Loss of decision-making capacity

As you age, your capacity for handling financial, legal, healthcare and lifestyle decisions may decrease or disappear entirely.

As things can change very quickly, it's important to consider putting plans in place as early as possible. This means instructions from you are already in place if they are needed. This is called acting with capacity.

Capacity is a term that broadly means a person is able to understand the nature and consequences of decisions about matters that impact them, can voluntarily make those decisions, and can communicate them to other people. Impaired capacity is when this ability is not fully available.

Impaired capacity is when a person cannot:

• Understand the nature and effect of decisions;
• Freely and voluntarily make decisions; or
• Communicate those decisions in some way.

An appropriately qualified healthcare professional can determine if a person does or does not have capacity.

The Office of the Public Advocate or Guardian (known differently in each state) are State Government departments that provide a range of services to the public. Depending on the state legislation, this could include acting as guardians for people that are unable to manage their own finances, acting as attorney under Enduring Power of Attorney, acting for people with disabilities where ordered by a Court, acting as Manager and Guardian of Last Resort under appointment by the state or territory-based administrative tribunal.