Australia’s child support system is failing thousands of families, with financial abuse going unchecked due to legal and administrative blind spots, according to a new report from the Commonwealth Ombudsman. Released today, the report warns that Services Australia is ill-equipped to detect and prevent the misuse of the Child Support program—leaving children short-changed and carers feeling abandoned.
The report, which reviewed over 270 complaints and consulted academic research and government records, describes repeated instances where former partners deliberately avoided paying support, withheld tax information, or manipulated care arrangements—all with little to no intervention from the agency meant to oversee the process.
“Parents affected by financial abuse through Child Support keep telling us they feel abandoned and let down by Services Australia when they seek help,” said Iain Anderson, the Commonwealth Ombudsman.
Commonly labelled as the “weaponisation” of Child Support, the abuse ranges from failure to lodge tax returns to threats and intimidation aimed at discouraging the other parent from pursuing their entitlements. Though both men and women can be victims, many of the examples shared in the report featured mothers left with mounting debts while their children went without.
The investigation highlights systemic flaws, pointing to a lack of staff training, poor information-sharing between departments, and legal limitations that restrict Services Australia from acting swiftly—even when there’s clear evidence of abuse.
As of 31 December 2024, the Child Support Collect system had accumulated $1.9 billion in unpaid dues. More than 150,000 paying parents owed a debt. These figures don’t include arrangements under Private Collect, where the actual size of unpaid amounts is unknown.
Mr Anderson said legislative reform is now unavoidable. “The legislation needs reform to address systemic problems and help Services Australia ensure children are not deprived of the financial support they need.”
The Ombudsman’s report makes eight recommendations. These include a call for Services Australia to better enforce payment obligations, develop policies to identify and respond to abuse, and overhaul internal systems that currently require survivors to share personal information with their former partner. The recommendations also call for the Government to introduce a Bill to amend current laws that block more effective responses.
The Department of Social Services has accepted seven of the eight recommendations and noted the final one. Services Australia has agreed to all eight.
The report also shows cooperation between oversight bodies, with the Ombudsman sharing findings with the Inspector-General of Taxation, who is running a parallel inquiry into how the tax system can be exploited to commit financial abuse.
For parents caught in the system, these recommendations can’t come soon enough. Many feel like they’ve been fighting alone—for years—for what should be a basic right: financial help to raise their children.
With over a million children depending on Australia’s Child Support program, the stakes are high. The report doesn’t just point to individual failures. It flags a structure that, unless fixed, will continue to allow abusers to game the system while the most vulnerable pay the price.
To access the full report or learn more, visit ombudsman.gov.au.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
⚠️Australia’s #childsupport system fails to stop financial abuse, leaving carers & kids struggling. 💸 $1.9B unpaid dues, 150k+ parents owe debts. 📝 Ombudsman report demands law reforms & better @ServicesGovAU oversight. #TheIndianSun @CwealthOmb
🔗 https://t.co/hAkPp2wxzs pic.twitter.com/FKgYFTPHje
— The Indian Sun (@The_Indian_Sun) June 4, 2025
Donate To The Indian Sun
Dear Reader,The Indian Sun is an independent organisation committed to community journalism. We have, through the years, been able to reach a wide audience especially with the growth of social media, where we also have a strong presence. With platforms such as YouTube videos, we have been able to engage in different forms of storytelling. However, the past few years, like many media organisations around the world, it has not been an easy path. We have a greater challenge. We believe community journalism is very important for a multicultural country like Australia. We’re not able to do everything, but we aim for some of the most interesting stories and journalism of quality. We call upon readers like you to support us and make any contribution. Do make a DONATION NOW so we can continue with the volume and quality journalism that we are able to practice.
Thank you for your support.
Best wishes,
Team The Indian Sun
