About financial administration
Sometimes an adult may lose capacity to make financial decisions for themselves. When this happens the Queensland Civil and Administrative Tribunal (QCAT) or a court may appoint a person or entity as their financial administrator.
A person may also appoint an individual or entity to act as their financial attorney in an enduring power of attorney. They can instruct the attorney to act as their financial administrator either when they still have capacity, or when they lose capacity.
A financial administrator can be either:
- an individual such as a family member, friend, or professional like a lawyer or accountant
- a trustee organisation such as Queensland Public Trustee.
Administrators only deal with financial matters. For personal and health decisions, a guardianship order appointing a guardian must be made. QCAT can appoint an individual or entity as guardian or may appoint the Public Guardian as a last resort.
You can find out more about guardianship orders from:
How financial administrators can be appointed
A person may lose capacity to make financial decisions for themselves due to a disability, illness or injury. When this happens their ability to understand and make financial decisions may be impaired. This can make them vulnerable to exploitation or financial neglect.
When this happens, an administrator is appointed to support their needs and to protect their financial interests.
Applications to QCAT
Applications can be made to QCAT for the appointment of an administrator by:
- a family member
- a friend
- a professional
- any person who has a genuine interest in the welfare of the person
- the individual themselves.
Learn more about decision-making for Adults with impaired capacity from the QCAT website, including how to submit an application.
Appointing a financial administrator
QCAT or the court will decide if an administrator is required. They decide who is the best individual or organisation to look after the person’s financial matters.
Most of the time, QCAT appoints the administrator. However, in special cases such as large damages awards, the court may appoint an administrator instead.
To be appointed as administrator, you must:
- be over 18
- not bankrupt
- not a paid carer or health provider for the person.
QCAT will decide whether a potential administrator is appropriate. They consider whether there are any conflicts of interest between the proposed administrator and the person with impaired capacity. They also consider whether the proposed administrator is available and accessible to the person with impaired capacity.
The role of a financial administrator
Safeguarding a person’s rights
The court or QCAT will decide what financial matters the administrator can help with as it will vary depending on each person’s situation.
Central to QCAT's decision is:
- promoting and safeguarding the person’s rights, interests and opportunities.
- 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 of their financial matters themselves. So they'll 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 a financial administrator may do
A financial administrator may manage:
- assets such as property, vehicles and superannuation
- business interests.
- income, wages and pensions including benefits received from Centrelink and the Department of Veterans Affairs.
- other financial assets including bank accounts, shares and investments.
- any debts or things like credit card repayments.
As required, they may also pay:
- bills, rent or mortgage repayments and other household expenses.
- subscriptions or phone bills.
- vehicle-related expenses like insurance and servicing costs.
Working with other organisations
The role of a financial administrator can also involve working with other organisations such as:
- Centrelink
- National Disability Insurance Scheme (NDIS)
- Australian Tax Office.
The administrator can also help with property management if the person needs to sell, maintain or rent a property. Administrators for older people could also be involved with paying for support services or nursing home fees.
When acting and making decisions, an administrator must apply a set of principles detailed in the Guardianship and Administration Act 2000.
You can find out about the guides and national standards that have been developed for administrators from the Australian Guardianship & Administration Council.
When QCAT appoints QPT as financial administrator
Sometimes QCAT may decide that there is no person who is suitable or willing to take on the role of financial administrator. When this happens, they may decide to appoint QPT.
When QPT is the financial administrator, we work with the person and their support network to understand their needs and ways they need support with their finances. The support we provide depends on the individual needs of the person. Some people need a lot of help, others only a little. Sometimes it’s just for a short time, sometimes it’s ongoing.
We help more than 10,000 Queenslanders with financial administration services. Our role is to uphold the rights and interests of our customers.
We ensure that:
- their funds and assets are protected
- they receive their entitlements
- they have an active role in our decision-making processes.
Real-world example: Jack's story
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.