In Australia, there are two important legal documents through which you, as the Principal, can grant to other(s), as the Attorney, to manage decisions on your behalf — namely, a Power of Attorney (POA) and an Enduring Power of Attorney (EPOA).
Although both legal documents serve similar purposes, it’s essential to understand the differences between them to make an informed decision before putting in place a Power of Attorney or an Enduring Power of Attorney.
In this article, we will explain the differences between POA and EPOA, making it easier for you to grasp their roles and functionalities.
What is a Power of Attorney (POA)?
A Power of Attorney grants someone the authority to make legal and financial decisions for you, but it only remains effective while you have mental capacity.
Unlike the EPOA, it doesn’t continue if you have become mentally incapacitated.
Typically, a POA is granted for a set period of time, for a specific task or under specific circumstances. It is useful in resolving temporary situations, such as when you’re away, voting at a certain meetings on your behalf, or need assistance with a specific matter. It can be customised and revoked as long as you’re mentally capable.
What is an Enduring Power of Attorney (EPOA)?
An Enduring Power of Attorney grants someone the authority to make legal, financial and health decisions for you, even if you don’t have the mental capacity to do so due to illness, injury or under the adverse effect of ageing.
You can only make an Enduring Power of Attorney while you still have the capacity to make your own decision and it continues to be valid even if you become mentally incapacitated in the future.
Essentially, an Enduring Power of Attorney is similar to a Power of Attorney but with one significant difference — it remains valid even if you have become unable to make decisions for yourself.
This means the person you choose to represent you (your enduring attorney or agent) can continue acting on your behalf and making decisions in your best interests during times of incapacity.
Key Differences between Power of Attorney and Enduring Power of Authority
| Power of Attorney | Enduring Power of Attorney |
| Authority to manage legal and financial matters are effective from the date of declaration and can be changed or revoked at any point of time while the Principal is mentally capable, and becomes ineffective when the Principal have lost mental capacity |
Authority to manage legal and financial matters are effective from the date of declaration and can be changed or revoked at any point of time while the Principal is mentally capable. When the Principal has lost mental capacity, authority to manage health matters is effected. |
Power of Attorney in Queensland
Powers of Attorney in Queensland are covered by the Powers of Attorney Act 1998 and the Guardianship and Administration Act 2000.
In November 2020, the Queensland Government implemented significant reforms to the legislative framework underpinning guardianship and Powers of Attorney, aligning state legislations in consistency with human rights principles and United Nations conventions.
The Queensland Government has confirmed that any Enduring Power of Attorney or Advanced Health Directive made before the legislation changed on 30 November 2020 remains valid. There is no requirement to create new documents unless you choose to do so.
Looking to Prepare A Power of Attorney?
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📞 Contact HTW Legal Group today for a consultation.
