Power of attorney reform needed, advocates say

A new Australia Human Rights Commission (AHRC) report warns current Power of Attorney legislation leaves Australians vulnerable to elder abuse. The report cites a lack of understanding of laws creating uncertainty among those appointing – and those appointed to – the role. In particular, a poor understanding of requirements involved in the role of financial enduring power of attorney (FEPOA) posed risks.

The concerns came to light earlier this year, when the results of a survey of 3000 Australians were analysed. Conducted in February, the survey’s results revealed only six per cent of Australians felt they knew a lot about FEPOAs. What’s more, 35 per cent of Aussies felt they knew nothing of the requirements. This was despite some of them being involved in the process in some way. 

Perhaps the most alarming of the findings was that two in five (37 per cent) of respondents had granted an FEPOA to someone who showed characteristics identified as risk factors for perpetrating elder abuse. 

Immediate action required on FEPOA legislation

In light of the revelations, older Australians advocacy group COTA Australia has urged immediate action from federal and state/territory governments. COTA Australia CEO Patricia Sparrow said the patchwork nature of FEPOA across states and territories exacerbated the issue.

“This report lays bare the severe shortcomings in our system,” she said. These shortcomings “imperil the financial security and decision-making autonomy of older Australians.” 

As a result, Ms Sparrow said, many Australians had a heightened risk of elder abuse. “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.”

Other key findings

Among the reports other key findings were that:

• only half of people with an FEPOA (52 per cent) sought professional advice before creating one.
• just a quarter of those currently acting as decision-makers felt they understood their responsibilities very well when starting the role.  
• Australians overwhelmingly (85 per cent) agreed that more education was needed on FEPOAs.
• having information that is standardised across the entire country was identified as a top need (93 per cent)

The FEPOA recommendations from the AHRC

In making three recommendations to improve outcomes involving FEPOAs, the AHRC designated one as a major priority. Its report calls all governments to urgently implement reforms to achieve national consistency in laws governing FEPOAs across jurisdictions. This would be a “necessary precursor to enabling a coherent approach to filling the knowledge and education gaps identified in the research”, the report said.

The second recommendation was that federal, state and territory governments jointly develop and deliver a national community awareness strategy. Thirdly, relevant bodies should develop and deliver FEPOA education and information materials at the national level.

Ms Sparrow said the AHRC report lays bare the FEPOA issues long highlighted by her organisation. “We’ve long advocated for reform in this area,” she said. “this report from the Age Discrimination Commissioner reinforces the critical need for change.”

Have you had to deal with power of attorney issues? How would you rate your understanding of FEPOA laws? Let us know via the comments section below.

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