Identification and management of financial abuse within the tax system

Abstract

This report examines how financial abuse is perpetrated through the Australian tax system and how victim-survivors are affected by debt liabilities they did not create. The Inspector-General of Taxation and Taxation Ombudsman (IGTO) investigates how the ATO identifies and supports people experiencing financial abuse, and recommends improvements including developing specialist support teams, clearer guidance on debt relief, better collaboration with Services Australia, and broader systemic reforms. The report also identifies gaps in recognising abuse patterns, collecting evidence without re-traumatising survivors, and the need for “Safety by Design” approaches within government systems.

<br><br> Ten Things to Know:<br> The accompanying fact sheet highlights ten critical points about financial abuse in the tax system. It emphasises that economic abuse can happen to anyone, often remains invisible until significant harm has occurred, and disproportionately impacts access to child support and welfare. It underlines the importance of trauma-informed ATO responses, stronger partnerships with trusted organisations, clearer pathways for debt relief, better training for frontline staff, and the role of prevention through thoughtful service design. The fact sheet calls for holistic, coordinated reforms across government agencies. <br><br>Case Studies:<br> The supplementary case study document provides real-world examples illustrating the devastating impacts of financial abuse within the tax system. It includes stories such as Miriam’s experience of homelessness and frozen assets due to financial abuse and systemic gaps, Diane’s efforts as a financial counsellor supporting a client unaware they had been made a company director, and other survivors dealing with debt burdens compounded by systemic barriers. These case studies expose common patterns: lack of trauma-informed support, inadequate debt relief options, bureaucratic hurdles, and the heavy burden placed on victim-survivors to advocate for themselves while navigating multiple complex systems.

Case Studies: The supplementary case study document provides real-world examples illustrating the devastating impacts of financial abuse within the tax system. It includes stories such as Miriam’s experience of homelessness and frozen assets due to financial abuse and systemic gaps, Diane’s efforts as a financial counsellor supporting a client unaware they had been made a company director, and other survivors dealing with debt burdens compounded by systemic barriers. These case studies expose common patterns: lack of trauma-informed support, inadequate debt relief options, bureaucratic hurdles, and the heavy burden placed on victim-survivors to advocate for themselves while navigating multiple complex systems.