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Compensation firm calls for stronger power of attorney laws

A leading compensation firm has called on the South Australian government to enact stronger laws on paid carers and powers of attorney to protect the elderly. 

user iconNaomi Neilson 15 February 2021 SME Law
Compensation firm calls for stronger power of attorney laws
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A reform recommendation to strengthen South Australia’s laws and introduce further safeguards against elder abuse has prompted Maurice Blackburn to call on the government to tighten restrictions around the use of paid carers as powers of attorney. 

National head of wills and estates Andrew Simpson said that while he acknowledges the majority of paid carers do “incredible work” in looking after older and vulnerable Australians, “there will always be some who exploit that position of trust”. 

“We know there have been cases where a paid carer holding a person’s power of attorney has misused that power for their own benefit, such as taking money, transferring assets and incurring debts,” Mr Simpson said. 

The recommendation from a recently released South Australia Law Reform Institute report could prohibit carers from being appointed as an enduring power of attorney and would make the state the third in Australia to do so, behind Victoria and Queensland.

Mr Simpson said there was considerable trust invested in an enduring power of attorney and any breach of that trust could have significant consequences. 

“A power of attorney is one of the most important documents you’ll ever make. If you lose capacity, that person will potentially have complete control over all decisions relating to you and your affairs,” Mr Simpson said. 

“Giving a paid carer power over the affairs of the vulnerable person they are paid to look after is in our view a dangerous blurring of professional and personal lines that increase the risk of financial abuse.” 

Naomi Neilson

Naomi Neilson

Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly. 

You can email Naomi at: This email address is being protected from spambots. You need JavaScript enabled to view it.

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