Financial abuse is one of the most common yet least visible forms of abuse in family and domestic violence.
It happens when one person controls, restricts, or hides money and financial information to gain power over another.
This can involve bank accounts, credit cards, tax returns, government benefits, or even business records.
While it may not leave physical marks, financial abuse can quietly destroy a person’s independence, security, and confidence.
In Australia, financial abuse affects more than 2.4 million people and is estimated to cost the economy nearly $11 billion each year.
It is a specific form of economic abuse and a powerful tool of coercive control, limiting a person’s ability to make decisions or access their own money.
Importantly, it can occur both during a relationship and after separation, making it an ongoing risk rather than something that ends when a relationship does.
Professor Jan Breckenridge, a leading researcher in domestic and family violence, explains that financial abuse often exists alongside other forms of abuse, such as emotional, psychological, physical, or sexual abuse. It can be especially harmful for older people, where it is a common feature of elder abuse and often involves a trusted family member or caregiver.
Some warning signs may suggest that someone is experiencing financial abuse.
These include not knowing basic details about their own or shared finances, being unable to access bank accounts, passwords, or utility accounts, or having no control over wages, benefits, or personal spending. In other cases, a person may be forced to justify every purchase or be excluded from financial decision-making altogether.
More complex signs can include being listed as a company director without consent, being locked out of online government accounts such as myGov, having tax refunds taken without permission, or discovering that a partner has failed to lodge tax returns or manipulated income reporting.
Changes to insurance policies or household utilities without a person’s knowledge can also be a red flag.
However, financial abuse often stays hidden until a crisis occurs. Professor Breckenridge notes that many people do not realise what is happening until finances are closely examined, often during tax time. This is when missing records, unexplained debts, or unexpected tax liabilities come to light.
Professor Ann Kayis-Kumar, a tax law expert, says financial abuse frequently surfaces during tax preparation, audits, or debt recovery. Abusers may hide assets, shift debts onto the other person, limit access to income, or use business and financial structures to block access to money. In some cases, perpetrators control communication with accountants or tax agents, making it unsafe for victim-survivors to seek help through existing professionals.
Once financial abuse is recognised, understanding one’s financial situation is a crucial first step. This includes identifying debts, liabilities, and risks, particularly those linked to tax, welfare, or banking systems.
Specialist financial advisors or support services with experience in domestic and family violence can provide critical help. Many banks, insurers, utilities, and government agencies now have procedures to respond when financial abuse is disclosed, allowing people to regain control and resolve urgent issues.
If someone is in immediate danger, safety must come first. This may involve preparing a quick exit plan and contacting support services that offer confidential advice and referrals. When financial abuse is uncovered through the tax system, it is important to contact the Australian Taxation Office directly, when it is safe to do so. The ATO now formally recognises financial abuse as a form of vulnerability and offers specialist support to people facing serious hardship.
Financial abuse thrives in silence and confusion. Understanding the warning signs and knowing that help is available can be a powerful first step toward safety, clarity, and financial independence.
