New project takes action against financial elder abuse

The Australian Human Rights Commission is spearheading the fight against the financial abuse of older Australians by heading a coalition of financial and community experts, amid rising numbers of cases in the community.

The Financial Elder Abuse Action Collaborative will see representatives from the banking and financial services and peak community organisations join forces to save older people from increasing financial pressures caused by “inheritance impatience” and the rising cost of living.

Financial abuse is the third most common form of elder abuse, after psychological abuse and neglect, and according to the Australian Institute of Family Studies, about one in six older Australians reported experiencing elder abuse in the previous 12 months.

Age Discrimination Commissioner Robert Fitzgerald AM said the time to take action is now given the many risk factors contributing to financial elder abuse are likely to increase in the next 20-30 years, such as people living longer in better health and that most importantly, the largest wealth transfer in history is about to take place.

“We are likely to see an increase to the recent trends of intergenerational financial assistance to support family members, such as adult children living at home longer or returning home, building granny flats or tiny home arrangements and the ‘bank of Mum and Dad’, sometimes without any written agreements,” Fitzgerald said.

“This can leave an older person financially destitute when they may need those finances for their care and well-being in later life.”

Fitzgerald said the Financial Elder Abuse Action Collaborative will work out what strategies are working well and where the gaps in policies are.

“The project will consider systems change and education that supports and safeguards older people’s interactions with their financial transactions to reduce the risk and incidents of financial elder abuse,” he said.

The Financial Elder Abuse Project began in late November 2024 with support from the Federal Attorney General’s Department and is due to run for 14 months.

The commission is a step in the right direction as sadly, financial abuse is usually discovered after the event. Once the money’s spent, there’s typically little hope of recovery.

Public Trustee of Queensland and CEO Samay Zhouand says there are several factors that can make someone more vulnerable to elder abuse, including diminished mental or physical capacity, social isolation, a lack of awareness around rights and entitlements, or family members with drug or alcohol problems.

“One of the main reasons, based on the data we have, is that sometimes family members have a strong sense of entitlement to an older person’s property or possessions,” he said.

If you or someone you know may be experiencing elder abuse, call the Elder Abuse Helpline on 1800 811 811.