An enduring power of attorney (EPA) is one of the most important legal documents an Australian can have — yet many people confuse it with a regular power of attorney, overlook it entirely, or assume it's only relevant in old age.
It's not. If you were in a serious accident tomorrow, who would pay your bills, manage your mortgage, or make financial decisions on your behalf?
Without an EPA, the answer might be: nobody, until a court appoints someone.
What Is a Power of Attorney?
A power of attorney is a legal document that appoints someone (your "attorney") to make decisions on your behalf. A regular (general) power of attorney ends if you lose mental capacity — which is precisely when you're most likely to need someone acting for you.
An enduring power of attorney continues to operate — or, depending on the type, comes into effect — when you lose capacity. That's what makes it different, and why it matters.
Financial vs. Personal and Health Decisions
In Australia, the scope of what an attorney can decide varies by state and territory, but generally falls into two categories:
- Financial EPA: Covers management of your money, property, and legal affairs — paying bills, managing investments, buying or selling property, and operating bank accounts.
- Personal / medical decisions: In some states this is a separate document (such as an "appointment of enduring guardian" or "medical treatment decision maker"). This covers healthcare decisions, where you live, and other personal matters.
Note that the terminology varies by state and territory:
- NSW: Enduring Power of Attorney (financial) + Appointment of Enduring Guardian (personal)
- VIC: Enduring Power of Attorney (can cover both financial and personal)
- QLD: Enduring Power of Attorney (can cover both financial and personal)
- WA, SA, TAS, NT, ACT: Similar frameworks with local naming conventions
An estate planning attorney can advise on exactly what documents you need in your specific state or territory.
When Does an EPA Come Into Effect?
You can choose when your EPA operates:
- Immediately — your attorney can act now and also if you lose capacity. Useful if you travel frequently or want help managing day-to-day affairs.
- Only when you lose capacity — sometimes called a "springing" EPA. Your attorney has no power unless and until a doctor certifies that you've lost capacity.
- On a specific trigger — for example, when two medical practitioners certify loss of capacity.
Who Should You Choose as Your Attorney?
Your attorney must generally be at least 18 years old, not your paid care provider (in most states), and mentally capable at the time of their appointment.
More importantly, they should be someone you trust absolutely — because they will have significant power over your financial life. Choose someone who:
- Is financially responsible and honest
- Will act in your best interests, not their own
- Is willing and available to take on the role
- Lives close enough to manage practical matters if needed
- Will keep clear records of decisions made on your behalf
You can appoint more than one attorney — either to act jointly (all must agree), jointly and severally (each can act independently), or in succession (one takes over if the other can't act).
What Happens If You Don't Have One?
If you lose capacity without an EPA, someone must apply to the relevant state tribunal or court to be appointed as your financial manager or guardian. This process is:
- Time-consuming — applications can take weeks or months to be processed
- Expensive — court and tribunal fees, plus legal costs
- Uncertain — the tribunal decides who is appointed, not you
- Financially damaging — bills go unpaid, investments sit unmanaged, and property transactions can stall
Even if your family is appointed, the ongoing court supervision can be burdensome and expensive. An EPA avoids all of this by putting a plan in place while you have capacity to choose.
An EPA Is Not Just for Older Australians
Most people assume an EPA is only relevant in old age. In reality, incapacity can happen to anyone at any age — through accident, sudden illness, or medical emergency. People in their 30s and 40s are increasingly seeking EPAs precisely because they understand this.
If you have a mortgage, investments, a business, or dependants, the question isn't whether you need an EPA — it's whether you can afford not to have one.
How to Set One Up
A valid EPA in Australia must generally:
- Be in writing, on the correct form for your state or territory
- Be signed by you while you have capacity
- Be witnessed by an authorised person — in most states, this must be a lawyer, justice of the peace, or other approved witness, not a family member
- Be signed by your attorney(s) to indicate their acceptance
Requirements differ between states, so it's important to have your EPA drafted by — or at least reviewed by — an estate planning attorney who practises in your jurisdiction.
Store It Where It Can Be Found
Your EPA is only useful if your attorney — and the institutions they deal with (banks, hospitals, government agencies) — can access it quickly when needed. Keep your original document in a secure location and ensure your attorney knows where it is.
Custodium Vault allows you to store a reference copy of your EPA alongside your will, superannuation nominations, and other critical documents — with controlled access for the people who need it.
The Bottom Line
An enduring power of attorney is not about giving up control. It's about ensuring that if you ever can't exercise control yourself, someone you chose — not a tribunal — can step in and act in your best interests immediately.
Without one, that decision is made for you, by a government body, in a process that takes time your family doesn't have.
If you'd like to prepare an enduring power of attorney, our estate planning team provides EPA services to clients in every Australian state and territory. Request a confidential consultation to get started.