28 May 2025
Commercial Surrogacy Arrangements
In Australia, commercial surrogacy, where a surrogate receives payment beyond reimbursement for reasonable expenses, is illegal in all states and territories. Only altruistic surrogacy is permitted, wherein surrogates can be reimbursed for costs associated with the pregnancy but cannot receive additional compensation. The reason behind this is to prevent potential exploitation of surrogates and children. Engaging in or arranging a commercial surrogacy agreement can lead to serious penalties, including fines and criminal charges.
Children born through international commercial surrogacy may not automatically be recognized as Australian citizens, and intended parents might not be legally acknowledged as the child’s parents under Australian law.
In the most recent case of Lloyd & Compton [2025] FedCFamC1F 28, lawyers for a married couple filed proceedings in the Federal Circuit and Family Court of Australia seeking orders for a child born in Cyprus through a commercial surrogacy agreement using a company they controlled, to live with them and for parental decision making. The biological Mother opposed the application. The sperm was from the applicant husband and the egg was from the biological mother.
Judge Carew was highly critical of the application filed noting the lawyers for the applicants had not outlined what the law in Cyprus said, did not state that the parents who brought the application were Australian citizens, and were not aware that commercial surrogacy arrangements were not legal.
The lawyer for the couple eventually filed an Affidavit outlining what the law stated in the Turkish Republic of Northern Cyprus, however had no expertise to do so, having never practiced in Cyprus.
The couple were referred to the Queensland DPP by her Honour for prosecution and is presently before the DPP for consideration: https://www.abc.net.au/news/2025-05-01/queensland-couple-commercial-surrogacy-court-application-baby/105227774?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_shared&utm_source=abc_news_web
This case highlights the serious risks of proceeding with inadequate or uninformed legal representation in complex family law matters, particularly those involving international surrogacy.
The applicants in this matter clearly had a deep personal commitment to becoming parents and went to great lengths, financially and emotionally, to bring their child into the world. Unfortunately, their choice of legal representation significantly undermined their efforts. Their solicitor failed to:
- Provide essential and admissible evidence (e.g., citizenship documents, foreign laws, proof of marriage);
- Understand or address the criminal implications of commercial surrogacy under Queensland law, and
- Comply with procedural requirements of the Federal Circuit and Family Court of Australia Rules.
Moreover, the solicitor purported to give expert evidence on foreign law without having the qualifications to do so, further damaging the credibility of the case. These oversights contributed directly to the Court’s decision to dismiss the application, a devastating outcome for the applicants, and one that may have been avoided with competent legal advice.
Why You Need an Accredited Specialist in Family Law
Accredited Specialists in Family Law are recognised by the relevant state law societies as having expertise that goes beyond general legal practice. They must pass rigorous assessments and demonstrate advanced knowledge, skill, and experience in handling complex family matters. Had the applicants engaged such a specialist, they would likely have:
- Received strategic advice on the legal risks of entering into an international commercial surrogacy arrangement as Queensland residents;
- Been properly guided through the required evidentiary and procedural steps, and
- Avoided the misleading statements and procedural missteps that ultimately led to their application’s failure.



