Government proposes court powers to shift abusive partners' tax and super debts to victims

The federal government revealed a consultation on granting courts broader authority to reassign tax and social security debts to spouses who perpetrate financial abuse, aiming to stop coercive control via the tax and superannuation systems. Assistant Treasurer Daniel Mulino emphasized that these debts can burden survivors for years and announced a package of reforms, including preventing abusers from claiming victims' superannuation death benefits and safeguarding individuals forced into company directorships.

Draft legislation is expected later this year, with backing from the Australian Taxation Office, which would also obtain powers to block rollovers into self-managed super funds suspected of abuse. Advocacy groups such as ASFA and Super Consumers Australia welcomed the steps, noting current legal loopholes that allow perpetrators to benefit. The government also pledged more than $180 million to overhaul the child-support system and expand Services Australia's capacity to waive social security debts linked to domestic violence. Experts called for increased funding for frontline services and for survivor involvement in shaping the final reforms.