AHRC rallies 26 organisations against financial abuse of older Australians

The Australian Human Rights Commission has brought 26 organisations into a single national response to the financial abuse of older people. Banks, super funds, regulators, legal centres and advocacy groups are joining the Financial Abuse of Older People Action Collaborative.

The Financial Advice Association Australia (FAAA) holds a seat on its core working group. That puts the advice profession at the table alongside the institutions that hold and manage older Australians’ money.

The Commission leads the Action Collaborative with funding from the Commonwealth Attorney-General’s Department. Age Discrimination Commissioner Robert Fitzgerald AM is calling for coordinated action across the financial sector.

The group has held its first meeting. The group has held its first meeting. It sets out to drive practical action to better identify, respond to and prevent financial abuse. The Action Collaborative builds on the Commission’s Financial Elder Abuse Project 2023-2024. This work also supports the National Plan to End the Abuse and Mistreatment of Older People 2026–2036.

For advisers, the issue reaches into some of the longest relationships in a practice. Many work with older clients over decades, and often with the adult children who will one day inherit. Phil Anderson is general manager policy, advocacy and standards at the FAAA. He believes those relationships give advisers a role in detecting and responding to financial abuse.

‘Real action’

Around one in six older Australians experience abuse, including financial abuse, according to the Commission. It expects the risk and incidence of financial abuse to rise rapidly. It points to cost-of-living pressures, delays in intergenerational wealth transfer and growing concerns about ‘inheritance impatience’.

Fitzgerald believes older Australians have the right to live with dignity and to exercise control over their future. He argues the response has to span every sector that touches their money.

“No single organisation or sector can solve financial elder abuse alone. We must build the momentum for real action in all parts of the financial sector, as the level of reported financial abuse escalates across the nation,” he says.

“By bringing committed leaders together from every area of the financial sector,” Fitzgerald adds, “we can deliver practical changes that prevent it and ensure we are better equipped to respond to it.”

Pat Sparrow is CEO of Council on the Ageing (COTA) Australia. She says responsibility for preventing financial abuse should not fall on older people alone.

“Requiring older people to become experts on how to protect their financial transactions across complex, imperfect systems is wrong,” Sparrow says.

She calls on the community to “hear their experiences and challenges, respect their autonomy”. She also wants the community to treat financial abuse as a community and business problem that everyone can address.

‘Unique position’

Anderson describes financial abuse as “a critical issue affecting Australians” and welcomes the Commission’s leadership.

“It is a privilege to be invited to join this Action Collaborative,” Anderson says.

He points to the FAAA’s long-running advocacy on suspected abuse. That advocacy draws on the relationships advisers build with clients over many years.

“The FAAA has long advocated for consistent protocols to address suspected financial abuse, as financial advisers are in a unique position to detect signs of financial mistreatment due to their close relationships with clients and their families,” he says.

“Financial advisers can also help victims to rebuild their finances in response to financial abuse.”

Anderson stresses that no profession can carry the load by itself. That view echoes Fitzgerald’s call for action across sectors.

“This is an extremely difficult and complex issue to solve. It will take a lot of effort and insight from representatives of financial advisers and counsellors, financial institutions, legal professionals, social services, and government agencies working together to make meaningful progress to identify, prevent, and respond to financial abuse,” he says.

“We look forward to contributing to this invaluable project on behalf of our members and older Australians.”

Broad coalition

Commonwealth Bank (CBA) head of customer vulnerability Caroline Wall says CBA is committed to taking action. She credits the Commission with lifting the national profile of the issue.

“The leadership by the Commission has helped bring national attention to the scale and complexity of elder financial abuse while also highlighting the importance of a coordinated response across sectors,” Wall says.

The core working group spans the full chain of an older person’s financial life. Industry bodies include the Association of Superannuation Funds Australia, the Australian Banking Association and the Customer Owned Banking Association.

The Financial Services Council and Chartered Accountants Australia & New Zealand also take part. ASIC, the Australian Financial Complaints Authority and the Banking Code Compliance Committee bring the regulatory and complaints perspective. CBA, Westpac and Regional Bank Australia represent lenders directly.

Legal and community voices include Caxton Legal Centre, Eastern Community Legal Centre, Justice Connect and Elder Abuse Action Australia. Financial Counselling Australia, the Older Persons Advocacy Network and the Super Consumers Association are also represented.

The Federation of Ethnic Communities Councils of Australia and the National Aboriginal & Torres Strait Islander Ageing & Aged Care Council join them. The NSW Ageing and Disability Commission and Queensland’s Office of the Public Advocate also take part.

A core working group leads the Action Collaborative. Other organisations and community members can join through a broader network, with details on the Commission’s website. Anyone concerned about elder abuse can call the National Elder Abuse phone line on 1800ELDER Help (1800 353 374).

“Conversations have reinforced the significant harm caused by the financial abuse of older people and the opportunity for the sectors to work together on prevention, early intervention, awareness, capability building and system reform,” Wall says.