Fertility giant Monash IVF will escape punishment for breaching the NSW limit on the number of families created by a single sperm or egg donor, clearing the way for women and families embroiled in the mix-up to continue their treatment.

Monash IVF told patients last month it was pausing some treatments while it investigated which clients may have been affected by its “misinterpretation” of NSW’s five-family donor limit.

The rule prevents IVF providers from using donors whose sperm or eggs have helped create more than five families – including their own.

The ASX-listed company said it had considered the limit to apply to the number of women in the state with the same donor, but had recently been informed by NSW Health that it was a global limit.

NSW Health announced on Thursday it would

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