Women, Incarceration, and Financial Hardship

Women are among the fastest-growing prison populations in Australia. Studies consistently show a strong link between violence and abuse—from childhood through adulthood—and women’s entry into the criminal justice system. Many justice-involved women and girls have experienced poverty, homelessness, and survival-based work, often leaving them in cycles of financial instability.

 

Financial Hardship and the Cycle of Incarceration

The 2018 report, Double Punishment – How People in Prisons Pay Twice by Financial Counselling Australia, highlights the severe financial consequences of incarceration. Most individuals leave prison in a worse financial position than when they entered, impacting not just themselves but also their families.

Through its custodial and community-based work, The MARA Project and the MARA Financial Inclusion Program (FIP) have identified debt-related stress as a major issue for women in the justice system. 85% of incarcerated women in parts of Australia are parents to dependent children, often as single mothers. The effects of incarceration extend beyond financial strain, leading to:

• Psychological and social hardship

• Loss of employment and housing

• Diminished financial well-being

• Barriers to regaining custody of children

 

Barriers to Financial Stability

Many justice-involved women face low levels of literacy, numeracy, and life skills, often compounded by high levels of trauma. As a result, tasks such as writing to creditors, completing forms, and self-advocating can be overwhelming—particularly for First Nations women.

Additionally, Domestic & Family Violence (DFV) frequently creates conditions for financial abuse, where women enter custody with significant debt and limited financial autonomy.

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Cultural Considerations in Financial Well-being

For Aboriginal and Torres Strait Islander communities, the cultural expectation of sharing is a deeply ingrained value. While this reflects strong community bonds, it can also pose financial challenges.

An emerging issue is the receipt of large redress payments, which have the potential to significantly impact a woman’s life. Without proper financial literacy and safety planning, these funds may be mismanaged or lost to financial abuse.

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The Role of Financial Inclusion Programs

Supporting women to gain financial independence is critical to breaking cycles of incarceration, poverty, and homelessness. Accredited Financial Counsellors play a vital role in:

• Financial safety planning

• Building financial literacy

• Supporting women to navigate debts, payments, and access resources

 

By addressing financial barriers, MARA and FIP are committed to empowering women, ensuring they have the skills, resources, and stability needed to rebuild their lives after custody.