A power of attorney (POA) is a legal document that authorises another person (called the "attorney") to make decisions and act on your behalf (the "principal"). Despite the name, your attorney does not need to be a lawyer -- they can be any trusted person over 18.
Powers of attorney are used in many situations: when you are travelling overseas, when you are running a business and need someone to sign documents in your absence, or when you want to plan for a time when you may not be able to make your own decisions.
Critical Distinction
You can only create a power of attorney while you have legal capacity (the ability to understand what you are doing). If you wait until after capacity is lost, it is too late. Planning ahead is essential.
Authorises your attorney to act on your behalf for specific or general matters. Commonly used for business transactions, property sales, or financial management while you are unavailable.
The most important type for personal planning. An enduring POA continues to operate even if you lose mental capacity due to illness, injury, or age. This is its primary purpose and advantage.
Limited to a single transaction or type of transaction. For example, authorising someone to sign a property settlement on your behalf while you are overseas. Automatically expires once the transaction is complete.
Authorises someone to make medical treatment decisions on your behalf if you cannot. The terminology varies by state: "medical treatment decision maker" (VIC), "person responsible" (NSW), or included in the enduring POA (QLD).
General POA Witness
1 prescribed witness (solicitor, barrister, court registrar, or authorised NSW T&G employee)
Enduring POA Witness
1 prescribed witness. Attorney must also sign an acceptance. Certificate of capacity if principal is elderly or infirm.
Legislation: Powers of Attorney Act 2003
General POA Witness
2 witnesses, one of whom must be an authorised witness
Enduring POA Witness
2 witnesses for enduring power of attorney (financial). Medical treatment decision maker has separate requirements.
Legislation: Powers of Attorney Act 2014
General POA Witness
1 eligible witness (JP, Commissioner for Declarations, solicitor, notary public)
Enduring POA Witness
1 eligible witness for principal, 1 eligible witness for attorney. Witness must certify capacity.
Legislation: Powers of Attorney Act 1998
General POA Witness
1 witness who is not the attorney or a relative of the attorney
Enduring POA Witness
1 witness who is authorised to witness statutory declarations. Must be independent of the attorney.
Legislation: Guardianship and Administration Act 1990
General POA Witness
1 witness
Enduring POA Witness
1 witness who must give a certificate about the principal's understanding. Separate witnessing for attorney.
Legislation: Powers of Attorney and Agency Act 1984
Tasmania, ACT, and NT have their own requirements. Always check your state or territory's current legislation.
Your attorney will have significant power over your affairs. Choose someone who is:
This is the most important quality. Your attorney must always act in your best interests, not their own.
They need to understand financial and legal matters, or be willing to seek professional advice when needed.
They must be willing and able to take on the responsibility when required. Consider their age, health, and location.
They should be willing to keep family members informed and maintain records of decisions made on your behalf.