Power of Attorney vs Advance Care Directive — what's the difference?

Power of Attorney and Advance Care Directive are two different documents that work together. Both are essential for anyone planning for future care needs. This guide explains each one simply and why you need both.

Power of Attorney — who decides

A Power of Attorney (POA) authorises a specific person — your attorney — to make decisions on your behalf if you cannot make them yourself. There are two types:

• Financial POA: authorises your attorney to manage money, property, and financial affairs
• Medical/health POA (Enduring Guardianship): authorises your attorney to make healthcare and living arrangement decisions

A POA tells the system who makes the decisions.

Advance Care Directive — what they decide

An Advance Care Directive (ACD) records your personal wishes for future medical treatment and care — what you would want, what you wouldn't want, and what matters to you. It may include preferences about life-sustaining treatment, pain management, where you want to be cared for, and specific treatments you would refuse.

An ACD tells the decision-maker what decisions to make.

Why you need both

They work together. Without a POA, there may be no one with legal authority to make decisions — leading to delays, family conflict, or tribunal involvement. Without an ACD, even the best-intentioned attorney may not know what you would actually want.

When they come into effect

An enduring POA comes into effect if and when you lose capacity — it endures beyond capacity loss. A regular POA ends if you lose capacity. Always use an enduring POA for aged care planning. An ACD takes effect when you can no longer make or communicate your own decisions.

Getting both done

Both documents can be completed using free government forms through your state's public trustee. A solicitor charges approximately $300–600 for both together. Both require witnessing — the public trustee offices guide you through this.

National ACD resource: advancecareplanning.org.au