The New Zealand Economic Cost of Family Violence

Suzanne Snively

Family violence is a serious problem in New Zealand. It affects people’s psychological, emotional and physical wellbeing and can result in injury or death.

Between 1988 and 1993 Police figures show that 40% of all homicides resulted from domestic disputes. In the first six months of 1994 more than 10,000 women and children sought help from women’s refuges. As well as the human and social cost there is a huge economic cost to individuals, families and the community as a whole.

In April 1994 the Family Violence Unit of the Department of Social Welfare commissioned Coopers and Lybrand to develop a model to estimate the economic cost of family violence. The project used as its starting point an Australian study, Costs of Domestic Violence. Coopers and Lybrand co-ordinated and compiled New Zealand data and further developed the methodology to suit the New Zealand analysis.

This paper comprises excerpts of the resulting report, The New Zealand Economic Cost of Family Violence. Although the costings differ depending on the assumptions employed, the conclusion was the same in all cases: the economic cost is significant. The results indicate an annual cost of family violence in New Zealand of at least $1.2 billion.