Thousands of Australians trapped by abusive relationships will finally get relief from a bureaucratic nightmare that has been compounding their trauma for years.
The Albanese government has announced sweeping changes to debt waiver rules that will protect domestic violence survivors from Centrelink debts incurred through coercive control.
The reform addresses a cruel catch-22 that has left vulnerable people facing financial penalties for circumstances entirely beyond their control—sometimes years after escaping dangerous relationships.
In this article
How the Current System Fails Survivors
Under existing rules, Centrelink can waive social security debts in 'special circumstances' - but there's been a glaring exception. The special provisions do not apply when a person 'knowingly' makes a false statement or fails to comply with an obligation under social security law, even if that information was provided as the result of coercive control or violence.
This legal loophole has created devastating consequences for survivors. When an abusive partner forces someone to provide false information to Centrelink—perhaps hiding income or assets—the victim becomes liable for any resulting debt, even after the relationship ends.
'Debts are crippling at the best of times, but this has made an incredibly difficult situation, fleeing family violence, even more devastating'
Kate Allingham from Economic Justice Australia, which has been advocating for the change for years, explains how these debts compound existing hardships. People have had their 'measly' social security payments further reduced to repay these debts, which resulted in food being taken off the table.
What's Changing: Expanded Powers for Services Australia
Social Services Minister Tanya Plibersek announced that Services Australia will be given extended powers to cancel debts which have resulted from coercive control or financial misconduct. The changes go beyond domestic violence situations—the agency will also be able to take into account circumstances such as mental capacity, the impact of natural disasters, and homelessness.
This means Centrelink decision-makers will finally have the discretion to consider the full context of how debts arose, recognising that victims of coercive control often had no real choice in their actions.
What is Financial Abuse?
Financial abuse involves controlling someone's access to money and economic resources through tactics like:
- Hiding or controlling bank accounts and cards
- Taking over someone's Centrelink payments
- Forcing them to sign financial documents
- Creating debts in their name without consent
- Monitoring all spending and restricting access to cash
- Preventing employment or education opportunities
The Hidden Scale of Economic Abuse in Australia
The numbers behind this reform reveal a disturbing reality. 2.4 million Australian adults (12 per cent of the population) have experienced economic abuse by a partner since the age of 15, while one in four women and one in 14 men have experienced physical and/or sexual violence from an intimate partner.
Even more concerning, women in all age groups are more likely to experience economic abuse (15.7 per cent) compared to men (7.1 per cent) - roughly double the rate. For those seeking help, 90 per cent of domestic violence survivors who seek support are affected by financial abuse.
Did you know?
Did you know?
63 per cent of women experiencing high financial stress and 24 per cent of women with disabilities have a history of economic abuse—highlighting how vulnerability compounds vulnerability in Australia's most at-risk communities.
The financial toll extends far beyond individual families. Violence against women and children cost Australia an estimated $22 billion in 2015-16, with nearly half of those costs linked to ongoing health impacts from trauma.
Understanding the Invisible Chains of Control
Financial abuse is often the least visible but most effective tool of coercive control. Unlike physical violence, which leaves obvious evidence, economic manipulation can trap victims in relationships for years without others recognising what's happening.
Research shows that abusers use sophisticated tactics to maintain control:
- Mobile phone manipulation: Controlling phone accounts to limit victims' ability to contact support services, medical care, or legal advice
- Credit destruction: Deliberately defaulting on payments in the victim's name, destroying their credit rating
- Employment sabotage: Blocking or disrupting work opportunities to maintain economic dependence
- Banking harassment: Using one-cent transactions with threatening messages—banks discovered 'tens of thousands' of such abusive communications
Why Older Australians Need to Know About This
While domestic violence affects all age groups, the debt implications can be particularly devastating for older Australians. Many may be dealing with debts from relationships that ended years ago, still paying off money their former partners controlled or misused.
The trauma of financial abuse doesn't end when relationships do. Survivors often face ongoing consequences including housing insecurity, damaged credit histories, and difficulty accessing basic services—all while trying to rebuild their lives on limited incomes.
Example Scenario
- Margaret's Story (name changed): After leaving an abusive 20-year marriage, Margaret discovered her ex-husband had been claiming Centrelink payments in her name while hiding their joint assets. Although she never saw the money and had no control over the claim, Centrelink demanded repayment of $8,000. The debt was deducted from her modest pension payments, leaving her unable to afford heating in winter. Under the new rules, Margaret would be able to apply for this debt to be waived entirely.
What Government Ministers Are Saying
Minister Plibersek emphasised that financial abuse is an 'insidious' form of violence and one of the reasons why women feel it is impossible to leave an abusive relationship. She stressed that 'Every victim survivor who relies on our social security system should feel like they can trust that the system will keep them safe. It should be part of the solution, not part of the problem'.
Government Services Minister Katy Gallagher added that the changes will ensure the social security system works with victim-survivors, not against them. 'We've listened to the stories of women who've been trapped in dangerous relationships and then left with debts they didn't even know existed'.
Strong Community Support for Change
The announcement has received widespread support from advocacy organisations. ACOSS CEO Dr Cassandra Goldie said 'This is a long overdue and very welcome reform. Victim-survivors should not have to be punished twice, first by their abuser and then by being forced to repay debts that were never truly theirs. This reform will go a long way to limiting the harm caused'.
ACOSS congratulated Economic Justice Australia for their advocacy on this issue, saying 'We want to recognise the tenacious advocacy of our colleagues at Economic Justice Australia who have been tireless in their efforts to bring about these reforms'.
How the New System Will Work
While full implementation details are still being finalised, the changes will allow Services Australia decision-makers to consider the full context of how debts arose. This includes situations where:
- Information was provided under coercive control or threats
- The person lacked mental capacity to understand the implications
- Natural disasters affected their ability to report changes
- Homelessness made it impossible to meet reporting obligations
The key change is removing the blanket exclusion that previously prevented debt waivers when false information was 'knowingly' provided—recognising that victims of coercive control often had no real choice.
Key Takeaways
- Existing debts from abusive relationships may now be eligible for waiver
- The system will consider coercive control and lack of genuine choice
- Natural disasters, homelessness, and mental capacity issues will also be considered
- Contact Services Australia or a community legal centre for advice about your specific situation
- Keep any evidence of the abusive relationship (police reports, intervention orders, etc.)
Getting Help and Support
If you're dealing with Centrelink debts related to domestic violence, several support options are available:
Immediate Help:
- 1800 RESPECT: 1800 737 732 (24/7 counselling and information)
- Lifeline: 13 11 14 (24/7 crisis support)
- Men's Referral Service: 1300 766 491
Legal Assistance:
Economic Justice Australia member centres provide free legal advice about Centrelink debts across all states and territories. Visit their website to find your nearest specialist community legal centre.
Services Australia:
Contact Services Australia directly to discuss your situation and potential debt waiver options under the new rules.
Looking Ahead: A System That Finally Understands
This reform represents more than just a policy change—it's recognition that Australia's social security system must adapt to understand the complex realities of domestic violence. For too long, victims have been penalised twice: first by their abusers, then by a system that couldn't see beyond black-and-white rules to understand the grey realities of coercive control.
The changes acknowledge that someone living under threats and manipulation cannot be held to the same standards as someone making free choices about their financial declarations. It's a shift towards compassion and understanding that many advocates have fought for years to achieve.
While the policy details are still being finalised, the message is clear: if you're dealing with Centrelink debts that arose from an abusive relationship, help may finally be available.
What This Means For You
What experiences have you had with government services during difficult times? Have you or someone you know been affected by financial abuse? Share your thoughts and experiences in the comments below—your voice helps build awareness and support for others facing similar challenges.
Original Article
https://www.dailymail.co.uk/news/ar...tml?ns_mchannel=rss&ns_campaign=1490&ito=1490
Welfare debts waived for domestic violence survivors | The Canberra Times | Canberra, ACT
Cited text: But the special provisions do not apply when a person 'knowingly' makes a false statement or fails to comply with an obligation under social security ...
Excerpt: The special provisions do not apply when a person 'knowingly' makes a false statement or fails to comply with an obligation under social security law, even if that information was provided as the result of coercive control or violence
https://www.canberratimes.com.au/story/9054189/welfare-debts-waived-for-domestic-violence-survivors/
Welfare debts waived for domestic violence survivors | The Advocate—Hepburn | Hepburn, VIC
Cited text: Economic Justice Australia has been advocating for the change for years and "wholeheartedly" welcomed the reform.
Excerpt: has been advocating for the change for years
https://www.hepburnadvocate.com.au/...debts-waived-for-domestic-violence-survivors/
Welfare debts waived for domestic violence survivors | The Advocate—Hepburn | Hepburn, VIC
Cited text: Ms Allingham said people have had their 'measly' social security payments further reduced to repay these debts, which resulted in food being taken off...
Excerpt: People have had their 'measly' social security payments further reduced to repay these debts, which resulted in food being taken off the table
https://www.hepburnadvocate.com.au/...debts-waived-for-domestic-violence-survivors/
Welfare debts waived for domestic violence survivors | The Canberra Times | Canberra, ACT
Cited text: ... Social Services Minister Tanya Plibersek announced on Sunday that Services Australia will be given extended powers to cancel debts which have resu...
Excerpt: Services Australia will be given extended powers to cancel debts which have resulted from coercive control or financial misconduct
https://www.canberratimes.com.au/story/9054189/welfare-debts-waived-for-domestic-violence-survivors/
Welfare debts waived for domestic violence survivors | The Canberra Times | Canberra, ACT
Cited text: The agency will also be able to take into account circumstances such as mental capacity, the impact of natural disasters, and homelessness.
Excerpt: the agency will also be able to take into account circumstances such as mental capacity, the impact of natural disasters, and homelessness
https://www.canberratimes.com.au/story/9054189/welfare-debts-waived-for-domestic-violence-survivors/
Welfare debts waived for domestic violence survivors | The Canberra Times | Canberra, ACT
Cited text: (Mick Tsikas/AAP PHOTOS) In Australia, one in four women and one in 14 men have experienced physical and or sexual violence from an intimate partner s...
Excerpt: 2.4 million Australian adults (12 per cent of the population) have experienced economic abuse by a partner since the age of 15, while one in four women and one in 14 men have experienced physical and/or sexual violence from an intimate partner
https://www.canberratimes.com.au/story/9054189/welfare-debts-waived-for-domestic-violence-survivors/
FDSV summary—Australian Institute of Health and Welfare
Cited text: It was also estimated that 2.4 million Australian adults (12 per cent of the population) had experienced economic abuse by a partner since the age of 15, with...
Excerpt: 2.4 million Australian adults (12 per cent of the population) have experienced economic abuse by a partner since the age of 15, while one in four women and one in 14 men have experienced physical and/or sexual violence from an intimate partner
https://www.aihw.gov.au/family-domestic-and-sexual-violence/resources/fdsv-summary
Economic abuse between intimate partners in Australia: prevalence, health status, disability and financial stress—PubMed
Cited text: Women in all age groups were more likely to experience economic abuse (15.7 per cent) compared to men (7.1 per cent).
Excerpt: women in all age groups are more likely to experience economic abuse (15.7 per cent) compared to men (7.1 per cent)
https://pubmed.ncbi.nlm.nih.gov/28245514/
Tackling economic and financial abuse linked to domestic and family violence | Arts, Design & Architecture—UNSW Sydney
Cited text: Of those who seek support, 90 per cent are affected by financial abuse.
Excerpt: 90 per cent of domestic violence survivors who seek support are affected by financial abuse
https://www.unsw.edu.au/arts-design...cial-abuse-linked-to-domestic-family-violence
Revealed: the hidden problem of economic abuse in Australia
Cited text: We found that 63 per cent of women who were experiencing high financial stress and 24 per cent of women who had a disability or long-term health condition had a histo...
Excerpt: 63 per cent of women experiencing high financial stress and 24 per cent of women with disabilities have a history of economic abuse
https://theconversation.com/revealed-the-hidden-problem-of-economic-abuse-in-australia-73764
Economic and financial impacts—Australian Institute of Health and Welfare
Cited text: KPMG estimated that, in 2015—16, violence against women and children cost Australia an estimated $22 billion.
Excerpt: Violence against women and children cost Australia an estimated $22 billion in 2015-16
https://www.aihw.gov.au/family-dome...onses-and-outcomes/economic-financial-impacts
Welfare debts waived for domestic violence survivors | The Canberra Times | Canberra, ACT
Cited text: Ms Plibersek said financial abuse was an 'insidious' form of violence and one of the reasons why women feel it is impossible to leave an abusive relat...
Excerpt: financial abuse is an 'insidious' form of violence and one of the reasons why women feel it is impossible to leave an abusive relationship
https://www.canberratimes.com.au/story/9054189/welfare-debts-waived-for-domestic-violence-survivors/
Welfare debts waived for domestic violence survivors | The Canberra Times | Canberra, ACT
Cited text: 'Every victim survivor who relies on our social security system should feel like they can trust that the system will keep them safe. It should be part...
Excerpt: 'Every victim survivor who relies on our social security system should feel like they can trust that the system will keep them safe.
https://www.canberratimes.com.au/story/9054189/welfare-debts-waived-for-domestic-violence-survivors/
Welfare debts waived for domestic violence survivors | The Canberra Times | Canberra, ACT
Cited text: Government Services Minister Katy Gallagher said the changes will ensure the social security system works with victim-survivors, not against them.
Excerpt: the changes will ensure the social security system works with victim-survivors, not against them
https://www.canberratimes.com.au/story/9054189/welfare-debts-waived-for-domestic-violence-survivors/
Welfare debts waived for domestic violence survivors | The Canberra Times | Canberra, ACT
Cited text: 'We've listened to the stories of women who've been trapped in dangerous relationships and then left with debts they didn't even know existed,' she sa...
Excerpt: 'We've listened to the stories of women who've been trapped in dangerous relationships and then left with debts they didn't even know existed'
https://www.canberratimes.com.au/story/9054189/welfare-debts-waived-for-domestic-violence-survivors/
ACOSS welcomes reform to protect victim-survivors of domestic violence from unfair debts—ACOSS
Cited text: This is a long overdue and very welcome reform,” ACOSS CEO Dr Cassandra Goldie AO said. “Victim-survivors should not have to be punished twice, first ...
Excerpt: ACOSS CEO Dr Cassandra Goldie said 'This is a long overdue and very welcome reform.
https://www.acoss.org.au/media-rele...vivors-of-domestic-violence-from-unfair-debts
ACOSS welcomes reform to protect victim-survivors of domestic violence from unfair debts—ACOSS
Cited text: ACOSS congratulated Economic Justice Australia for their advocacy on this issue. “We want to recognise the tenacious advocacy of our colleagues at Eco...
Excerpt: ACOSS congratulated Economic Justice Australia for their advocacy on this issue, saying 'We want to recognise the tenacious advocacy of our colleagues at Economic Justice Australia who have been tireless in their efforts to bring about…
https://www.acoss.org.au/media-rele...vivors-of-domestic-violence-from-unfair-debts
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