Few financial planning documents are as important—or as misunderstood—as the enduring power of attorney (EPOA). In 2025, more Australians are recognising that life’s unexpected events can derail even the best-laid plans, making a robust EPOA a non-negotiable part of safeguarding assets and wellbeing.
What is an Enduring Power of Attorney?
An enduring power of attorney is a legal document that allows you (the ‘principal’) to appoint one or more trusted people (your ‘attorney/s’) to make decisions on your behalf if you lose the capacity to do so yourself. Unlike an ordinary power of attorney—which lapses if you lose mental capacity—an EPOA remains valid and ‘endures’ through incapacity. This covers a wide range of circumstances, from dementia and stroke to sudden accidents.
In Australia, the EPOA is governed by state and territory laws, so the details and forms differ across jurisdictions, but the core principle is the same: it’s about future-proofing your financial and personal affairs.
Why Every Australian Should Consider an EPOA
Think of an EPOA as insurance for your autonomy. Without one, your loved ones may face expensive and lengthy legal processes to manage your finances or make decisions about your care. In 2025, with Australia’s population ageing rapidly and the impacts of long COVID and mental health challenges still rippling through communities, more families are being caught off guard by incapacity.
- Protect your assets: Your attorney can pay bills, manage investments, and even sell property if needed.
- Ease family stress: A clear EPOA can minimise disputes and confusion among family members.
- Avoid government intervention: Without an EPOA, state tribunals may appoint a financial manager who doesn’t know your wishes.
Recent cases in 2024, such as several high-profile disputes in Victoria and NSW, have shown the emotional and financial cost when an EPOA isn’t in place—or isn’t set up correctly.
2025 Legal Updates and Practical Steps
This year, several states have tightened requirements for EPOA documents, with a focus on reducing elder financial abuse and ensuring principals are fully informed. For example, Queensland’s new digital EPOA platform launched in late 2024, enabling secure online lodgement and verification of attorneys. Victoria now requires all EPOA documents to be witnessed by a lawyer or authorised witness, increasing protection against coercion.
Here’s what you need to do in 2025:
- Choose your attorney wisely: Pick someone trustworthy, financially savvy, and willing to act in your best interests. Many choose a spouse, adult child, or close friend.
- Check your state’s rules: Each jurisdiction has specific forms and witnessing requirements. As of 2025, most states have updated forms—using outdated documents can render your EPOA invalid.
- Consider limits or instructions: You can specify when the EPOA takes effect (immediately or only on incapacity) and set boundaries, such as restricting the sale of your home.
- Store safely and share wisely: Keep the original document in a secure place and give certified copies to your attorney, bank, and relevant professionals. Many banks and super funds now require EPOA registration before accepting instructions from an attorney.
- Review regularly: Major life events—marriage, divorce, new relationships, or a move interstate—can affect your EPOA’s validity or appropriateness. A 2025 review is recommended for all existing documents.
For blended families or those with complex assets, a lawyer with estate planning expertise can help tailor the EPOA to your needs. This can be crucial in avoiding disputes or unintended outcomes.
Real-World Example: How an EPOA Protected One Family’s Future
Consider the case of Margaret, a 68-year-old Sydneysider diagnosed with early-stage dementia in 2023. Because she’d set up an EPOA several years earlier, her daughter was able to seamlessly step in and manage Margaret’s finances, pay her bills, and ensure her investments continued to grow. Without the EPOA, the family would have faced months of tribunal hearings and the risk of an external administrator being appointed. Margaret’s story is increasingly common—and a powerful reminder of the peace of mind an EPOA brings.
Conclusion
An enduring power of attorney isn’t just paperwork—it’s a cornerstone of smart financial planning. With 2025 bringing new legal requirements and digital tools, now is the time to review or establish your EPOA. Secure your autonomy, reduce family stress, and ensure your wishes are respected, no matter what the future holds.
