More than a third of Australians with an enduring power of attorney have granted it to someone identified as a potential abuser.
Age Discrimination Commissioner Robert Fitzgerald said a new report found there were significant gaps in Australians’ knowledge about their rights and responsibilities around the legal document, increasing the risk of financial elder abuse.
Commissioner Fitzgerald said the report, Empowering futures, found two in five (37 percent) had granted an enduring power of attorney to someone who showed characteristics identified as risk factors for perpetrating elder abuse.
He said the findings highlighted a need for Federal, State and Territory governments to achieve national consistency in laws governing enduring power of attorney.
“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 in the future due to illness, cognitive decline or other circumstance.
“While the research found that enduring documents are widely valued for providing peace of mind and for empowering people to take control of how future decisions affecting their lives will be made, there is limited public awareness about them and most Australians (87 percent) have not set one up for themselves.”
Commissioner Fitzgerald said the report surveyed more than 3000 adult Australians and found concerning critical gaps in people’s knowledge and understanding about how enduring powers of attorney should work.
He said this could leave them vulnerable to potential abuse and exploitation from misuse of these documents, whether from ill-intent or ignorance.
“While many were aware that things could go wrong, few are equipped to take the necessary steps to protect themselves.
“Federal, State and Territory governments must prioritise the creation of a nationally consistent financial enduring power of attorney laws and establish a national register.”
Commissioner Fitzgerald said the report also recommended governments delivered a national community awareness strategy to raise awareness among adult Australians about these legal instruments and the value of having one in place.
“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.
“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.”
Among the report’s other key findings:
- Only half of people with an enduring power of attorney (52 percent) sought professional advice before creating one, and just a quarter (25 percent) of those currently acting as appointed decision-makers felt they understood their responsibilities very well when they started their role.
- Very few Australians (six percent) felt they knew a lot about financial enduring powers of attorney, while more than a third (35 percent) felt they knew nothing despite some of them being involved in the process in some way.
- Australians overwhelmingly (85 percent) agreed that more education was needed on financial enduring powers of attorney. Having information that is standardised across the entire country was identified as a top need (93 percent).
