10.1 Summary of findings
Table 20 summarises transfer costs in 2021-22 resulting from domestic violence against women and their children.
Table 20: Transfer costs in 2021-2261
| |
2021-22
($ million) |
| Total transfer costs |
569 |
Without the Plan of Action interventions, transfer costs are estimated at $569 million in 2021-22.
10.2 Category description
Transfer payments such as government benefits and taxes represent a shift in payments from one group in society to another. They do not therefore represent a net cost to society and are not included in the analysis62. However, the taxes by their very nature, create distortions and inefficiencies in the economy which do impose a cost.
Violence against women and their children results in reduced tax revenue and a requirement to collect extra tax dollars including for:
- loss of income tax of victims/survivors, perpetrators and employers;
- additional induced social welfare payments;
- victim/survivor compensation payments and other government services.
The collection of these additional tax dollars creates the distortion or inefficiency in the economy. The cost of this inefficiency is often called the ‘deadweight loss’ or ‘excess tax burden’, which is a net loss to society.
Deadweight loss occurs when the loss to consumers and producers caused by the tax (i.e. the amount of a good or service that would have been consumed or produced, but for the tax) exceeds the revenue obtained from the tax. Access Economics estimated the total cost of transfers was $410 million in 2002-0363.
10.3 Stakeholder breakdown
The distortions and inefficiencies to the economy that result from transfers and the cost of raising additional taxation to cover this loss are borne almost entirely by government.