A Commonwealth Ombudsman investigation has found widespread financial abuse within Australia's child support system, with Services Australia accused of amplifying the problem by failing to enforce payments. The report, released exclusively to ABC News, reveals that some parents are manipulating the system to avoid their financial responsibilities, often without consequences.
The abuse includes parents not making payments, failing to file tax returns to hide income, lying to reduce their income, and using abusive or violent behavior to deter the other parent from seeking help. The Ombudsman's report concludes that Services Australia is acting in an 'unfair and unreasonable manner' by not using its available powers to stop this abuse.
According to the report, 153,000 parents currently have outstanding child support debts, totaling $1.9 billion as of December last year. The impact disproportionately affects mothers, who make up 84% of those receiving payments. The Ombudsman, Iain Anderson, emphasized that child support is about vulnerable children who need financial support while growing up.
The report also highlights that current processes can require a parent to disclose their location or workplace to a non-paying ex-partner, which can be abused and re-traumatize parents who have experienced domestic violence. Some parents have withdrawn from pursuing unpaid support due to feeling unsafe.
Services Australia has agreed to implement all eight recommendations made by the Ombudsman, including tracking financial abuse and using enforcement powers to recover unpaid support. The report also calls for a legislative fix to address the unfair assumption that all child support has been paid when assessing eligibility for tax concessions, which can leave parents with a tax debt for money they never received.
