Nearly 5,000 children are currently living in institutional care in Australia as adoption rates continue to fall sharply, according to new data from the Australian Institute of Health and Welfare.
Total adoption numbers have dropped by 41%, falling from more than 260 adoptions in 2020–21 to just 155 in 2024–25.
Overseas adoptions have also declined significantly, nearly halving during the same period from 37 to 19, with children adopted from countries including Thailand, Taiwan, India, Colombia, Hong Kong, and South Korea.
Domestic adoptions made up almost 90% of all finalised adoptions in 2024–25, with the majority being known child adoptions involving children already familiar with their adoptive families. However, even these cases declined by about 20%, falling from 147 to 119.
Experts have expressed concern that thousands of children in state care are missing out on permanent family-based homes, instead growing up in institutional or residential care settings. These children are considered more vulnerable to poor educational, social, and long-term life outcomes.
Despite many Australians expressing interest in adoption, advocates say fewer children are being placed on adoption pathways due to delays, limited case planning, and a preference for foster care or other arrangements.
The adoption process has also been affected by rising costs, long waiting periods, and the impact of the COVID-19 pandemic, which severely reduced international adoption numbers that have yet to recover.
Stakeholders are calling for stronger policy focus on permanency planning to ensure more children in care are given the opportunity to grow up in stable, family-based environments.
