Teacher Accused of Sex with Teen Granted Bail Due to High-Risk Pregnancy

Sydney, NSW – A special education teacher accused of grooming and engaging in sexual activity with a 15-year-old student has been released on bail, a decision reportedly influenced by her “high-risk” pregnancy. Karly Rae was granted strict conditional bail by Justice Dhanji in the NSW Supreme Court on Friday, June 6, 2025.

Ms. Rae was initially arrested in October 2024 at her Merewether home in the NSW Hunter region, following allegations she had sexual intercourse with the teenager from her school between the evening of October 4 and the afternoon of October 5, 2024. The schoolboy is not believed to have special educational needs. Ms. Rae has pleaded not guilty to all charges.

The court heard that Ms. Rae was initially granted bail after her arrest but was remanded into custody three months later, in January 2025. This was due to an alleged breach of an apprehended domestic violence order (AVO) when she reportedly contacted the teenager five times in two hours on January 14, 2025, in an attempt to persuade him to “give a false version of events.” She has been in custody for the past four months.

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During Friday’s bail hearing, Justice Dhanji cited Ms. Rae’s complicated and high-risk pregnancy as a key factor in his decision. Ms. Rae, who is 23 weeks pregnant and due to give birth in September 2025, suffers from gestational diabetes and has a history of miscarriages. The judge noted that if she remained in custody, her child would not be able to stay with her.

Acknowledging her previous bail breach, Justice Dhanji stated that Ms. Rae was “no longer able to work as a teacher” and that it was “highly improbable that there would be any attempt by the applicant to engage in sexual activity with a child.

“Under the terms of her release, Ms. Rae is subject to at least 14 stringent bail conditions, including home detention, a ban on social media use, and a requirement to report to Toronto Police Station three days a week.

Ms. Rae recently appeared via video link at Newcastle Magistrates Court, where she formally entered not guilty pleas to several charges. While charges of aggravated sexual intercourse with a child aged between 14 and 16 and producing child abuse material have been dropped, she still faces charges of grooming a child for unlawful sexual activity, possession of child abuse material, perverting the course of justice, and contravening an apprehended violence order.

Her case is set to proceed to the District Court, with arraignment scheduled for July 2025.