Power of Attorney: What it means for elderly and vulnerable members

At Australian Mutual Bank, we know that managing money can become more challenging as circumstances change due to age, illness, or disability. That’s why some members consider setting up a Power of Attorney (POA) – a legal document that allows someone else to make financial and legal decisions on their behalf.

A POA can provide peace of mind, but it also carries risks if the wrong person is appointed. Sadly, cases of financial abuse involving elderly and vulnerable people are on the rise, and they often involve misuse of a POA by a family member, friend, or carer.

What is a Power of Attorney?

A Power of Attorney is a legal document that gives another person the authority to make financial and legal decisions on your behalf or to assist you in managing those decisions.

Your attorney can do things such as:

Use your bank account to pay bills, manage everyday expenses or meet loan repayments.

Handle investments, including buying or selling property.

Manage tax obligations or other financial commitments.

There are two main types of POA’s commonly used for financial management:

General Power of Attorney

This arrangement lets you authorise someone to handle your financial and legal affairs while you are still able to make your own decisions. It automatically ends if you lose decision-making capacity or upon your death.

Enduring Power of Attorney (EPOA)

This option allows you to appoint a trusted person to continue managing your financial and legal matters even if, in the future, you are no longer able to make those decisions yourself. Like a General Power of Attorney, it ceases to have effect upon your death.

Appointing more than one person

If you decide to nominate more than one attorney, you’ll need to specify how they can make decisions on your behalf. They can act:

Jointly – meaning all attorneys must agree and sign off on every decision before any action is taken.

Jointly and severally – meaning they can make decisions either together or separately, depending on the situation.

It’s important to think carefully about who you appoint and how well they can work together. Choose people you trust completely to act responsibly and in your best interests.

Revoking (cancelling) a POA 

If you have decision-making capacity, you can revoke a POA at any time. To do this, you should:

Inform your attorney in writing (preferably via registered post) that their appointment has ended.

Notify us and any other relevant groups or businesses where your attorney may have acted on your behalf.

File a revocation form with NSW Land Registry Services if the POA was registered there.

Destroy the original and any copies of the POA document.

If you don’t take these steps, your attorney may still be able to legally act on your behalf.

Why you might revoke or update a POA

It’s a good idea to review or change your Power of Attorney requirements if your situation or relationships change. You may wish to revoke or change your POA if:

Your current attorney has passed away or can no longer manage their own affairs.

Your relationship with your attorney has changed.

Your personal or financial circumstances have changed, and the current attorney is no longer appropriate for the role.

As long as you still have capacity, you have the right to update, replace or cancel your Power of Attorney at any time.

For more information, see Power of attorney on the State Library of New South Wales website.

Duties and responsibilities of an attorney

When making decisions for you, anyone appointed as an attorney must:

Act in your best interests, aiming to make the same choices you would make yourself wherever possible.

Keep detailed and accurate records of all financial transactions and decisions made on your behalf.

Avoid conflicts of interest, and never use their position for personal gain.

Keep your money and property separate from their own at all times.

If the attorney breaches their duties, they could be required to repay any financial losses caused by their breach.

Financial Management Orders

A Financial Management Order (FMO) is a document that authorises one or more individuals to manage a person’s financial affairs on their behalf.

A Financial Management Order is a legal document provided to the person who has been appointed as a private financial manager under the NSW Trustee and Guardian Act 2009 by the Supreme Court of NSW or under the Guardianship Act 1987 by the Guardianship Division of NSW, and NSW Civil & Administrative Tribunal (NCAT).

The Directions and Authorities is a legal document accompanying an order that outlines the powers granted to the appointed manager, including their management authority, any limitations on that authority, and specific directions they must follow.

Please note: The rules for setting up or using a Power of Attorney vary across Australia. Make sure you refer to your state or territory’s official government website or seek legal advice to confirm local requirements.

How we can help

At Australian Mutual Bank, taking care of our members is a top priority.

Our staff can assist you with the everyday management of your finances and direct you to the right type of products and services that best suit your needs.

We don’t set up a POA document for you but will retain any attorney documents you have if you provide them. If you prefer, we can also help set up an Authority to Operate (ATO), which allows a trusted person, such as a family member, accountant or carer to access specific accounts you nominate.

We take the protection of our members seriously and work proactively to prevent and detect financial abuse. You can ask our team to add safeguards to your accounts, such as transaction limits or alerts. Our staff can review and update attorney details once official documents are received. We can also investigate any suspicious activity you notice on your accounts.

If you have any questions regarding a Power of Attorney, you should speak with a legal representative. Alternatively, for general advice regarding your membership held with the Bank and adding a POA, you can phone our Contact Centre on 13 61 91, Monday to Friday between 8:00am - 7:00pm, or Saturday between 8.30am - 11.30am (Sydney NSW local time).

What you will need

To set up a POA on a Bank Account, you will need the following:

a certified copy of the POA document – each page - Certified by a Justice of the Peace or Solicitor (this can only be provided via post or to a branch).

a completed Add POA form and verification of identity by the POA using the link: ID Verification Form Australian Mutual Bank.

If you suspect that you or someone you know is being taken advantage of, please contact us immediately. We can review account activity, put protections in place, and guide you to support services.

Financial abuse and elder protection

Financial abuse is the most common form of elder abuse. It may involve someone misusing a POA or pressuring an elderly person to hand over money or assets.

The facts*

6 in 10 Australians are worried that someone they know will be the victim of this insidious abuse.

87% of Australians are wanting their government to do more to stop elder financial abuse.

57% of Australians are worried about a loved one experiencing financial abuse.

It’s estimated that up to 1 in 10 Australians will be affected by elder abuse each year.

Exact numbers are hard to come by as it often goes unreported.

Abuse can often cost victims their life savings.

By 2050 those over 65 will make up around 25% of the population.

*According to https://www.ausbanking.org.au/priorities/financial-elder-abuse/)

Protecting yourself

Taking a few simple precautions can help safeguard your finances and independence:

Keep your financial details private - Always protect your bank cards and other important documents. Under no circumstances should you share your personal identification number (PIN), or password with anyone, no matter how trustworthy they seem.

Be cautious if someone asks for money - Before agreeing, talk it over with a trusted friend, relative or adviser.

Stay organised - Get in contact with us about setting up direct debits and pre-authorised bill payments. Keep a record of any third parties who have access to your accounts. Make sure they are people you know and trust.

Monitor your finances - Check your bank statements, investments and accounts regularly so you can spot unusual transaction activity early.

Review account authorities - From time to time, review who has third-party access to your accounts, and update these if your situation changes.

Take your time with paperwork – Read all documents carefully and never feel pressured to sign anything on the spot. Seek legal advice if you’re unsure. Contact the police if you suspect you’re being coerced or financially exploited.

Where to get help

If you believe you are experiencing financial abuse, you can also reach out to:

Elder Abuse Helpline | Service NSW (available in most states and territories).

If you have any concerns about potential or actual elder abuse, please contact 1800 ELDERHelp (1800 353 374) to be redirected to the existing phone line service in your state or territory (free call).

If you or someone you know have experienced violence or sexual assault and require immediate or ongoing assistance, contact 1800 RESPECT (1800 737 732) to talk to a counsellor from the National Sexual Assault and Domestic Violence hotline.

For confidential support and information, contact Safe Steps' 24/7 family violence response line on 1800 015 188 or the Men's Referral Service on 1300 766 491.