Surrogacy Compensation and the ALRC Review

Clear guidance for families during a period of legal review

Australia’s surrogacy laws are currently under review, with particular attention being given to how surrogacy expenses and compensation are regulated.

For many intended parents and surrogates, increased media coverage has raised understandable questions, especially about whether the law is changing and what this means for families planning or undertaking surrogacy.

This page explains:

  • What the Australian Law Reform Commission (ALRC) review involves
  • What the law currently requires
  • What families should be mindful of while the review is underway

It is intended to provide clear, practical guidance at a time when headlines may not always reflect the legal reality.

What the ALRC Is Reviewing

The ALRC is examining whether Australia’s existing surrogacy framework remains appropriate and effective, including how the law approaches surrogacy expenses and compensation.

In particular, the review is considering:

  • How “reasonable expenses” are defined and managed
  • Whether the current prohibition on commercial surrogacy achieves its intended aims
  • Whether existing laws adequately protect surrogates, children, and intended parents
  • The broader consequences of Australia’s approach, including overseas surrogacy arrangements

The review reflects the fact that family creation pathways have evolved significantly, while the law has often struggled to keep pace with lived experience.

What the Law Currently Requires

At present:

  • Commercial surrogacy remains prohibited across Australia
  • Surrogates may be reimbursed for reasonable out-of-pocket expenses
  • What constitutes “reasonable expenses” is not clearly or consistently defined
  • Surrogacy laws vary between states and territories

In practice, this can create uncertainty – particularly in relation to matters such as:

  • Loss of income
  • Insurance and medical expenses
  • Counselling and support costs
  • The long-term financial impact on surrogates

This lack of clarity is one of the key issues being examined as part of the review.

What Is Being Discussed

Public discussion around surrogacy compensation can sometimes oversimplify what is, in reality, a complex legal and ethical issue.

The ALRC review is considering questions such as:

  • Whether clearer regulation could improve protections for surrogates
  • Whether the current framework unintentionally encourages overseas surrogacy
  • How to balance safeguards with practical realities for families
  • How any reform might affect parentage orders and legal recognition of families

These questions do not have simple answers, and any reform must be approached carefully to avoid unintended consequences.

Our Contribution to the Review

We have made two formal submissions to the ALRC as part of this review.

Our submissions draw on:

  • Specialist legal practice in fertility and family creation law
  • Long-standing work with intended parents and surrogates
  • Lived experience of how surrogacy laws operate in real family journeys

Our focus has been on:

  • The wellbeing and autonomy of surrogates
  • Legal clarity and protection for families
  • Ensuring reforms do not inadvertently increase risk
  • Supporting outcomes that are ethical, workable, and child-focused

Law reform in this area requires careful consideration of both legal principles and lived experience.

What Families Should Be Aware of Right Now

It is important to note that:

  • The law has not changed
  • Existing prohibitions on commercial surrogacy remain in place
  • Media commentary does not alter current legal requirements

For families considering surrogacy – or already part-way through the process – it is particularly important not to rely on assumptions or headlines when making decisions.

Periods of legal review can increase uncertainty, and tailored legal advice is often more important, not less, during these times.

When Legal Advice Is Especially Important

We recommend seeking advice if:

  • You are unsure what expenses may be reimbursed
  • Your arrangement involves a known surrogate
  • Your surrogacy journey crosses state borders
  • You are concerned about how potential reform may affect your plans

Clear advice at the outset can help avoid significant emotional, legal, and financial difficulties later.

Speaking With a Surrogacy Lawyer

If you would like guidance on how the current law applies to your circumstances or how the review may be relevant to your plans, we can help you understand your options and obligations with clarity and care. Learn more about our surrogacy lawyer services and how we can help. 

During periods of reform, informed advice provides reassurance and protects everyone involved.

About The Family Village

The Family Village was founded by our leading Lawyer, Katie. Katie navigated her way through many years of IVF treatments (both the ups and the downs) to create her family. Unfortunately, after the birth of her second child, carrying her own children was no longer an option. Together with her husband, she went on a 5-year journey to find a surrogate. Their precious son Vinnie was born via surrogacy in 2022.
With a passion to assist and support others through their journey in creating a family, Katie established The Family Village. With 16 years legal experience, Katie provides legal advice and services, education, support and guidance to those on their journey to create a family, particularly in surrogacy arrangements.
Katie and her surrogate Sally, work side by side at The Family Village to support surrogates and intended parents alike. They have the benefit of walking in your shoes, from both sides of the story, which is a valuable asset.