WA financial abuse advocates say safeguards needed after perpetrators exploit State Government school grants

Money that was supposed to be a lifeline for struggling WA parents to help cover school costs for their children was plundered by perpetrators of financial abuse, it has been revealed.

WA financial abuse advocates have called for better protections on State Government-issued grants after several Perth parents claimed perpetrators were able to take the one-off payments for personal use ahead of the primary carer.

Consumer Credit Legal Service WA chief executive Bev Jowle said when impacted parents then contacted the Department of Education to request reimbursement they were met with “inadequate” dispute resolution processes.

She said staff behind a departmental helpline had encouraged the victim-survivors to try to negotiate with their abusers to resolve the issue.

“It appears, in designing the system, they didn’t think about what could go wrong,” Ms Jowle said.

“It was well-intentioned. But it was naivety on the Government’s part.

“That’s part of the problem, we’re not thinking about ‘what happens if it goes wrong?’ when we design anything — from cost-of-living relief to a banking or insurance product.”

She highlighted the issue in writing to WA Education Minister Tony Buti but Ms Jowle described his response as “lukewarm”.

Projects and Operational Lead and lived-experience speaker Sarah Holman said she had called the hotline in late May to assist a parent and was disappointed in the provided response.

“We were aware of multiple case studies. Once we started looking into the system and how the payments are dispersed, that’s where we saw that there weren’t many safety measures in place,” Ms Holman said.

A Government spokesman said through the Department’s disputes process a parent can request a review.

“While the complainant does need to provide some evidence to support the dispute, the process is not onerous,” he said.

“The dedicated dispute process is confidential and can result in the payment being redirected in cases where the original claimant was ineligible.

He said the Department would seek to recover incorrect payments and if fraud was identified, it would be referred to WA Police.

Ms Jowle and Ms Holman had raised the issue alongside fellow WA Economic Abuse Reference Group members during their testimony to a Federal parliamentary inquiry into financial abuse on Wednesday in Perth.

The inquiry examines the role government, private and community institutions play in detecting, responding, and mitigating the pervasive issue.

Committee member and Swan MP Zaneta Mascarenhas had proposed the inquiry after hearing domestic violence survivor Shenane Hogg’s struggle to pay debts her abuse accumulated in her name while she was in a coma.

“It’s a real privilege to have the opportunity to bring this national issue to my hometown. To have the opportunity to raise voices like Shanane’s is really important,” the Labor MP said.

“It’s an incredible story but unfortunately, it’s not a unique story. There is a systems failure and what I want to do is create positive change so we can support more people that are experiencing financial abuse.”

Ms Hogg welcomed the Perth hearings and hoped that it would lead to more accountability in financial institutions and trauma-informed care by those interacting with victim-survivors.

“We’re not just a number. We’re not just repayment. We’re actual people,” Ms Hogg said.

Committee chair and Labor senator Deborah O’Neill said the string of national hearings had highlighted an urgent need for action to address financial abuse, particularly in intimate relationships.

She said amid a national spotlight on gender-based violence evidence to the inquiry had highlighted strong links between financial disputes and the manifestation of physical abuse.

“Australians should pay attention to this because this is not who we are. It’s certainly not who we believe we are. It’s time for a corrective. We’re better than this,” she said.

“There doesn’t seem to be any part of society that is not impacted.”

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