were adopted in 2020-21, but that number fell to just 155 in 2024-25.

The number of adoptions abroad has almost halved in that period, from 37 to just 19.

The 19 children adopted from abroad came from just six countries: Thailand, Taiwan, India, Colombia, Hong Kong and South Korea.

Domestic adoptions accounted for nearly 90 percent of adoptions completed in 2024-2025, and about 80 percent of those were known child adoptions.

But even high-profile child adoption, where a child is adopted by someone they already have a relationship with, fell by about a fifth from 147 to 119.

Adoption rates in Australia have been declining for years

Adoptions have fallen by 98 percent since the 1970s, partly due to the introduction of open adoption laws in the 1980s and 1990s.

Renee Leigh, CEO of Adopt Change, is concerned about the impact on children in need if numbers continue to decline.

“The main cause of declining adoption rates is due to limited local and intercountry adoptions, and children in care not being provided with a case plan that includes their permanent planning – and in particular adoption,” she told nine.com.au.

“Anecdotally, there are more people interested in adoption than the number of children with a case plan for adoption.”

Another challenge is that many Australians considering adoption will not consider foster care due to concerns about its transience.

Many turn to surrogacy to start a family instead.

“This is a missed opportunity to provide children in the system with a permanent home, rather than spending their childhood in group homes with shift workers,” Leigh said.

About 4,800 children in the Australian care system, including children as young as two years old, reside in institutional housing rather than growing up in a family home.

These children are more susceptible to poor outcomes, including homelessness, juvenile justice, low unemployment, and incomplete education.

They are also in danger from predators

Many would benefit from adoption and it is possible in legislation, but policy and practice prevent this from becoming a reality for many children.

“In many cases, children who could benefit from adoption experience significant delays or are unable to access it at all,” Leigh said.

“This highlights a broader problem: the system does not always provide timely, permanent solutions to children who need them most.”

The cost-of-living crisis has also affected how many potential foster families can open their homes to a child.

Domestic adoption costs can exceed $3,000, while international adoptions can cost more than $10,000.

The majority of adoptions in Australia over the past five years have been known child adoptions, indicating that adoption is now primarily used to formalize stable, existing relationships rather than to place children with new families.

Even then, adoption can be a lengthy process, which can deter some potential adoptive parents.

Long wait times can also impact international adoption rates.

International adoptions, which had been declining since the mid-2000s, also scaled back when the COVID-19 pandemic hit and have yet to recover.

In the period 2024-2025, the total average time from the approval of an international adoption application to the placement of a child was approximately four years. 

Leigh wants more attention to stable custody and adoption for children who cannot stay with their family of origin or return safely.

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