A new report has revealed that the Australian child support system isn’t working for single mothers – and it actually supports and perpetrates financial abuse.
Opening the black box of child support: Shining a light on how financial abuse is perpetrated (Kay Cook, Adrienne Byrt, Terese Edwards, and Ashlea Coen – Swinburne University of Technology) draws on the experiences of 675 single mothers who have engaged with the Australian child support system. Their responses reveal how violence punctuates each stage of the child support process, from application to collection.
The system
The current child support system was created with the goal of ensuring both separated parents share the financial responsibility of raising their child. The Child Support Agency determines payment amounts based on the costs of caring for and educating a child, as well as the income disparity between the parents. Parents can manage these obligations through private agreements or with assistance from the Government’s Child Support Agency:
- Self-Managed Agreements: In these cases, families negotiate the amount of child support paid themselves. This approach is problematic when abuse is present.
- Services Australia Calculations: For families receiving government benefits, Services Australia determines payment amounts. Payments can be managed privately or via Services Australia where funds are transferred or garnisheed directly from the paying parent’s income.
It’s a system that works against single mothers
Unpaid Child Support: The agency collect system shows $1.7 billion owed to single-parent households, affecting 475,000 children. Women, who disproportionately care for children most of the time, bear the brunt of this shortfall.
Tax Return Delays: Nearly 28 per cent of paying parents fail to file tax returns on time, undermining payment accuracy.
Benefit Reductions: Family Tax Benefit A, which assists with child-raising costs, is reduced by 50 cents for every dollar of child support above a threshold, further straining single mothers’ finances.
Limited Violence Exemptions: Although government reports tell us that 60 per cent of single mothers on income support report violence before separation, fewer than 15 per cent are exempt from seeking child support due to this violence. Without applying for child support or exemptions, many lose significant portions of Family Tax Benefit A.
In the private collect system, an additional 500,000 children remain unaccounted for, as Services Australia assumes full compliance but doesn’t track arrears.
“I’ve been living on as little as $72 a week to feed, house, clothe, and educate myself and two children.”
It’s also a system that contributes to ongoing abuse, even after separation
For some men, the opportunity to abuse their ex-partner diminishes after separation, and they see child support as a powerful way to continue to inflict hurt. They may tell children that their mother is taking all their money and causing financial hardship or claim that she can afford certain things only because she has all his money. This type of emotional abuse provides another avenue for control.
Many mothers face threats of violence when attempting to navigate the system. For some, pursuing payments or recovering debts becomes too dangerous, leaving them without viable options.
“A Centrelink social worker changed my son’s father to ‘unknown’ so I wouldn’t be murdered.”
The report identifies ten pervasive myths underpinning the child support system:
- Violence ends after separation, and non-physical violence is less harmful.
- Seeking a family violence exemption is straightforward and non-traumatising.
- Parents accurately report their income and do not minimize or hide it.
- Parents adhere to the care arrangements outlined in child support agreements.
- Child support assessments are fair, balancing care costs and parents’ ability to pay.
- Parents can easily agree on suitable payment collection methods.
- Private Collect arrangements work well in amicable co-parenting situations and are not used to obscure payment outcomes.
- Payers will make timely and full payments.
- Debt collection is effective and easy to navigate.
- Payment shortfalls do not impact women’s financial security through Family Tax Benefit Part A.
“I was advised not to apply because of the family violence. He had made threats to kill me, so I went without child support for some period.”
What needs to change
According to the report authors, four key reforms to improve women’s safety and financial stability:
- De-link Family Payments from Child Support: Ensure family payments are independent of child support compliance.
- Co-Design Family Violence Protocols: Incorporate survivor perspectives into the child support system to protect vulnerable women.
- Centralise Payment Collection: Return all payment collections to the tax office for consistency and enforcement.
- Enforce Debts through the Commonwealth: Make all outstanding payments owed to and enforced by the government.
These changes aim to create a safer, more equitable system that supports women and children effectively.
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