In the 2020-21 period, over 260 children found new homes through adoption, but by 2024-25, that number had significantly decreased to just 155.
Adoptions from abroad saw a dramatic decline, dropping from 37 to a mere 19 during the same time frame.
The 19 international adoptions were sourced from only six countries: Thailand, Taiwan, India, Colombia, Hong Kong, and South Korea.
Nearly 90% of finalized adoptions in 2024-25 were domestic, with approximately 80% of these being known child adoptions.
Even known child adoptions, where the child is adopted by someone they are already familiar with, saw a reduction of about 20%, decreasing from 147 to 119.
Adoption rates have plunged by 98% since the 1970s, a trend partially attributed to the introduction of open adoption laws during the 1980s and 1990s.
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 â 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 â 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.
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 2024â25, 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.
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