Mr MATT KEAN (Hornsby) [11.08 a.m.]: I am delighted to support the Powers of Attorney Amendment Bill 2013 because it is yet another example of the Coalition Government implementing changes to make life easier for the people of New South Wales. The bill makes small but necessary changes to the operation of powers of attorney in this State.
The proposed amendments will assist in making the prescribed form easier to understand and will provide greater flexibility to allow a person to make arrangements for the management of his or her financial affairs. A person granting a power of attorney wants that process to be easy and also wants to ensure that his or her interests are protected. That is what this bill seeks to achieve. It also increases the ability to ensure that the power of attorney is not misused. That is very important, given how vulnerable people can be when a power of attorney is used. The redesigned prescribed form will alert attorneys to their duty to the principal and the consequences of acting against the principal's best interests.
Too often we are given examples of attorneys not acting in the best interests of the principal. This important amendment increases measures against the misuse of that power of attorney. Many people appointed as attorneys are not experienced in the role and as a result mistakes can be made when handling a principal's financial affairs. Better and clearer information and guidance about carrying out an attorney's duty will reduce the likelihood of mistakes being made, which is what this amendment seeks to do. Further, the redesigned form gives the principal greater flexibility in how his or her financial affairs are to be handled. Whilst the bill does not introduce mandatory obligations, such as compulsory auditing of accounts, a principal can choose to include such obligations in the power of attorney as a condition of appointment.
I believe it is a win for people who choose to appoint a power of attorney to know that their financial affairs are subject to rigorous auditing and will be safeguarded as appropriate. This reform is long overdue. The bill also amends the Act to allow a principal to appoint substitute attorneys. The appointment of a substitute attorney minimises the risk that the original attorney will continue to act if the power is revoked as the substitute attorney will take over as attorney. We have heard of many cases in this State where attorneys dispute the fact that they are being replaced and they continue to act against the interests of the principal. This amendment seeks to resolve those issues. It is good to empower principals and to make sure that their interests are protected and safeguarded.
An instrument of appointment confers on an attorney all the principal's powers to make financial decisions. All principals need to take care to ensure that the attorney they propose to appoint is trustworthy. It goes without saying that the amendments to this legislation seek to include more safeguards, rigour and responsibilities around the role of the power of attorney to protect the interests of the principal. The proposals in this bill allow for the appointment of substitute attorneys as is the case in other States. This legislation brings this State into line with the rest of the Commonwealth. When people transfer from State to State they will know that the system in each State will be similar and that their interests will be protected and safeguarded. The proposals in this bill also split the current single prescribed form of power of attorney into two separate forms to deal with general powers of attorney and enduring powers of attorney. Victoria and Queensland have separate forms for each type of power of attorney.
The Attorney General did not propose these amendments lightly. The proposals contained in this bill are not only sensible but also practical and straightforward. The new prescribed forms have been made in close consultation with the legal profession, organisations involved in care of the elderly, and the general community. The Government involved key stakeholders in this process—a critical role in the formulation of this amendment. We have made sure that appropriate safeguards will be put in place to protect the interests of principals. I commend the Attorney General for his continued good work in delivering outcomes to protect very vulnerable people in our community, for example, children in juvenile detention centres. The Attorney General is now protecting the interests of vulnerable principals who have given the power of attorney to others.
This legislation will ensure that their financial affairs are further safeguarded and that those who are given the power of attorney will continue to act in their interests. This bill will improve the use of the powers of attorney and enable people to decide for themselves how their affairs are to be managed—a very liberal philosophy. I am sure that the Minister for Tourism, Major Events, Hospitality and Racing, and Minister for the Arts, who is in the Chamber, agrees that it is a good thing to give people that freedom, to empower individuals in our community, to enable them to execute their choices and to ensure that their interests are safeguarded, which is what this amendment seeks to do. I commend the Attorney General and his team for their work in formulating this amendment and commend the bill to the House.
Read the full transcript of the debate in Hansard here.
