The Australian Taxation Office (ATO) has recently taken a proactive step by educating Tax Agents on the signs and impacts of financial abuse. The statistics are alarming: 1 in 6 women and 1 in 13 men in Australia experience financial abuse.
Tax Agents, including Supervision, have now been enlisted to help reduce these numbers. This article marks our first communication on this important topic—an effort to raise awareness and encourage open conversation.
What Is Financial Abuse?
While there is no universally agreed-upon definition, financial abuse generally involves a pattern of controlling, exploitative, or disruptive behaviours aimed at limiting another person’s financial independence. Common examples include:
- Unknown or coerced directorships
- Falsified income tax returns or amendments
- Inappropriate early access to superannuation
- Unauthorised access to myGov accounts
Red Flags That May Indicate Financial Abuse
- Controlling Access
Restricting access to money, bank accounts, business income, or tax information.
- Hiding Money
Keeping finances secret or concealing income and assets.
- Shifting Debts
Transferring debts into the victim’s name or forcing them to take out loans.
- Making Decisions
Financial decisions being made on your behalf, limiting your control over money.
- Inaccessible or Unclear Information
Complex business structures or financial arrangements that obscure access to funds.
ATO’s Role and Limitations
The ATO has limited capacity to support victims of financial abuse, particularly when personal debts have been incurred as a result. However, perpetrators may be held accountable through the Family Court, which can transfer tax debts between spouses.
Some individuals may underreport income or fail to lodge tax returns to avoid child support obligations. In such cases, the ATO shares data with Services Australia to strengthen enforcement of child support responsibilities.
Support Is Available
If this article has raised concerns for you or someone you know, please contact 1800 RESPECT, the 24-hour national helpline. You are also welcome to reach out to Supervision for guidance and support.
