Commissioner calls for consistent enduring power of attorney laws

A recently released report revealed that a lack of knowledge about such legislation could heighten risks for the elderly

Commissioner calls for consistent enduring power of attorney laws

Age Discrimination Commissioner Robert Fitzgerald AM has called for Commonwealth, State, and Territory governments to take immediate steps towards streamlining laws managing enduring power of attorney throughout Australia.

This comes after a report was released that identified a lack of understanding by Australians when it comes to their rights and responsibilities regarding power of attorney – a knowledge gap that could increase the risk of financial elder abuse. An enduring power of attorney enables an individual to appoint another person to make financial and legal decisions for them if, for instance, illness, cognitive decline, or other circumstances prevents them from doing so.

“All Australians, regardless of age or ability, have the right to live with dignity, security, autonomy and control over their lives and wellbeing. An enduring power of attorney is a critical option to give people that control, but most Australians know very little about it. 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”, Fitzgerald said.

Findings from the Commission’s Empowering Futures report showed that just 13% of the respondents reported having drafted enduring power of attorney documents for themselves. Although over half of those with an enduring power of attorney (52%) obtained professional advice prior to drafting their documents, just 25% of the decision-makers appointed had a clear understanding of their role at commencement.

Knowledge of how enduring powers of attorney should operate was also limited, leaving the public prone to abuse and exploitation as a result of misuse through ignorance or malice; 37% of respondents gave enduring power of attorney to people who displayed traits that were risk factors for elder abuse perpetration.

Moreover, just 6% of respondents reported having a strong understanding of financial enduring powers of attorney, and 35% expressed their feeling that they did not know anything even though they were involved in the process in some fashion. Thus, 85% of respondents said that the public should be better educated on financial enduring powers of attorney – in particular, 93% indicated that there should be a standard set of information to refer to.

“The way forward is clear. As recommended in our report, and by numerous inquiries going back almost twenty years, national consistency in legislation is the first step to both reducing confusion and creating a coherent national approach that fills the knowledge gaps”, Fitzgerald said.

In addition to more consistent enduring powers of attorney laws, the commission recommended the establishment of a national register. It also suggested that a national community awareness strategy be developed and executed by Federal, State and Territory governments, as well as for these bodies to set up websites and training courses in order to educate the public.

“Two decades of inaction in Australia is long enough. The time to act is now. I look forward to working with all levels of government and relevant bodies to help better safeguard older people's rights, wishes, and preferences in future decision-making,” Fitzgerald said.

The Empowering Futures report surveyed more than 3,000 Australian adults.

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