Hidden in plain sight: The reality of financial abuse

Right now, as many as one million Australian women are trapped in this nightmare, their names forged onto company documents, their credit destroyed and their futures stolen. They face years of relentless legal battles, crushing debt, and the suffocating weight of a system that is used against them.

Financial abuse is not just a hidden crisis, it is an economic straitjacket that keeps survivors tied to their abusers, unable to break free.

At Each, we work every day to support people – mainly women – who have been the victims of financial abuse in business.

Financial abuse in business can happen when someone sets up companies or runs up debts in their partner’s name, without their partner’s knowledge. It is a deliberate form of control and domestic violence that can easily happen because loopholes in Australian financial regulations, laws and policies are easy to exploit.

The Federal Government’s 2024 Financial Services Regulatory Framework in Relation to Financial Abuse inquiry was a big step forward in addressing this form of domestic violence. But one of the biggest opportunities for reform to protect victim-survivors and stop financial abuse is inside government.

Based on what we’ve seen, here’s what needs to happen:

• Tightening the systems and processes of government organisations like the ATO, Centrelink and ASIC to make it harder for people to use financial abuse
• Training and supporting staff in finance and government organisations to understand, recognise and respond appropriately to people experiencing financial abuse
• Creating a fair debt strategy across government, like in the UK and NZ, to limit impacts of financial abuse on victim survivors
• Introducing safeguards to prevent misuse of digital systems for financial abuse (example: where government is making a payment such as a tax refund, the bank account name holder must match with the person named on the tax return)
• Establishing trauma-informed integrated services – legal, financial counselling, that support victim survivors to achieve freedom from abusive behaviour.

Financial abuse isn’t just about money, it is a key driver in perpetuating family violence. By advocating for victims and pushing for change we can help keep victims and families safe.

With the support of Commonwealth Bank and the expertise of our small business financial counsellors, Each has developed a model for a national, collaborative response to financial abuse in business. We’re determined to disrupt the cycle of control, support survivors in recovery and push for systemic change.

The solutions are within reach. Now, we need action.

As we approach the 2025 Federal Election, Each is seeking commitments from the Labor and Coalition parties to commit to funding our proposed model if they win office.