Suspect Financial Elder Abuse? - Financial Services and Tax Law
Financial elder abuse is a growing concern across Australia, particularly as our population ages. It’s a silent crime that often goes unreported—one where older individuals are manipulated, coerced or deceived into surrendering their finances, assets or control. If you suspect a loved one is being financially exploited, understanding your rights under Australian Financial Services and Tax Law is essential.
In this article, we explain what financial elder abuse looks like, how to recognise the warning signs, what steps to take if you suspect abuse, and how the legal system can help protect older people from exploitation.
What Is Financial Elder Abuse?
Financial elder abuse occurs when someone improperly uses an older person’s money, property or assets without their knowledge or consent—or through manipulation and undue influence. Perpetrators are often family members, carers, or someone in a position of trust.
It can involve:
Misuse of a Power of Attorney
Pressuring someone into changing a will or title
Coercing them to give away money or sign over control of assets
Unauthorised use of bank accounts, credit cards or property
Why Financial Elder Abuse Is Often Hidden
Unfortunately, many older Australians are reluctant to speak out. This could be due to:
Cognitive decline making it difficult to recognise or report the abuse
That’s why it’s often up to friends, relatives and professionals to notice signs and act appropriately.
Common Warning Signs to Watch For
If you notice any of the following, it could be a red flag:
Sudden or unexplained changes in banking patterns
Unpaid bills despite having sufficient funds
Reluctance to speak independently
Changes to legal documents like wills or powers of attorney
Isolation from friends or other family members
A new individual taking control of their financial affairs
Legal Protections Under Financial Services and Tax Law
Australia’s Financial Services and Tax Law framework includes several safeguards to protect older people from financial abuse:
Power of Attorney (POA) OversightThe misuse of a POA is one of the most common forms of financial elder abuse. A properly drafted POA must act in the best interests of the principal. If abuse is suspected, it can be revoked, and legal action can be taken to recover misappropriated assets.
Australian Taxation Office (ATO) ProtectionsThe ATO monitors unusual activity in financial records and provides guidance on protecting vulnerable taxpayers. It can act on suspicious transactions and help families report concerns through proper channels.Visit ATO's vulnerable people page for more.
Elder Abuse Helplines and AdvocacyLegal assistance, aged care advocacy services and support lines are available in every state. Services like the SRS NSW provide free and confidential advice to older people or concerned loved ones.
Talk to the Person PrivatelyStart by gently asking questions. Be patient and avoid making accusations. Express concern and support.
Gather EvidenceKeep records of suspicious transactions, changes in legal documents, or conversations that indicate abuse. Evidence is crucial for legal intervention.
Report to the AuthoritiesYou can contact:
The police (if a crime is suspected)
Elder Abuse Helplines
Centrelink’s Social Work services
Legal Aid or a solicitor specialising in Financial Services and Tax Law
Seek Legal AdviceEngage a legal team that understands the complexities of elder financial abuse. A lawyer can assist in revoking powers of attorney, applying for guardianship, or initiating recovery proceedings.
Preventing Elder Financial Abuse
Proactive planning is one of the best defences. Encourage older family members to:
Establish legally sound Powers of Attorney with independent legal advice
Review their wills and financial plans regularly
Avoid joint bank accounts unless absolutely necessary
Maintain a network of trusted individuals
Financial institutions and advisers also play a key role. They are required under Financial Services legislation to act in the client’s best interests and report suspected abuse under certain obligations.
The Role of New South Lawyers
At New South Lawyers, we are experienced in navigating the intersection of Financial Services and Tax Law, particularly as it relates to protecting vulnerable clients. We understand how deeply personal and distressing these situations can be. Our team provides confidential, clear and compassionate legal guidance to help resolve matters efficiently and restore financial safety for your loved ones.
We can help with:
Revoking misused legal instruments
Recovering misappropriated assets
Drafting protective financial arrangements
Advising on tax implications and reporting
Financial elder abuse is a serious and growing problem in Australia. Knowing the signs—and how to act—is essential to protecting vulnerable older people. The law offers pathways to justice, and no one needs to face these situations alone.
Suspect financial elder abuse? Don’t delay—
Contact New South Lawyers today for expert advice in Financial Services and Tax Law. We’re here to help you protect your loved ones and their future.
