For something so important, a Power of Attorney is one of those documents many Australians put off dealing with far longer than they should. It’s not the most exciting item on the to-do list, but it’s one of the few pieces of paperwork that can genuinely protect you, and your family, at exactly the moment you’re least able to protect yourself. Here’s what’s worth knowing right now.

1. There are two very different types, and they do very different jobs

A General Power of Attorney only works while you still have the mental capacity to make your own decisions, and it’s usually set up for a specific purpose or period – for example, authorising someone to sign paperwork on your behalf while you’re travelling overseas. The moment you lose capacity, a General Power of Attorney stops working entirely.

An Enduring Power of Attorney (EPA), by contrast, continues to operate even after you lose the capacity to make decisions yourself, which is what makes it the far more important document for genuine future planning. You can choose whether an EPA takes effect immediately, or only once a doctor confirms you’ve lost capacity – often called a “dormant” or “springing” arrangement.

2. It only covers money and property — not your health or lifestyle

This is one of the most common misunderstandings. A Power of Attorney authorises someone to manage your financial and legal affairs – paying bills, managing property, handling bank accounts – but it does not give them any authority over your medical treatment, where you live, or your day-to-day lifestyle decisions. For that, you need a separate document, commonly called an Enduring Guardian (NSW, WA, SA, Tasmania), a Medical Treatment Decision Maker, or an Advance Care Directive, depending on your state. Queensland and the Northern Territory are the exceptions, combining both financial and personal/health decision-making into a single instrument.

3. The rules are genuinely different in every state and territory

Unlike some countries, Australia has no single national Power of Attorney system. Terminology, witnessing requirements, registration rules and even what the document is called all differ between New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT and the Northern Territory. A document made correctly in one state isn’t always automatically recognised in another, so if you split your time between states, or plan to relocate, it’s worth getting specific advice on which jurisdiction’s document you actually need.

4. Victoria has genuinely new forms and rules

If you’re in Victoria, take note: the Powers of Attorney Regulations 2025 (Vic) commenced on 10 August 2025, bringing new prescribed forms for enduring powers of attorney and supportive attorneys. The updated laws also give you more flexibility than before – you can now appoint multiple alternate attorneys for a single primary attorney, and a new EPA automatically revokes any earlier one in its entirety, unless you specifically state otherwise. Previously, this had to be spelled out explicitly, catching some people out.

5. The Northern Territory has replaced its old system entirely

If you made an Enduring Power of Attorney in the NT under the old 1980 legislation, it’s worth knowing that new ones can no longer be made under that Act. The Territory now uses an Advance Personal Plan under the Advance Personal Planning Act 2013, which combines financial decision-making and advance care directive functions into one document.

6. You have to make one while you still have full capacity

This is the detail that catches families out more than any other, and it’s the strongest argument for not putting this off. You can only make a valid Power of Attorney while you have the legal capacity to understand what you’re signing. If you wait until after a diagnosis like dementia has progressed, or after a serious health event has already affected your decision-making, it may simply be too late. At that point, your family’s only option is often to apply to a tribunal or court to have someone formally appointed to manage your affairs – a slower, more expensive and more stressful process than simply choosing your own attorney in advance.

7. Choosing the right attorney matters more than ever

With growing national attention on elder financial abuse – including the government’s National Plan to End the Abuse and Mistreatment of Older People, running through to 2036 – choosing your attorney carefully, and understanding their legal obligations, matters more than ever. An attorney is legally required to keep your money and property separate from their own and act in your genuine best interests, but oversight varies by state, and some jurisdictions, including South Australia, are currently reviewing their laws specifically to reduce the risk of misuse. It’s worth discussing your choice openly with family, considering appointing more than one attorney to act jointly for larger decisions, and reviewing your arrangement periodically rather than treating it as a “set and forget” document.

Why you need one, in short

Without a valid Enduring Power of Attorney in place, nobody, not even your spouse or adult children, automatically has the legal authority to manage your finances if you lose capacity unexpectedly, whether through illness, injury or a condition like dementia. Your family would likely need to apply to a tribunal or court for someone to be formally appointed instead, a process that takes time, costs money, and offers you no say in who that person is. Setting up an Enduring Power of Attorney now, while you’re able to make that choice yourself, is one of the simplest and most protective steps you can take for your own future and your family’s peace of mind.

This article is general in nature and isn’t legal advice, as it doesn’t take into account your individual circumstances. Power of Attorney laws vary by state and territory and do change over time — for advice specific to your situation, consult a legal practitioner admitted in your state or territory, or your state’s Public Trustee.