The Commonwealth Ombudsman has revealed that Services Australia has not effectively addressed the misuse of child support, allowing abusive partners to evade payments with minimal repercussions. An inquiry into 279 complaints from November to February highlighted that 73% of affected separated mothers reported suffering financial abuse via the child support system.
The findings indicate that the majority of non-compliant parents, predominantly men (83%), either failed to make payments, underreported their income, fabricated care arrangements, or resorted to intimidation to prevent the other parent from seeking assistance. In one instance, a parent claimed their former partner owed about $32,000 in child support, citing the lack of support from Services Australia. Another complaint pointed out a five-year failure to submit a tax return to dodge child support liabilities, despite the partner holding two jobs.
The report revealed that unpaid child support surged by 5% in the 2023-24 financial year, marking the most significant increase in a decade. By the end of 2022, approximately $1.9 billion in child support remained unpaid, with 153,694 paying parents averaging a debt of $7,261. The Ombudsman concluded that Services Australia is not taking adequate measures to combat the exploitation of the child support framework, stating that while the agency’s intentions are commendable, they are falling short in securing necessary funds for parents in need. The report criticises the agency’s “passive approach”, which fails to effectively identify financial abuse and use enforcement powers proactively.
Additional issues identified in the legislation restrict Services Australia’s ability to collect debts and enforce payment obligations. The Ombudsman provided eight recommendations, all of which Services Australia has agreed to implement by June 2026. A spokesperson from the agency acknowledged the Ombudsman’s findings as crucial, emphasising their commitment to combatting financial abuse, which they recognize as a complex issue. They affirmed collaboration with other government departments to enhance support for parents reliant on child support payments.
Potential assistance for those affected is available through the National Sexual Assault, Domestic and Family Violence Counselling Service at 1800RESPECT (1800 737 732).