A groundbreaking report by the Commonwealth Ombudsman, released in 2025, has laid bare the systemic failures in how Services Australia handles financial abuse through the Child Support program—a form of abuse now widely referred to as the weaponisation of Child Support.
This form of abuse involves deliberate manipulation of the Child Support system by some paying parents to avoid financial responsibility and maintain control over their former partners.
In a recent survey of 540 separated mothers, an overwhelming 80% reported that their former partner had used the Child Support system to commit financial abuse. Common tactics include:
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Deliberately refusing to make payments
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Failing to lodge tax returns to obscure or minimise income
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Misreporting care arrangements to reduce obligations
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Using threats, intimidation or violence to discourage the other parent from seeking help
The numbers speak for themselves. As of 31 December 2024, there was $1.9 billion in unpaid Child Support under the Child Support Collect scheme. More than 153,000 paying parents had a debt, with an average amount of $7,261 each. In total, around 1.2 million children across Australia rely on the Child Support system.
What the Ombudsman Found
The Ombudsman concluded that Services Australia’s actions were unfair and unreasonable in how it managed the widespread abuse of the Child Support system. While some of these issues reflect legislative shortcomings, many of the agency’s failures stem from internal weaknesses in policy, training, enforcement, and oversight.
The report also found that even when Services Australia’s actions aligned with legislation, those laws themselves were found to be inadequate, further compounding the harm to affected families.
Importantly, the Ombudsman clarified that existing laws do not prevent Services Australia from taking stronger, more proactive steps. Its failure to act reflects a passive and inadequate response to a serious and ongoing issue.
Systemic Failures Identified
The report detailed several systemic and procedural failures, including:
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No clear strategy to detect or respond to financial abuse through Child Support
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Inadequate training for frontline staff
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A narrow focus on physical violence, with insufficient attention to financial abuse
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Failure to proactively investigate non-compliance or use available enforcement powers effectively
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Continuing to recover Family Tax Benefit Part A debts from receiving parents, even when they have not received the Child Support owed—amplifying the impact of financial abuse
Legal Barriers to Justice
The Ombudsman also identified significant legislative limitations, including:
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Enforcement powers that do not extend to shared or alternate bank accounts
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Tax refund garnishment only being effective if the payer lodges a return
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Departure Prohibition Orders that do not compel payment
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A complex and inaccessible change of assessment process, especially for victim-survivors
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No legal mechanism to waive Family Tax Benefit debts arising from unpaid Child Support
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Difficulty recovering arrears when cases move from Private Collect to Child Support Collect
Why This Matters
This is not just a matter of policy—it is a matter of justice. The current system enables some paying parents to manipulate their obligations without consequence, while the receiving parent—often the mother—is left to shoulder the financial burden of raising children alone.
This passive, enforcement-light approach undermines the purpose of the Child Support scheme and leaves children without the financial support they need and deserve.
A Call for Reform
The Ombudsman made eight key recommendations, including:
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Stronger and more proactive enforcement of Child Support obligations
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Improved policies and frontline training
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A comprehensive strategy to identify and respond to financial abuse
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Legislative reform to close loopholes that allow ongoing manipulation of the system
Services Australia has accepted all eight recommendations, and the Department of Social Services has accepted seven and noted one.
Our Perspective
At Powell Family Law, we work every day with clients who are grappling with the emotional and financial strain caused by unpaid Child Support and post-separation abuse. For many, the abuse doesn’t stop when the relationship ends—it simply takes a different form.
We know that Child Support is not just about dollars and cents. It’s about recognising caregiving contributions, supporting children’s development, and ensuring that parents who walk away from relationships don’t walk away from responsibility.
This report confirms what many of our clients already know: the system is failing them. But it also provides a roadmap for change—one that, if acted upon, could make a real difference for thousands of families.
📞 07 3179 6680
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🌐 www.powellfamilylaw.com.au
Read the full report on the Commonwealth Ombudsman website here.
