Appearing before Parliament's social services committee via Skype, Mr Bayliss said a wider review of adoption laws was needed.
It was not their intent to remove any connection between a child and their birth family, but hard decisions needed to be made, he said.
"Regardless of how badly we abuse or beat or neglect our kids, at no point, ever, in our law is there consideration for the full and final termination of parental rights.
"And while that is rough and tough, it's actually an option we need to start looking at because then it actually sets that bar -- you do this again, you lose your kid. We do it with cars, why don't we do it with kids."
Under "home for life" status, foster parents are legal guardians, usually with the birth parents. Adoptive parents are sole legal guardians. Mr Bayliss said he believed Child, Youth and Family were steering potential adoptive parents towards home for life status.
National MP Jono Naylor, who worked at Child, Youth and Family for a short time in the past, said he remembered that the difficulties associated with home for life status, including consulting birth parents, meant it could be difficult to get people to agree to take children on.
Mrs Bayliss said they were required to consult with the birth parents and all major decisions involving their daughter.
"That can range from education, religion, where the child lives, where we can look for jobs within New Zealand or internationally. Haircuts apparently are an issue that we can be taken to court for -- if we get [the child] a haircut that the birth parents don't like."
Those requirements assumed that the birth parents were able make decisions in the best interests of the child, but that "our child's biological parents cannot functionally work for her best interests".
Social Development Minister Anne Tolley has previously responded to the petition by saying a looming law change would help deal with its concerns.
The Vulnerable Children Bill created a new "special guardianship" order by which a Family Court judge will be able to share rights between guardians, from July this year. That could in effect allow the rights of birth parents to be reduced or removed, in some circumstances.