Why are the foundations of financial security falling short for migrant and refugee women?

Earlier this year, the federal government announced a new inquiry examining the role financial institutions play in identifying and preventing financial abuse and exploring reforms to help understand how Australia can best respond to this form of abuse. Although financial abuse affects approximately 16% of women in Australia, it is rarely discussed, and when it comes to the experiences of migrant and refugee women and gender-diverse people, there has been a long-term absence of evidence into their experiences, while existing systems fall short of protecting them. To better support migrant and refugee women and gender-diverse people, understanding the multiple inequalities they face is the first step to finding adequate solutions.

While there is a strong link between financial insecurity and financial abuse, migrant and refugee women and gender-diverse people face significant structural barriers to financial security. Due to racism, discrimination, and gendered issues in workforce participation, migrant and refugee women and gender-diverse people are over-represented in low-paid, precarious employment and unemployment figures. The lack of recognition of overseas qualifications in Australia also prevents many from obtaining secure jobs. Similarly, those on temporary visas (e.g., partner, student, bridging, and work visas), have limited choices and work rights and often can’t access flexible working arrangements, paid sick leave, and domestic family violence leave making it difficult to sustain employment. These issues lead to financial constraints and dependence on partners for financial support, which are known factors that increase the risk of violence.

Temporary visa holders who are on spousal or partner visas in Australia also experience a greater risk of family violence and financial abuse. Perpetrators who are sponsors often use their power to withhold financial resources or threaten to withdraw their sponsorship if their partner seeks to end the violent relationship or assert her independence.  Temporary visa holders are also not eligible to access social security support such as housing, childcare subsidies and other critical assistance, forcing them to be completely financially dependent on their partner.

In one case covered by the Guardian, a woman referred to as Aneeta travelled to Australia on a tourist visa after lodging an offshore partner visa application. However, once in Australia, with limited work rights under a tourist visa, she was financially dependent on her husband who perpetrated both financial and physical abuse against her. After one year of living in limbo, she was lucky to have support from an immigration support service to access new family violence provisions that grant survivors of family violence pathways to permanent residency so that they can seek social security support and leave perpetrators without fear of deportation. While Aneeta’s story shows some of the success of these new provisions, it also demonstrates the many existing structural barriers preventing migrant women on spousal visas from accessing support, such as the complex process of applying for family violence visa pathways and the lack of available and appropriate information about their legal rights.

Financial systems, services, and social security in Australia are complex to navigate, especially for those who have recently arrived in Australia, contributing to the financial vulnerability many migrant and refugee women face.

Preventing financial abuse requires us to ensure financial security and independence for all women and gender diverse people. For migrant and refugee women, increasing the availability of tailored and culturally responsive financial, legal and social security support and education is crucial. Initiatives such as MCWH’s health education program provide important in-language education sessions on healthy relationships that help migrant women both identify and seek support for all forms of violence, including financial abuse. But while education and empowerment are important means of change, we must address the interconnected structural issues migrant and refugee women face that contribute to their economic vulnerability, including visa and employment precarity and exclusion from social security support and services. With a stronger, and more foundation for financial security, we can ensure that migrant and refugee women and gender diverse people are better protected against financial abuse.

This article was first published in edition #139 of The WRAP on November 2024.