Senator the Hon Katy Gallagher
Minister for Women
Minister for the Public Service
Minister for Government Services
The Albanese Labor Government is delivering on its election commitment to embed safety in Commonwealth systems and ensure the social security system cannot be weaponised against women experiencing violence.
New measures will be introduced to reform the special circumstances debt waiver which will give Services Australia extended powers to waive social security debts that have been incurred as a result of domestic and family violence.
When considering a debt waiver, Services Australia will be able to take into account all the circumstances that lead to someone 'knowingly' making a false statement in relation to a debtor not complying with the law, including circumstances of coercion or financial abuse.
In addition to family and domestic violence, this could include factors like mental capacity, the impact of natural disasters, and homelessness.
The social security system - much like many government systems - is big and complex, and we recognise that there are gaps that can be exploited by perpetrators. This is a first step.
This announcement builds on work agreed by National Cabinet, where the Government committed to an audit of Commonwealth systems to identify and address how perpetrators of violence weaponise Government systems to cause harm, with an initial focus on the tax, social security and child support systems.
In line with our election commitment we are progressing work to address financial abuse, including consulting on changes to tax and social security law so perpetrators, not victim-survivors, are accountable for debts they accrue through financial abuse.
Today's announcement also responds to recommendation 18.1 of the Robodebt Royal Commission, which called for Government to "take each person's circumstances into account before commencing recovery action" and to "respond appropriately and proportionately to cases of hardship".
These changes to the special circumstances debt waiver is another part of our $300 million package to ensure our social security system is producing fairer outcomes for Australians.
The reform builds on the Albanese Government's more than $4 billion investment to respond to and prevent violence against women and children. That includes record funding for frontline services, 10 days paid domestic violence leave, $1 billion for crisis and transitional housing, 2 per cent deposits for sole parents, making the Leaving Violence Program permanent, and programs to help stop violence at the start.
Quotes attributable to the Minister for Social Services, Tanya Plibersek:
"Financial abuse is an insidious form of violence, and it's one of the reasons why women feel it is impossible to leave an abusive relationship.
"Every victim survivor who relies on our social security system should feel like they can trust that the system will keep them safe. It should be part of the solution, not part of the problem.
"This is an important first step toward our landmark election commitment to stop perpetrators using Commonwealth systems to abuse their partners, and it is a key part of our $300 million package of debt reform.
"There is more work to do, but this reform alongside our boost to frontline services, paid domestic violence leave, housing support for women escaping violence, programs to stop the violence at the start, and family law reform are making a life changing difference."
Quotes attributable to the Minister for Government Services, Katy Gallagher:
"No woman should be left carrying a debt that was created through coercion, abuse or control. These changes will ensure the social security system works with victim-survivors, not against them.
"We've listened to the stories of women who've been trapped in dangerous relationships and then left with debts they didn't even know existed. That's unacceptable, and this reform will give Services Australia the power to take those circumstances into account and do the right thing.
"Financial abuse is one of the most powerful tools perpetrators use to trap women and children. These changes are about putting control back into the hands of victim-survivors, removing unnecessary harm, and making sure our systems support safety and dignity."
