Zaneta Mascarenhas | Women's Agenda

Financial abuse is one of many “touchpoints” that must be addressed in the fight to end violence against women and children, writes Federal Member for Swan Zaneta Mascarenhas. She shares some of the heartbreaking stories and stats she’s hearing, as a member of the Joint Parliamentary Committee on Corporations and Financial Services.

Financial products are being systematically weaponised by perpetrators to harm women.

Victim survivors know this and so does the Domestic, Family, and Sexual Violence Commissioner Micaela Cronin.

That’s why a whole of systems approach is needed to combat domestic violence. Commissioner Cronin highlighted the “touchpoints” in revealing family and domestic violence.  But critically we must have systematic responses at these touchpoints, so that we can prevent further abuse and help set victims on a path to recovery and healing.

Financial abuse is a touchpoint. It takes many forms, including the manipulation of child support systems to continue harming victims long after a relationship ends. The weaponisation of child support is a theme surfacing in the national inquiry into financial abuse by the Parliamentary Joint Committee on Corporations and Financial Services. The committee heard evidence that $1.7 billion in child support is still unpaid. It’s leaving victims struggling to pay rent or afford basic necessities for their children. 

It goes further than manipulation of child support payments. Financial abuse can include controlling access to bank accounts, sending threatening messages through financial transactions, forging signatures, and taking out loans in someone else’s name. Equally damaging are tactics like preventing someone from working or forcing them into employment under duress. 

Since launching the inquiry, I’ve been shocked to learn how widespread it is. If it’s not happening to you, it could be happening to someone you know. It can affect anyone—whether you are an 82-year-old grandmother or a 22-year-old newlywed living in a leafy suburb or a remote outback community. 

The stories we hear are heartbreaking. Shenane Hogg woke from a nine-month coma after being seriously assaulted by her partner, only to find herself saddled with $56,000 in debt. Cathy Oddie was coerced into joint loans and then abandoned by her financial institution when her co-signatory did not pay. Julie Adams lost her daughter, only to see her superannuation end up in the hands of her daughter’s alleged perpetrator. 

In 2021, 1.6 million women reported experiencing financial abuse, a figure that advocacy groups suggest do not reveal the full extent of the problem. Financial abuse is frequently misunderstood and rarely discussed, especially among women. Speaking about financial well-being with girlfriends is hard enough, discussing financial abuse even harder. 

As our lives increasingly shift online, so too have our financial institutions. While digital banking offers many conveniences, it has also created new avenues for financial abuse. The major banks are aware of this growing issue. National Australia Bank (NAB) shared with the committee that in 2022, it introduced a system to block abusive transactions, preventing an average of 13,000 harassing messages per month from reaching their intended targets. But there is still more to be done.

Tragically, financial abuse is often a precursor to more severe forms of violence. It is commonly experienced by those seeking refuge from domestic violence and tends to escalate alongside physical, sexual, and psychological abuse. By eroding a woman’s financial independence, it restricts her choices, limits her freedom, and traps victims in debt or poverty for years. This financial disempowerment is often the very reason many women find it difficult to leave abusive relationships.

Financial institutions must evolve to keep pace with these challenges. Redesigning banking products and services can protect against financial abuse. I initiated a national parliamentary inquiry to tackle these issues head-on, spark a nationwide conversation, and push for the urgent changes we need. By addressing this critical “touchpoint”, as the Commissioner refers, we can ensure we have the tools and resources necessary to intervene effectively. Combating domestic violence is a shared responsibility, and everyone has a part to play.

The committee is currently holding hearings and expected to report to Parliament by the end of the year.