Incarcerated clients

Enhancing financial reintegration through prison-based tax and literacy services

Incarcerated individuals remain part of Australia’s tax system, yet they face significant barriers to being able to maintain their tax compliance. Without access to services like myGov, digital identity tools, or tax agents, many are unable to manage overdue returns, cancel business registrations, consolidate superannuation, or engage with the ATO. This often results in escalating debts, penalties, and lost entitlements and further complicates their reintegration into the community upon release.

In response to this identified gap, in 2024 tax clinics continued to assist individuals who are currently incarcerated and those who are in transitional arrangements to re-enter the community.

A highlight was the formalisation of a dedicated prison outreach initiative following the Curtin Tax Clinic’s participation at a Waalitj Foundation Rehabilitation Workshop. This program provides targeted tax assistance and financial literacy sessions to help incarcerated individuals resolve their tax affairs and build financial capability for their reintegration into the community.

The growing demand for these services underscores the program's success. Currently, the initiative operates in partnership with the Western Australian Department of Justice, supporting 17 prison facilities statewide. In late 2024, the program also attracted interest from the Queensland and Victorian corrections departments.

Across the program, tax clinics successfully assisted over 606 incarcerated clients throughout 2024 through both the dedicated service, at prison facilities and within the community, at a tax clinic location. These initiatives share a common goal of improving tax compliance and financial inclusion for one of Australia’s most underserved vulnerable groups. Embedding tax clinics and financial literacy education within prisons is a pragmatic, preventative strategy that reduces administrative pressure on government systems, supports rehabilitation, and enhances long-term economic participation. With coordinated national support for a dedicated prison outreach program, we would ensure no taxpayer is left behind regardless of their circumstances.

Overcoming a critical obstacle

While representing clients in prison facilities in 2023, it was identified that incarcerated people lose access to their tax file numbers, which is an important part of privacy measures to protect individual information. The ability of tax clinics to service incarcerated clients was heavily restricted and, in some instances, ceased. To recommence this work, the Curtin tax clinic collaborated with the ATO and the Western Australian Department of Justice to establish a necessary client verification process. This process streamlines existing processes, ensuring client identification checks meet ATO privacy requirements and individual identities are protected. The cross-agency solution is now recognised as a potential national model and is a positive example of collaboration between government and non-government organisations to address systemic barriers.

Student reflection – Curtin tax clinic visit to Wooroloo Prison Farm ‘Visiting to Wooroloo Prison Farm was an incredibly rewarding experience. As a student, I was proud to contribute to supporting inmates with their tax returns and superannuation queries, as these are important areas in which many face significant barriers. The warm welcome we received and the meaningful conversations we had with inmates made the visit both humbling and impactful. It was inspiring to be part of a broader effort to promote financial literacy and assist individuals preparing for life beyond incarceration.’

 

Case study: breaking through partnership The Curtin Tax Clinic partners with Breaking Through, a reintegration service supporting incarcerated individuals through a structured 12-week work-readiness program. As part of this initiative, the tax clinic provides tailored assistance to participants in managing their taxation and superannuation affairs, helping them resolve outstanding obligations and re-establish financial independence. In addition, the clinic delivers a dedicated financial literacy session covering practical topics such as budgeting, debt management, understanding wills, protecting personal identity, and other essential areas to support financial resilience post-release. This collaboration ensures participants are better prepared to navigate financial systems and re-engage with the community confidently. In response to the growing number of systemic barriers faced by incarcerated taxpayers, the Curtin tax clinic undertook a comprehensive review and published findings in Report into Taxation issues within Western Australian Prisons and Recommendations (PDF3.72MB). Key challenges like proof of identity and digital access limitations and outdated administrative procedures were highlighted and the report offers recommendations that will help to improve tax compliance support for incarcerated individuals. The report continues to inform state and federal operational practices and broader policy discussions.