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Latest Guardianship Laws protect rights of adults with limited ability to make decisions

Thursday 27 February 2020
A young woman sits on a park bench beside an older man in a wheelchair, gently resting her hand on his shoulder in a supportive gesture. The image represents compassion and support, aligning with the theme of new guardianship laws empowering individuals with limited decision-making capacity.

People with limited decision-making capacity may soon have more power to manage their own personal and financial affairs under legislation which will this month come into effect in Victoria.

The new guardianship laws aim to strike the balance between empowering and protecting Victorians whose capacity to make decisions is limited because of a disability.

The Guardianship and Administration Act 2019 (Vic) governs the appointments and powers of guardians and administrators and introduces supportive guardian and administrator appointments.

What are guardians and administrators?

The Victorian Civil and Administrative Tribunal (VCAT) can appoint a guardian or administrator for someone who has a disability and does not have decision making capacity in relation to at least some financial and/or personal or lifestyle matters.

Decision making capacity could be impaired because the person, who is known as a represented person, has:

  • a mental illness

  • dementia, or

  • an intellectual disability.

When making an appointment, VCAT must be satisfied that it will promote the person's personal and social wellbeing.

Under the new guardianship laws, VCAT is also able to make appointments known as supportive guardians for personal matters and supportive administrators for financial matters where a person with a disability does have decision making capacity if they are provided appropriate support. The role of a supportive guardian and/or administrator is to support a represented person to obtain information and make decisions.

What is decision making capacity?

Under the new guardianship laws, a person is presumed to have decision-making capacity unless proven otherwise. This new presumption mirrors recent changes to the Powers of Attorney Act 2014.

They will also be taken to have decision-making capacity if they are able to make a decision with appropriate support and will be deemed to have capacity if they can:

  • understand the information relevant to the decision,

  • retain that information, and

  • communicate the decision and their views and needs relating to the decision in some way, including by speech or gesture.

What sort of decisions can guardians and administrators make?

Guardians can be appointed to make decisions relating to a represented person's lifestyle. These might include:

  • where the represented person might live,

  • what support services they might access, and

  • what medical treatment they might receive.

Administrators can be appointed to make decisions relating to a represented person's finances. They might be appointed to:

  • pay bills on behalf of a represented person,

  • buy or sell property on their behalf, and/ or

  • manage their bank accounts.

Under the new laws, VCAT now has the power to tailor orders to suit the represented person's needs. For example, an administrator's role may be limited to buying a property on behalf of a represented person.

What if a guardian or administrator has done the wrong thing? 

Guardians, administrators and supportive guardians and administrators who dishonestly use their appointments for financial advantage or dishonestly cause loss to the represented person or another person face fines and up to five years in prison.

How can I make an application?

Anyone can apply to VCAT on behalf of someone who has impaired decision-making capacity, particularly in cases where that person might be vulnerable to the influence of others.

Need Advice About Guardianship or Administration Matters?

Making decisions for a loved one who has lost capacity can be challenging, both emotionally and legally. Understanding the roles of guardians, administrators and supportive decision-makers is important to ensuring the rights, wellbeing and financial interests of vulnerable individuals are protected.

Whether you need advice about a guardianship application, administration order, powers of attorney or planning for future decision-making arrangements, obtaining experienced legal advice can help you navigate the process with confidence.

Lachlan Vallance, Director and Principal Lawyer, advises clients on guardianship and administration matters, powers of attorney, estate planning, VCAT applications and a broad range of Wills & Estates issues.

Visit Lachlan Vallance's profile to learn more about his experience and how he can assist.

Disclaimer: The content provided in this publication is intended for general informational purposes only and should not be construed as tailored advice to address specific individual or organisational circumstances. While we strive to offer accurate and up-to-date information, we cannot guarantee its accuracy at the time of receipt or its continued accuracy in the future. Readers are encouraged to seek professional advice or consult relevant authorities regarding their unique situations.
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