Understanding Power of Attorneys for older Australians

As we get older, it’s natural to start thinking more about the future, especially when it comes to making decisions about our finances, health and wellbeing. One of the best ways to plan ahead is by setting up a Power of Attorney.

“When considering retirement or a move to retirement living, it can also be a good time to update your will and appoint a power of attorney, if you don’t already have one,” says retirement living lawyer, Danielle Lim, Principal, DSL Law.

What is a Power of Attorney?

A Power of Attorney (POA) is a legal document that allows someone you trust to make decisions on your behalf if you’re you’re ever unable to do so yourself. This could include managing your money, paying bills, selling property or making medical decisions. There are different types of POA in Australia, including:

• General Power of Attorney: used for specific or short-term decisions, often used while you’re still able to make decisions.
• Enduring Power of Attorney: stays in place even if you lose capacity. It can cover financial, personal and (in some states) medical decisions.
• Enduring Guardianship or medical decision-makers: in some states and territories, this covers health and lifestyle decisions.

Why it’s so important for older Australians

Peace of mind

Knowing that a trusted person is legally empowered to act in your best interests offers enormous reassurance, for you and your loved ones.

Avoiding crisis decisions

Without a POA, your family may face a lengthy legal process to help you if you lose capacity. This can be stressful and time-consuming, particularly during an difficult time.

Maintaining control

Appointing a POA while you’re still well ensures you choose who makes decisions for you—someone who understands your values, preferences and wishes.

Legal and financial protection

A POA helps protect you from financial abuse, mismanagement and fraud. The person you choose is legally bound to act in your best interests.

How it works in different states

Each state and territory has slightly different rules. Here’s a quick overview:

New South Wales

• Enduring POA is for financial matters only.
• Health and lifestyle decisions, including living arrangements and medical decisions, are handled through an Enduring Guardianship.
• Enduring POAs must be witnessed by a solicitor, registrar of a court or other qualified person.

Queensland

• A single Enduring POA covers personal, health and financial matters.
• Must be signed and witnessed by a Justice of the Peace, Commissioner for Declarations, lawyer or Notary Public.

South Australia

• Enduring POA is for financial matters only.
• Health and lifestyle decisions are made through an Advance Care Directive.
• Must be witnessed by an authorised person such as a solicitor or Justice of the Peace.

What to do next

Once you’ve set up your Power of Attorney, let those close to you know about it and keep the documents somewhere safe. It’s also a good idea to complete an Advance Care Directive, this outlines your preferences when it comes to the type of care and treatments you’d like if you can’t speak for yourself. For more information of Advance Care Directives, you can read our blog.