Chair's foreword
1.1The 61 recommendations of this report, which were adopted unanimously, represent a moment of hope and potential change for our nation.
1.2This report marks a crucial turning point in addressing financial abuse. Financial abuse is a tragically underacknowledged form of intimate partner and family violence that has often gone unseen or ignored. It has devastating effects on those it impacts. Financial abuse undermines the economic independence of the victim, often trapping them in cycles of financial hardship and dependency that can span decades, extending well beyond separation or divorce.
1.3This form of abuse is far more frequently perpetrated by men against women. It affects individuals at every stage of life. Women, especially those in vulnerable communities, are disproportionately affected by financial abuse, with women from culturally and linguistically diverse backgrounds, Indigenous communities, and women with disabilities facing even greater risks than the general population.
1.4This report exposes the shocking extent of financial abuse in Australia. According to the Australian Bureau of Statistics , 27 per cent of women in Australia—approximately 2.7 million women—have experienced violence, emotional abuse, or economic abuse by a cohabiting partner. Furthermore, 16per cent of these women, or 1.6 million, have suffered from partner economic abuse, compared to 7.8 per cent of men. Women with disabilities are particularly vulnerable, experiencing higher rates of economic abuse than those without disabilities.
1.5The scale of this issue is further highlighted by the fact that the financial toll on victims of financial abuse is estimated at $5.7 billion—almost $3 billion more than the total amount lost to scams in Australia in 2023. This reflects a systemic issue that is often absent from mainstream discussions of domestic violence, as demonstrated by the New South Wales Joint Select Committee on Coercive Control and the Queensland Women’s Safety and Justice Taskforce. Although these inquiries have acknowledged financial abuse, comprehensive recommendations have been lacking.
1.6Through this inquiry, the committee has uncovered the multifaceted nature of financial abuse, including its impact on superannuation. The Public Trustees of Australia pointed out that victims of financial abuse within Self-Managed Superannuation Funds face severe disadvantages, as these funds are not covered by the Australian Financial Complaints Authority. Super Consumers Australia also noted the shortcomings of the superannuation death benefit system, which often works against the interests of victim-survivors of financial abuse and domestic violence. Something is very wrong when the perpetrators of economic abuse receive their victim’s superannuation earnings.
1.7Financial abuse also has a devastating impact on child support arrangements. The report highlights the manipulation of the child support system by perpetrators, with Parkerville Children and Youth Care noting that 88 per cent of child support payments are made to mothers. However, many women and children trapped in financial abuse are further disadvantaged by perpetrators who weaponise the child support system, leaving them in hardship. The report found that nearly half (47 per cent) of women using the Private Collect system for child support were pressured by their ex-partner to avoid payments, with 70 per cent of these women failing to receive payments in full or at all. This is a root cause of poverty for too many women and children.
1.8This report calls for comprehensive reforms across multiple sectors to address financial abuse. Of the 61 recommendations aimed at both preventing and mitigating the impact of financial abuse, key recommendations include:
establishment of an ongoing mechanism for government and victim-survivor co-design of legislative, regulatory and sector-driven reform aimed at mitigating the prevalence and impact of financial abuse;
changes to consumer credit legislation to recognise the unique threats posed by financial abuse;
standard operating guidelines for the referral of reasonably suspected or reported financial abuse to the financial institutions used by suspected perpetrators and victim-survivors;
anonymous reporting mechanisms through which victim-survivors of domestic and family violence, or other individuals, can report actual or suspected financial abuse of the institutions’ customers;
enhanced protections for victims in superannuation and insurance claims;
review of the ethical obligations for lawyers, accountants, financial advisers and other key professions, and penalties for undertaking inappropriate actions on behalf of clients perpetrating financial abuse;
expanding the Design and Distribution Obligations to include consideration of customers impacted by family and domestic violence, including financial abuse, and the potential for perpetrators to cause harm by misusing products and services;
reforms to ensure that financial institutions can better identify and respond to signs of abuse; and the
establishment of a standing inter-departmental taskforce to oversee the implementation of safety-by-design principles into all government services.
1.9We also call for a review of child support arrangements to ensure that victims and their children are not financially exploited through the withholding of support payments.
1.10Beyond women as the primary victims of financial abuse, the impact of this issue on marginalised groups is even further pronounced. As the Department of Social Services highlighted, Aboriginal and Torres Strait Islander women experience financial abuse in distinct ways, not only within intimate partner relationships but also in broader family contexts. Cultural norms around sharing wealth and caregiving, alongside support systems based on reciprocity, increase vulnerability to financial exploitation. Similarly, financial abuse is not limited to a single relationship phase; it can occur throughout a relationship and even after it has ended, as emphasised by Anglicare WA. Financial abuse disproportionately impacts women, with Women’s Legal Services Australia noting that women are twice as likely to experience financial and economic abuse as men.
1.11The evidence gathered through this inquiry has made it clear that financial abuse is a national issue that cannot be ignored. This issue is not just about individual harm; it is a systemic problem that is compounded by gaps in regulation and law, lack of awareness, and complicity within and across financial institutions. The report’s recommendations aim to create a coordinated and comprehensive response from government, financial institutions, and the legal system to combat this hidden epidemic.
1.12The testimonies of victim-survivors and the expertise of stakeholders such as Women’s Legal Services Australia, the Centre for Women’s Economic Safety, and other community organisations have been invaluable in informing this inquiry. Their voices have made this report possible, and I am deeply grateful for their courage and commitment to ensuring that financial abuse is no longer overlooked.
1.13I would also like to thank the committee secretariat for their diligent work throughout the course of this inquiry. The committee has worked collaboratively to produce a report that is both thorough and forward-thinking, with recommendations that can effect real change. I would like to thank Deputy Chair, Mr. Alex Hawke, for his close attention throughout the course of the inquiry, Senator Pratt, for bringing the committee’s attention to issues affecting culturally and linguistically diverse communities, and Senator Scarr for his thoughtful questioning. Special thanks also go to Ms Mascarenhas, whose advocacy and leadership in seeking the support of the committee to undertake this work were crucial to this inquiry.
1.14Finally, to the victim-survivors who shared their stories with us, thank you. Your bravery in speaking out has made this report possible. Financial abuse is now a national conversation and, together, we will ensure it no longer remains hidden in the shadows.
Senator Deborah O'Neill
Chair
Labor Senator for New South Wales