Powers of Attorney for Aged Care Decisions: What Families Need Before a Placement

What authority is needed before aged-care placement?

An aged-care placement is not a single decision. It is a cluster of decisions — some financial, some personal, some medical — each of which requires the right legal authority. The typical decisions include:

• choosing which aged-care home the person will move into;
• signing the Resident Agreement and Accommodation Agreement;
• agreeing the accommodation price and RAD/DAP structure;
• arranging payment of a RAD from the person's assets or a house sale;
• managing ongoing Basic Daily Fees and means-tested contributions;
• consenting to medical treatment on admission and afterwards; and
• dealing with the person's Will, superannuation and estate plan.

Different documents cover different parts of this list. One instrument almost never covers all of it.

Financial and personal powers under an enduring power of attorney

In Victoria, an enduring power of attorney under the Powers of Attorney Act 2014 (Vic) can appoint an attorney for financial matters, personal matters, or both. A properly drafted and validly executed enduring power of attorney allows the attorney to act for the principal in the appointed areas while the principal has capacity (if the document so allows) and continues after the principal loses capacity for the relevant decision.

For an aged-care placement, the practical points are:

• a financial attorney can sign the Accommodation Agreement, arrange payment of a RAD or DAP and manage ongoing fees;
• a personal attorney can decide where the principal lives, including selecting an aged-care home, subject to the statutory principles;
• the attorney must act honestly, with reasonable care and diligence, in accordance with the principal's will and preferences so far as known and to promote the principal's personal and social wellbeing;
• conflict transactions (for example, transferring assets to the attorney) require specific authorisation in the document; and
• the attorney must keep records and keep the principal's property separate.

For the general framework and common drafting problems, see our powers of attorney Victoria guide and our article on common enduring power of attorney mistakes.

Medical treatment decision-makers

Medical treatment decisions are governed by the Medical Treatment Planning and Decisions Act 2016 (Vic), not by the enduring power of attorney regime. A person with capacity can appoint a medical treatment decision-maker on the prescribed Victorian form. Where no appointment applies, the Act sets out a statutory hierarchy to identify a substitute decision-maker.

A medical treatment decision-maker only has authority when the person lacks decision-making capacity for the particular medical treatment decision. Any valid and applicable instructional directive must be followed, and every substitute decision must be guided by the person's values, preferences and likely decision. A personal attorney under an enduring power of attorney, a support person and a family member do not automatically have medical treatment authority — the role is separate. See our article on the medical treatment decision-maker in Victoria for detail.

Signing aged-care agreements and accommodation payment documents

Residential aged care in Australia is governed by the Aged Care Act 2024 (Cth), which commenced on 1 November 2025. The core documents are a Resident Agreement covering services, fees, rights and complaints and a separate Accommodation Agreement covering the accommodation price and whether it is paid as a RAD, DAP or combination.

Signing authority for those documents depends on capacity:

• If the resident has capacity for the transaction, the resident signs. An attorney does not step in simply because it is more convenient.
• If the resident lacks capacity for the transaction, an attorney under a valid enduring power of attorney (financial for the Accommodation Agreement and fee decisions; personal for lifestyle aspects) signs on the resident's behalf.
• If there is no valid appointment and the resident lacks capacity, no family member has automatic authority. An application to VCAT for an administrator (and, if needed, a guardian) may be required before anyone can sign.

For a signing checklist and detail on what to review inside the contracts themselves, see our aged-care resident agreement checklist. For the cost side — RAD, DAP, Basic Daily Fee and the means-tested contribution — see our guide to aged-care costs, RAD, DAP and the fee reforms.

What if the older person still has capacity?

Capacity is decision-specific and time-specific. An older person can lack capacity for complex financial decisions but still have capacity to choose where they live, or vice versa. Where the person has capacity for the particular decision — signing the Resident Agreement, choosing the home, agreeing the accommodation price — they should sign for themselves. Family members should not use an enduring power of attorney to override a competent principal.

This is also the right moment to make sure the older person has an up-to-date enduring power of attorney and, ideally, a medical treatment decision-maker appointment in place before capacity is later lost. Placement is often the last opportunity to put these documents in order.

What if there is no power of attorney?

Where the person has lost capacity and there is no valid enduring power of attorney, an aged-care provider cannot lawfully accept a family member's signature on the Accommodation Agreement or RAD documents. The usual path is:

1. obtain a capacity assessment from the treating doctor or a geriatrician;
2. apply to VCAT for the appointment of an administrator to manage financial decisions;
3. apply for a guardian at the same time where personal and lifestyle decisions are also required;
4. attend the VCAT hearing (usually a short list-day matter unless it is contested); and
5. provide the VCAT order to the aged-care provider before signing.

This process takes time and can delay placement. It also brings ongoing supervision — administrators must report annually to VCAT. Having a valid enduring power of attorney in place before capacity is lost avoids most of this.

Family disagreement and provider pressure

Two pressures commonly collide at placement. First, adult children may disagree about which home, when to move, how to fund the accommodation price and what to do with the family home. Second, aged-care providers often want the Resident Agreement, Accommodation Agreement and RAD paperwork signed quickly to secure the bed.

Where a valid enduring power of attorney or medical treatment decision-maker appointment exists, those instruments determine who decides. Family opinion does not override a validly appointed decision-maker acting properly. Where the appointed decision-maker is not acting in the principal's interests, VCAT can review and, in appropriate cases, revoke or replace the appointment. Provider representative or authority forms are not a substitute for legal authority — they should never be used to sign around the proper decision-maker.

Checklist before placement

• Locate the current, signed enduring power of attorney (financial and personal) and confirm it is valid and broad enough for the transaction.
• Locate any appointment of medical treatment decision-maker and any advance care directive.
• Locate the person's current Will and confirm it is up to date given the move.
• Assess whether the person has decision-making capacity for the specific transaction — do not assume either way.
• If capacity is lost and there is no appointment, start the VCAT administration and guardianship application early.
• Obtain the specific Resident Agreement, Accommodation Agreement and any provider representative form for legal review before signing.
• Coordinate legal advice with financial advice on RAD versus DAP and the treatment of the family home.
• Document family discussions and any agreed division of responsibilities in writing.
• Confirm the identity and contact details of the person who will act as the resident's representative for day-to-day matters.
• Make sure the aged-care home is given original documents where required, not just copies.

When to seek legal advice

Seek legal advice before placement where any of the following applies: there is no enduring power of attorney; the existing appointment is old, ambiguous or arguably invalid; capacity is uncertain or disputed; family members disagree about the placement or the funding; the accommodation price is significant; the person owns a business, farm or self-managed super fund; or the provider is pressing for signature on unfamiliar representative or authority forms. Getting authority right before signing is much cheaper than unwinding a defective placement later.

How we help

Our powers of attorney and elder law team and retirement living and aged care team work together on aged-care placements — reviewing enduring powers of attorney and medical treatment decision-maker appointments; assessing whether new or updated documents are needed; reviewing the Resident Agreement, Accommodation Agreement and provider representative forms; and, where required, running VCAT administration and guardianship applications. We coordinate with financial advisers and accountants on the RAD/DAP structure and the treatment of the family home.

Frequently Asked Questions