Financial abuse continues to spread as a silent scourge in Western Australia, with Bankwest’s Hidden Costs Report highlighting that more than a third of residents have experienced the abusive behaviour in their relationship.
The Hidden Costs Report canvassed more than 1000 WA adults and was released to mark 16 Days in WA, which is a State Government-led initiative to end violence against women, of which Bankwest is a key supporter.
Bankwest each year commissions the independent Hidden Costs research to raise awareness of financial abuse, a form of Family and Domestic Violence (FDV) in which money is used to gain power and control over someone.
The 2023 report highlighted a concerning trend of increased experiences of financial abuse reporting since the launch of the research, with each year’s data showing a growth in those people reporting to be victim-survivors.
More than a third (36%) of WA residents reported they had experienced financial abuse, which was a three per cent increase from the 2022 report (33%), and up seven per cent from the research conducted in 2021 (29%).
The most common forms of abuse were a party using all their partner’s pay for joint expenses but retaining theirs for personal use (62%), refusing to contribute financially (52%), and exerting complete financial control (50%).
The prevalence of experience was accompanied by a concerning number of respondents who self-reported as perpetrators, with one-in-six men (16%) and one-in-10 women (11%) saying they had committed financial abuse.
The research also showed the issue of financial abuse generated more concern among WA women with 55 per cent stating they ‘completely agree’ it was a widespread problem in Australia, compared to 41 per cent of men.
Women also harboured a sense of vulnerability in seeking support in a financially abusive situation, with 68 per cent feeling it would be hard to reach out for help, compared to 52 per cent of men who felt it would be difficult.
The most common barriers people felt would deter them from seeking support were the risk of the perpetrator finding out (73%), retaliation from the perpetrator (73%), and feeling embarrassed (67%).
Those fears were also reflected in reality, with more than a third (34%) of women who reported they were victim-survivors of financial abuse having not sought support, compared to one-in-five (22%) of men.
That figure remained stable for men year-on-year (21% in 2022) but rose considerably for women from 23 per cent.
Quotes
Attributed to: Jodene Murphy – Bankwest General Manager Customer, Marketing and Communications
“Bankwest has been part of the fabric of WA for 128 years and we remain as committed as ever to the communities of our home state.
“We’ve been supporting the State Government’s 16 Days in WA since its inception, because ending violence against women is a critical issue, and financial institutions are often among the first to be contacted by victim-survivors.
“Financial abuse is a form of Family and Domestic Violence and Bankwest’s Hidden Costs Report has become an important source of information on the prevalence of this silent scourge within our communities.
“The obvious standout concern is the consistently increasing rate of Western Australians reporting to have experienced financial abuse, which correlates with the increasingly challenging economic environment we’re in.
“The research has also shown a clear disparity between the experiences of men and women when it comes to financial abuse, with the latter clearly feeling – and perceived as being – more vulnerable to abusive behaviours.
“That’s one of the reasons why awareness is critical, because we also know from the research that more than half of those who reported having committed financial abuse only realised once presented with the definition.
“Bankwest is committed to supporting customers who find themselves in vulnerable circumstances, and I urge anyone experiencing difficulties to get in touch when it’s safe to do so, so we can support their individual needs.”
Attributed to: Hon Sabine Winton – Minister for the Prevention of Family and Domestic Violence.
“Family and domestic violence can take many forms and is not limited by post code, education or social status. Financial abuse is a silent abuser that many people find hard to identify and even harder to know where to get help.
“Seeing a gradual increase in the number of people reporting financial abuse suggests greater awareness of this form of abuse and people’s willingness to reach out for help.
“Financial abuse can also take many different forms, from controlling another person’s spending to exposing their partner to unmanageable debts.
“I encourage anyone who suspects they may be experiencing financial abuse to contact a free financial counsellor or call the National Debt Helpline.”
Attributed to: Hon Sue Ellery – Minister for Finance, Commerce, Women’s Interests
“Financial abuse is a serious and deeply concerning issue. It can happen to anyone, regardless of age, income or financial capability.
“The recent launch of the Economic Abuse Reference Group aims to address the issues related to financial abuse in WA.
“Furthermore, there is the 2023-24 iteration of the Consumer Justice Strategy which sets out Consumer Protection’s guiding principles. One of its priorities is working collaboratively with Government and community-based organisations to improve the financial literacy of survivors of family and domestic violence.”
