Skip to content
CharitiesAidWelfare, Women

Australia’s tax system is being weaponised by perpetrators of domestic abuse – it must stop

UNSW Sydney Business School 2 mins read

Academics from UNSW Sydney Business School and the UNSW Gendered Violence Research Network have developed a set of recommendations to assist the federal government with reforms to make Australia’s tax system less vulnerable to weaponisation by abusers.

The Australian Tax Office is frequently being implicated in situations where abusive partners deliberately put company tax debts in the name of their current or ex-partners, leaving them to carry them. Long after the victim survivors have escaped the relationship they discover they have been saddled with tax debts for companies they did not even know they were signatories to.

The ATO is pursuing debts from people who were not responsible for creating them. It sounds unusual but it is very common, especially this year as the ATO is playing catch-up pursuing business debts after a pause during the pandemic. The paper is led by Associate Professor Ann Kayis-Kumar, with UNSW colleague Professor Jan Breckenridge from the UNSW Gendered Violence Research Network and collaborators from Redfern Legal Centre, the Tax Institute, Villanova University and Johnson Winter Slattery Dr Kayis-Kumar said, “If Australia is serious about tackling this insidious problem, we must urgently modernise the tax system to identify and support victim-survivors – rather than inadvertently being complicit in enabling and exacerbating the abusive tactics of perpetrators. The United States has had innocent spouse relief for decades, including specific tax relief for victim-survivors of intimate partner financial abuse so that the tax office only pursues the person actually responsible for creating the debt in the first place. We don’t. We should.”

Intimate partner financial abuse as a strategy of coercive control perpetrated as part of domestic and family violence occurs in nearly all family violence cases, impacts over 2.4 million Australians, and costs the national economy over $10.9 billion annually.

Page 2

This is exacerbated by the ongoing cost of living crisis and is particularly troubling given financial stress for women is significantly associated with economic abuse.

This is reflected in client base of UNSW Tax and Business Advisory Clinic where over 80% of female clients now report economic abuse. This is up from around 60% in previous years.

‘Sexually transmitted tax debts’ - which average $90,000 - often arise from business debts, bankruptcy, corporate directorships and director penalty notices, and have severe ramifications, leaving victim-survivors with debilitating financial burdens, reduced assets, insecure housing and prolonged economic instability even after leaving abusive relationships. Financial instability is a key factor driving women back into abusive relationships, so it is imperative that the design and operation of the tax system not be vulnerable to manipulation and misuse by perpetrators of intimate partner financial abuse.

UNSW Gendered Violence Research Network Professor Jan Breckenridge is available for interview.

Contact UNSW Senior Media Advisor Michaela Boland 0402 834 831

Media

More from this category

  • CharitiesAidWelfare
  • 26/03/2025
  • 16:36
Oxfam Australia

Federal Budget falls short of what is needed to truly address inequality and poverty: Oxfam

In response to the 2025 Federal Budget, Oxfam Australia Acting Chief Executive Dr Chrisanta Muli said: "In a world facing unparalleled crises, escalating conflict, and growing poverty, the Australian Government's Federal Budget falls short of what is needed to truly address inequality and poverty, both domestically and internationally. “We welcome the Australian Government’s commitment to stabilising development and humanitarian funding – this goes against the trend of other countries and is a principled and strategic decision, bringing the total to $5.097 billion. However, as a percentage of the Federal Budget, aid has fallen to 0.65%, well short of what is…

  • Contains:
  • CharitiesAidWelfare, Youth
  • 26/03/2025
  • 07:00
Soda Communications

Safe Steps’ ‘Unanswered Calls’ doco delivers powerful appeal for family & domestic violence support specifically for children and youth

With more than 40 per cent of our country’s young people under the age of 16 being exposed to family and domestic violence[1], Safe Steps will hold its Adelaide launch of Unanswered Calls – a short documentary that highlights the plight of this group of vulnerable Australians. In Unanswered Calls, two young people bravely share their lived experience of family and domestic violence. Their stories are accompanied by insights and commentary from leading industry experts and community safety champions, including: SA Minister for Women and the Prevention of Domestic, Family and Sexual Violence & Minister for Children Protection, The Hon…

  • CharitiesAidWelfare, Government Federal
  • 25/03/2025
  • 20:35
ACOSS

Astounded: More dollars for everyone except those with the least

ACOSS CEO, Dr Cassandra Goldie said: “We always knew this was going to be an election budget. In the lead up, we have welcomed some important investments in essential services, including health, public education and early childhood education. “We’re astounded that the centrepiece of tonight’s budget is more dollars for everyone except those with the least. “Only a year after the last tax cuts, the government is announcing a new set. “We need a budget and an election that sets us up for the future. The last thing we need is a bidding war on more tax cuts. “In the…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.