The Australian Banking Association has welcomed recommendations to change privacy laws, which would help identify and flag cases of financial abuse.

The report details how partners, often men, exploit financial systems to control women, including restricting access to finances and damaging credit ratings.

Financial professionals, including accountants and lawyers, often inadvertently facilitate financial abuse by prioritizing profit over ethical standards.

Social entrepreneur Catherine Fitzpatrick has urged the finance sector to implement some recommendations immediately, emphasizing the need for comprehensive legislative action.

Recommended reforms include redesigning joint accounts for individual access, facilitating loans for victims escaping abusive relationships, and strengthening checks for online loan applications.

The recommendations also urge proactive measures from governments and financial institutions to prevent financial services from being misused as tools of abuse.

A federal parliamentary inquiry in Australia has unveiled a 'hidden epidemic' of financial abuse, leading to the proposal of 61 recommendations aimed at addressing the issue and protecting victims.

Financial abuse is characterized by one person exerting control over another's finances, often manifesting through manipulative behaviors such as incurring debt in a partner's name and failing to pay child support.

According to the Australian Bureau of Statistics, approximately 1.6 million women and 745,000 men experienced partner economic abuse in 2021/22, highlighting the widespread nature of this issue.

The committee expressed shock at the prevalence of financial abuse, estimating it costs victims $5.7 billion annually, with an additional economic impact of $5.2 billion, including nearly $2 billion in unpaid child support.

The inquiry's recommendations aim for a coordinated response from the government, financial institutions, and the legal system to effectively combat financial abuse.

There is a call for the legal and financial sectors to address their roles in enabling financial abuse and to uphold professional standards that protect victims.