Protecting your money as you get older

Financial administration

A financial administration order or financial management order is a legal process designed to help protect people who may be unable to manage their own finances. The process is usually started by a person who cares deeply about the wellbeing of someone else, known as a "protected person".

The person applying for the order may be a family member, friend, social worker, or healthcare professional.

If the application is approved, a person who will be known as the ‘financial administrator’ or ‘financial manager’ is appointed. The financial administrator then manages the protected person’s finances. Financial administrators are generally appointed by a state or territory court or tribunal. The appointed person:

• Must be at least 18 years old; and
• Can be a close relative, trusted family friend or a Public Trustee.

The order will detail the type of authority the financial administrator has and the duration of their appointment.

If you have been appointed as a financial administrator, and need to lodge a Financial Administration Order. We will require:

• The original or a certified copy (certified by a Justice of the Peace, Commissioner of Declarations or Solicitor) of the financial administration order; and
• Proof of identity of the financial administrator.

When a Financial Administration Order is lodged with us, we will automatically cancel any existing third party authority or power of attorney on the account.

If you have any questions call 1300 160 160

State and territory-based administrative tribunals

State and territory-based administrative tribunals are bodies that derive their authority from the relevant state-based legislation and hear and determine applications for guardians and financial administrators.

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

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.  

Elder financial abuse 

Elder financial abuse is when a person takes advantage of an older person for their own financial gain. It can happen to anyone, particularly those who depend on others.

As you age, you may need to rely on family or friends to assist you with things like buying groceries or paying bills, and this can leave you vulnerable to abuse.

Elder financial abuse can be committed by a person close to you, or in a position of authority. This could be a family member, caregiver, friend, attorney appointed under a power of attorney, or other trusted individual. It can take many forms and can have far-reaching financial, emotional, physical and psychological impacts.

Knowing more about elder financial abuse can help you and your loved ones recognise it and take steps to prevent it from happening. 

Common forms of elder financial abuse include the following:

• Transferring funds from the elder account to their own personal account
• Making charges to the elder's credit card or accounts without permission
• Demanding monetary loans or gifts
• Forcefully have the elder sign a new will or appoint them as the power of attorney or enduring power of attorney
• Threaten neglect if the elder doesn’t do what they ask
• Restricting or removing access to grandchildren or other family members if the elder person does not do what they ask
• Inheritance impatience e.g. pressuring the elder to sell their assets because they believe that they will be one day entitled to them
• Emotional blackmail.

There are a number of steps that can be taken to protect yourself against financial abuse:

• Open your own mail and ensure you are receiving and reviewing your bank statements for every account you hold 
• Protect your bank account details, security token, cheque book and cards by keeping them in a safe place that others can't easily access. Do not keep a record of your PIN (Personal Identification Number)
• Don’t allow others to add your card details to their digital wallet services (Apple Pay, Samsung Pay or Google Pay branded digital wallet and payment services) or save your card details to their device for online purchases
• If someone asks for money, discuss it first with a trusted family member or friend, even if it seems a legitimate source, bill or invoice
• Always read contracts and other documents carefully and never sign anything under pressure from someone else. You have the right to get your own advice about any documents before you sign them. If you are unsure, seek advice from trusted professionals (your accountant, financial advisor or solicitor) to ensure you are well informed about your options.
• Regularly review who else has access to your accounts and consider applying controls to your debit and credit cards for extra protection.

If you think you are being financially abused, we're here to help.

• Call our local Customer Contact Centre on 1300 160 160

If you are experiencing elder financial abuse, help is available. 

Where can I find help?