Capacity isn't all or nothing: breaking down one of the biggest myths about decision-making

Queensland’s decision-making framework

When people hear the phrase "someone has lost capacity", they often imagine a simple divide. A person either has capacity, or they don't. In reality, decision-making capacity is often far more nuanced than that.

One of the most common misconceptions in discussions about guardianship, financial administration and future planning is that once capacity becomes impaired, a person loses the right to make their own decisions altogether.

Queensland's decision-making framework takes a very different approach.

It starts from the principle that every adult is presumed to have capacity to make all decisions until proven otherwise. If an adult has capacity for a particular decision, they have the right to make their own decisions, and support should be provided in ways that maximise a person's independence and participation in decision-making. Understanding this principle helps explain why the system places such a strong emphasis on rights, dignity and individual choice.

Capacity depends on the decision

One of the most important things to understand about capacity is that it is decision-specific. A person may be able to make some decisions independently, while requiring support with others.

For example, someone may be fully capable of minor decisions relating to:

• what clothes to buy
• budgeting for their weekly grocery shop
• paying routine bills such as a phone or electricity bill.

While they find it more difficult to make complex decisions about:

• financial investments
• property transactions
• legal contracts
• long-term financial planning.

This is why capacity assessments focus on a specific decision or group of decisions rather than making a broad judgment about a person's overall abilities.

The question is not simply, "Does this person have capacity?"

The question is, "Does this person have capacity to make this particular decision?"

Capacity can change over time

Another common myth is that capacity, once lost, never changes. In reality, capacity can fluctuate and is time-specific, depending on a person’s health, treatment, circumstances and the support available to them at the time a decision needs to be made. Some people may experience temporary periods of reduced decision-making ability, while for others, their decision-making capacity may fluctuate day to day.

This is one reason Queensland's system places such importance on reviewing the appointment of substitute decision-makers such as a financial administrator or a guardian and ensuring appointments are tailored to a person’s individual circumstances. The goal of substituted decision-making is to address limitations on a person’s decision-making capacity and to support their capacity to make decisions where possible.

Support can make a meaningful difference

An important principle of modern decision-making frameworks is that people should be supported to make their own decisions wherever possible.

Sometimes that support may involve:

• providing information in a simpler format
• allowing additional time to consider options
• involving trusted family members or supporters
• helping a person understand the consequences of a decision.

The fact a person requires support to make a decision does not automatically mean they lack capacity to make that particular decision.

Many Queenslanders successfully make their own decisions every day with varying levels of assistance and support.

Recognising this distinction helps ensure a person’s independence and autonomy are respected.

H5: Planning ahead helps protect choice

One of the advantages of planning ahead is that it allows people to provide directions about how future decisions are made on their behalf.

Queensland Public Trustee assists Queenslanders to prepare enduring power of attorney documents (EPA). An EPA allows a person to nominate someone they trust to make financial and/or personal decisions, should they lose capacity in the future.

A person must have capacity to understand the nature and effect of an EPA at the time it is signed for the EPA to be valid. This is why it is so important to prepare these documents long before they are required. Planning early helps preserve personal choice.

Capacity and financial decision-making

Financial decisions can be particularly complex. Paying bills, managing investments, understanding contracts and protecting assets may involve a range of responsibilities.

When an adult is unable to make certain financial decisions, QCAT may consider appointing an administrator to assist with financial matters.

Importantly, this does not mean a person has lost decision-making capacity across every aspect of their life. Rather, the appointment relates to specific matters where support is required.

Rights remain at the centre

Queensland's guardianship and administration system maintains a focus on a person’s right to make decisions, promoting participation in decision-making, and providing those with impaired capacity with support to make their own decisions, wherever possible. When making decisions on behalf of an adult, family members, administrators, guardians and support agencies are required to consider the adult's views, wishes and preferences, to the greatest extent practicable.

The system is designed not simply to protect people. It is designed to respect them. This means that even when formal arrangements are put in place, the individual remains central to decisions affecting their life.

Why understanding capacity matters

As Queensland's population ages and more families navigate issues relating to disability, health conditions and future planning, understanding decision-making capacity becomes increasingly important. It helps dispel myths, encourages earlier conversations, and it reminds us that people should never be defined solely by the challenges they face.