In Australia, the economic ramifications of sexual violence are becoming increasingly evident. Research indicates that the costs associated with sexual violence may reach an alarming **$14 billion** across the lives of those affected. In stark contrast, the Federal Government allocates approximately **$10 billion** annually to the Fuel Tax Credit Scheme to support various industries. This disparity highlights the urgent need for a significant investment in addressing sexual violence, which has been described as both a social and economic crisis.
The **UWA Public Policy Institute** has reported that sexual assault and abuse cost Australia more than **$2 billion** each year. This figure rivals the financial burden presented by major public health issues, such as diabetes and heart disease. Despite the severity of the situation, funding for responses to sexual violence remains significantly underfunded, leaving many victim-survivors without the necessary support.
Growing Demand for Support Services
Recent data from the **Australian Bureau of Statistics (ABS)** revealed a troubling trend, with reported incidents of sexual violence reaching a **31-year high**. The national rate now stands at **147 incidents per 100,000 persons**, marking the **13th consecutive annual increase** in reported cases. Alarmingly, only **13 percent** of women reported their most recent incident to police, suggesting that the actual number of cases may be much higher.
As more victims come forward, the demand for specialist sexual assault services is rising. Waiting periods for these crucial services have lengthened, creating a risk of system failure. Those who do not receive timely support may suffer prolonged trauma and a greater reliance on other public systems, which can be more costly. This situation raises concerns about the widening gap between the need for services and the available response.
Economists have termed this phenomenon “failure demand,” referring to the downstream costs incurred by neglecting to invest in early support. The Australian government is estimated to forgo at least **$230 million** annually in lost taxation revenue while wasting an additional **$100 million** on inefficient government activities related to these unmet needs.
Call for Action and Investment
Currently, specialist sexual assault services face a **$90 million** funding shortfall, leaving **23,000** individuals without timely support each year. This situation not only reflects a lack of compassion but also reveals a structural deficit in economic logic. Investing in response and recovery is essential for preventing future costs and enhancing community resilience.
The **Domestic, Family and Sexual Violence Commissioner**, Micaela Cronin, has emphasized the urgent necessity to “change the trajectory” of sexual violence in Australia. Effective responses to this crisis not only reduce long-term spending but also strengthen community participation and overall societal well-being.
To address these pressing issues, governments must reevaluate their funding strategies to align more closely with community needs. This includes resourcing evidence-based service models and incorporating comprehensive prevention strategies into public budget processes. Viewing sexual violence as a long-term economic issue is critical for reducing costs and fostering a healthier society.
Ben Perks, a senior research fellow at the **UWA Public Policy Institute**, argues that the question is not whether governments can afford to invest in recovery, but rather whether they can afford to ignore the consequences of neglect. While investments in industries like fuel rebates yield visible returns, the benefits of social investments in recovery and participation are equally tangible and enduring. Investing in effective responses to sexual violence is not merely an act of charity; it is a fundamental component of sound economic policy and the foundation for a fairer, more resilient Australia.
