Support for victims of financial abuse

Following the criminalization of coercive control in New South Wales in July this year, 45 per cent of reported cases of this offense involved financial abuse; It is estimated that 1 in 5 women statewide have been subjected to economic abuse by their partner since the age of 15.

In New South Wales, over $200,000 in debt has been waived in the last 14 months for victims of domestic and family violence, with the support of financial advisors from the Legal Aid NSW Domestic Violence Unit.

Waived debt includes bank loans, credit card bills, Centrelink debts and fees incurred due to financial abuse.

The New South Wales Government has invested $8.1 million in the Redfern Law Center to expand and extend financial abuse support services, including free and confidential advice on financial abuse.

$372,000 has also been invested in Firmer Foundations, run by Good Shepherd, which works to improve the financial literacy of women who have experienced or are vulnerable to domestic violence, to reduce the risk of entering or returning to an abusive relationship.

Financial abuse is the control, exploitation or sabotage of financial resources that affects a person’s capacity to earn, spend and save money and threatens his or her financial security. Moreover, economic abuse regularly overlaps with other forms of domestic and family violence, and financial instability prevents the victim from leaving these environments.

Like all domestic and family violence, each experience is complex and different but may include a perpetrator:

• Placing someone on a strict budget that barely covers basic needs like food or clothes.
• Limiting access to bank accounts.
• Forcing, deceiving or pressuring someone into borrowing money.
• Hiding money or assets.
• Preventing someone from having a credit card.
• We track expenses meticulously.

If you or someone you know is in immediate danger, call the Police on Triple Zero / 000.

Get in touch for confidential advice, support and referrals 1800 RESPECT or 13 THREADS At 13 92 76.

NSW Attorney General Michael Daley said:

“The legal aid sector plays a critical role in supporting victims of domestic and family violence by providing free, timely legal advice to stop escalating problems.

“Financial abuse is a particularly insidious form of coercive control that can have often long-lasting and devastating effects on the victim.

“The work of Legal Aid’s Domestic Violence Unit and Financial Abuse Service means people escaping abusive relationships can find support to recover and rescue themselves from financial abuse.”

Jodie Harrison, Minister for Preventing Domestic Violence and Sexual Assault, said:

“No woman should have to choose between experiencing violence and living in poverty.

“Financial abuse is one of the most common forms of domestic and family violence, but it is often hidden and difficult to detect.

“It’s important that we not only raise awareness of this abuse, but also let people know that help is available.

“The NSW Government is working hard to end domestic and family violence, and this includes supporting victims of financial abuse to achieve financial security.”

Commissioner for Women’s Safety Hannah Tonkin said:

“Domestic and family violence occurs within a wider context of power and control and often involves financial abuse.

“The negative consequences of financial abuse often spill over into women’s lives, compounding financial distress for years to come.

“Women who manage to leave an abusive relationship may face long-term economic and systemic barriers to recovery, such as loss of assets and income, unemployment, and homelessness.

“It is critical to ensure that support is available to women who are experiencing or escaping financial abuse, both to ensure their immediate safety and to work towards long-term economic security and independence.”

Legal Aid NSW Domestic Violence Unit Director Susannah O’Reilly said:

“Financial abuse can often be a disguised form of intimate partner violence and can have a devastating impact on a person’s life.

“A person experiencing financial abuse may feel that it is impossible to leave or remain apart from their partner and that the perpetrator may continue such abuse even after the relationship ends.

“The criminalization of coercive control, which involves restricting access to money and controlling finances as coercive control behavior, means there is increased awareness of financial exploitation and recognition that it is illegal.

“Legal Aid is committed to supporting victims of financial abuse through the work of our Domestic Violence Unit.”

Good Shepherd CEO Stella Avramopoulos said:

“Women fleeing domestic and family violence often find themselves facing new situations such as financial insecurity, poverty and even homelessness.

“Our program helps women build financial resilience and capability so they can prevent or recover from financial stress or hardship resulting from financial abuse.”