- A General Power of Attorney serves while you still have decision-making capacity and stops if that capacity is lost.
- An Enduring Power of Attorney continues to operate even if you later lose capacity.
- The right option depends on your situation and state/territory laws.
Are you travelling overseas and want someone to manage your bank account while you’re away? Or are you planning in case you one day lose the ability to make decisions for yourself?
Appointing someone you trust as a Power of Attorney is a practical way to prepare. However, you need to choose between a general and an enduring power of attorney.
The key difference is straightforward:
- A General Power of Attorney allows others to manage your affairs while you have decision-making capacity. It stops if that capacity is lost.
- An Enduring Power of Attorney continues to operate even if you later lose decision-making capacity.
Let’s look at how each document works in practice.
What is a Power of Attorney?
A Power of Attorney (POA) is a legal document that you can use to grant another person authority to make decisions on your behalf on specific matters, such as legal and financial, if you are incapable or busy.
A Power of Attorney is something you put in place while you are still able to understand and make the decision, not something that can be arranged on your behalf once capacity has already been lost.
If a person has lost capacity without a Power of Attorney in place, the usual path is an application to the relevant state or territory tribunal for the appointment of a financial manager or guardian, which is slower, public, and takes the choice of decision-maker out of the family’s hands.
Keep in mind that the exact powers, terminology, witnessing requirements, and treatment of personal or health decisions differ between Australian states and territories.
General Power of Attorney in Australia
A General Power of Attorney is ideal if you want another person to handle financial or legal matters while you still have decision-making capacity. This is usually for a set period of time.
The following are examples of situations where you can appoint someone else to make decisions on your behalf:
- Operating your bank account for you while you are on holidays
- Voting at meetings on your behalf
- Selling your house while you are in the hospital
Capacity is assessed under the relevant state or territory law. For this article, the key point is that a General POA doesn’t continue once the principal loses the relevant decision-making capacity.
You can’t use a general POA to appoint someone to make personal decisions, such as health-related matters, on your behalf.
Note that some of these tasks carry extra requirements. Where the attorney is going to deal with real property, including selling your house, the Power of Attorney generally has to be registered with the relevant land titles office before the transaction can proceed.
In NSW this is NSW Land Registry Services (section 52, Powers of Attorney Act 2003 (NSW)). Registration is not automatic and it is worth arranging before you leave the country rather than after.
When does a General POA end?
If the principal loses capacity, a General POA ends. It may also end:
- On a specified date or event set out in the document
- When revoked while the principal still has capacity
- When the principal dies
Exact termination rules can vary by jurisdiction, so always check the relevant state or territory requirements.
Enduring Power of Attorney in Australia
An Enduring Power of Attorney continues operating even if the principal later loses decision-making capacity.
Typical scenarios when an enduring POA is useful include:
- Managing your bank account and financial affairs if you develop dementia or suffer a serious illness
- Handling legal and financial matters if you are unconscious after an accident or in a coma
When the attorney’s authority starts can depend on the document and the jurisdiction. It may begin immediately for certain financial matters, or only when a particular condition occurs (for example, loss of capacity).
Because an Enduring Power of Attorney keeps operating at the point you are least able to supervise it, the signing requirements are stricter than for a general appointment.
In NSW, for example, the document must be witnessed by a prescribed witness, being a solicitor, barrister, registrar of the Local Court, or a qualified overseas legal practitioner, who must certify that they explained the effect of the document to you and that you appeared to understand it (section 19, Powers of Attorney Act 2003 (NSW)).
The attorney must also formally accept the appointment before they can act. Having a family member witness the document, which is the most common error we see, will usually make it ineffective as an enduring appointment.
Personal, health, and lifestyle decisions
Australian jurisdictions allow financial and legal authority under an enduring POA. Where the law diverges is personal, health, and lifestyle decisions, meaning things like where you live, what services you receive, and what medical treatment you consent to.
In some states and territories, a single Enduring Power of Attorney covers both financial and personal decisions. In others, you need a second, separate document. Getting this wrong is a common and expensive mistake, because a financial-only appointment gives your attorney no authority to make decisions about your care.
| Jurisdiction | Financial and legal decisions | Personal, health and lifestyle decisions |
|---|---|---|
| NSW | Enduring Power of Attorney (Powers of Attorney Act 2003 (NSW)) | Separate document required: Appointment of Enduring Guardian (Guardianship Act 1987 (NSW)) |
| VIC | Enduring Power of Attorney (Powers of Attorney Act 2014 (Vic)) | The same Enduring Power of Attorney can cover personal matters, but medical treatment decisions require a separate Medical Treatment Decision Maker appointment (Medical Treatment Planning and Decisions Act 2016 (Vic)) |
| QLD | Enduring Power of Attorney (Powers of Attorney Act 1998 (Qld)) | Covered by the same Enduring Power of Attorney, which extends to personal matters including health care. An Advance Health Directive can also be made |
| SA | Enduring Power of Attorney (Powers of Attorney and Agency Act 1984 (SA)), limited to property and financial affairs | Separate document required: Advance Care Directive (Advance Care Directives Act 2013 (SA)) |
| WA | Enduring Power of Attorney (Guardianship and Administration Act 1990 (WA)), limited to property and financial affairs | Separate document required: Enduring Power of Guardianship. An Advance Health Directive can also be made |
| TAS | Enduring Power of Attorney (Powers of Attorney Act 2000 (Tas)), limited to property and financial affairs | Separate document required: Appointment of Enduring Guardian (Guardianship and Administration Act 1995 (Tas)) |
| ACT | Enduring Power of Attorney (Powers of Attorney Act 2006 (ACT)) | Covered by the same Enduring Power of Attorney, which can extend to personal care and health care matters |
| NT | Enduring Power of Attorney (Powers of Attorney Act 1980 (NT)) | Advance Personal Plan (Advance Personal Planning Act 2013 (NT)), which can appoint decision makers for both personal and financial matters |
The practical takeaway is that in NSW, South Australia, Western Australia and Tasmania you need two documents to cover both sides of your affairs.
In Victoria, Queensland and the ACT, one Enduring Power of Attorney can do most of the work, although Victoria still requires a separate appointment for medical treatment. In the Northern Territory, the Advance Personal Plan is the primary planning document.
You can appoint the same person to both roles, and most people do. You don’t have to, though. If the person best placed to manage your investments isn’t the person you’d want making decisions about your care, appointing different people is entirely permissible and often sensible.
What is the main difference between a General and Enduring Power of Attorney?
The main difference is that a General Power of Attorney generally stops if you lose capacity. In contrast, an Enduring Power of Attorney is designed to continue even after you lose capacity.
| Question | General Power of Attorney | Enduring Power of Attorney |
|---|---|---|
| Does it continue if you lose capacity? | Generally no | Yes |
| Typical use | Temporary or convenience-based authority (e.g. travel, short-term absence) | Longer-term incapacity and estate planning (e.g. dementia, serious illness, ageing) |
| Can it start while you still have capacity? | Yes | Often yes, depending on the document and jurisdiction |
| Can it cover personal/health decisions? | Generally no | Depends on the state or territory |
| Does it end upon death? | Yes | Yes |
| When does it end? | On loss of capacity, a specified date/event, revocation (while you have capacity), or death | Ends on death, revocation where legally possible, or another termination event under the relevant law/document |
Which Power of Attorney do I need?
Use this as your decision pathway:
- Temporary authority → General POA
- Future incapacity (financial/legal) → Enduring POA
- Health/lifestyle decisions → Check the relevant state-specific arrangement (e.g. Enduring Guardian in NSW)
Below are some common scenarios when you need a POA. Use your situation to guide the choice.
You are travelling or temporarily unavailable
A General Power of Attorney works well if you need another person to manage financial or legal affairs temporarily while you still have capacity.
Examples:
- Overseas travel for a set period
- Temporary illness or hospital stay
- A specific property transaction while you’re away
- A short period of business absence
This is the “temporary authority” pathway.
You want someone to act if you lose capacity in future
An Enduring Power of Attorney tends to be a planning tool when your goal is to ensure someone can continue managing financial or legal affairs after you lose capacity.
Examples:
- Dementia or cognitive decline planning
- Planning for stroke, serious illness or accident
- Ageing and long-term financial management
- Long-term estate planning alongside a Will
This is the “future incapacity planning” pathway.
You want someone to make health or lifestyle decisions
In this case, the correct document depends on your jurisdiction.
- In NSW, you generally need an Enduring Guardian (not an Enduring POA) to cover lifestyle, health, and medical decisions if you lose capacity.
- In other states and territories, the rules differ; in some places, an Enduring POA can cover certain personal decisions.
Can you have both a General and Enduring Power of Attorney?
Yes. The documents serve different purposes, so you may use them at different times or as part of broader planning.
For example, you might create a General POA for a temporary overseas trip or a specific transaction. Meanwhile, you could consider an Enduring POA separately as part of longer-term incapacity and estate planning.
That said, you don’t necessarily need both; it depends on your circumstances and planning goals.
What happens to a Power of Attorney if you die?
Both General and Enduring Powers of Attorney cease upon the principal’s death.
At that point, the executor or administrator deals with the deceased estate under the will and succession laws, not the attorney under the POA.
Do Power of Attorney rules differ between Australian states and territories?
Yes. Power of Attorney rules differ between Australian states and territories.
Differences can include:
- Terminology (e.g. “Enduring Attorney”, “Advance Personal Plan”)
- What decisions an attorney can make (financial, legal, personal, health)
- Witnessing requirements
- Registration requirements
- When an Enduring POA starts (immediately vs on loss of capacity)
- How personal and health decisions are handled (e.g. Enduring Guardian in NSW)
Before creating an appointment, check your state-specific legislation or seek legal guidance for your state or territory.
This inconsistency is under active review.
The Australian Human Rights Commission has recommended that Australia urgently move to nationally consistent enduring power of attorney laws, and the Commonwealth Attorney-General’s Department has consulted on establishing a national register of enduring powers of attorney, which would allow banks, aged care providers and other third parties to verify an appointment across borders.
Neither reform has taken effect. For now, the law remains state and territory based, and a document made in one jurisdiction will not always be recognised without question in another. If you own assets interstate or expect to relocate, this is worth raising when the document is prepared.
Conclusion
Deciding which power of attorney is right for your circumstances depends on your goals for capacity and duration:
- Choose a General POA when the need is temporary, and you retain decision-making capacity (e.g., for overseas travel or a short-term illness).
- Choose an Enduring POA where you need authority to continue even after a potential loss of decision-making capacity (e.g., long-term financial management or dementia planning).
- Check state or territory rules to ensure you comply with specific requirements for health, personal, or lifestyle decisions, as these often require separate appointments, such as an Enduring Guardian.
Need more guidance? Contact Lawpath’s professional legal team today.
