Why Verve Super stood up in Parliament against financial abuse

by Christina Hobbs

Content Warning: This story contains mention of domestic violence, abuse and suicide.   

In September, I appeared at the Senate Inquiry into Financial Abuse and Financial Regulation. The experience reminded me that ending domestic violence and financial abuse is everybody’s business. It’s imperative that we all gain an understanding of what financial abuse looks like and that Australia’s financial service providers do a better job of advocating to government about what needs to change. 

Almost one in five Australian women have reported experiencing financial abuse since age 15, but the reality is that this number is dramatically under-reported – because victims often don’t even realise that they are victims.  

Financial abuse is present in almost all cases of domestic violence, putting the figure at closer to one in three women. 

As the founder of a super fund tailored for women, I was already aware of some of the intersections of financial abuse and the superannuation system. When I heard that the inquiry was scheduled, I knew it would be an important opportunity to ensure that our members voices were heard by our politicians. 

I assumed that preparing a submission would take a few days’ work, that lots of smart people would already be focusing on this issue and that I’d just be adding our voice and some member cases studies and clicking ‘submit’. 

The reality couldn’t have been further from the truth. 

The first thing I realised in preparing the submission was that there was no body of research that had considered how the superannuation system intersects with financial abuse, let alone ideas for what needs to change. I realised we were starting with a blank piece of paper. 

Worse still, when I spoke to some colleagues in the superannuation industry, there was confusion about whether financial abuse was even an issue that our industry should worry about at all. 

After many hours of research spent speaking with our frontline superannuation service providers; calling frontline domestic violence providers; and hearing firsthand from survivors, it turned out that our superannuation system certainly is aiding perpetrators and making it challenging for victims of abuse. The regulation needs adjusting and there needs to be more public awareness to protect victims. 

Heartbreaking stories

One of the most shocking stories I heard was from Julie Adams who is leading a campaign in the name of her daughter Molly. Molly is believed to have suicided due to domestic violence – and the perpetrator of her abuse received her super balance for his efforts.

This is a common story: Domestic violence is the number one cause of suicide among Australian women, and current superannuation legislation makes it more likely, not less likely, to hand someone a super balance if they are financially abusive.

I heard the story of single mum and corporate executive Tracy Williams, who had $350k stolen from her Self-Managed Super Fund (SMSF) by her financially abusive former partner who convinced her to set up the fund. Tracy is (and was) financially savvy, but once your super is shifted into a SMSF there are limited controls in place, and the onus is on you to manage risks.

Then there were the stories of countless women, and their lawyers, who simply can’t get an accurate picture of an abuser’s superannuation balance to ensure a fair financial settlement. The only way to gain this information is through an expensive court order (costing at least $50k), a process that costs too much emotionally and financially for many victims.

But perhaps the hardest stories to hear, are the stories our frontline member services team hear almost every day. Women who are enduring domestic violence and financial abuse and have been cut off from all financial resources, but are unable to access their super to cover bare living costs.

Ending a toxic culture

In this country you can access super to have IVF or dental work, but in most cases not to prevent your own homelessness if you’re trying to escape domestic violence. That tells you everything you need to know about how financial regulation views women in our society.

These areas of legislative change are important, but there is a broader question of why it took a Senate inquiry to expose and make us think about these issues at all. Our sector is full of people who care about member outcomes – we could have, and should have, been pushing for regulatory change much sooner.

The reality is, that this is what a culture of domestic violence looks like. We as service providers take it as a part of everyday life that financial abuse exists, that financial and legal systems are poorly designed, and that victims are often financially ruined. When we see this inequality and injustice pop up in our own line of work, we therefore don’t question what could be done better, we accept the status quo and hope someone else is working on it.

It’s telling that banks will direct victims of scams or fraud to a hotline that address crime. Whereas if someone is the victim of financial abuse, they will generally be directed to the financial hardship line. They’ll be empathetically counselled, but not treated as a victim of a crime with legal rights.

My greatest learning from this inquiry is that everyone has a role to play in ending the culture of domestic violence in Australia. As financial institutions we need to look at how we can design better products and service and advocate to our politicians for better policy. And as individuals we need to educate ourselves to learn the signs of financial control and abuse and learn how to be financially prudent in our own relationships and provide this guidance to the people we care about.

Ending financial abuse and domestic violence really is everyone’s business.

— Christina Hobbs, co-founder of Verve

Read about the 5 financial abuse issues we’re fighting to change. 

Read more:

 

If you or anyone you know are experiencing thoughts of self-harm or suicide, please call Lifeline on 13 11 14, or text 0477 13 11 14, for free and confidential support. Beyond Blue can also assist you with mental health resources, you can reach out to them on 1300 224 636.  

If you think you or anyone you know may be experiencing domestic violence, help is available. Please reach out to 1800RESPECT, a 24-hour free helpline, on 1800 737 732. 

To access free financial counselling, reach out to Financial Counselling Australia on 1800 007 007. 

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