When we think of domestic violence, many people immediately picture physical harm. However, under Australian law, particularly the Family Law Act 1975 (Cth), abuse can take many forms. One of the most subtle yet destructive types is economic abuse.
Economic abuse involves a person using money or financial control to intimidate, isolate, or exploit their partner. It can leave someone feeling trapped in a relationship or struggling to recover independence after separation.
This article explains what economic abuse looks like, how reforms in 2024 to NSW criminal law address coercive control, and how the family law system can help you regain financial security. The information is general only and is not intended as legal advice. Please seek professional guidance tailored to your specific circumstances.
What Is Economic Abuse?
In Australia, economic abuse is recognised as a form of family violence under section 4AB of the Family Law Act 1975. It occurs when one person unreasonably denies their partner the financial autonomy they are entitled to or withholds financial support needed for daily living.
Economic abuse is rarely a one‑off event. More often, it’s a prolonged pattern of behaviour intended to create dependence and control. Common examples include:
- Controlling access to money: Restricting or monitoring your bank accounts or insisting all income be paid into an account you cannot access.
- Monitoring spending: Demanding receipts for every purchase or requiring permission for basic necessities.
- Generating debt in your name: Taking out loans or credit cards using your details without informed consent.
- Interfering with employment: Preventing you from working or undermining your ability to earn income.
Coercive Control in NSW
New South Wales was the first Australian state to criminalise coercive control in intimate partner relationships by introducing a new offence under the Crimes Act 1900 (NSW), sections 54D–54J.
It is a criminal offence for an adult to engage repeatedly in behaviour towards a current or former partner with the intention to coerce or control them, where the conduct causes the person to fear violence or serious harm. The maximum penalty is seven years’ imprisonment.
How Economic Abuse Fits In
Although “economic abuse” is not a standalone criminal offence, it can form part of a coercive control pattern. The legislation recognises that “abusive behaviour” includes:
- Financial abuse: For example, withholding reasonable financial support or using money to manipulate or punish a partner.
- Restriction of freedom: Using control over finances to prevent someone from leaving the house, working, or engaging in normal daily activities.
The laws recognise that controlling a partner’s finances may not be a “private matter” and can be a serious crime.
How the Family Law Courts View Economic Abuse
While NSW criminal laws focus on deterrence and punishment, the Federal Circuit and Family Court of Australia (FCFCA) focusses on safety, fairness, and equitable outcomes.
Property Settlement
When dividing assets, the court considers each party’s contributions and financial circumstances. If one partner has reduced the asset pool through reckless spending, coercion, or economic abuse, the court may adjust the division in favour of the victim under section 79 of the Family Law Act 1975.
Spousal Maintenance
If a partner is left without adequate means due to financial abuse, they may be entitled to ongoing financial support from their former partner. The court assesses need and the other person’s capacity to pay under sections 72–75.
Parenting Arrangements
Evidence of coercive or controlling behaviour, including economic abuse, is relevant to parenting matters. Under section 60CC, the court must consider any family violence when determining what is in the best interests of the child. A parent who uses financial control to intimidate or isolate the other parent may be viewed as posing a risk to the child’s wellbeing.
Practical Steps You Can Take
If you are experiencing economic abuse or coercive control, taking back control may feel overwhelming, but help is available.
- Secure identification: Keep originals or copies of important documents such as your passport, birth certificate, and Medicare card somewhere safe or with someone you trust.
- Open a private bank account: If safe to do so, create an account in your own name only. Ensure all correspondence is sent to a confidential address or digital inbox.
- Check your credit report: You can obtain a free credit report in Australia to help identify any debts incurred without your consent.
- Seek legal advice: A family lawyer can explain your rights and help you apply for an Apprehended Domestic Violence Order (ADVO), if needed. In NSW, ADVOs can include conditions protecting you from financial abuse or restrictions on asset use.
- Contact support services: Professional financial counsellors or advisers can also assist with dealing with coerced debt.
Key Takeaways
The Family Law Act 1975 requires courts to consider the impact of family violence, including financial control, when deciding parenting or property matters.
Help is available – legal, financial, and counselling support is accessible and confidential.
Resources for Help
Emergency: If you are in immediate danger, call 000.
1800RESPECT (1800 737 732): National domestic and family violence support.
National Debt Helpline (1800 007 007): Free and confidential financial counselling.
Legal Aid NSW: Subject to eligibility, free or low‑cost legal advice may be available for ADVOs, separation, and family law matters.
Disclaimer:
This article provides general information only and is not intended as legal advice. You should seek professional advice tailored to your specific circumstances. For confidential assistance or enquiries, please call 02 6621 2481 or email [email protected].