3 Introduction 3.1 Background and rationale The focus of this report is on ‘financial enduring powers of attorney’ (FEPOA). An FEPOA is a legal instrument that allows an adult (the principal) to appoint an adult person(s) (the appointed decision-maker(s)) to make certain financial and/or asset decisions on their behalf. Unlike a general or non-enduring power of attorney, which ends once the principal has lost capacity to make decisions on their own, an FEPOA can continue even if the principal loses capacity to make decisions in the future. Over the past nearly two decades, there have been many inquiries and submissions from key stakeholders which have discussed and advocated for national FEPOA reform.1 Reform proposals have focused on the need for national consistency in FEPOA laws, the development of a national register and the delivery of national education. Key arguments for reform have centered on the necessity of remedying the confusion and complexity caused by current inconsistencies in FEPOA legislation across jurisdictions. The benefits of achieving national consistency have been identified to include improved awareness and understanding about FEPOAs as instruments for future planning, the ability to deliver education at the national level to Australians about their rights and responsibilities under these documents as well as a reduction in financial elder abuse which may arise from their deliberate or inadvertent misuse.2 While FEPOAs can provide a protective benefit for principals from financial, physical and psychological abuse, studies have shown they can also be misused to perpetrate financial abuse by the very individuals trusted and appointed by the older person to safeguard their future interests.3 The National Elder Abuse Prevalence Study 2021 found almost one in six (15%) older Australians living in community experienced abuse within a 12-month period. While the study did not capture the experiences of older people who had insufficient cognitive capacity to participate in the survey, and who consequently may be at greater risk of experiencing abuse or misuse of FEPOAs, financial abuse was found to be the third most common form of elder abuse after psychological abuse and neglect.4 To date, there has been relatively limited research and data on Australians’ knowledge and understanding of FEPOAs, as well as the experiences and demographic profile of principals and appointed decision-makers.5 The present complexities in FEPOA legislation across jurisdictions and the absence of a national register, means that FEPOAs are not formally registered in most states and territories and primarily remain largely private legal arrangements.6 More data and insight, especially at the national level, about the current state of knowledge and use of FEPOAs in Australia is important to inform ongoing FEPOA reform efforts and support the development of useful education about FEPOAs in the future. By surveying a nationally representative cohort of Australian adults, this research sought to build on existing evidence and contribute more knowledge about FEPOAs, with a particular focus on four key areas: l Awareness and use l Knowledge and understanding l Education l Principal and appointed decision-maker considerations and experiences. Chapter : 3 Introduction 13