Powers of Attorney(POA) in Australia:

A Power of Attorney (POA) is a legal arrangement that allows you to nominate a trusted person or organization to make financial and legal decisions on your behalf. To set one up, you must have the mental capacity to understand what you're agreeing to. The person you appoint-known as your "attorney"- should be someone you trust to act in your best interests.

Each financial institution has a process they are required to follow in order to manage these 'attorneys' and the management of the members accounts.

Types of Power of Attorney in Australia

General Power of Attorney

• A short-term legal arrangement used when you're temporarily unable to manage your own affairs - such as during travel.
• It automatically ends if you lose mental capacity or pass away.

Enduring Power of Attorney

• This type is designed to remain in place even if you lose capacity to make decisions for yourself.
• It stays valid until your death.

The scope of your attorney’s decision-making powers is outlined in the document and can be tailored with specific limitations.

Duties of an Attorney under a Power of Attorney

An attorney appointed under a Power of Attorney must always act in the best interests of the person who appointed them (the principal). Their responsibilities include: 

• Acting with integrity
  They must carry out their role honestly, carefully, and in good faith.
• Staying within their authority
  All decisions must fall within the powers granted in the Power of Attorney document.
• Avoiding personal benefit
  They must not use their position for personal gain or allow conflicts of interest to arise.
• Maintaining financial transparency
  Accurate records must be kept, and the principal’s money and property must be kept separate from their own.
• Respecting the principal’s wishes
  Wherever possible, they should consult with the principal to ensure decisions reflect their preferences.
• Following legal and document conditions
  They must comply with any limits or conditions set out in the Power of Attorney and follow relevant state laws.

Powers of Attorney in New South Wales (NSW)

In NSW, there are two main types of Power of Attorney:

• General Power of Attorney
  This is only valid while the person who created it (the principal) still has decision-making capacity.
• Enduring Power of Attorney (EPOA)
  This remains in effect even if the principal loses capacity.

An EPOA in NSW covers financial and legal matters only - it does not extend to health care or personal lifestyle decisions. To manage those, a separate appointment of an Enduring Guardian is required.
Financial powers may include managing bank accounts, paying bills, handling property transactions, and overseeing investments. If the attorney is to manage real estate, the EPOA must be registered with NSW Land Registry Services.
EPOAs have stricter witnessing rules - they must be signed in front of a solicitor, barrister, licensed conveyancer, registrar, or another authorised professional.
The principal can revoke the Power of Attorney at any time while they still have capacity. All Powers of Attorney automatically end upon the principal’s death.

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