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f<strong>as</strong>t facts<br />

THE FINANCIAL COST OF DOMESTIC AND FAMILY VIOLENCE BY ROSA CAMPBELL,<br />

CLEARINGHOUSE RESEARCH ASSISTANT<br />

Domestic <strong>and</strong> family <strong>violence</strong> can have a grave financial impact <strong>on</strong> victims <strong>and</strong> society generally. The two<br />

Australian reports most <strong>of</strong>ten cited in regards to these financial costs are: The cost <strong>of</strong> domestic <strong>violence</strong> to the<br />

Australian ec<strong>on</strong>omy: parts 1 & 2, by Access Ec<strong>on</strong>omics (2004), <strong>and</strong> The cost <strong>of</strong> <strong>violence</strong> against wo<str<strong>on</strong>g>men</str<strong>on</strong>g> <strong>and</strong> <strong>their</strong><br />

children, by the Nati<strong>on</strong>al Council to Reduce Violence Against Wo<str<strong>on</strong>g>men</str<strong>on</strong>g> <strong>and</strong> <strong>their</strong> Children (2009). Key statistics<br />

from these <strong>and</strong> other reports are cited below.<br />

Cost to Australia<br />

Domestic <strong>and</strong> family <strong>violence</strong> imposes<br />

a huge financial cost <strong>on</strong> the Australian<br />

ec<strong>on</strong>omy:<br />

à àAccess Ec<strong>on</strong>omics (2004, p. vii)<br />

estimated that domestic <strong>violence</strong><br />

cost Australia $8.1 billi<strong>on</strong> in 2002-<br />

03.<br />

à àThe Nati<strong>on</strong>al Council to Reduce<br />

Violence Against Wo<str<strong>on</strong>g>men</str<strong>on</strong>g> <strong>and</strong> <strong>their</strong><br />

Children (2009, p. 66) h<strong>as</strong> more<br />

recently projected that domestic<br />

<strong>violence</strong> will cost Australia $9.9<br />

billi<strong>on</strong> in the year 2021-22, if<br />

appropriate acti<strong>on</strong> is not taken.<br />

Cost to victims<br />

Victims themselves bear a large<br />

proporti<strong>on</strong> <strong>of</strong> the costs <strong>of</strong> ab<strong>use</strong>:<br />

à àAccess Ec<strong>on</strong>omics (2004, p. vii)<br />

c<strong>on</strong>cluded that victims bear the<br />

largest cost burden <strong>of</strong> domestic<br />

<strong>violence</strong>, estimated at $4.05<br />

billi<strong>on</strong> out <strong>of</strong> a total $8.1 billi<strong>on</strong> in<br />

2002-03.<br />

à àThe Nati<strong>on</strong>al Council to Reduce<br />

Violence Against Wo<str<strong>on</strong>g>men</str<strong>on</strong>g> <strong>and</strong> <strong>their</strong><br />

Children (2009, p. 8) found that<br />

victims bear over half the costs <strong>of</strong><br />

domestic <strong>violence</strong>. It projected<br />

the costs to victims to rise to $8.1<br />

billi<strong>on</strong> in 2021-22.<br />

ààThe costs to victims include<br />

homelessness (Australian Institute<br />

<strong>of</strong> Health <strong>and</strong> Welfare 2007), loss<br />

<strong>of</strong> income due to unemploy<str<strong>on</strong>g>men</str<strong>on</strong>g>t<br />

(Braaf & Barrett Meyering 2011;<br />

Moe & Bell 2004) <strong>and</strong> healthrelated<br />

expenses (Fishman et al.<br />

2010; VicHealth 2004).<br />

Cost to Australian<br />

business<br />

Domestic <strong>and</strong> family <strong>violence</strong> also<br />

creates costs for Australian business:<br />

à àAccess Ec<strong>on</strong>omics (2004, p.<br />

43) estimated that in 2002-03,<br />

domestic <strong>violence</strong> cost Australian<br />

businesses $175.2 milli<strong>on</strong>.<br />

à àThe Nati<strong>on</strong>al Council to Reduce<br />

Violence Against Wo<str<strong>on</strong>g>men</str<strong>on</strong>g> <strong>and</strong> <strong>their</strong><br />

Children (2009, p. 8) estimated<br />

that if appropriate acti<strong>on</strong> is not<br />

taken, domestic <strong>violence</strong> will cost<br />

Australian employers $456 milli<strong>on</strong><br />

in 2021-22.<br />

REFERENCES<br />

Access Ec<strong>on</strong>omics 2004, The cost <strong>of</strong><br />

domestic <strong>violence</strong> to the Australian<br />

ec<strong>on</strong>omy: part I, Office <strong>of</strong> the Status <strong>of</strong><br />

Wo<str<strong>on</strong>g>men</str<strong>on</strong>g>, Canberra<br />

Australian Institute <strong>of</strong> Health <strong>and</strong><br />

Welfare 2007, Homeless people in<br />

SAAP: SAAP Nati<strong>on</strong>al Data Collecti<strong>on</strong><br />

annual report 2005-06 Australia, cat.<br />

no. HOU 156, AIHW, Canberra<br />

Braaf R & Barrett Meyering I 2011,<br />

Seeking security: promoting wo<str<strong>on</strong>g>men</str<strong>on</strong>g>’s<br />

ec<strong>on</strong>omic wellbeing following<br />

domestic <strong>violence</strong>, Australian<br />

Domestic <strong>and</strong> Family Violence<br />

Clearingho<strong>use</strong>, Sydney<br />

Cadilhac DA, Magnus A, Cumming<br />

T, Sheppard L, Pearce D & Carter<br />

R 2009, The health <strong>and</strong> ec<strong>on</strong>omic<br />

benefits <strong>of</strong> reducing dise<strong>as</strong>e risk<br />

factors, VicHealth, Melbourne.<br />

Fishman PA, B<strong>on</strong>omi AE, Anders<strong>on</strong><br />

ML, Reid RJ & Rivara FP 2010,<br />

‘Changes in health care costs over<br />

Costs <strong>and</strong> benefits <strong>of</strong><br />

preventi<strong>on</strong><br />

The preventi<strong>on</strong> <strong>of</strong> domestic <strong>and</strong> family<br />

<strong>violence</strong> is <strong>of</strong> enormous social <strong>and</strong><br />

ec<strong>on</strong>omic benefit to all Australians:<br />

à àThe Nati<strong>on</strong>al Council to Reduce<br />

Violence Against Wo<str<strong>on</strong>g>men</str<strong>on</strong>g> <strong>and</strong> <strong>their</strong><br />

Children (2009, p. 4) c<strong>on</strong>cluded<br />

that reducing all forms <strong>of</strong> <strong>violence</strong><br />

against wo<str<strong>on</strong>g>men</str<strong>on</strong>g> by 10% by 2021-<br />

22 could amount to $1.6 billi<strong>on</strong> in<br />

savings.<br />

ààAccording to VicHealth, eliminating<br />

intimate partner <strong>violence</strong> would<br />

save the health sector $207 milli<strong>on</strong><br />

dollars per year <strong>and</strong> save $1.8<br />

billi<strong>on</strong> in producti<strong>on</strong> <strong>and</strong> leisure<br />

costs annually (Cadilhac et al.<br />

2009, p. 64).<br />

time following the cessati<strong>on</strong> <strong>of</strong><br />

intimate partner <strong>violence</strong>’, Journal<br />

<strong>of</strong> General Internal Medicine, vol.<br />

25, n. 9, pp. 920-925<br />

Moe A & Bell M 2004, ‘Abject<br />

ec<strong>on</strong>omics: the effects <strong>of</strong> battering<br />

<strong>and</strong> <strong>violence</strong> <strong>on</strong> wo<str<strong>on</strong>g>men</str<strong>on</strong>g>’s work <strong>and</strong><br />

employability’, Violence Against<br />

Wo<str<strong>on</strong>g>men</str<strong>on</strong>g>, vol. 10, no. 1, pp. 29-55<br />

Nati<strong>on</strong>al Council to Reduce<br />

Violence Against Wo<str<strong>on</strong>g>men</str<strong>on</strong>g> <strong>and</strong><br />

<strong>their</strong> Children 2009, The cost <strong>of</strong><br />

<strong>violence</strong> against wo<str<strong>on</strong>g>men</str<strong>on</strong>g> <strong>and</strong> <strong>their</strong><br />

children, Depart<str<strong>on</strong>g>men</str<strong>on</strong>g>t <strong>of</strong> Families,<br />

Housing, Community Services <strong>and</strong><br />

Indigenous Affairs, Canberra<br />

Victorian Health Promoti<strong>on</strong><br />

Foundati<strong>on</strong> 2004, The health costs<br />

<strong>of</strong> <strong>violence</strong>: me<strong>as</strong>uring the burden<br />

<strong>of</strong> dise<strong>as</strong>e ca<strong>use</strong>d by intimate<br />

partner <strong>violence</strong>: a summary <strong>of</strong><br />

findings, VicHealth, Melbourne.<br />

9<br />

www.adfvc.unsw.edu.au

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