SENATOR DEBORAH O’NEILL

Labor Senator for New South Wales

Chair of the Joint Standing Committee on Corporations and Financial Services

 MS ZANETA MASCARENHAS MP

Member for Swan

Member of the Joint Standing Committee on Corporations and Financial Services

BANKS, INSURERS, SUPER FUNDS AND GOVERNMENT SERVICES PROVIDERS URGED TO ACT ON FINANCIAL ABUSE

The Parliamentary Joint Standing Committee on Corporations and Financial Services has today tabled its final report into financial services regulatory frameworks in relation to financial abuse in Australia. The report is titled ‘Financial Abuse: An Insidious Form of Domestic Violence’.

The report, which was adopted unanimously, identifies widespread misuse of financial platforms and products, alongside government services, to facilitate and perpetuate coercive control and abusive financial behaviours.

The report makes a total of 61 recommendations to government, financial services providers and key stakeholders, which aim to minimise the prevalence and impact of financial abuse.

It calls on banks, insurers and other financial institutions to proactively identify and support people subject to coercive financial behaviour and abuse, with recommendations that propose changes to laws that currently limit the disclosure of concerns on privacy grounds. 

Key recommendations made by the committee 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 recognize 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;
• Establishment of a standing inter-departmental taskforce to oversee the implementation of safety-by-design principles into all government services.

The terms of reference for the inquiry can be found here: Terms of Reference – Parliament of Australia

The final report can be found here: Tabled documents | Document 8604

Quotes Attributable to Senator Deborah O’Neill, Chair of the Committee: 

"Financial abuse is primarily experienced by women and children, and is primarily perpetrated by men. It is a quiet but raging epidemic that ruins the lives of those it affects. It has got to stop.”

“The 61 recommendations of this report are a testament to the strength of the countless victim-survivors who shared their stories throughout the course of this inquiry. Their bravery in pursuit of the national interest has enabled the committee to deliver this unanimous report.”

“The vast majority of those who experience financial abuse are women, and the likelihood of harm is even greater for First Nations people, the elderly, culturally and linguistically diverse Australians, and those living in remote and regional communities.”

"There are the men who perpetrate financial abuse, but there are also the men and women in the corporate world who for too long have been blind to the damage they facilitate."

"Banks and financial institutions can and should be on the frontlines of identifying and stopping financial abuse. They have enough data and digital capacity to do so. It has to become a priority."

“Financial abuse is not just heartbreaking, it is dangerous. Government and financial institutions need to treat it like what it is - an immediate threat to life and safety.”

“Superannuation is meant for retirement, not to fund an abuser’s control. It’s time to protect victims and their future.”

“Legal or financial advice shouldn’t enable abuse. Through professional bodies, such enablers must be held personally accountable and pay a price if they facilitate financial harm.”

“Child support payments being withheld is a form of financial abuse that doesn’t just hurt parents, it robs children of the support that they need to thrive. We must act to ensure kids and parents get the support that they deserve.”

“We need specialised teams within government agencies who understand the complexities of financial abuse. This report ensures that people working in frontline government services will be properly trained to deal with issues of financial abuse.”

“I thank the committee for their collaboration throughout the course of this inquiry. In particular, I would like to thank Ms Mascarenhas for proposing this inquiry to the committee, and championing the many victim-survivors and advocates who bravely shared their stories throughout the course of the inquiry.”

“The deputy chair, Mr Alex Hawke and I were truly shocked by much of the evidence we received.”

“Thank you to Senator Pratt for her support in bringing witnesses to the enquiry and for her regular attendance and insightful questions at hearings.”

“And to Senator Scarr, thanks for the insights he brings from his former life as a lawyer.  They are shared thoughtfully with the committee and improve the work we do.”

Quotes Attributable to Zaneta Mascarenhas MP:

“I would like to thank the Chair of the committee, Senator Deborah O’Neill, for her leadership, and my fellow committee members for their collegiate and collaborative approach to this inquiry.”

“To the witnesses who bravely gave evidence, thank you. Because of you, financial abuse is now a national conversation. Your bravery in coming forward is inspiring and I am determined to use your voices for change."

“We uncovered issues we did not anticipate, demonstrating the strength of democracy and highlighting the role parliamentary inquiries play in addressing issues that confront everyday Australians. These processes allow us to explore, listen, and scrutinise issues that often go unnoticed yet have profound impacts. Financial abuse is one of them.”

“The inquiry has highlighted the prevalence and devastating impact of financial abuse. The statistics are shocking - $1.7 billion in unpaid child support is just one example.”

“We’ve seen how systems and financial products are weaponised to inflict harm - harm that prevents victim-survivors from recovering and moving forward. Superannuation, credit and debit products, mortgage arrangements - all of these can be turned into tools of abuse. This must stop, and we all have a role to play.”

“Central to this is safety by design - a concept embraced by some of the major financial institutions. However, it must be universally applied and not just within financial services but across government as well.”

“We need to create systems that protect against such exploitation and ensure they are designed to prevent harm from occurring in the first place.”

“Our 61 recommendations tackle these issues head-on.”

MEDIA CONTACT: Madelaine Renshaw, 0431680929 (Senator O’Neill)

MEDIA CONTACT: Melissa Robinson, 0403953162 (Zaneta Mascarenhas MP)