The warning signs you’re on the pathway to financial abuse
The telltale signs of financial control are not always obvious at the start. Here’s how to guard against them
4 min
It can be insidious, its victims hard to spot and it happens at all levels of society. Men, women, young, old, poor, affluent — financial abuse victims come from all walks of life. We only have to look at the most high profile case in the world — Britney Spears — to see evidence.
Statistics reveal that the average victim is a woman in her 40s or 50s with little or no access to employment and poor health outcomes.
But an increasing number of Australians are falling victim to financial abuse. In Australia, more than 623,000 men and women were subjected to financial abuse in 2020 — that is one in 30 women, or one in 50 men, according to the Commonwealth Bank’s Cost of Financial Abuse in Australia report.
Put simply, financial abuse is a form of family violence which occurs when one person exploits or controls another person’s financial resources. It most commonly takes the shape of a victim having money withheld or controlled by a partner, a victim made liable for joint debts, or even a victim being prevented from being able to work or further their education.
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And it can happen to anyone, says financial wellness coach, Betsy Westcott, who states up to 40 percent of Australians will experience it or know someone who has experienced it.
“There was a lady I once saw from Mosman — a suburb which on the surface has all the trappings of wealth and prosperity,” Westcott recounts. “She drove a Range Rover and lived in a lovely house but after she and her husband had their first child, she was made redundant while on maternity leave and her husband told her ‘Don’t worry about a new role, I’ll look after everything.’
“It turned out she always had to ask her husband for money because she had no access to the household accounts and she had to account for every last cent she spent. In the end, when she tried to leave the marriage, their account had been drained and all the debt was in her name.
“It doesn’t matter whether you’re smart or educated, we all have vulnerabilities.”
But just because financial abuse is prevalent — and has become more so since the pandemic and the onset of the cost of living crisis with financial situations becoming more tenuous — it doesn’t mean you can’t safeguard against it.
Heidi Reid is the executive director of strategic engagement at Berry Street, a child and family services charity whose mission includes educating adults to build money management skills.
Reid says a money-smart education should start in early childhood to create a generation resilient to financial abuse.
“Financial literacy education can build knowledge, confidence and skills to help people make informed decisions and manage their finances and their future,” Reid says. “Financial literacy…is appropriate for people at any age and life stage, and many experts recommend introducing basic concepts to children and young people early on. By incorporating age-appropriate discussions and activities, children can develop a foundational understanding of money and financial principles.
“Parents, guardians, and educators can tailor these conversations to the individual child’s maturity level and experiences. The goal is to build a gradual understanding of financial concepts and responsible money management as children grow.”
Laura Higgins, senior executive of ASIC’s MoneySmart, says there are eight main financial abuse warnings signs to look out for in a partner.
1. Controlling access to common accounts
2. Not providing enough money for living expenses
3. Trying to prevent you from working or studying
4. Taking out debts in your name or exerting pressure on you to sign up for loans
5. Making you account for how you spend your money
6. Selling or threatening to sell property without permission
7. Hiding money from you
8. Making you feel like you’re financially incompetent
Westcott adds that financial abuse can look different at different stages of life, particularly for women, whose vulnerabilities change with the decades. In your 20s it can be a partner pressuring you to take a loan out in your name; in your 30s it can be a partner who encourages you not to return to work after the birth of a child; in your 40s it can be the removal of assets in your name so you are trapped in a relationship; in your 50s and beyond it can be vulnerability from poor super accumulation and job prospects.
But she warns it doesn’t just affect women.
“When it comes to men being the victim, it can generally (but not always) look a little different,” Westcott says. “Consider scenarios where a man is coerced into paying for things to sustain a certain lifestyle and messages of love mixed with guilt, like “If you loved me” type of threats. It’s generally more about being pressured to financially over commit and then sometimes being left with unpaid loans.
“And it’s even harder to see when it happens to men because society holds men accountable for finances and so under reporting is a big problem.”
Either way, experts agree the best way to protect yourself is to have good financial literacy.
“To protect yourself you should stay informed and actively involved in your financial matters, being aware of your income, expenses and assets,” Reid says. “Financial literacy education can build knowledge, confidence and skills to help people make informed decisions and manage their finances and their future.”
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The federal budget has rattled property investors. But the biggest mistake isn’t the tax changes, it’s the conclusion many are drawing from them.
2 min
The recent budget has forced a reckoning for property investors.
Negative gearing now restricted to new residential builds, the CGT discount gone and on paper, the numbers look different.
And many investors are responding by pivoting toward yield, prioritising cash flow over capital growth in a way that property strategists say misses the point entirely.
“The debate has shifted to yield versus growth as if they are opposing forces,” says Abdullah Nouh, founder of Melbourne-based buyers’ agency Mecca Property Group. “But that framing is itself the mistake.”
Nouh, who works with high-net-worth families and investors on long-term acquisition strategy, argues that capital growth remains the primary driver of genuine wealth creation and that the post-budget environment has made quality assets more important, not less.
The numbers make his case plainly. An additional $500 per week in rental income is welcome. A prestige asset appreciating by $1 million over a market cycle is transformative.
These are not equivalent outcomes, and portfolios built around yield at the expense of location and land value tend to generate income while wealth stands largely still.
The more nuanced shift Nouh is seeing among sophisticated investors is a move toward assets where both outcomes can be engineered simultaneously – established homes on substantial land in quality locations, where the existing dwelling can be repositioned, rental returns improved, and the underlying land value compounds independent of what sits on it.
For investors with existing equity, commercial property is also entering the conversation in a more serious way.
Prestige industrial assets, medical centres and long-leased essential retail offer income profiles that residential property in most capital city markets cannot currently match: longer lease terms, tenants covering outgoings, and greater predictability than the residential tenancy cycle.
“The investors who build lasting wealth are rarely the ones who chased yield or growth exclusively,” says Nouh.
“They are the ones who built a strategy they could sustain – one that generated enough income to hold quality assets through multiple cycles while those assets compounded in value.”
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