'Disgusting': Government slammed for ignoring elder abuse victims

A new government plan to prevent domestic abusers from financially exploiting their victims has been criticised by advocates for older people, who say more than 80,000 victims of financial elder abuse have been overlooked.

Subscribe now for unlimited access.

or signup to continue reading

"It seems to be very focused on domestic and family violence, rather than elder abuse," Dr Rebecca Edwards, co-chair of Elder Abuse Action Australia, told The Senior.

Dr Rebecca Edwards, co-chair of Elder Abuse Action Australia, said the government's plan has failed to account for high rates of elder abuse in the community. Left inset supplied, right file picture by Unsplash

The Albanese government has proposed new changes to protect vulnerable people from financial abuse, including tightening rules which would block abusers from accessing the superannuation and death benefits of their victims, or raising fraudulent debts.

The reforms focus on stopping abusers from exploiting child support systems, the tax system, or using the corporate sector to raise debts as a form of coercive control.

The ATO would also be empowered to block self-managed super funds (SMSFs) from transferring funds when there are concerns of financial abuse or fraud.

But Edwards said the government's plan is overly focused on family violence, with little emphasis on finding ways to protect older people whose finances are being controlled by their adult children or partners.

Despite repeated calls from advocates for older people, the government has allowed a separate National Plan to End the Abuse and Mistreatment of Older People to languish for more than two years without new funding, she said.

"Frankly, it's disgusting," Edwards said.

Because of the delays, many services for older people are approaching a funding cliff, where services will run out of money in June 2027.

"I think that's an absolute travesty," she said.

Why are older people so vulnerable?

Financial abuse is a form of domestic violence that includes trying to limit someone's access to money, racking up debts in a victim's name, or trying to access the retirement savings of deceased or living victims.

Some 83,787 individuals, or 2.1 per cent of the older population, reported financial abuse each year, according to the 2021 National Elder Abuse Prevalence Study.

As the country approaches an intergenerational wealth transfer worth an estimated $3.5 trillion over the next two decades, the risk of elder abuse is rising, as more adult children look to secure their inheritance.

"We need to be acting quickly and now to stop a whole lot of people being put in bad situations," Edwards said.

"One of the biggest concerns for older people is that losing or being coerced into handing over money can mean they lose their independence and security for the rest of their life, because there's no opportunity to rebuild financially.

"We definitely welcome the changes, but we think there could be more done to protect older people's superannuation."

Dr Daniel Mulino in parliament in 2024. Picture by Keegan Carroll

While often invisible, financial abuse can have devastating, lifelong consequences for victims, said Daniel Mulino, Assistant Minister for Financial Services, who announced the proposed overhaul in Canberra.

"We need to take action on a regulatory front to deal with this," he told reporters.

The planned changes come after the government tabled its response to an inquiry into financial abuse, along with a consultation paper for feedback on the reforms.

Super industry welcomes reforms

The plan was welcomed by the superannuation industry, with James Koval, chief policy officer from the Association of Superannuation Funds of Australia, saying abuse through superannuation funds was first identified by the industry.

"A perpetrator receiving their victim's death benefit is a continuation of the abuse, and it comes at the expense of the family the victim leaves behind," Koval said.

The changes were also welcomed by Super Consumers Australia, whose director of policy Lily Jiang, said the industry needs to be empowered to identify abuse before funds are transferred.

"Once a person's retirement savings have been transferred into an SMSF under coercion, the damage can be lifelong," she said.

"Victim-survivors shouldn't have to navigate these risks alone or carry the burden of identifying and stopping financial abuse themselves."

Support is available for those who may be distressed.

More from Business and Finance