Australian courts could receive greater flexibility to transfer tax or social-security debts to an abusive spouse under reforms the government outlined on October 14.
The proposal addresses a difficulty that can persist after a violent relationship ends: a debt may remain in a victim’s name even though coercion or fraud by a partner caused it. Ministers said the family-law option would allow responsibility for that debt to be considered during proceedings already before a court.
The government tabled its response to a parliamentary inquiry on Wednesday, supporting or supporting in principle 58 of its 61 recommendations. That response is a policy commitment, not legislation giving every affected debtor an immediate right to relief.
A linked Treasury consultation examines additional powers for the Australian Taxation Office. These would allow it to collect debts from fraudulent tax agents, pause or cancel debts imposed on their victims and issue garnishee notices against jointly held assets, subject to safeguards.
Treasury is also asking whether those powers could be adapted to recover a victim-survivor’s tax debt from the person responsible for financial abuse. The consultation page records an opening date of October 13 and a closing date of November 27; Wednesday’s ministerial announcement accompanied the broader parliamentary response.
The court-based proposal and administrative tax changes remain options for consultation. Their final scope, evidentiary requirements and protection for others with interests in jointly held property have not been settled by this announcement.
Other work identified in the response includes proposals to prevent perpetrators receiving victims’ superannuation death benefits and to protect people coerced into company directorships. Draft legislation on those measures is expected later this year.
For someone already involved in family-law proceedings, the proposed change would bring the debt question into the same forum. It would not, on the information released so far, erase a liability automatically or remove the need to establish who was responsible for the abuse.
