What is financial administration?
Financial administration is when an administrator is appointed to support someone with their financial matters if they are unable to do so themselves. When someone needs support with financial matters and there is no enduring power of attorney in place, then an administrator may be appointed.
The administrator can be an individual like a family member, friend or professional (like a lawyer or accountant) or a trustee organisation such as the Queensland Public Trustee.
The administrator is appointed by the Queensland Civil and Administrative Tribunal (QCAT) or the court.
The decision to appoint an administrator will be based on the person’s capacity for making decisions related to their financial matters. Intellectual disability, mental illness or age-related illness may impair a person’s understanding of and ability to make financial decisions. The person may be vulnerable to exploitation or financial neglect. An administrator supports the person’s needs and protects their financial interests.
Administrators only deal with financial matters. When people need assistance with personal and health decisions, a guardianship order appointing a guardian is made. A guardian may be friends or family or anyone with a personal or professional interest in that person’s life. A guardian may make decisions such as where a person might live, what support services are needed or health-related decisions.
The Public Guardian is a government body that can be appointed as guardian and is a separate organisation to Queensland Public Trustee.
You can find out more about guardianship orders on the QCAT, Public Guardian and Queensland Government websites.
Information on how administrators can be appointed
Applications can be made to QCAT for the appointment of an administrator. They can be made by a family member, friend, professional or any person who has a genuine interest in the welfare of the person, which can include the individual themselves. You can find out more about how this process works and how to prepare for and submit an application to QCAT.
QCAT or the court will decide if an administrator is required and will make the decision as to who is the best individual or organisation to look after the person’s financial matters. In most circumstances, QCAT will appoint administrators but in special circumstances, such as large damages awards, the court may appoint an administrator.
Individuals can only be appointed as administrators if they are over the age of 18, not bankrupt and not a paid carer or health provider for the person.
QCAT will consider whether a potential administrator is appropriate to administer the financial matters, which includes considering whether there may be any conflicts of interest between the proposed administrator and the person with impaired capacity. QCAT will also consider whether the proposed administrator is available and accessible to the person with impaired capacity.
The role of the financial administrator
The court or QCAT will decide what financial matters the administrator can help with as it will vary depending on each person’s situation. Promoting and safeguarding the person’s rights, interests and opportunities is central to that decision, as is maximising the person’s participation in a way that is least restrictive for them. Some people with impaired capacity will have the ability to manage some financial matters for themselves and will be able to continue managing those matters. However, there might be other financial matters the administrator is given responsibility for managing for the person. Things that an administrator might do include:
- Managing and maintaining assets such as property, vehicles and superannuation
- Paying bills, rent or mortgage repayments and other household expenses
- Paying subscriptions or phone bills
- Managing business interests
- Managing income, wages and pensions including benefits received from Centrelink and the Department of Veterans Affairs
- Paying for vehicle-related expenses like insurance and servicing costs
- Managing other financial assets including bank accounts, shares and investments
- Managing any debts or things like credit card repayments.
The job of an administrator can also involve working with other organisations such as Centrelink, the National Disability Insurance Scheme (NDIS) and the Australian Tax Office. They will assist with property management if the person needs help with selling, maintaining or renting a property. Administrators for older people could also be involved with paying for support services or nursing home fees.
There are guides and national standards that have been developed for administrators. When acting and making decisions, an administrator must apply a set of principles detailed in the Guardianship and Administration Act 2000.
Find more information and resources on financial administration.
Real-world example—Jack's story
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Jack is 83 and was married to his wife Joan for over 50 years before she passed away. Joan had been Jack’s carer as he lived with dementia. Among other things, Joan had taken care of the finances. After Joan died, Jack was left living at home by himself and had no other living relatives or friends who could take care of him. After a fall at home, Jack ended up in hospital, and it became clear he was struggling to take care of himself. The hospital support staff suggested to Jack that he move to a nursing home. He did not really want to make this move but realised that it was the best thing for him. The hospital staff made an application to QCAT nominating Queensland Public Trustee to act as administrator for Jack. Queensland Public Trustee was appointed as Jack’s administrator and after talking to Jack, it was agreed that it was best for him to move into the nursing home and sell his property to pay for ongoing aged care costs. Queensland Public Trustee arranged the sale of the property and managed all of Jack’s financial matters. Jack is now living with support in the nursing home and enjoys improved health and wellbeing as well as a secure financial situation.
Frequently asked questions
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QCAT will only appoint an administrator if it is satisfied that all of the below apply:
- The person has impaired capacity for financial matters.
- There is a need for a decision or the person is likely to do something that involves, or is likely to involve, unreasonable risk to the person’s health, welfare or property.
- If an administrator is not appointed, the person’s needs will not be adequately met or their interests will not be adequately protected.
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A person may have impaired capacity if they are unable to understand, make or implement a decision. Two parts to the decision-making process have been identified:
- Understanding the nature and effect of the decision
- Deciding freely and voluntarily.
The complexity of decisions a person may face can vary and so too can a person’s capacity for decision making. A person may be able to cope with some decision-making tasks and not others.
A person's capacity to make the same decision may vary over time depending on the nature of their illness or disability.
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QCAT is an independent, accessible tribunal that resolves disputes and makes and reviews decisions on a range of matters.
In guardianship and administration matters, QCAT has exclusive jurisdiction for the appointment of guardians and administrators for adults with impaired capacity. However, the Supreme Court can appoint administrators in settlement or damages awards.
The guardianship and administration functions of QCAT include:
- Consider applications for appointment of guardians and/or administrators
- Appoint guardians and administrators and review their appointments
- Make declarations about the capacity of an adult
- Provide directions or advice in relation to guardians and administrators, enduring powers of attorney, attorneys and related matters
- Ratify an actual or proposed action for an adult by an informal decision maker
- Consent to certain types of special health care for the adult
- Register orders of a similar type (i.e. guardianship and administration orders) made outside of Queensland
- Review a matter in which a decision has been made by the Registrar of QCAT.
Find more information about the role of QCAT in guardianship and administration matters.
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The Public Guardian is an independent statutory officer responsible for protecting the rights and interests of adults with impaired capacity. The Public Guardian can offer support and advice to attorneys and supervise an attorney if there is any concern about how the attorney is performing their role.
The Public Guardian protects adults who have impaired capacity from neglect, exploitation and abuse. It can investigate complaints and allegations about actions by an attorney, guardian or administrator, or another person acting or purporting to act under an enduring power of attorney. The Public Guardian can mediate between attorneys, guardians or administrators and others if there is a dispute.
As a result of an investigation, the Public Guardian can suspend the powers of any attorney if suspected to have acted in an inappropriate manner placing an adult with impaired capacity at personal or financial risk.
The Queensland Civil and Administrative Tribunal can also appoint the Public Guardian as guardian if there is no other appropriate person available for appointment as a guardian.
Find out more information about the role of the Public Guardian.
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The Guardianship and Administration Act 2000 establishes the role and functions of the Public Advocate. The Public Advocate's role is systemic advocacy. The Public Advocate works on behalf of adults with impaired decision-making capacity to:
- promote and protect their rights, including protecting them from neglect, exploitation and abuse
- encourage the development of services and programs to help them reach the greatest degree of autonomy, and
- promote, monitor and review the provision of services to them.
The Public Advocate may intervene in a proceeding before a court, tribunal or in an official inquiry. However, this intervention requires the leave of the court, tribunal or person in charge of the inquiry and is subject to the terms imposed by those bodies.
Find out more information about the role of the Public Advocate.
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Financial elder abuse is the misuse or theft of an older person’s money or assets.
Some examples of financial elder abuse include:
- forcing an elderly person to sign over their property or assets
- misusing or taking an elderly person’s money or credit cards
- using undue influence or deception to change the terms of an elderly person’s Will or enduring power of attorney
- forging an elderly person’s signature.
If you suspect that someone may be experiencing financial elder abuse, you can contact the Public Guardian who may conduct an investigation. If you witness violence or are worried that an older person is at risk of physical harm, you should call the Police.
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Trustee organisations acting as an administrator do charge fees for this service. You can find out more about our fees and charges for the services we provide as an administrator. If you are an individual, you cannot charge for your services or your time, but you can be reimbursed for any reasonable expenses you incur for the person. For example, you may pay a telephone bill for the person from your own funds, and you would be entitled to be reimbursed for paying that telephone bill.