HomeAUThousands of Australian Children Currently Reside in Institutional Care Facilities

Thousands of Australian Children Currently Reside in Institutional Care Facilities

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Nearly 5000 children are stuck in institutional housing as Australia’s adoption rates continue to plummet.

The number of children adopted in 2024-25 dropped significantly to 155, compared to over 260 adoptions in the 2020-21 period.

Generic image of a mother and child crossing the road.
Adoption rates have plummeted in Australia – we want to know why. (Paul Harris/SMH)

International adoptions experienced a steep decline, nearly halving from 37 to 19 over the same timeframe.

These 19 international adoptions involved children from just six countries: Thailand, Taiwan, India, Colombia, Hong Kong, and South Korea.

Domestic adoptions made up nearly 90% of all adoptions finalized in 2024-25, with roughly 80% of these being known child adoptions.

Despite their prevalence, known child adoptions, where a child is adopted by someone with whom they already share a connection, also saw a decrease, falling by about 20% from 147 to 119.

Have you got a story about adoption? Contact reporter Maddison Leach at mleach@nine.com.au

Australia’s adoption rates have been falling for years

Adoption numbers have plummeted by 98 per cent since the 1970s, due in part to the introduction of open adoption legislation in the ’80s and ’90s.

Adopt Change chief executive Renee Leigh is concerned about how this will affect children in need if numbers continue to drop.

“The primary cause of declining adoption rates are due to limited local adoptions and inter-country adoptions, and children in care not being provided with a case plan that includes their permanency planning – and in particular adoption,” she told nine.com.au.

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

Another challenge is that many Australians who would consider adoption will not consider foster care, due to concerns about its impermanence.

Many turn to surrogacy to start a family instead.

“This is a missed opportunity to provide children in the system with a permanent family based home, instead of spending their childhood in residential group settings with shift workers,” Leigh said.

About 4800 children in the Australian care system, including kids as young as two, are in institutional housing instead of growing up in a family-based home.

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

They’re also at risk from predators.

Many would benefit from adoption and it is possible in legislation, but policy and practice don’t see it come to 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 issue – the system doesn’t always deliver timely, permanent solutions for children who need them most.”

The cost of living crisis has also affected how many potential foster care families are able to open their home to a child.

Domestic adoption fees can exceed $3000, while international adoptions can cost upwards of $10,000.

The majority of adoptions in Australia in the last five years were known child adoptions, suggesting adoption is now primarily used to formalise stable, existing relationships rather than to place children with new families.

Even then, adoption can be a lengthy process, which can put some prospective adoptive parents off.

Cash stock image of cash person holding cash Australian money
The cost of adoption in Australia may hold some families back from even trying. (Getty Images/iStockphoto)

Long wait times may also be affecting international adoption numbers.

International adoption numbers, which had been falling since the mid-2000s, were also slashed when the COVID-19 pandemic hit and have not recovered.

In 2024–25, the total median length of time from approval of an international adoption application to placement of a child was around four years. 

Leigh wants to see a greater focus on stable guardianship and adoption for children who are unable to remain with or return safely with their family of origin.

Have you successfully gone through the adoption process, or considered adoption but been unable to pursue it? We want to hear from you – contact reporter Maddison Leach at mleach@nine.com.au.

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