The Albanese Government is protecting vulnerable Australians from perpetrators who misuse the tax and corporate systems to commit financial abuse and coercive control.
Economic abuse is insidious.
Sixteen percent of women and 8 percent of men have experienced economic abuse from a current or previous partner since the age of 15. Economic abuse costs the economy an estimated $10.9 billion per year. Experts and victim‑survivors have told us that this abuse often occurs within government systems.
Coerced directorships are a form of financial abuse causing financial and psychological harm to victim‑survivors. A perpetrator may control corporate decision‑making and retain profits and assets while leaving the victim‑survivor liable for corporate misconduct or debts.
For example, someone may be coerced or fraudulently appointed as a straw director of a company. Or they may have initially consented to be a director before it is later weaponised by the perpetrator to cause harm to the victim‑survivor.
It may even be that a victim‑survivor may not be aware of their registration as a director until they are approached by creditors.
As a first step toward delivering on our election commitment to crack down on the dodgy use of directorships by perpetrators, the Albanese Government has released a consultation paper outlining options to reduce the weaponisation of company directorships as a form of coercive control and financial abuse.
We are seeking views on options to:
- reduce the prevalence of coerced directorships by strengthening the director registration and removal process, including consent requirements for directors
- reduce the impact of coerced directorships by expanding defences available for breaches of insolvency‑related directors' duties and Director Penalty Notices
- support coerced directors respond to a Director Penalty Notice
- establish safe mechanisms to hold perpetrators of financial abuse to account
This consultation supports broader work underway by the Albanese Government to stamp out opportunities for systems abuse across the Commonwealth.
The consultation paper can be found on the Treasury website.
Submissions to the consultation will close on 24 December 2025.
Quote attributable to Andrew Leigh, Assistant Minister for Productivity, Competition, Charities and Treasury
"Coerced directorships turn basic corporate processes into tools of intimidation. No one should be saddled with debts they never agreed to or exposed to penalties for decisions they never made. We want a system that protects people from exploitation and makes perpetrators answerable for the harm they cause."
Quote attributable to Daniel Mulino, Assistant Treasurer and Minister for Financial Services
"This is an important first step in fulfilling the Albanese Government's commitment to stopping perpetrators from misusing the tax and corporate systems to saddle victim‑survivors with debts as a form of coercive control. Too many people have been left with liabilities they never agreed to and penalties for decisions they never made. Our goal is to build a system that protects people from exploitation and ensures perpetrators cannot hide behind corporate structure."
