Appointing an attorney-in-fact could be one of the most significant decisions you make for your finances and wellbeing. In 2025, recent legislative changes in Australia mean there’s more to consider than ever before. Here’s what you need to know about the role, your legal risks, and how to choose the right person.
What Is an Attorney-in-Fact?
An attorney-in-fact, sometimes called an agent, is a person appointed under a Power of Attorney (POA) to act on your behalf. In Australia, the term is most often used in legal and financial contexts—especially when someone needs help managing their affairs due to travel, illness, or incapacity.
- Types of Powers: General, Enduring, and Medical powers of attorney each come with different scopes and expiration rules.
- Typical Tasks: Managing bank accounts, selling property, signing documents, or making medical decisions.
- Key Difference: An attorney-in-fact is not a lawyer—their authority is granted by the POA document, not by legal qualifications.
2025 Policy Updates: What’s Changed?
Australian states and territories have continued harmonising POA laws, with several new rules taking effect in 2025. These aim to reduce elder abuse, increase transparency, and ensure attorneys-in-fact act in the principal’s best interests.
- National Register: The Australian Powers of Attorney Register is now mandatory for new POAs, making it easier to check the validity of an attorney-in-fact appointment.
- Identity Verification: All attorneys-in-fact must complete formal ID checks before acting on behalf of a principal, closing loopholes that previously enabled fraud.
- Witnessing Requirements: New rules require stricter witnessing and, in some states, a solicitor or medical practitioner must confirm the principal’s capacity.
- Disclosure Duties: Attorneys-in-fact must now provide regular financial statements to a third-party or the principal if requested, improving accountability.
For example, in New South Wales, failing to register a new POA or file annual statements can now result in civil penalties. Victoria’s 2025 update gives VCAT (Victorian Civil and Administrative Tribunal) expanded powers to investigate and revoke abusive attorneys-in-fact.
Choosing the Right Attorney-in-Fact
Handing over financial or medical decision-making power is a major trust move. With the new scrutiny in 2025, it’s more important than ever to select your attorney-in-fact wisely.
- Trust & Competence: Pick someone who is responsible, financially savvy, and understands your wishes. Many Australians choose close family, but a trusted friend or professional can also act.
- Conflict Checks: Ensure your choice is not a beneficiary of your estate or someone with conflicting interests, to avoid future disputes.
- Communication: Discuss your values and preferences up front. A written guidance letter (separate from the POA) can clarify intentions, especially for complex assets or healthcare decisions.
- Backup Plans: Consider appointing a substitute attorney-in-fact in case your first choice can’t act when needed.
Real-world case: In 2024, the Queensland Supreme Court resolved a family dispute after an attorney-in-fact sold a principal’s investment property without consulting siblings. The case highlighted the need for clear instructions and regular reporting—both now mandated under new 2025 rules.
Risks and Protections: What If Things Go Wrong?
The risk of abuse or negligence is real—especially for vulnerable Australians. In response, 2025 reforms give more oversight and avenues for recourse:
- Mandatory Record-Keeping: Attorneys-in-fact must keep detailed records of all transactions and decisions.
- Review Rights: Family members or the principal can now apply to state tribunals for a review if they suspect misconduct.
- Revocation Power: Principals can revoke a POA at any time, provided they retain legal capacity.
If you suspect financial abuse, the new national register and improved reporting requirements make it easier to intervene and seek help from state tribunals or public guardians.
Conclusion
Appointing an attorney-in-fact is a powerful tool for future planning and protecting your interests. With 2025’s tighter regulations, Australians now have greater safeguards—but choosing the right person and staying informed is still the best defence. Take the time to discuss your wishes, understand the legal landscape, and keep your documents up to date.
