· pdf file177 10.20 an enduring power of attorney (financial) allows a person aged 18 years...

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10Chapter 10

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CONTENTSIntroduction� 174

Victorian�Parliament�Law�Reform�Committee� 175

Current�law� 176

Community�responses� 183

The�Commission’s�views�and�conclusions� 187

Personal appointments of substitute decision makers

Victorian Law Reform Commission – Guardianship: Final Report 24174

10Chapter 10Personal appointments of substitute decision makers

INTROduCTION10.1 Inthepreviouschapters,theCommissionrecommendednewmechanismstoassist

peoplewithimpaireddecision-makingabilitythatdonotinvolvecompletelossofresponsibilityformakingdecisions.Inthisandthefollowingchapters,theCommissionexaminesmechanismsthatdoinvolveotherpeopletakinglegalresponsibilitytomakedecisionsforpeoplewhoareunabletomaketheirowndecisions.

10.2 Thischapterdealswithpersonalappointmentsofpeopletoactassubstitutedecisionmakersatsometimeinthefuture.Chapter11dealswithhowapersonmaydocumentwishesaboutactionstheydoordonotwanttakeninthefuture.Chapter12dealswithtribunalappointmentsofsubstitutedecisionmakers.

10.3 Therearetwoimportantmeansbywhichanadultmaydirectorinfluencedecisionsabouttheirfuturewhentheyareunabletomaketheirowndecisionsorexperiencedifficultydoingso.

10.4 First,anadultwithcapacitymayappointanominatedpersontomakedecisionsfortheminthefuture,ortosupportthemtomakedecisions.Wecallthisa‘personal appointment’.CurrentVictorianlegislationprovidesforvariousappointmentsofthisnature1—forexample,anenduringpowerofattorney(financial)oranenduringpowerofguardianship.

10.5 Secondly,apersonmayprovidewritteninstructionsaboutthedecisionstheywantmadeifparticularcircumstancesariseinthefutureandtheydonothavecapacitytoprovidedirectionsatthetime.Thistypeofdocumentisoftencalledan‘instructional directive’.

10.6 Athirdmechanismcombinesapersonalappointmentandaninstructionaldirective(a hybrid appointment).Itallowsapersontoappointsomeonetomakedecisionsfortheminthefutureandtoprovideinstructionsabouthowthatpersonshouldexercisetheirdecision-makingpower.WhilecurrentVictorianlegislationpermitsthisinsomecircumstances,2theextentofitsuseisunknown.

10.7 ApersonalappointmentofasubstitutedecisionmakerorsupporterenablesanadultwithcapacitytoexercisesignificantlymoreautonomythanifanappointmentismadebytheVictorianCivilandAdministrativeTribunal(VCAT)orifadecisionmakerisautomaticallyappointedunderthe‘personresponsible’provisionsoftheGuardianship and Administration Act 1986(Vic)(G&AAct).3Ahybridappointmentcombinesthebenefitsofbothmethodsbyallowingapersontoappointsomeonewhowillmakedecisionsforthemwithinstructionsabouthowtoexercisethatpower.

10.8 TheCommissionbelievesthatfutureplanningshouldbeencouragedbecauseitpromotesself-determination.Awell-functioningsystemofpersonalappointmentsofpeoplewithenduringpowershasthefollowingadvantages:

• Itenhancesautonomybyallowingapersontochoosewhowillmanagetheiraffairs.4

• Itavoidsthepotentialstressandembarrassmentofatribunalhearingtodeterminewhetherapersonlackscapacity.5

1 Guardianship and Administration Act 1986 (Vic)s35A(1);Instruments Act 1958 (Vic)s115;Medical Treatment Act 1988(Vic)s5A.2 Forexample,apersonwhoappointsanenduringguardianmaygivedirectionsintheinstrumentofappointmentabouthowtheguardian

shouldusetheirpowers.3 For‘personresponsible’,seeGuardianship and Administration Act 1986 (Vic) s37.4 See,eg,AustralianLawReformCommission,Enduring Powers of Attorney,ReportNo47(1988)7;OfficeofthePublicAdvocate(Victoria),

SubmissionNo9toLawReformCommittee,ParliamentofVictoria,Inquiry into Powers of Attorney, 4August2009,7.5 AustralianLawReformCommission,Enduring Powers of Attorney,ReportNo47(1988)7.

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• Itprovidesaprivate,simpleandcheapalternativetoVCATproceedings.6

• ItreducestheburdenonVCATandbodiessuchasthePublicAdvocateandStateTrustees.7

10.9 TheCommissionbelievesthatreformisneededtosimplifytheexistingschemeofpersonalappointmentsandtoencouragetheiruptake.InChapter5,werecommendedasingleActtoprovideanintegratedsystemofpersonal,automaticandtribunalappointments.Thereformsinthischapteraimtoprovidesimple,clearandharmonisedmethodsformakingpersonalappointmentsandclear,accessibleinformationaboutthelegaleffectofthesedocuments.

10.10 ToimproveandenhanceunderstandingofpersonalappointmentstheCommissionrecommendsreformsincluding:

• reducingthenumberofpersonalappointmentsthatarecurrentlyavailable

• modernisingterminology

• clearerpowersforpeopleappointedtoprovidedecision-makingassistanceunderthenewActandgreaterclarityaboutwhenthosepowerscomeintoeffect

• clearerresponsibilitiesandgreateraccountabilityforpeopleexercisingpowersunderpersonalappointments

• registrationofpersonalappointmentsandinstructions.

VICTORIaN PaRLIamENT Law REfORm COmmITTEE10.11 TheVictorianLegislativeAssemblyaskedtheVictorianParliamentLawReform

Committee(ParliamentaryCommittee)forproposalsthatwouldstreamlineandsimplifypowerofattorneydocuments.8Thetermsofreferencerequested,amongotherthings,considerationoftherequirementsformakingpersonalappointmentsundertheInstruments Act 1958(Vic)andtheG&AAct.9TheParliamentaryCommitteereleaseditsfinalreport,Inquiry into Powers of Attorney, inAugust 2010.

10.12 TheVictorianGovernment’sresponsetotheParliamentaryCommittee’sreport,tabledinParliamenton10February2011,indicatedbroadsupportformanyoftheCommittee’s90recommendations.TheGovernmentResponsealsonotedthatitwouldfurtherconsideranumberoftherecommendationsonceitreceivestheCommission’sfinalreport.10

10.13 TheCommissionsupportsmostoftherecommendationsproposedbytheParliamentaryCommitteeandthereformsinthischapterbuildonthoserecommendations.ThischapterhighlightstheParliamentaryCommitteerecommendationsthattheCommissionbelieveswarrantfurtherconsiderationormodification.

6 See,eg,KeithBradley,‘PowersofAttorney’(2008)86Precedent16,18;RobinCreyke,‘EnduringPowersofAttorney:CinderellaStoryofthe80s’(1991)21University of Western Australia Law Review122,124;JonathanFedermanandMegReed,GovernmentLawCenterofAlbanyLawSchool,Abuse and the Durable Power of Attorney: Options for Reform (1994)4;HouseStandingCommitteeLegalandConstitutionalAffairs,ParliamentofAustralia,Inquiry into Older People and the Law (2007)71.

7 HouseStandingCommitteeLegalandConstitutionalAffairs,ParliamentofAustralia,Inquiry into Older People and the Law (2007)71;OfficeofthePublicAdvocate(Victoria),SubmissionNo9toLawReformCommittee,ParliamentofVictoria,Inquiry into Powers of Attorney,4August2009,7.

8 LawReformCommittee,ParliamentofVictoria,Inquiry into Powers of Attorney (2010)iv(‘Inquiry into Powers of Attorney’).9 Ibid.10 VictorianGovernment,Government Response to the Parliament of Victoria Law Reform Committee Inquiry into Powers of Attorney Report

(10February2011),2<http://www.parliament.vic.gov.au/images/stories/committees/lawrefrom/powers_of_attorney/20110210.lrc.poa.GOVTRESP.pdf>(‘Government Response to the Parliament of Victoria Law Reform Committee’).



CuRRENT LawPERSONaL aPPOINTmENT Of SubSTITuTE dECISION makERS10.14 Thecurrentlawiscomplexbecauseitpermitsanadulttomakefourdifferentpersonal

appointmentsofsubstitutedecisionmakersunderthreedifferentActs.11Therearedifferentprocessesforeachappointment.Theexistingappointmentsare:

• generalpowerofattorney

• enduringpowerofattorney(financial)

• enduringpowerofguardianship

• enduringpowerofattorney(medicaltreatment).

financial appointments10.15 Therearetwowaysofpersonallyappointingasubstitutefinancialdecisionmaker—by

useofageneralpowerofattorney12oranenduringpowerofattorney(financial).13BothtypesofappointmentaremadeundertheInstrumentsAct.

General power of attorney10.16 Apersonwhogivessomeoneapowerofattorney(adonor)usesageneralpowerof

attorneyiftheywanttoauthoriseanotherperson(theattorney)toactforthemforaparticularperiodorpurpose—forexample,toallowsomeonetorunabusinesswhilethedonorisonholiday.Thepowersgiventotheattorneymaybeunlimited,orlimitedforaspecifictimeorpurpose.Adonormayappointonepersonormorethanoneperson.Ifthedonorappointsmorethanoneperson,thegeneralpowerofattorneyshouldspecifyiftheymustacttogetheroriftheymayactjointlyandseparately.14

10.17 Thedonorcanspecifyadateonwhichthegeneralpowerwillcease.Ifitdoesnotspecifyacessationdate,thegeneralpowerofattorneystopsifthedonordies,revokesitorloseslegalcapacitytomaketheirowndecisions.

10.18 TheCommissionmakesnorecommendationsaboutgeneralpowersofattorneyinthisreportbecausetheParliamentaryCommitteedealtadequatelywiththemodernisationoftheseappointmentsinitsreport.Further,theseappointmentshavenodirectintersectionwithguardianshiplaw:ageneralpowerofattorneyisdesignedforusewhenthepersonordonorhasthecapacitytomaketheirowndecisionsbutwishestodelegatethispowertoothersforthesakeofconvenience.TheCommission’sreviewconcernslawsthatassistpeoplewithimpaireddecision-makingability.

Enduring power of attorney (financial)10.19 Ageneralpowerofattorneyceasestohaveanyeffectifthedonordoesnothave

capacity.However,anenduringpowerofattorneydoesnotceasetooperatewhenthedonorlosescapacity.15Theterm‘enduring’isusedbecausetheappointmentendures(orcontinues)beyondthepointwhenthepersonwhogavethepower(thedonor)lackscapacity.EnduringpowersofattorneywereintroducedintoAustralianlawbystatutetoallowpeopletoplanfortimeswhentheynolongerhavecapacitytomaketheirowndecisions.16

11 Instruments Act 1958 (Vic);Guardianship and Administration Act 1986 (Vic);Medical Treatment Act 1988(Vic).12 Instruments Act 1958 (Vic)ptXI.13 IbidptXIA.14 Ibidss107,119.15 Ibids115(2).16 SeegenerallyRobinCreyke,‘EnduringPowersofAttorney:CinderellaStoryofthe80s’(1991)21University of Western Australia Law Review

122,121–5.VictoriawasthefirstjurisdictioninAustraliatoprovideenduringpowersofattorney: Instruments (Enduring Powers of Attorney) Act 1981(Vic).

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10.20 Anenduringpowerofattorney(financial)allowsapersonaged18yearsorovertogiveanotheradultperson,knownasanattorney,thepowertomakefinancialandlegaldecisionsfortheminthefuture.17Thepersonwhomakestheappointmentcandecidewhenthepowerscomeintoeffect.18

10.21 Ifthedocumentdoesnotspecifywhentheattorney’spowerscommence,thepowerbeginsimmediatelyandtheattorneycanactevenifthedonorstillhascapacity.19Ifthepowerscommencewhenthedonorlosescapacity,theattorneymustdetermineifthedonorisnolongercapableofmakingdecisionsunlessthedocumentcontainsotherarrangementsfordealingwiththisissue.

Appointment of enduring attorney (financial)10.22 Anenduringpowerofattorney(financial)mustbeappointedintheprescribedform.20

Thedonororsomeoneactingatthedirectionandinthepresenceofthedonormustsignit.21

10.23 Theformmustalsobesignedanddatedbytwowitnesses.22Thetwowitnessesmustcertifythatthedonorsignedthedocumentfreelyandvoluntarilyinthepresenceofthewitnessandthedonorappearedtohavethecapacitytomaketheenduringpowerofattorney.23

10.24 Theattorneymustalsoaccepttheappointmentbysigninganddatingastatementofacceptance,whichmustbeintheprescribedform.24

Capacity to make an enduring power of attorney (financial)10.25 Inorderfortheappointmentofanenduringattorney(financial)tobevalid,thedonor

musthavelegalcapacitytomaketheappointment.

10.26 TheInstrumentsActprovidesthatapersononlyhascapacitytomakeanenduringpowerofattorney(financial)iftheyunderstandthe‘natureandeffect’oftheappointmentwhenthedocumentissigned.25ThisisdiscussedfurtherinChapter7.

10.27 Section118oftheInstrumentsActincludesanotestatingthat‘itisadvisableforthewitnesstomakeawrittenrecordoftheevidenceasaresultofwhichthewitnessconsidersthatthedonorunderstandsthesematters’.26

Registration10.28 InVictoria,thereisnorequirementtoregisteranenduringpowerofattorney

(financial).

Discontinuing an enduring power of attorney (financial)10.29 Anenduringpowerofattorney(financial)maybediscontinuedby:

17 Instruments Act 1958 (Vic)ptXIA.Incommonwithageneralpowerofattorney,adonorcanappointasingleenduringattorney(financial)ormorethanone:ats119.

18 Instruments Act 1958 (Vic)s117(1).19 Ibids117(2).20 Ibidss123(1),125ZL.AnapprovedformisaformapprovedbytheSecretarytotheDepartmentofJusticeunders125ZL.21 Instruments Act 1958 (Vic)s123(2).22 Ibids123(3).Section125detailswhocanbeawitness.Itprovidesthat:apersoncannotbeawitnesstoanenduringpowerofattorneyif

theyarethedonorofthepowerorthepersonappointedasattorney;onlyoneofthewitnessescanbearelativeofthedonorofthepowerorthepersonappointedasanattorney;andoneofthewitnessesmustbeapersonauthorisedbylawtowitnessthesigningofastatutorydeclaration.

23 Instruments Act 1958 (Vic)s125A(1).Section125A(2)providesspecialwitnessingrequirementsifanenduringpowerofattorneyissignedbysomeoneelseforthedonor.Thewitnessesmustcertifythat:thedonorofthepowerdirectedthepersontosigntheenduringpowerofattorneyforthedonor;thedonorofthepowergavethatdirectionfreelyandvoluntarilyinthepresenceofthewitness;thepersonsigneditinthepresenceofthedonorandthewitness;atthetime,thedonorappearedtothewitnesstohavethecapacitynecessarytomaketheenduringpowerofattorney.

24 Instruments Act 1958 (Vic)ss125B,125ZL.AnapprovedformisaformapprovedbytheSecretarytotheDepartmentofJusticeunders125ZL.

25 Instruments Act 1958 (Vic)s118(1).26 Ibids118.



• anexpressrevocationbythedonor27

• thedeathofthedonor28

• alaterenduringpowerofattorney29

• accordingtoitsterms,forexample,ifitisexpressedtooperateforaspecifiedperiod30

• resignationbytheattorney31

• theattorneyceasingtohavelegalcapacity32

• theattorneybecominginsolvent33

• theattorney’sdeath.34

10.30 Oncethedonorlosescapacity,theycannotrevokeanenduringpowerofattorney(financial).VCAThasthepowertorevokeanenduringpowerofattorney(financial)ifthedonorhaslostcapacity.35Itmaydosoifitissatisfiedthatitisinthebestinterestsofthedonortorevoketheappointment.36Arevocationdoesnotmeanthatthepowerisvoidfromthestart—actionstakenundertheenduringpowerofattorney(financial)beforeitsrevocationarevalid.

10.31 VCATmayalsodeclarethatanenduringpowerofattorneyisinvalid.37Itmaydosoifsatisfiedthat:

• thedonorlackedcapacityatthetimetheenduringpowerofattorneywasmade

• itdoesnotcomplywithpartXIAoftheInstrumentsAct,or

• itisinvalidforanyotherreason,suchasthedonorwasinducedtomakeitbydishonestyorundueinfluence.38

IfVCATdeclaresanenduringpowerofattorneyinvalid,theappointmenthasnolegaleffectfromthetimeitwasmade.39

10.32 Inadditiontorevokingapowerordeclaringitinvalid,VCATmayalsovary40orsuspendanenduringpowerofattorney(financial).41VCATmayalsogiveanadvisoryopiniononanymatterrelatingtoanenduringpowerofattorney(financial).42

Third party protection10.33 TheInstrumentsActallowsthirdpartiesandattorneystorelyonapowerexercised

underaninvalidenduringpowerofattorneyiftheyactedingoodfaithandwithoutbeingawareoftheinvalidity.43

27 Ibidss125H,125I.28 Ibids125K.29 Ibids125J.30 Ibids125L.31 Ibids125M.32 Ibids125N.33 Ibids125O.34 Ibids125P.35 Instruments Act 1958 (Vic)ss125Q,125X.ForadiscussionofVCAT’ssupervisorypowersinrelationtoenduringpowersofattorney,seeDJB

(Guardianship)[2010]VCAT280(9March2010).36 Instruments Act 1958 (Vic)s125X(1).37 Ibids125Y.38 Ibids125Y(1).39 Ibids125Y(2).40 Ibids125Z(1)(b).41 Ibids125Z(1)(c).42 Ibids125ZA.43 Ibids125U.ThesectionsoftheActthatprotectthirdpartiesandattorneysuse‘invalid’inabroadersensethanthewayitisusedifVCAT

declaresapowerofattorney(financial)invalid.Itencompassesinvaliditybecausetheenduringpowerofattorney:isnotexercisableatthetimewhen,circumstanceinwhich,oroccasiononwhichitispurportedlyexercised;hasbeendeclaredtobeinvalidbyacourtorVCAT;hasbeenrevoked;wasmadeinanotherstateorterritoryanddoesnotcomplywiththerequirementsofthatotherstateorterritory:ats125Y.

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Powers10.34 Anenduringattorney(financial)canauthoriseanattorneyto‘doanythingonbehalfof

thedonorthatthedonorcanlawfullyauthoriseanattorneytodo’.44TheInstrumentsActdoesnotprovideanyfurtherdetailabouttheextentofthepowersthatcanbegiventoanattorney.Thedonorcanprovideinstructionsandlimitthewaytheattorneyshouldcarryouttheirresponsibilities.45

10.35 Anythingdonebytheattorneywithinthescopeoftheirpowershasthesamelegaleffectasifthedonordiditwithcapacitytoact.46

Responsibilities of an attorney10.36 Anattorneyhasanumberoflegalresponsibilities,includingafiduciarydutynot

toactintheirowninterestsinsteadofthedonor’s.47Thestatementofacceptancesignedbytheattorneyincludesanundertakingacknowledginganumberoftheirresponsibilities.48WediscusstheseresponsibilitiesindetailinChapter17.

Enduring power of guardianship10.37 Anyadultwithcapacitymayappointanotherpersontobecometheirguardianifthey

losetheabilitytomakedecisionsaboutpersonalmattersatsometimeinthefuture.49Theappointedpersoniscalledan‘enduringguardian’,andthedocumentthatappointsthemiscalledan‘enduringpowerofguardianship’.

10.38 Theappointmentonlycomesintoeffectwhen,andtotheextentthat,thedonorlosescapacitytomakedecisions.Beforethen,theenduringguardianhasnopowertomakepersonaldecisionsontheperson’sbehalf.50

10.39 Thereisnoformalprocessfordeterminingwhenthepersonnolongerhasthecapacitytomaketheirowndecisions.Inmostcases,theenduringguardianmustdeterminethelackofcapacitythatactivatestheappointment.

Appointment of an enduring guardian10.40 Anenduringguardianmustbeappointedinwriting.51TheG&AActprovidesaform

thatcanbeusedwhenappointinganenduringguardian.52

10.41 Theenduringguardianmustaccepttheappointmentbysigninganddatingastatementofacceptance,whichmustbeintheprescribedform.53Theappointmentmustalsobesignedanddatedbytwowitnesses.54

Who can be an enduring guardian10.42 Anenduringguardianmustbeaged18yearsoroverandmustnotbeprofessionally

involvedinthecareoftherepresentedperson.55

44 Instruments Act 1958 (Vic)s115(1)(a).45 Ibids115(1)(b).46 Anenduringattorneyhasthepowertoexecuteinstrumentsforthedonorofthepower.Aninstrumentexecutedinthiswayisaseffectiveas

ifexecutedbythedonor: ibids125E.47 Foradiscussionoftheobligationsunderafiduciaryrelationship,seeRe OAC [2008]QGAAT72(14October2008)[13]–[20].See:Instruments

Act 1958 (Vic)ss125B(5),125D,125M(2).48 Instruments Act 1958(Vic)s125B(5).49 Guardianship and Administration Act 1986 (Vic)s35A(1).TheenduringguardianshipprovisionswereaddedtotheG&AActin1999.50 Guardianship and Administration Act 1986 (Vic)s35B(1).51 Ibid.s35A(1).52 Ibidsch4form1.Itisnotmandatorytousethepreferredformwhenappointinganenduringguardian,buttheinstrumentappointingan

enduringguardianmustbe‘totheeffectof’thisform:ats35A(2)(a).53 Guardianship and Administration Act 1986 (Vic)s35A(2)(b).54 Ibids35A(2)(c).Thewitnessingrequirementsaresetoutins35A(2)(c).Thecertificateofwitnessesprovidedinsch4form1requiresthe

witnessestocertifythattheappointerandtheproposedenduringguardianandalternativeenduringguardian(ifrelevant)signedthedocumentfreelyandvoluntarilyinthepresenceofthewitnessandappearedtounderstandit.

55 Guardianship and Administration Act 1986 (Vic)ss35A(3)–(4).



Capacity to appoint an enduring guardian10.43 AlthoughtheG&AActdoesnotexpresslystatethatapersonmusthavecapacity

toappointanenduringguardian,acombinationofgenerallawprinciples,thesurroundingsectionsoftheActandthewitnessingrequirementsindicatethatcapacityisanimpliedessentialrequirement.56WediscusscapacityinmoredetailinChapter7.

Registration10.44 Thereisnorequirementtoregisterorfileanenduringpowerofguardianship

anywhere.Itisvalidassoonasitismade,butthepowersgiventotheenduringguardianmaynotbeactivateduntiltheprincipallosescapacity.57

Discontinuing an enduring guardianship10.45 Apersonwithcapacitycanrevoketheirappointmentofanenduringguardian

inwritingatanytime.58Ifapersonappointsanenduringguardianoralternativeenduringguardian,anyearlierappointmentofanenduringguardianoralternativeenduringguardianisrevoked.59

10.46 AnapplicationcanbemadetoVCATtocancelanenduringpowerofguardianship.60VCATmaycanceltheappointmentifitissatisfiedthattheenduringguardian:

• nolongerwantstherole

• isnolongerwillingorabletofulfiltherole

• hasnotactedinthebestinterestsoftheperson

• hasactednegligentlyorincompetently.61

10.47 AnappointmentofanenduringguardianisnotrevokedifVCATalsoappointsaguardianfortheperson.62TheG&AActdoesnotspecifywhosepowerswouldprevailexceptinrelationtothemedicalordentaldecisionsunderthe‘personresponsible’hierarchy,whichplacesapersonappointedunderaguardianshiporderwithrelevantpowersaboveanenduringguardianwithrelevantpowers.63

Advice from VCAT10.48 AnenduringguardianmayapplytoVCATforadviceordirectionsaboutthescopeor

exerciseoftheirpowers.64

Powers of an enduring guardian10.49 Thepowersofanenduringguardiancanbespecifiedinthedocumentthatappoints

them.65Ifthepowersareunlimitedintheappointmentdocument,theenduringguardianhasthefullpowersofaplenaryguardian.66Section24(1)oftheG&AActdefinesthepowersofaplenaryguardianas‘allthepowersanddutieswhichtheplenaryguardianwouldhaveifheorshewereaparentandtherepresentedpersonhisorherchild’.67

56 Ibid sch4form1certificateofwitnessesrequiresthewitnessestocertifythatthe‘appointorappearedtounderstandtheeffectoftheinstrument’.Seealsos37(1)(d)whichispremisedontheideathatapersonmusthavecapacityatthetimetheymakeanenduringguardianshipappointment.

57 Guardianship and Administration Act 1986 (Vic)ss35A(2),35B(1).58 Ibids35C(2).59 Ibids35C(1).60 AnapplicationcanbemadebythePublicAdvocate,theenduringguardianoralternativeguardian,theadministratoroftheappointor’s

estateoranyotherpersonwhosatisfiesVCATthattheyhaveaninterestinthepersonorintheestateoftheperson:Guardianship and Administration Act 1986 (Vic)s35D(2).

61 Guardianship and Administration Act 1986 (Vic)s35D(1).62 Ibids35D(3).63 Ibids37(1).64 Ibids35E(1).65 Ibids35B(1).66 Ibidss35B(2),24.Seealsos35B(3).67 SeealsoGuardianship and Administration Act 1986 (Vic)s35B(3).

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10.50 Whenappointinganenduringguardian,apersonmightindicateinthedocumentspecificdecisionstheywanttheguardiantomake,suchasnottoagreetolivinginaparticularresidentialservice.Theseinstructionsarenotlegallybinding,althoughtheguardianshouldusethemasaguidewhentheirpowerscomeintoeffect.WediscusstheseinstructionsindetailinChapter11.

10.51 Anenduringguardianwithhealthcarepowersmayconsenttomedicalordentaltreatmentorwithholdconsenttomedicalordentaltreatmentonbehalfoftherepresentedperson.68WediscussthedistinctionbetweenwithholdingconsentandrefusingconsentinChapter13.

Responsibilities of an enduring guardian10.52 TheresponsibilitiesofanenduringguardianarethesameasthoseofaVCAT-

appointedguardian.69Anenduringguardianmustactinthe‘bestinterestsofthedonorofthepower’.70WediscusstheseresponsibilitiesfurtherinChapter17.

Enduring power of attorney (medical treatment)10.53 TheMedical Treatment Act 1988(Vic)allowsapersontoappointasubstitutedecision

makertomakedecisionsaboutmedicaltreatmentfortheminthefutureiftheybecome‘incompetent’.71

Appointment of an agent10.54 ApersonappointedundertheMedicalTreatmentActiscalledanagentand

isappointedusingadocumentcalledanenduringpowerofattorney(medicaltreatment).72Theappointmentonlycomesintoeffectwhenthedonorlosescapacitytomakedecisions.73

10.55 ApersonappointedundertheMedicalTreatmentActcanrefusetreatmentonbehalfofthedonor.74Thisisdonebycompletingarefusal of treatment certificate.75

Capacity to make an enduring power of attorney (medical treatment)10.56 TheMedicalTreatmentActdoesnotspecificallyrequirethatapersonhavecapacity

atthetimetheyappointanagent.However,thesurroundingsectionsoftheAct,thewitnessingrequirementsandthegenerallawstronglysuggestthatthisisarequirementforavalidappointment.76

10.57 TheMedicalTreatmentActdoesnotdescribethelevelofcapacityrequiredforapersontomakealegallyeffectiveappointmentofanagent.

Who can be an agent10.58 TherearenoguidelinesintheMedicalTreatmentActaboutwhocanbeappointedas

anagent.

68 Guardianship and Administration Act 1986 (Vic)ss42L,42M.69 Ibidss35(5),28.70 Ibids28(1).71 Medical Treatment Act 1988(Vic)s5A.Theagentcanrefusemedicaltreatmentonbehalfofthepatientbycompletingarefusaloftreatment

certificate:ats5B.Theagentmayalsobea‘personresponsible’entitledtoconsenttomedicaltreatmentundertheGuardianship and Administration Act 1986 (Vic)ss37,42H.

72 Medical Treatment Act 1988(Vic)s5A(2)(a).73 Ibids5A(2)(b).74 SeeChapter13forfurtherdiscussionofrefusalofmedicaltreatmentbysubstitutedecisionmakers.75 Medical Treatment Act 1988(Vic)s5B.ThispowerisalsoavailabletoaguardianappointedundertheG&AActiftheorderprovides

relevantlyfordecisionsaboutmedicaltreatment:atss5A(1)(b),5B.76 Medical Treatment Act 1988(Vic)sch2whichsetsouttheformforappointinganagentrequiresthewitnessestoverifythattheperson

makingtheappointmentisofsoundmindandunderstandstheimportofthisdocument.Seealsos5A(4)(a)whichimpliesthepersonmusthavecapacitywhentheymaketheappointmentbyspecifyingthat‘anenduringpowerofattorney(medicaltreatment)isnotrevokedbythesubsequentincapacityofthedonorofthepower’.



Registration10.59 Thereisnorequirementtoregisterorfileanenduringpowerofattorney(medical

treatment).

Discontinuing an enduring power of attorney (medical treatment)10.60 Ifapersonmakesanenduringpowerofattorney(medicaltreatment),anyearlier

powerofattorney(medicaltreatment)givenbythatpersonisrevoked.77Anenduringpowerofattorney(medicaltreatment)isnotrevokedbecauseaguardianisalsoappointedforthepersonwhograntedthepower.78

10.61 VCATmaysuspendorrevokeanenduringpowerofattorney(medicaltreatment).79Itmaysuspendthepowerforaspecifiedperiodifitissatisfiedthatarefusaloftreatmentisnotinthebestinterestsoftheperson.80Itmayrevokethepowerifitissatisfiedthatitisnotinthebestinterestsofthedonorforthepowertocontinue.81

10.62 InChapter13,wetakeacloserlookatstatutoryappointmentsrelatingtorefusalofmedicaltreatment.WealsoconsidertheinteractionbetweentheMedicalTreatmentActandthelawsrelatingtoconsenttomedicaltreatmentintheG&AAct.

OThER SubSTITuTE dECISION-makINg aRRaNgEmENTS10.63 Thereareothersubstitutedecision-makingarrangementsinVictoria.Some

corporations,suchasprovidersofessentialservices,allowindividualstonominatesomeonetoshareinformationand/ormakechangestotheiraccount.82SomearrangementsoperateunderotherVictorianlegislation,suchastheMental Health Act 1986(Vic)andtheDisability Act2006(Vic).SomeoperateunderCommonwealthlegislationsuchasCentrelinkNomineesintheSocial Security (Administration) Act1999(Cth).

10.64 ACentrelink‘correspondencenominee’cantakeactiononbehalfofanotherperson,includingreceivinginformationandapplyingforbenefitsundertheSocialSecurity(Administration)Act.83ACentrelink‘paymentnominee’canreceivebenefitsonbehalfofanotherperson.84Thesearrangementsoperatewiththeconsentoftheperson,or,whereapersonisunabletosignaform,whenCentrelinkhassufficientinformationtobesatisfiedthatapersonshouldactasanominee.85Onceappointed,thenomineemustactintheperson’sbestinterests.86

77 Medical Treatment Act 1988(Vic)s5A(3).78 Ibids5A(4)(b)(ii).TheMedical Treatment Act1988(Vic)s5A(4)(b)(i)providesthatthisalsoappliesifapersonbecomesaprotectedperson

underthePublic Trustee Act 1958(Vic).However,thissectionisunlikelytohaveanypracticalrelevancebecausethisActwasrepealedbytheState Trust Corporation of Victoria Act 1987(Vic)s57(1)sch3,nowitselfrepealedandreplacedbyState Trustees (State Owned Company Act) 1994(Vic)s24.TheG&AActrequiredthetribunaltoholdahearinginrespectofeveryprotectedpersontodeterminewhetheraguardianshiporadministrationordershouldbemadeandonceadeterminationwasmadethepersonceasedtobeaprotectedperson:Guardianship and Administration Act 1986(Vic)ss85(3),(6).

79 Medical Treatment Act 1988(Vic)s5C(1).80 Ibids5C(3).81 Ibids5C(4).VCATalsohaspowersinrelationtoanalternateagent.Itmayrevoke,suspend,ordeclarethatthepowerdoesnotauthorisea

particulardecision:Medical Treatment Act 1988(Vic)s5C(4A).82 Foreg,aTelstraaccountholdercangiveanotherpersononeofanumberofvarious‘accesslevels’(from‘limitedauthority’to‘legallessee’,

whichisakintothestatusofpersoninwhosenametheaccountisregistered):Telstra,Personal: Frequently Asked Questions<http://help.telstra.com/app/answers/detail/a_id/18380/session/L2F2LzEvdGltZS8xMzIzMjMxODk0L3NpZC92R0FDSFlLaw%3D%3D/~/giving-permission-for-someone-to-make-enquiries-about-your-telstra-accounts>.

83 Social Security (Administration) Act 1999(Cth)ss123C,123H,123I.84 Ibids123B.85 ConsultationwithCentrelink(30April2010).86 Social Security (Administration) Act 1999(Cth)s123O.

183

10.65 SimilararrangementsexistforallowingrecipientsofbenefitsfromtheDepartmentofVeterans’AffairstonominateapersontocommunicatewiththeDepartmentontheirbehalf.87Thisrequiresthewrittenconsentofthepersonentitledtothebenefit.88Thebeneficiaryofveterans’paymentscanalsoappointapersonastheiragenttoreceivetheirpension,89andtheagentmust‘managethepensionorallowanceinaccordancewiththepensioner’swishes’.90Alternatively,atrusteecanacceptandmanageaperson’spensionwherethatpersonlackscapacitytomanageitthemselves.91ThisrequiresaformalapplicationtotheDepartmentandtwoprofessionals(oneofwhommustbeadoctor)confirmingincapacity.92Thetrusteehastomanagethepensionmoneyaccordingtotraditionaltrusteeprinciples:inthebeneficiary’sbestinterestsandavoidingconflictsofinterest.93

10.66 Afurtherexampleofasubstitutedecision-makingarrangementthatdoesnotdependonaformalattorneyappointmentistheabilityofanindividualtomakean‘agreement’withanagedcareproviderforservicesforapersonwithoutcapacity.94Thepersoncanbeafamilymemberorfriend.95Suchagreementsinclude‘residentagreements’,whichstipulatethetermsandconditionsofcarewhenapersonisenteringafacility.

COmmuNITy RESPONSES10.67 Communityresponsestotheinformationpaperabouttheoperationofthepersonal

appointmentsschemesuggestedproblemsinthefollowingareas:

• Thereisawidespreadlackofcommunityunderstandingaboutpersonalappointmentsthatgrantenduringpowerstoanotherperson.Somepeoplearesimplyunawarethatpersonalappointmentsexist,andothersdonotunderstandthedifferencebetweenthedifferenttypesofpersonalappointments—medical,financialandguardianship.

• Theproceduresforpersonalappointmentsareoutlinedindifferentlegislationandareinconsistent.

• Itisdifficultforinterestedthirdparties,suchasmedicalpractitionersandfinancialinstitutions,toestablishthatanappointmentisvalidandcurrent.

• Thereispotentialfortheabuseofvulnerablepeoplebecauseofinsufficientsafeguards.

10.68 Ourresponsestotheseproblemsarefoundinthisandthefollowingchapters:

• Chapter5,whichrecommendsthecreationofanewconsolidatedActtoprovideforbothpersonalandVCATappointmentsandbroadcommunityeducation,aswellasnewterminologyforappointments

• Chapter16,whichdiscussestheestablishmentofanonlineregisterofappointments

87 DepartmentofVeterans’Affairs(Commonwealth),Arrangements for Other People to Act on your Behalf(2010),3<http://factsheets.dva.gov.au/factsheets/documents/LEG01a.pdf>.

88 Ibid.89 Veterans’ Entitlements Act 1986(Cth)s58D.90 DepartmentofVeterans’Affairs(Commonwealth),Arrangements for Other People to Receive Payments on your Behalf(2010),2

<http://factsheets.dva.gov.au/factsheets/documents/LEG01b.pdf>(‘ Arrangements for Other People to Receive Payments on your Behalf’).91 Veterans’ Entitlements Act 1986(Cth)s202.92 Arrangements for Other People to Receive Payments on your Behalf,aboven90,2.93 Ibid.94 Aged Care Act 1997(Cth)s96.5.95 AgedRightsAdvocacyService,Information Sheet: Participating in Decision Making in Aged Care Homes(2001)<http://www.sa.agedrights.

asn.au/files/18_participating_decision_making_in_res_care.pdf>.



• Chapter17,whichproposesnewprinciplestoguidesubstitutedecisionmakingandconsiderationsthatshouldbetakenintoaccountwhenmakingdecisions

• Chapter18,whichrecommendsanumberofaccountabilitymechanismsforsupportersandsubstitutedecisionmakers.

10.69 Inthissection,weconsidercommunityresponsestosomeoftheproposalsputforwardintheconsultationpapertoimproveandenhanceunderstandingofthepersonalappointmentsscheme.

fEwER PERSONaL aPPOINTmENTS

Combining medical power of attorney and enduring guardian appointments10.70 Intheconsultationpaper,weaskedwhetheritwouldbebeneficialtostreamline

andsimplifythepersonalappointmentschemebyreducingthenumberofenduringappointmentsfromthreetotwo.

10.71 MostpeoplewhosupportedareductioninthenumberofappointmentsconsideredthatthiswouldbebestachievedbyremovingtheoptionofappointinganagentundertheMedicalTreatmentActandbyrequiringpeopletouseenduringguardianshiptoappointapersontomakedecisionsaboutmedicaltreatment.96Onesubmissionsuggestedcombiningenduringguardianandenduringpowerofattorney(financial)appointmentsbutretainingaseparateappointmentforanenduringpowerofattorney(medicaltreatment).97Itwassuggestedthismightbeapreferableoptionbecauseitacknowledgestheoverlapbetweenfinancialandpersonaldecisionmakingthatexistsindecisionssuchastheselectionofanagedcarefacility.98

10.72 Acommonjustificationforreducingthenumberofappointmentsbycombiningmedicalpowerofattorneyandenduringguardianappointmentswasthatit‘wouldprovidegreaterclarityandcoherenceintheguardianshipsystem,andbringVictoriaintolinewiththemajorityofotherjurisdictionsinAustralia’.99Itwasalsonotedthataseparationbetweenlifestyleandpersonalmatters(includingmedicaltreatmentdecisions)andfinancialmattersreflectsthecurrentdivisioninthepowersthatmaybegiventoguardiansandadministrators.100

10.73 Asmallnumberofsubmissionsproposedthatonlyonetypeofappointmentshouldbeavailablethatallowsarangeofpowerstobegiven,includingpersonal,medicalandfinancialpowers.101

10.74 Submissionshighlightedtheideathatpeoplemayhaveskillsinaparticulartypeofdecisionmaking,suchasfinancialdecisionmaking,butnotinanother.102Anumberofsubmissionsemphasisedthatevenifthenumberofappointmenttypesisreduced,itshouldbepossibletoappointdifferentpeopletomakedecisionsindifferentareas.103TheFederationofCommunityLegalCentressubmittedthat:

‘itremainsimportantthatifapersonwishestodonatethepowertorefusemedicaltreatmenttoaseparatepersonfromanyappointeewhohasotherguardianshippowers,theybeabletodoso’.104

96 Foreg,SubmissionsCP19(OfficeofthePublicAdvocate),CP20(EpworthHealthCare),CP33(EasternHealth),CP35(UrsulaSmith),CP43(AlfredHealth),CP63(Shih-NingThen,ProfLindyWilmott&AssocProfBenWhite(QUT)),CP65(CouncilontheAgeingVictoria),CP68(AustralianNursingFederation),CP70(StateTrusteesLimited)andCP75(FederationofCommunityLegalCentres(Victoria)).

97 SubmissionCP49(RespectingPatientChoicesProgram—AustinHealth).98 Ibid.99 SubmissionCP63(Shih-NingThen,ProfLindyWilmott&AssocProfBenWhite(QUT)).100 SubmissionCP65(CouncilontheAgeingVictoria).101 Foreg,SubmissionsCP8(LeonieChirgwin),CP22(Alzheimer’sAustraliaVic),CP37(MilduraBaseHospital),CP43(DrMichaelMurray),and

CP59(CarersVictoria).102 Foreg,SubmissionCP22(Alzheimer’sAustraliaVic).103 SubmissionsCP22(Alzheimer’sAustraliaVic)andCP75(FederationofCommunityLegalCentres(Victoria)).104 SubmissionCP75(FederationofCommunityLegalCentres(Victoria)).

185

10.75 Itwasalsonotedthatitisimportantforthedocumentsmakingtheappointmenttoclearlyandunambiguouslyidentifywhoisappointedtoexerciseparticularpowers.105

10.76 Anumberofsubmissionsarguedthatthepowersgivenunderanenduringpowerofattorney(medicaltreatment)aresosignificantthatadistinctionshouldbemaintainedbetweenthistypeofappointmentandotherenduringappointments.106Onereasongivenforretainingthreetypesofappointmentwasthatmaintainingaseparatepowerformedicaltreatmentprovidessafeguardsbyensuringthatthepurposeandlimitationsofthepowerareclearlyunderstoodbyboththepersonandtheappointee.107Submissionsalsonotedthedifferentcompetenciesorskillsrequiredfordifferenttypesofappointments.108TheCatholicArchdioceseofMelbourneconsideredthat:

appointmentstomakemedicaltreatmentdecisionsneedtobetreatedverydifferentlyandshouldbeseparatefromappointmentsforothertypesofdecisions…theStatehasobligationstoprotecthealthandlifeandoughtnottoprovideauthoritytomakedecisionsthatarenotinthebestinterestsoftherepresentedperson.109

POwERS10.77 TheCommissiondidnotspecificallyseekresponsesabouthowtoclarifythepowersof

personalappointees.However,theconsultationpaperproposedamendmentstothepowersofVCATappointees,andtheCommissionhasconsideredresponsestothoseproposalsinmakingrecommendationsinthischapter.

Commencement of powers10.78 TheCommissionproposedthatallenduringappointmentsuseasinglecriterionfor

activation,forexample,lossofcapacityinrelationtotheparticulardecisionscoveredbythatappointment.Somepeopleexpressedconcernthattheholderofanenduringappointmentisrequiredtodeterminethatthepersonhaslostcapacityinordertostartusingtheappointment.110Itwassuggestedthatthismaybedifficultwhentheperson’scapacityisfluctuating111orbecauseappointeesaresometimesreluctanttomakethisdecisionaboutacloserelative.112

10.79 Otherssuggestedthatitmightbeunhelpfultouseasinglecriterionforactivationbecauseitisinconsistentwithanacceptanceoffluctuatingcapacityandtheassociatedideaofacontinuumofdecisionmaking.113Severalpeopleobservedthattheremightbeaneedtomovebackwardsandforwardsbetweenprovidingsupportandprovidingsubstituteddecisionmakingtoaccommodatefluctuatingcapacity.114

10.80 Anumberofsubmissionsfavouredintroducingaconsistentapproachacrossallenduringappointmentsfordeterminingthetimeforanenduringappointmenttocomeintoeffect.115

105 SubmissionCP37(MilduraBaseHospital).106 Foreg,SubmissionsCP23(DrKristenPearson),CP27(CatholicArchdioceseofMelbourne),CP71(SeniorsRightsVictoria),CP73(Victoria

LegalAid)andCP78(MentalHealthLegalCentre).107 Foreg,SubmissionsCP73(VictoriaLegalAid)andCP78(MentalHealthLegalCentre).108 Foreg,SubmissionsCP27(CatholicArchdioceseofMelbourne)andCP71(SeniorsRightsVictoria).109 SubmissionCP27(CatholicArchdioceseofMelbourne).110 Foreg,consultationwithAustralian&NewZealandSocietyforGeriatricMedicine(7April2011).111 Foreg,consultationswithAustralian&NewZealandSocietyforGeriatricMedicine(7April2011)andAlzheimer’sAustraliaVicand

roundtablewithpeoplecaringforparentswithdementia,(8April2011);SubmissionCP19(OfficeofthePublicAdvocate).112 ConsultationwithAustralian&NewZealandSocietyforGeriatricMedicine(7April2011).113 Foreg,consultationswithAustralian&NewZealandSocietyforGeriatricMedicine(7April2011)andAlzheimer’sAustraliaVicand

roundtablewithpeoplecaringforparentswithdementia,(8April2011);SubmissionCP19(OfficeofthePublicAdvocate).114 Ibid.115 Foreg,SubmissionsCP19(OfficeofthePublicAdvocate),CP22(Alzheimer’sAustraliaVic);CP65(CouncilontheAgeingVictoria),CP71

(SeniorsRightsVictoria)andCP78(MentalHealthLegalCentre).


10Chapter 10Personal appointments of substitute decision makers10.81 Somesubmissionssupportedachievingconsistencybyrequiringthatallappointments

shouldonlybeabletotakeeffectatthetimethepersonlosescapacity.116Othersconsideredthatthebestapproachwouldbetoallowthepersonmakingtheappointmenttoelectwhetherthepowersshouldtakeeffectimmediately,oratatimespecifiedbytheperson.117

10.82 Otherpeopleconsideredthatitwaseitherinappropriateorunhelpfultoallowalltypesofenduringpowerstobeactivatedatthesametime.118Thesesubmissionssupportedmaintainingadistinctionbetweentheactivationtimesofdifferenttypesofenduringappointmentsbasedonthepowersthataregiven.119TheLawInstituteofVictoriasubmittedthat‘[m]ostclientswouldbeunlikelyorveryreluctanttoappointanenduringguardianwithimmediateeffectbecauseofconcernsthatanenduringguardiancouldoverridetheirdecisions’.120

10.83 Particularemphasiswasplacedonthedifferencebetweenfinancialandmedicalappointments.121Anumberofsubmissionssuggestedthatwhiletherearegoodreasonswhyadonormightwishafinancialappointmenttooperatewhiletheystillhavecapacity,thisisunlikelytobethecaseformedicalpowers.VictoriaLegalAidnotedthat:

[i]nrelationtomedicalpowers,therewouldseemtobelessreasontohaveapowerthatapplieswhilethepersonstillhascapacity;itishardtothinkofasituationrequiringmedicalconsentwhereapersonmayhavecapacitybutneedsomeoneelsetoconsentortransactforthem.122

PROOf Of IdENTITy10.84 Proofofidentityofthosepeoplewhomakeandacceptenduringappointmentsisan

importantmeansofguardingagainstfraudandotherdishonestbehaviour.

10.85 CommunityresponsestotheCommission’sproposalforanonlineregisternotedtheimportanceofproofofidentitychecksonthepartiesinvolvedintheappointment.123

10.86 Itwassuggestedthathigh-levelproofofidentitystandardsshouldapplyduringtheprocessofmakinganappointment.124Thisisparticularlyimportantifregistrationbecomesproofofavalidappointment.

10.87 Becausesomepeopledonothavesufficientproofofidentitydocumentsitwillbenecessarytodevisepracticestodealwithsuchsituations.WediscussthisfurtherinChapter16,whereweoutlinerecommendationsforthenewonlineregister.

TRaNSITIONaL aRRaNgEmENTS10.88 Anumberofsubmissionsstressedtheimportanceoftransitionalarrangementsto

honourappointmentsmadeundertheexistinglegislation.125

116 Foreg,SubmissionsCP55(OfficeoftheHealthServicesCommissioner),CP65(CouncilontheAgeingVictoria)andCP78(MentalHealthLegalCentre).

117 Foreg,SubmissionsCP19(OfficeofthePublicAdvocate)andCP71(SeniorsRightsVictoria).118 Foreg,SubmissionsCP27(CatholicArchdioceseofMelbourne),CP35(UrsulaSmith),CP73(VictoriaLegalAid),CP77(LawInstituteof

Victoria)andCP75(FederationofCommunityLegalCentres(Victoria)).119 Foreg,SubmissionsCP27(CatholicArchdioceseofMelbourne),CP73(VictoriaLegalAid),CP77(LawInstituteofVictoria)andCP75

(FederationofCommunityLegalCentres(Victoria)).120 SubmissionCP77(LawInstituteofVictoria).121 Foreg,SubmissionsCP27(CatholicArchdioceseofMelbourne)andCP77(LawInstituteofVictoria).122 SubmissionCP73(VictoriaLegalAid).123 ConsultationswithVictorianRegistryofBirths,DeathsandMarriages(16February2011)andAustralianBankers’Association(16March

2011);SubmissionCP60(OfficeoftheVictorianPrivacyCommissioner).124 AnexampleistheNationalProofofIdentityframeworkadoptedbyBDM(Vic)whichrequiresthatproofofidentitydocumentsareeither

authenticatedatBDM(Vic)officeorphotocopiesofproofofidentitydocumentsarecertifiedbypoliceforpostalapplications:consultationwithVictorianRegistryofBirths,DeathsandMarriages(16February2011).ThisisdiscussedinmoredetailinChapter16.

125 Foreg,SubmissionsCP49(RespectingPatientChoicesProgram—AustinHealth),CP70(StateTrusteesLimited)andCP77(LawInstituteofVictoria).

187

muTuaL RECOgNITION10.89 Participantsinconsultationsrecognisedthedesirabilityofnationallyconsistentlaws

aboutenduringappointments.126TheCommissionhasmaderecommendationsrelatingtothisissueinChapter27.

CONfLICT TRaNSaCTIONS10.90 Communityresponsesemphasisedthatsubstitutedecisionmakersshouldberequired

toacthonestlyandrespondappropriatelytoconflictsofinterest.127InChapter17,werecommendthatguardianshiplawsshouldspecificallyrequirethesestepstobetaken.

10.91 TheCommissionnotesthatanumberofpeopleexpressedconcernthatsituationswhereaconflictofinterestmayarisebetweensubstitutedecisionmakersandtherepresentedpersonarepoorlyunderstood.128

ThE COmmISSION’S VIEwS aNd CONCLuSIONSRETaININg ENduRINg PERSONaL aPPOINTmENTS10.92 Enduringappointmentsplayacrucialroleinallowingpeopletoplanfortheirfuture.

Thecurrentlawisoverlycomplex,providingforthreedifferenttypesofenduringappointmentinthreedifferentActs.Theprocessofmakinganappointmentisinconsistentandtheterminologyusedtodescribeboththepersonmakinganappointmentandthepersonappointedisdifferent.

10.93 TheCommissionbelievesthatnewguardianshiplegislationshouldcontinuetoallowadultswithcapacitytomakepersonalappointments.Whilenewlawsshouldencouragetheseappointmentsbybeingasaccessibleandsimpleaspossible,theyshouldalsocontainsafeguardstoprotectvulnerablepeopleagainstabuse.

RECOmmENdaTIONRetain enduring powers of attorney

92. Anadultwithcapacityshouldcontinuetobeabletoappointapersontomakedecisionsforthemaboutpersonalmatters,includingmedicaltreatmentandfinancialmatters,whentheylackcapacitytomakethesedecisionsinthefuture.

VICTORIaN PaRLIamENT Law REfORm COmmITTEE10.94 TheCommissionsupportsnearlyalloftherecommendationsmadebytheVictorian

ParliamentLawReformCommitteeaboutpowersofattorney.

10.95 MostoftherecommendationsinthischaptercomplementtherecommendationsoftheVictorianParliamentLawReformCommitteebyseekingtoincorporatethemwithinourproposalsforreformofguardianshiplaws.TheCommissiondoesnotrefertoorcommentuponalloftheParliamentaryCommittee’srecommendations.InthosefewinstanceswheretheCommissionbelievesthattheParliamentaryCommittee’srecommendationsrequirefurtherconsiderationormodification,detailedcommentaryisprovided.

126 Foreg,consultationswithAustralianBankers’Association(16March2011)andVictorianSectionoftheCollegeofClinicalNeuropsychologistsoftheAustralianPsychologicalSociety(23March2011);SubmissionCP23(DrKristenPearson).

127 Foreg,SubmissionsCP19(OfficeofthePublicAdvocate),CP21(ActionforMoreIndependence&DignityinAccommodation),CP72(SeniorsRightsVictoria)andCP77(LawInstituteofVictoria).

128 Foreg,SubmissionCP77(LawInstituteofVictoria).



TERmINOLOgy10.96 TheCommissionacknowledgestheneedtostrikeabalancebetweenfamiliar

terminologyandmoremoderntermsthatmanypeoplewillfindeasiertounderstand.

Names of substitute decision makers10.97 InChapter5,theCommissionrecommendednewtermsforpeopleappointedto

substitutedecision-makingrolesunderpersonalappointments.Whensomeoneappointsanotherpersontomakesubstitutedecisionsabouttheirlifestyleandpersonalmatters,thatpersonshouldbeknownastheir‘enduringpersonalguardian’.Whensomeoneappointsanotherpersontomakesubstitutedecisionsabouttheirfinances,thatpersonshouldbeknownastheir‘enduringfinancialadministrator’.ThesetermscomplementtheCommission’srecommendationsforthenewtermstodescribesubstitutedecisionmakersappointedbyVCAT.

10.98 Theterm‘attorney’isconfusingbecauseitisusedinsomeplacestorefertoalawyer.TheCommissionbelievesthatitwouldbewisetoabandonuseofthiswordinguardianshiplaw.TheCommissionprefersconsistencywiththetermsproposedforVCATappointments.Newguardianshiplawsshouldrefertotheappointmentofanenduring‘personalguardian’andanenduring‘financialadministrator’.

Names of documents making appointment10.99 TheVictorianParliamentLawReformCommitteealsoproposednewtermsfor

describingthedocumentsinwhichthoseappointmentsaremade.

10.100 TheCommissionidentifiedtwooptionsfordescribinganappointmentthatoperatesafterthepersonhaslostcapacity—‘enduring’or‘lasting’.While‘lasting’isthemoremodernterm,Victorianshavedealtwithenduringpowersofattorneyfor30years.Onbalance,theCommissionfavoursretainingtheterm‘enduring’.

Names of other parties10.101 TheVictorianParliamentLawReformCommitteealsoproposednewtermsfor

describingthepeoplewhomakepersonalappointments.

10.102 TheVictorianParliamentLawReformCommitteerecommendedthattheterm‘principal’shouldbeusedtodescribeapersonwhocreatesanenduringappointment.Italsorecommendedthatapersonappointedunderalltypesofpowersshouldbecalleda‘representative’.129

10.103 TheVictorianGovernmenthasindicatedthatitsupportsinprincipletheuseofsimpleandconsistentnamesforpartiestoanenduringappointment.Itindicateditwouldfurtherconsidertheuseofthegenericterm‘representative’.130

10.104 TheCommissionsupportstherecommendationthatapersonwhomakesapersonalappointmentshouldbecalledaprincipal.

10.105 TheCommissiondoesnotsupporttheuseofthetermrepresentative,regardlessofappointmenttype,recommendedbytheParliamentaryCommittee.Werecognisethatthistermissimpleandsuggeststhatthepersonisrepresentingtheprincipal’sinterests,butcallingallpeopleappointedunderapersonalappointmenta‘representative’willincreaseconfusionaboutthepowersapersonmayexerciseundereachappointment.Providingdifferentnamesforthetwoappointmenttypes—andindeedotherappointmentsunderthenewAct—highlightsthedifferentrolesthesepeopleperform.Forthisreason,theCommissionfavourstheuseoftwotermstodifferentiatebetweensomeonegivenfinancialpowersandsomeonegivenpowerstomakedecisionsaboutpersonalmatters.

129 Inquiry into Powers of Attorney,aboven8,47.130 Government Response to the Parliament of Victoria Law Reform Committee,aboven10,6.

189

RECOmmENdaTIONSTerminology

93. Thedocumentsusedtocreateanenduringappointmentshouldbecalled‘enduringappointmentofapersonalguardian’and‘enduringappointmentofafinancialadministrator’.

94. Apersonwhomakesanenduringappointmentshouldbecalleda‘principal’.

95. Thepeopleappointedunderthesedocumentsshouldbecalledan‘enduringpersonalguardian’andan‘enduringfinancialadministrator’.

fEwER aPPOINTmENTS—REmOVaL Of mEdICaL agENTS10.106 InChapter5,theCommissionrecommendedtheintroductionofanewGuardianship

Actthatcontainsseparateprovisionsforpersonal,financialandmedialdecisionmaking.

10.107 TheCommissionbelievesitisdesirabletostreamlineandsimplifythepersonalappointmentschemebyreducingthenumberofenduringappointmentsfromthreetotwo.ThisisbestachievedbyremovingtheoptionofappointinganagentundertheMedicalTreatmentActandbyrequiringpeopletouseanenduringguardianshipappointmentformedicaltreatmentmatters.ThisrecommendationreflectsthecurrentdivisionofpowersbetweenVCAT-appointedguardiansandadministrators,andwouldmakeVictoriaconsistentwithmostotherAustralianjurisdictions.WediscussthisrecommendationinmoredetailinChapter13whereweconsidermedicaltreatmentlaws.

RECOmmENdaTIONRemoval of medical agents

96. Therangeofpowersthatcanbegiventoanenduringpersonalguardianshouldincludethepowertoconsenttoorrefusemedicaltreatmentonbehalfoftheprincipal.ThesenewprovisionsshouldreplacethecurrentprovisionsintheMedical Treatment Act 1988(Vic)forappointinganagenttomakesubstitutedecisionsaboutmedicaltreatment.

REgISTRaTION aNd TRaNSITIONaL aRRaNgEmENTS10.108 InChapter16,theCommissionrecommendsthatanonlineregisterofpersonal

appointmentsandVCATappointmentsbeestablished.Weconsiderthatitshouldbecompulsorytoregisteranenduringpersonalappointmentforittobevalid.Thiswillprovidecertaintytothirdpartiesandhelptoensurethatenduringappointmentsarerecognisedandrespected.

10.109 Inordertopromotecertainty,theregistrationofanappointmentofanenduringpersonalguardianundernewguardianshiplegislationshouldrevokeanypreviousappointmentsofanenduringguardianundertheG&AAct.TheappointmentofanagentundertheMedicalTreatmentActshouldsurvivetheregistrationofanenduringpersonalguardianappointmentundernewguardianshiplegislation,unlesstheenduringpersonalguardianisgivenmedicaltreatmentdecision-makingpowers,includingthepowertocompletearefusaloftreatmentcertificate.


10Chapter 10Personal appointments of substitute decision makers10.110 Theformsforappointinganenduringpersonalguardianshouldclearlystatethat

registeringanenduringpersonalguardianappointmentwillrevokeanypreviousappointmentsofanenduringguardianundertheG&AAct.Theformsshouldalsospecifythepowersthataprincipalcangivetoanenduringguardian.

10.111 Thesameapproachshouldbetakenforenduringappointmentsoffinancialadministrators.TheformforappointinganenduringfinancialadministratorshouldclearlystatethatregisteringanewappointmentwillrevokeanypreviousappointmentsofanenduringattorneyundertheInstrumentsAct.

RECOmmENdaTIONSRegistration

97. Itshouldbecompulsorytoregisteranenduringappointmentofapersonalguardianandanenduringappointmentofafinancialadministratorfortheappointmenttobelegallyvalid.

98. Afterthecommencementofnewguardianshiplegislation:

(a) registeringanappointmentofanenduringfinancialadministratorwillrevokeanappointmentofanenduringattorneymadeundertheInstruments Act 1958(Vic).

(b) registeringanappointmentofanenduringpersonalguardianwillrevokeanappointmentofanenduringguardianmadeundertheGuardianship and Administration Act 1986(Vic).

(c) registeringanappointmentofanenduringpersonalguardianwithdecision-makingpowersinrelationtohealthmatterswillrevokeanappointmentofanagentmadeundertheMedical Treatment Act 1988(Vic).Iftheenduringguardianhasnotbeengivendecision-makingpowersinrelationtohealthmatters,theappointmentoftheagentundertheMedicalTreatmentActshouldsurvive.

99. Theregistershouldindicateifanappointmentofanenduringpersonalguardianorenduringfinancialadministratorisonethatgrantsstandard(full)powersorifthepowersgrantedarelimitedorsubjecttoconditionsorrestrictions.

TImE TO REgISTER aN ExISTINg PERSONaL aPPOINTmENT10.112 TheCommissionbelievesitisimportantthatpersonalappointmentsmadeunder

existinglegislationbepreservedbyappropriatetransitionalarrangements.Peopleshouldbegivenfiveyearstoregisterexistingappointments.InChapter5,theCommissionrecommendedthatcommunityeducationprogramsaboutthenewActalsoincludeinformationaboutthistransitionperiod.

RECOmmENdaTIONSTransitional provisions—time to register an existing personal appointment

100.AnenduringguardianappointedundertheGuardianship and Administration Act 1986 (Vic),enduringattorneyappointedundertheInstruments Act1958 (Vic)oranagentappointedundertheMedical Treatment Act 1988 (Vic) beforethecommencementofnewguardianshiplegislationshouldcontinuetohavethepowersprovidedbytheappointment.

101.Theseappointmentsshouldberegisteredwithinfiveyearsofthecommencementdateofnewguardianshiplegislationinordertobevalid.

191

POwERS10.113 TheVictorianParliamentLawReformCommitteerecommendedclarifyingthepowers

thatmaybegiventopersonallyappointedsubstitutedecisionmakers.131

10.114 Itisimportantthatboththeprincipalandthesubstitutedecisionmakerunderstandthenatureofthepowersgivenbyanenduringappointment,aswellasanylimitsorconditionsontheexerciseofthosepowers.

10.115 Topromoteintegrationofguardianshiplaws,thepowersthataprincipalcangivetoanenduringpersonalguardianorfinancialadministratorunderapersonalappointmentshouldbethesamepowersavailabletoVCATwhenitmakesappointments.

10.116 TheCommissionrecommendsaconsistentapproachwiththatproposedbytheVictorianParliamentLawReformCommittee.TheCommissionbelievesthattheappointingdocumentshouldspecifythedecision-makingpowerstheenduringpersonalguardianorenduringfinancialadministratorcanexercise.Theformsshouldprovidetheoptionofgivinganenduringpersonalguardianorenduringfinancialadministratorfull or limited powers.

10.117 TheCommissionconsiderslegislativeclarityisbestachievedbyprovidingthatanenduringfinancialadministratormaybegivenpowersfor‘financial matters’andanenduringpersonalguardianmaybegivenpowersfor‘personal matters’.FinancialmattersandpersonalmattersshouldbedefinedinthenewAct.

10.118 Thereshouldbeanon-exhaustivelistofpowersthatcanbegiven.Thedefinitionsshouldalsoincludealistofrestrictionsonthepowersthatcanbegiventoanenduringpersonalguardianortoanenduringfinancialadministrator.

RECOmmENdaTIONSPowers

102.Anadultwithcapacity(theprincipal)shouldbeabletoappointanenduringpersonalguardiantomakedecisionsforthemaboutpersonalmatters,includingmedicaltreatment,oranenduringfinancialadministratortomakedecisionsforthemaboutfinancialmatters.

103.Thedocumentappointinganenduringpersonalguardianoranenduringfinancialadministratorshouldspecifywhichdecision-makingpowerstheenduringpersonalguardianorenduringfinancialadministratoristohave.

104.‘Financialmatters’and‘personalmatters’shouldbedefinedinthestatute.Thedefinitionsof‘financialmatters’and‘personalmatters’shouldincludeanon-exhaustivelistofpowersthatcanbegiven.Thedefinitionsshouldalsoincludealistofrestrictionsonthepowersthatcanbegiventoanenduringpersonalguardianortoanenduringfinancialadministrator.

105.Aprincipalmayspecifyconditionsandlimitationsonthepowersandexerciseofpowersbytheenduringpersonalguardianorenduringfinancialadministrator.

131 Inquiry into Powers of Attorney,aboven8,157.



Financial matters

106.Afinancialmattershouldbedefinedasamatterrelatingtotheperson’sfinancialorpropertymatters.Anappointmentmaygiveanenduringfinancialadministratororafinancialadministratorfullpowerstomakedecisionsaboutfinancialorpropertymattersorspecifythepowersthataregiven.Examplesofthefinancialdecision-makingpowersthatcanbegiventoanenduringfinancialadministratororfinancialadministratorarelistedinDivisions3and3AofPart5oftheGuardianship and Administration Act 1986(Vic)andincludebutarenotlimitedto:

(a) payingsumsofmoneytothepersonfortheirpersonalexpenditure

(b) payingmaintenanceandaccommodationexpensesforthepersonandtheirdependants,including,forexample,purchasinganinterestin,ormakingacontributionto,anestablishmentthatwillmaintainoraccommodatethepersonoroneormoreoftheirdependants

(c) payingtheperson’sdebts,includinganyfeesandexpensestowhichanadministratorisentitledunderadocumentmadebythepersonorunderalaw

(d) receivingandrecoveringmoneypayabletotheperson

(e) carryingonatradeorbusinessoftheperson

(f) performingcontractsenteredintobytheperson

(g) dischargingamortgageovertheperson’sproperty

(h) payingrates,taxes,insurancepremiumsorotheroutgoingsfortheperson’sproperty

(i) insuringthepersonortheirproperty

(j) otherwisepreservingorimprovingtheperson’sestate

(k) investingfortheperson

(l) continuinginvestmentsoftheperson,includingtakinguprightstoissuesofnewshares,oroptionsfornewshares,towhichthepersonbecomesentitledbytheirexistingshareholding

(m) undertakingarealestatetransactionfortheperson

(n) dealingwithlandfortheperson

(o) undertakingabeneficialtransactionforthepersoninvolvingtheuseoftheirpropertyassecurity(forexample,foraloanorbywayofaguarantee)foranobligation

(p) withdrawingmoneyfrom,ordepositingmoneyinto,theperson’saccountwithafinancialinstitution

(q) alegalmatterrelatingtotheadult’sfinancialorpropertymatters.

193

Limitations on financial decision-making powers

107.Thefinancialdecision-makingpowersthatcannotbegiventoanenduringfinancialadministratororfinancialadministrator,andthatshouldbelistedinthestatute,includebutarenotlimitedto:

(a) makingorrevokingtheperson’swill

(b) managingtheestateoftheprincipalupontheirdeath

(c) consentingtoanunlawfulact

(d) makingdecisionsthatrestricttheperson’spersonaldecision-makingautonomy,butcannotbereasonablyjustifiedinordertoensurepropermanagementoftheirfinances

(e) aconflicttransaction,unlessthetransactionhasbeenspecificallyallowedintheorder.

Personal matters

108.Apersonalmattershouldbedefinedasamatterrelatingtotheperson’spersonalorlifestylematters,includingmedicaltreatment.Anappointmentmaygiveanenduringpersonalguardianorpersonalguardianfullpowerstomakedecisionsaboutpersonal,lifestyle,andmedicaltreatment,orlimitthepowersthataregiven.Thepersonaldecision-makingpowersthatcanbegiventoanenduringpersonalguardianorpersonalguardianandthatshouldbelistedinthestatute,includebutarenotlimitedto:

(a) whereandwithwhomthepersonlivesanddecisionsaboutrestrictionsuponliberty(discussedfurtherinChapter15)

(b) withwhomthepersonassociates

(c) whetherthepersonworksand,ifso,thekindandplaceofworkandtheemployer

(d) decisionsabouthealthcare,includingrefusaloflife-sustainingmedicaltreatmentiftheconditionsforrefusalofmedicaltreatmentarefulfilled,andconsenttoforensicexaminations(discussedfurtherinChapter13)

(e) whateducationortrainingthepersonundertakesandtheplacewherethisoccurs

(f) dailylivingissues,including,forexample,dietanddress

(g) anylegalmattersnotrelatingtotheperson’sfinancialorpropertymatters.



Limitations on personal decision-making powers

109.Thepersonaldecision-makingpowersthatcannotbegiventoanenduringpersonalguardianorpersonalguardian,andthatshouldbelistedinthestatute,includebutarenotlimitedto:

(a) makingorrevokingtheperson’swill

(b) makingorrevokinganappointment,enduringappointmentorcommonlawadvancedirective,orrefusaloftreatmentcertificatesorinstructionaldirectives

(c) votingontheperson’sbehalfinaCommonwealth,stateorlocalelectionorreferendum

(d) enteringintoordissolutionofamarriageorsexualrelationship

(e) decisionsaboutthecareandwellbeingofanychildrenoftheperson,includingadecisioninrelationtoadoption

(f) adecisiontodetainorcompulsorilytreatthepersonforreasonsotherthanthepersonalandsocialwellbeingoftheperson

(g) consentingtoanunlawfulact

(h) adecisionaboutaspecialprocedure.132

muLTIPLE REPRESENTaTIVES10.119 Somepeoplealsoemphasisedthatdifferentskillsorcompetenciesarerequiredfor

differenttypesofappointment.TheCommissionbelievesthatallowingtheprincipaltoappointmorethanone,butnotmorethanthree,enduringpersonalguardiansorfinancialadministratorswillresolvethisissue.133Thisapproachsimplifiesthepersonalappointmentschemewhilestillallowingtheprincipaltodistributepowersbasedonskillsorcompetencies.Aprincipalwillhavetheoptionofappointingoneenduringguardiantomakemedicaldecisionsandadifferentpersontomakedecisionsaboutothermatters,suchasaccommodation.Theformsandassociatedinformationshouldbedraftedtomakethisoptionveryclear.

10.120 Aswiththecurrentlegislation,intheeventthatamultipleappointmentisnotworkingwell,anappointeeshouldbeabletoapplytoVCATtohavetheappointmentreviewed.134VCAT’scurrentremedialpowerstovarytheappointment,135providedirections136orrevokeanappointmentshouldcontinue.137

132 InChapter13theCommissionproposesthatthespecialproceduredefinitionandprocessesthatlimitauthorisationoftheseprocessestoVCATintheGuardianship and Administration Act 1986(Vic)beretainedinnewguardianshiplegislation.See:atss3,39(1)(a).

133 Ourrecommendationsanticipatethatmultiplerepresentativescanbeappointedtoexercisethesameordifferentpowers.TheInquiry into Powers of Attorney,aboven8,145,alsodiscussedtheappointmentofmultiplerepresentatives.IntheirReport,theCommitteefocusedprimarilyonmultiplerepresentativesexercisingthesamepowers.TheCommitteealsodiscussedtheissueofmultiplerepresentativesnotagreeing,whichwouldbemostlikelywheretheserepresentativesareexercisingthesamepowers.TheCommissionsupportsRecommendation40oftheReportwhichsays‘thataprincipalcanappointmultiplerepresentativestoactjointly,jointlyandseverally,orinanycombination,forexampleasamajority’(147)andRecommendation41whichproposesthat,wheremultiplerepresentativesdisagree,VCATcanprovidebindingguidancetotherepresentatives(148).

134 SeeInstruments Act 1958(Vic)ss125V,125ZA.135 Ibids125Z(1)(b).136 Ibids125V.137 Ibids125X.

195

RECOmmENdaTIONSMultiple representatives

110.Theprincipalshouldbeabletogiveanenduringpersonalguardianoranenduringfinancialadministratorasmanyorasfewoftherelevantavailablepowersastheywish.

111.Theprincipalshouldbeabletoappointmorethanonebutnotmorethanthreeenduringpersonalguardiansorenduringfinancialadministratorsandshouldbeabletogivedifferentpowerstoeach.

CONSENT aNd aCkNOwLEdgEmENT Of RESPONSIbILITIES10.121 TheCommissionbelievesanenduringpersonalguardianorenduringfinancial

administratormustformallyaccepttheappointment.AcceptanceshouldbegivenusingaprescribedformsetoutinthenewAct.Thestatementofacceptanceshouldincludeanundertaking(asisrequiredcurrentlyintheInstrumentsAct)bytheappointeetoactinaccordancewiththeirresponsibilities.WediscussthisreformideainChapter18.

10.122 Someonewhoisauthorisedtowitnessaffidavitsshouldwitnessthestatementofacceptance.Thiswitnessmaybe,butneednotbe,thesamepersonwhowitnessedtheprincipal’ssignature.

RECOmmENdaTIONSConsent and acknowledgement of responsibilities

112.Anappointmentofanenduringpersonalguardianorenduringfinancialadministratorshouldonlybeeffectiveiftheappointeesignsaformformallyacceptingtheappointment.

113.Acceptanceshouldbegivenusingaprescribedform.Theprescribedformsshouldbesetoutinthenewstatute.

114.Thestatementofacceptanceshouldincludeanundertakingbythepersonacceptingtheappointmenttoactinaccordancewiththeirresponsibilities.

wITNESSINg aN aPPOINTmENT10.123 TheVictorianParliamentLawReformCommitteerecommendedthatnewguardianship

legislationshouldrequireallpersonalappointmentstobewitnessedbytwopeople,oneofwhomisauthorisedtowitnessaffidavitsorisamedicalpractitioner.138

10.124 Currently,allpersonalappointmentsrequiretwowitnesses.139Oneofthewitnessesmustbesomeonewhoisauthorisedtosignastatutorydeclaration.140Thelistofpeoplewhoarepermittedtowitnessastatutorydeclarationisquiteextensive.Itincludesjusticesofthepeaceandpeopleactinginvariousprofessionalrolessuchaslawyers,dentists,vets,pharmacists,schoolprincipals,bankmanagers,local

138 Inquiry into Powers of Attorney,aboven8,77.139 Instruments Act 1958 (Vic)s123(3);Guardianship and Administration Act 1986 (Vic)s35A(2)(c);Medical Treatment Act 1988 (Vic)s5A(2)(a).140 Instruments Act 1958 (Vic)s125(3);Guardianship and Administration Act 1986 (Vic)s35A(2)(c)(iv); Medical Treatment Act 1988 (Vic)s5A(2)

(a).



councillorsandmembersofparliament.141TherangeofpeoplewhomaycurrentlywitnessanenduringappointmentinVictoriaisbroadincomparisonwithmanyotherjurisdictions.142

10.125 TheVictorianParliamentLawReformCommitteesuggestedthatthecurrentclassofauthorisedwitnessesistoowide.143Itsrecommendationnarrowstherangeofpeoplewhomaywitnessanenduringappointmenttoprovidebetterassurancethattheauthorisedwitnessisabletoassesstheprincipal’sunderstandingofthedocumentandidentifyanyevidenceofduress.144

10.126 TheVictorianGovernmentindicatedsupportinprinciplefortherequirementthatallappointmentsshouldhavetwowitnesseswithappropriatequalifications.TheGovernmentwishedtoconsiderissuesrelatedtolimitingauthorisedwitnesses.145

The Commission’s view10.127 TheCommissionbelievesitisimportanttoachieveanappropriatebalancebetween

stringentwitnessingrequirementsandnotdiscouragingpersonalappointmentsbymakingittoodifficultforpeopletolocateeligiblewitnesses.

10.128 TheCommissionagreeswiththereformsproposedbytheVictorianParliamentLawReformCommittee.TheCommissionhasalsoconsideredwhetherthewitnessingrequirementsshouldbedifferentforaprincipalwhoisgivingpowersthatrelatetomedicaltreatment,butconsidersthatraisingtheauthorisedwitnessrequirementtorequiresomeonewhoisauthorisedtowitnessanaffidavitadequatelystrikesthisbalance.146

10.129 InChapter11,weconsiderthewitnessingrequirementsformakingastand-aloneinstructionaldirectiveaboutmedicaltreatment.

RECOmmENdaTIONWitnessing a personal appointment

115.Newguardianshiplegislationshouldrequireallpersonalappointmentstobewitnessedbytwowitnesses,oneofwhomisauthorisedtowitnessaffidavitsorisamedicalpractitioner.

PROOf Of IdENTITy10.130 TheCommissionrecognisestheimportanceofensuringthatadequateproofof

identitychecksontheidentityoftheprincipalareundertakentopreventfraudulentregistrationofenduringappointments.

10.131 TheCommissionconsidersthatthebestwaytodothisistorequiretheprincipaltoshowproofofidentitydocumentstothetwowitnessesatthetimetheenduring

141 Evidence (Miscellaneous Provisions) Act 1958 s107A.142 Somejurisdictionsrequireonlyonewitnessbutlimittheclassofpossiblewitnessestoamuchnarrowerrangeofpeopleactingina

professionalrole.NewSouthWalestakesthisapproach.Itrequiresonlyonewitnessforanenduringpowerofattorney(financial),butlimitstheclassofpeoplewhomayactaswitnessestocourtregistrars,lawyers,conveyancersorappropriatelyqualifiedemployeesofatrusteecompany.Powers of Attorney Act 2003(NSW)s19.Otherjurisdictionshaveevenmorerigorouswitnessingrequirements,requiringtwowitnesseswhoeachhaveprofessionalexpertise.ForegEnduringPowersofAttorneyOrdinance(HongKong)cap501,s5(2)(a).Seealso:<www.opa.sa.gov.au/cgi-bin/wf.pl?pid=&hi=&mode=show&folder=../html/documents/05_Consent&file=23-Informal_Arrangements_for_People_with_Mental_Incapacity.html>.

143 Inquiry into Powers of Attorney,aboven8,77.144 Ibid.145 Government Response to the Parliament of Victoria Law Reform Committee,aboven10,10.146 InChapter24theCommissionproposesanadditionalwitnessingrequirementwhenapersonwishestoappointanenduringpersonal

guardianwiththepowertomakedecisionsaboutpsychiatrictreatmentwhichoverridethepowersofanauthorisedpsychiatristundertheMentalHealth Act 1986(Vic)insomeinstances.

197

appointmentismade.Thewitnesswhoisthepersonauthorisedtowitnessthedocumentshouldcertifythattheyhaveseenappropriateidentificationdocuments,whichconfirmtheprincipal’sidentity.

RECOmmENdaTIONSProof of identity

116.Theprincipalshouldshowproofofidentitydocumentstothetwowitnessesatthetimetheenduringappointmentdocumentissigned.

117.Theauthorisedwitnessshouldberequiredtocertifythattheyhaveseenappropriateidentificationdocuments,whichconfirmtheprincipal’sidentity.Newguardianshiplegislationorregulationsshoulddetailwhatcombinationofdocumentsiseligibleaseffectiveproofofidentification.

SIgNINg fOR ThE PRINCIPaL10.132 TheInstrumentsActcurrentlyallowsadonortoauthorisean‘eligibleperson’to

signanenduringpowerofattorneyontheirbehalf—attheirdirectionandintheirpresence.147Theeligiblepersonmustbeagedover18yearsandmustnotbeawitnesstothedocument,currentlyappointedasanattorneyornominatedasanattorneyinthedocument.148Ifthisprocessisundertaken,witnessestotheappointmentmustcertifythat:

• thedonorofthepowerdirectedthepersontosigntheenduringpowerofattorneyforthedonor

• thedonorofthepowergavethatdirectionfreelyandvoluntarilyinthepresenceofthewitness

• thepersonsigneditinthepresenceofthedonorandthewitness

• atthetime,thedonorappearedtothewitnesstohavethecapacitynecessarytomaketheenduringpowerofattorney.149

10.133 TheCommissionbelievesthatthisprocessprovidesanimportantmeansforpeoplewhoarephysicallyincapableofsigningadocumenttomakeanappointment,andprovidesadequatesafeguardsagainstabuse.TheCommissionproposesthatthisprocessbeextendedtoallpersonalappointmentsofsubstitutedecisionmakers,andalsotheappointmentof‘supporters’,whichweconsiderinmoredetailinChapter8.

RECOmmENdaTIONSSigning for the principal

118.If,becauseofphysicallimitations,theprincipalisunabletosignthedocumentsmakinganenduringappointment,itshouldbepossibleforsomeonetosignforthemontheirdirectionandintheirpresence.

119.Similarprovisionstothosecontainedinsections123(2)(b),124and125A(2)oftheInstruments Act 1958(Vic)shouldbeincludedinnewguardianshiplegislationtoprovideforthispractice.

147 Instruments Act 1958(Vic)s123(2)(b).148 Ibids124.149 Ibids125A(2).



CONfLICT TRaNSaCTIONS10.134 TheCommissionbelievesthatnewlegislationshouldclearlydefineaconflict

transaction.Itshouldprohibitsomeoneappointedasanenduringfinancialadministratorfromengaginginconflicttransactionsotherthanwhenclearlypermittedtodoso.WehavebasedourconflicttransactionproposalonQueenslandlegislation.150

10.135 Aconflicttransactionshouldbedefinedasatransactioninwhichtheremaybeconflict,orwhichresultsinconflict,betweenthedutyofanenduringfinancialadministratortowardstheprincipalandtheirotherinterests.

10.136 Therearesomesituationswhereconflicttransactionsshouldbeallowedifproperlyauthorised.NewguardianshiplegislationshouldprovidethatanenduringfinancialadministratormustnotenterintoaconflicttransactionunlesstheyhavebeenauthorisedeitherbytheprincipalintheappointmentbeforethetransactiontakesplaceorbyVCAT.LegislationshouldalsoallowaprincipalwhohascapacitytoretrospectivelyauthoriseorratifyaconflicttransactionandalsopermitVCATtoratifyacompletedconflicttransaction.

gifts10.137 TheVictorianParliamentLawReformCommitteealsoaddressedtheissueofgifts

thatanappointeemightmakeonbehalfoftheprincipal,eithertothemselvesortoapersonwithwhomtheprincipaliscloselyinvolved.151

10.138 Itrecommendedthatthelawshould:

providethatarepresentativecanmakeagiftoftheprincipal’sproperty,includingtotherepresentative,onlyif:

thegiftisreasonableinthecircumstances,particularlyinviewoftheprincipal’sfinancialsituationAND

thegift:

• is to a relative or close friend of the principal and is of a seasonal nature or for a special event OR

• the gift is of a type of donation that the principal made when he or she had capacity or might reasonably be expected to make.152

10.139 NewguardianshiplegislationshouldspecifythatgiftsmadeinaccordancewiththegiftingprovisionsasrecommendedbytheVictorianParliamentLawReformCommitteedonotamounttoaconflicttransaction.Newlegislationshouldalsospecifythatprovisionmadeforthemaintenanceoftheprincipal’sdependantsinaccordancewiththelegislationwouldnotbeaconflicttransaction.

10.140 Apersonappointedasanenduringfinancialadministratorwillfrequentlybethespouseorpartneroftheprincipal.Oftenproperty,suchasthefamilyhome,willbeheldjointly.TheCommissionconsidersthatitisunworkableandoverlyoneroustoclassifyatransactionasaconflicttransactionsolelybecauseitinvolvespropertyjointlyheldbytheenduringfinancialadministratorandtheprincipal.Thismattershouldbeexpresslydealtwithinnewlegislation.

10.141 InChapter12,weconsiderhowgiftingprovisionsshouldapplyintribunalappointments,andparticularlytheroleofVCATinmonitoringcompliancewiththeseprovisions.

150 Powers of Attorney Act 1998(Qld)s73;Guardianship and Administration Act 2000 (Qld)s37.151 Inquiry into Powers of Attorney,aboven8,200.152 Ibid202.

199

RECOmmENdaTIONSConflict transactions

120.Newguardianshiplegislationshoulddefineaconflicttransaction.Itshouldprohibitsomeoneappointedasafinancialadministratororanenduringfinancialadministratorengaginginconflicttransactionsandsetouttherelevantexceptionstothisrule.

121.Aconflicttransactionshouldbedefinedasatransactioninwhichtheremaybeconflict,orwhichresultsinconflict,between:

(a) thedutyofafinancialadministratororanenduringfinancialadministratortowardstheprincipal,and

(b) either—

(i) theinterestsoftheappointee,orarelation,businessassociateorclosefriendoftheappointee,or

(ii) anotherdutyoftheappointee.

122.Thelegislationshouldprovidethat:

(a) Anenduringfinancialadministratormaynotenterintoaconflicttransactionunlesstheyhavebeenauthorisedpriortothetransactiontakingplace.Theenduringfinancialadministratormaybeauthorisedinadvancebytheprincipal,whomusthavethecapacitytoauthorisetheconflicttransaction,orbyVCAT.

(b) Aprincipalmayauthoriseaparticularconflicttransaction,conflicttransactionsofthattypeorconflicttransactionsgenerally.

(c) Aprincipalwhohascapacitymayretrospectivelyauthoriseorratifyaconflicttransaction.

(d) VCATmayauthoriseaparticularconflicttransaction,conflicttransactionsofthattypeorconflicttransactionsgenerally.

(e) VCATmayratifyaconflicttransaction.

123.Newguardianshiplegislationshouldspecifythat:

(a) GiftsmadeinaccordancewiththegiftingprovisionsrecommendedbytheVictorianParliamentLawReformCommitteearenotaconflicttransaction.

(b) Provisionmadeforthemaintenanceoftheprincipal’sdependantsinaccordancewiththelegislationwillnotbeaconflicttransaction.

(c) Atransactionisnotaconflicttransactiononlybecausebythetransactiontheappointee,intheappointee’sownrightandonbehalfoftheprincipal:

(i) dealswithaninterestinpropertyjointlyheld,or

(ii) acquiresajointinterestinproperty,or

(iii) obtainsaloanorgivesaguaranteeorindemnityinrelationtoatransactionmentionedin(i)or(ii).



COmmENCEmENT Of POwERS10.142 TheVictorianParliamentLawReformCommitteerecommendedthataprincipalshould

beabletoelecttomakeapersonalappointmenteffectiveimmediately,oruponalaterdateorsubsequenteventregardlessofwhetheritprovidesguardianshiporfinancialpowers.Italsorecommendedthatifaprincipaldoesnotspecifywhenanenduringpowercommences,itshouldcommenceimmediately.153

10.143 TheVictorianGovernmentindicatedsupportinprincipleforallowingaprincipaltomakeanenduringpowerofattorneyforfinancialorguardianshipmatterseffectiveimmediatelyoruponalaterdateorevent.TheGovernmentwishedtoconsiderfurtherwhetheranenduringpowershouldcommenceimmediatelyiftheprincipaldoesnotspecifyadateforcommencement.154

10.144 TheCommissionrecognisesthatprovidingthatalltypesofenduringappointmentsmaycomeintoeffectatatimespecifiedbytheprincipalorotherwiseimmediatelyprovidesconsistency.However,theCommissionbelievesthatenduringpowersofguardianshipshouldnotbeabletocomeintoeffectbeforetheprincipalhaslostcapacity.Ourconsultationsrevealedthatthereislittlesupportforallowingactivationofanenduringguardianshipappointmentpriortolossofcapacity.Strongdiscomfortwasexpressedwiththeideathatmedicalpowerscouldbeusedbysomeoneappointedunderanenduringappointmentwhentheprincipalstillhascapacity.

10.145 BecausetheVictorianParliamentLawReformCommittee’stermsofreferencedidnotincludeconsiderationofanagentundertheMedicalTreatmentAct,itdidnotconsiderthetimeanenduringappointmentshouldcomeintoeffectinrelationtodecisionsaboutrefusalofmedicaltreatment.

10.146 TheCommissionbelievesthatdecisionsaboutpersonalmatterssuchasmedicaltreatmentorhousingshouldnotbemadeforaprincipalwhilethatpersonstillhascapacity.

10.147 Whileaprincipalshouldbeabletoelectwhenthepowersgivenbyanenduringappointmentofafinancialadministratorcomeintoeffect,thepowersofanenduringguardianshouldonlybeeffectivewhentheprincipallosescapacity.Ifnotimeisspecifiedforthecommencementofthepowersofanenduringfinancialadministrator,thosepowersshouldcommencewhentheprincipallosescapacity.Thisapproachreflectstheprimaryintentofanenduringappointment,whileenablingaprincipaltomakethepowerexercisableimmediatelyiftheywish.

RECOmmENdaTIONSCommencement of powers

124.Theappointmentofanenduringfinancialadministratormaycomeintoeffectimmediately,atadatespecifiedbytheprincipal,oronaspecifiedoccasionorcircumstance.

125.Thedocumentmakingtheappointmentcanincludeconditionsabouthowadeterminationshouldbemadethataspecifiedcircumstancehasoccurred.

126.Ifnodateisspecified,thepowersofanenduringfinancialadministratorcomeintoeffectwhentheprincipallosescapacity.

127.Thepowersofanenduringpersonalguardianshouldonlycomeintoeffectwhentheprincipallosescapacity.

153 Inquiry into Powers of Attorney,aboven8,93.154 Government Response to the Parliament of Victoria Law Reform Committee,aboven10,14.

201

RESIgNaTION, REVOCaTION aNd VaRIaTION10.148 TheCommissionproposesnochangetothelawgoverningresignationfromand

revocationofapersonalappointment.Underthecurrentlaw,arepresentativecanresignwhiletheprincipalretainscapacitybutoncecapacityislostcanonlydoso‘withtheleaveofacourtortheTribunal’.155

10.149 Newguardianshiplegislationshouldrequirethatnoticeofresignationberecordedinaprescribedformthatisprovidedtotheregistry.Therepresentativeshouldberequiredtotakereasonablestepstoinformtheprincipaloftheresignation.Aresignationshouldtakeeffectonlywhenregistered.Theregistryshouldalsoinformtheprincipaloftheresignation.

10.150 Aprincipalwithcapacityshouldretaintherighttovaryorrevokeapersonalappointmentatanytime.156

RECOmmENdaTIONSResignation by the enduring personal guardian or enduring financial administrator

128.Anenduringpersonalguardianoranenduringfinancialadministratorshouldbeabletoresignatanytimewhentheprincipalhascapacity.Ifaprincipalhaslostcapacityorthereisdoubtabouttheircapacity,itshouldnotbepossibletoresignwithouttheleaveofVCAT.

129.Anenduringguardianorenduringfinancialadministratormustresigninwritingusingaprescribedformthatisprovidedtotheregistry.Theenduringguardianorenduringfinancialadministratorshouldmakereasonableattemptstonotifytheprincipaloftheresignation.

130.Aresignationshouldnotbeeffectiveuntilregistered.

131.Whenaresignationisregistered,theregistryshouldmakereasonableattemptstonotifytheprincipal.

VCAT’s power to revoke appointments

132.AnypersonwithaninterestintheaffairsoftheprincipalshouldbeabletoapplytoVCATwhentheprincipalhaslostcapacityforanorderthatapersonalappointmentberevokedorvariedordeclaredinvalidonthegroundthat:

(a) theprincipallackedcapacityatthetimeitwasmade

(b) thedocumentisnotaproperrecordoftheprincipal’swishesatthetimeitwasmade

(c) theappointeeisnotcomplyingwiththeirobligations

(d) theappointeelackscapacitytoperformtheirobligations.

155 Instruments Act 1958(Vic)s125M.156 Ibids125I.



RECOmmENdaTIONS Of ThE VICTORIaN PaRLIamENT Law REfORm COmmITTEE REquIRINg fuRThER CONSIdERaTION

Excluding some classes of people from witnessing enduring personal appointments10.151 Asnotedabove,theCommissionagreeswiththeVictorianParliamentLawReform

Committeerecommendationthatnewguardianshiplegislationshouldrequireallpersonalappointmentstobewitnessedbytwowitnesses,oneofwhomisauthorisedtowitnessaffidavitsorisamedicalpractitioner.157

10.152 TheVictorianParliamentLawReformCommitteealsorecommendedthatcertainclassesofpeopleshouldbeexcludedfromwitnessinganenduringappointmentdocument.Thoseclassesofpeopleareapartytothedocumentandanypersonwhocouldbenefitfromthedocumentincludingarelativeofapartytothedocument.158Italsorecommendedthattheformsforcreatingallpowersofattorneyshouldrequireeachwitnesstodeclarethattheyarenotapartytothedocumentandnotrelatedtoanypartytothedocument.159

10.153 TheVictorianGovernmentindicatedsupportinprincipleforthisproposal.TheGovernmentindicateditwouldconsiderfurtherhowtodefineapersonwhocouldbenefitfromapowerofattorney,includingarelativeofapartytoapowerofattorney.160

The Commission’s view10.154 TheCommissionbelievesthatfurtherconsiderationshouldbegiventowhether

relativesshouldbeautomaticallyexcludedfromwitnessingappointments.Inkeepingwiththeaimofencouragingpeopletomakeenduringappointments,itmaybeprudenttokeeptherangeofnon-professionalwitnessesbroadandprovideasafeguardbyrequiringthewitnesstosignadeclarationthattheyarenotgoingtobenefitfromtheappointment.Arelativemayoftenbethemostreadilyavailablepersontowitnessanappointment,willnotnecessarilybenefitfromanappointmentandmaybewell-placedtoassessaprincipal’sunderstandingofthedocuments.Acompromisemightbetoallowrelativestowitnessanenduringappointmentbutexcluderelativesfromactingastheauthorisedwitness(whowouldattestthataprincipalunderstandsandisundernoduress).Ifrelativesareautomaticallyexcludedfromwitnessingenduringdocuments,carefulconsiderationshouldbegiventohowarelativeisdefined.

Excluding unsuitable representatives10.155 TheVictorianParliamentLawReformCommitteealsorecommendedthataperson

whohadpreviouslybeenconvictedofanoffenceinvolvingdishonestyshouldbeexcludedfromactingasarepresentativeunderafinancialenduringappointment.However,itwassuggestedthataprincipalshouldbeabletoapplytoVCATforapprovaltoappointapersonwhohaspreviouslybeenconvictedofanoffenceinvolvingdishonestyasarepresentativeunderanenduringpowerofattorney(financial).Itrecommendedthatwhenacceptinganappointmentasarepresentative,apersonmustdeclarethattheyareeligibletobeappointedasarepresentative,andthatapersonwhoacceptsanappointmentasarepresentativewhoisnoteligibleshouldbeguiltyofanoffence.161

157 Inquiry into Powers of Attorney,aboven8,77.158 Ibid79.159 Ibid.160 Government Response to the Parliament of Victoria Law Reform Committee,aboven10,10.161 Inquiry into Powers of Attorney,aboven8,143.

203

10.156 TheVictorianGovernmenthasindicatedthatitsupportsexcludingunsuitablepeoplefrombeingappointedasrepresentatives,includingpeoplewhohavepreviouslybeenconvictedofanoffenceinvolvingdishonesty.162

Personal monitors10.157 TheVictorianParliamentLawReformCommitteerecommendedthataprincipal

shouldbeabletoappointoneormorepersonalmonitorstooverseetheoperationofanenduringpowerofattorney(financial)oranenduringpowerofattorney(guardianship),andthattheVictorianGovernmentshouldproducesimple,easy-to-understandinformationandeducationalmaterialsforpersonalmonitors.163

10.158 TheVictorianGovernmenthasindicatedthatitwillconsiderthisproposalaswellastheprovisionofinformationresourcesforpersonalmonitors.Whilerecognisingpotentialbenefitsoftherecommendation,theGovernmentconsideredsomemattersneededfurtherthoughtsuchasthepotentialpowers,dutiesandliabilityofapersonalmonitor.164

The Commission’s view10.159 TheCommissionbelievesthatitwouldbedesirabletotakeacautiousapproachtothe

inclusionofmonitorsinlegislation.

10.160 TheCommissionnotesthataprincipalcancurrentlyattachconditions,limitationsandinstructionsontheexerciseofpowersbyanenduringattorney.165Thesecouldincludeconditionsorinstructionsconcerningtheuseofamonitor.

10.161 TheCommissionseesmeritintheviewexpressedbytheVictorianParliamentLawReformCommitteethattheprincipalisbestplacedtodeterminetherole(ifany)ofapersonalmonitor,andforthisreasonsuggeststhereislittlebenefitindealingwiththematterexpresslyinlegislation.166ThisproposalrequiresfurtherconsiderationbytheVictorianGovernment.

162 Government Response to the Parliament of Victoria Law Reform Committee,aboven10,19.163 Inquiry into Powers of Attorney,aboven8,200.164 Government Response to the Parliament of Victoria Law Reform Committee,aboven10,26.165 Instruments Act 1958 (Vic)s115(1)(b).166 Inquiry into Powers of Attorney,aboven8,199.

· pdf file177 10.20 an enduring power of attorney (financial) allows a person aged 18 years...

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