Standardise power of attorney laws, says AHRC

The recommendation from the Australian Human Rights Commission follows the release of a new report – Empowering Futures – which finds “significant gaps” in people’s knowledge about power of attorney laws leaving many vulnerable to potential abuse and exploitation, especially older Australians.

“If people do not understand their rights and responsibilities, it can drive misuse and abuse – severely hurting the people this legal document is meant to protect,” Age Discrimination Commissioner Robert Fitzgerald said.

“National consistency in legislation is the first step to both reducing confusion and creating a coherent national approach that fills the knowledge gaps.”

An enduring power of attorney allows a person to appoint someone else to make financial and legal decisions on their behalf, including if they become unable to do so due to illness, cognitive decline or other circumstances. 

Among other findings contained in the 96-page report:

• Only half of people with an enduring power of attorney (52 per cent) sought professional advice before creating one.
• Just a quarter of those (25 per cent) currently acting as appointed decision-makers felt they understood their responsibilities very well when they started their role.  
• Two-in-five (37 per cent) had granted an enduring power of attorney to someone who showed characteristics identified as risk factors for perpetrating elder abuse. 
• Very few Australians (six per cent) felt they knew a lot about financial enduring powers of attorney, while more than a third (35 per cent) felt they knew nothing despite some of them being involved in the process in some way.

The commission – which surveyed more than 6,000 Australians aged 18-plus to gauge current levels of awareness of power of attorney laws – also recommends governments create a national community awareness strategy, which includes educational materials such as a dedicated website and training courses.

COTA Australia CEO, Patricia Sparrow told Australian Ageing Agenda that they have been advocating for this change to occur for quite some time.

“Power of Attorney laws must be standardised across Australia. This report starkly reveals the vulnerabilities in our current system,” Ms Sparrow said.

“The patchwork of laws across states and territories is a major roadblock to comprehensively safeguarding against elder abuse. We desperately need clear, consistent legislation, and a national register, to shield older people from financial exploitation.”

Mr Fitzgerald said that giving an “enduring power of attorney” is a “critical” option to give people control bt that most Australians “know very little” about it. Mr Fitzgerald urged governments to act now.

“All Australians, regardless of age or ability, have the right to live with dignity, security, autonomy and control over their lives and wellbeing,” he said.

“I look forward to working with all levels of government, and the relevant bodies, to help better safeguard older people’s rights, wishes and preferences in future decision-making.”

Ms Sparrow said that she finds it “alarming” that only half of Australians seek professional advice on Power of Attorney.

“This knowledge gap puts many at risk, underscoring the need for a comprehensive national education campaign,” she said.

“The fact that 37 per cent of people are granting power of attorney to individuals with known risk factors for elder abuse is deeply concerning. This statistic alone demonstrates why reform is critical.”

Adding: “This report is a wake-up call. We urgently need national reform of Power of Attorney laws to ensure consistency across the country and improve public understanding. The financial safety and autonomy of older Australians depends on it.”

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