0 Victorian Law Reform Commission – Guardianship: Final Report 24 Chapter 17 0 Responsibilities of substitute decision makers INTROduCTION 17.1 This chapter addresses the responsibilities

17375

17Chapter 17

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CONTENTSIntroduction� 376

Current�law� 376

Community�responses� 383

Other�jurisdictions� 387

Convention�on�the�Rights�of�Persons�with�Disabilities� 391

The�Commission’s�views�and�conclusions� 393

Responsibilities of substitute decision makers

Victorian Law Reform Commission – Guardianship: Final Report 24376

17Chapter 17Responsibilities of substitute decision makers

INTROduCTION17.1 Thischapteraddressestheresponsibilitiesofsubstitutedecisionmakers,particularly

theprinciplesandconsiderationsthatshouldguidethedecisionstheymake.

17.2 Thetensionbetweenthevaluesof‘autonomy’and‘protection’,or‘beneficence’,havebeenattheheartofdebatesanddevelopmentsinmodernguardianshiplaws.1Thischapterconsidersthesecompetingvalueswhenproposingthatdecision-makingprinciplesshouldbemodernisedsothattheyreflecttheemphasisonparticipation,equalityandautonomyembodiedwithintheUnitedNations’Convention on the Rights of Persons with Disabilities(theConvention).2Inparticular,theCommissionsuggeststhattheprincipleof‘substitutedjudgment’shouldhavegreaterprominenceinnewguardianshiplaws.

17.3 TheCommissionalsoproposesthatsimilarprinciplesshouldapplytoallsubstitutedecision-makingarrangements,regardlessofhowtheyareappointed.ThischangereflectstheCommission’srecommendationformoreintegrationofthelawacrossthevarioussubstitutedecision-makingappointments.

17.4 Thischapteralsoconsidersotherresponsibilitiessubstitutedecisionmakershaveintheperformanceoftheirroles,includinganobligationtoavoidconflictsofinterests,andadutyofconfidentialitytotherepresentedperson.

17.5 TheCommission’srecommendationsabouthowsubstitutedecisionmakersshouldbeheldaccountablefortheirconductandthedecisionstheymakeisdiscussedinChapter18.

CuRRENT Law17.6 Theresponsibilitiesofguardians,administratorsandthepersonresponsibleformedical

decisionsaresetoutprimarilyintheGuardianship and Administration Act 1986 (Vic)(‘G&AAct’).Thesesubstitutedecisionmakersalsohavegenerallawresponsibilities,suchasfiduciaryduties,whichawaitdevelopmentbythecourtsincaselaw.

17.7 TheresponsibilitiesofenduringfinancialattorneysarefoundintheInstruments Act 1958(Vic)andthegenerallaw.Theresponsibilitiesofmedical‘agents’inrefusingmedicaltreatmentaredetailedintheMedical Treatment Act 1988 (Vic).

17.8 Weconsidereachappointmentinmoredetailbelow.

ObjECTS Of ThE GuaRdIaNShIp aNd admINISTRaTION aCT17.9 AlldecisionmakersundertheG&AAct—includingguardians,administratorsandthe

personresponsibleformedicaldecisions—mustexercisetheirpowerssothat:

• themeanswhichisleastrestrictiveofaperson’sfreedomofdecisionandactionasispossibleinthecircumstancesisadopted

• thebestinterestsofapersonwithadisabilityarepromoted

• thewishesofapersonwithadisabilityaregiveneffecttowhereverpossible.3

17.10 Thesemattersguidetheperformanceof‘everyfunction,power,authority,discretion,jurisdictionanddutyconferredorimposed’bytheG&AAct.

1 TerryCarney,‘Guardianship,CitizenshipandTheorisingSubstituteDecisionMakingLaw’inIDorenandASoden,Beyond Elder Law: New Directions in Law and Ageing(Springer,forthcoming2012).

2 Convention on the Rights of Persons with Disabilities,openedforsignature30March2007,999UNTS3(enteredintoforce3May2008)(‘Convention on the Rights of Persons with Disabilities’).

3 Guardianship and Administration Act 1986 (Vic)s4(2).SeealsoXYZ v State Trustees Ltd [2006]VSC444(22November2006).

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17.11 TheG&AActalsoprovidesspecificguidanceabouthowparticularsubstitutedecisionmakers—guardians,administratorsandthepersonresponsibleformedicaldecisions—shouldexercisetheirpowers.

GuaRdIaNS aNd ENduRING GuaRdIaNS17.12 Theoverridingresponsibilityforguardiansinexercisingtheirpowersistoactinthe

‘bestinterests’oftherepresentedperson.4TheG&Astatesthiscanbeachievedby:

• actingasanadvocatefortherepresentedperson

• encouragingtherepresentedpersontoparticipateasmuchaspossibleinthelifeofthecommunity

• encouragingandassistingtherepresentedpersontobecomecapableofcaringforthemselvesandmakingreasonablejudgmentsinrelationtomattersaffectingthem

• protectingtherepresentedpersonfromneglect,abuseorexploitation

• actinginconsultationwiththerepresentedperson,takingintoaccounttheirwishesasfaraspossible.5

17.13 Theseprinciplesapplyequallyto‘privateguardians’,suchasafamilymemberorfriend,andthePublicAdvocatewhenappointedasaguardianbytheVictorianCivilandAdministrativeTribunal(VCAT).Theyalsoapplytopersonallyappointedenduringguardians.6

17.14 Inpractice,enduringguardianshavetheaddedresponsibilityofdeterminingifthepersonappointingthemhaslosttheabilitytomakeadecision.Thismeansthattheyareobligedtodecidewhenandtowhatextenttheirpowerscomeintooperation.7

Guardianship standards17.15 TheAustralianGuardianshipandAdministrationCouncil8hasdevelopedasetof

NationalGuardianshipStandardstoguideguardiansabouthowtoperformtheirrole.9ThePublicAdvocatehaslargelyadoptedthesestandardsinherownGuardianshipStandards.10

17.16 ThePublicAdvocate’sGuardianshipStandardsinclude:

• providinginformationtotherepresentedpersonabouttheguardian’srole,authorityandguardianshipservicestandards,andprovidinginformationtorelevanthealthcareprofessionalsaboutsubstitutedecisionmaking

• seekingviewsfromtherepresentedpersonthroughongoingpersonalcontact,followingtheseviewswhereverpossible,andconsideringanyobjectionstherepresentedpersonhastoaproposedcourseofaction

• seekingviewsoffamilyandothersintherepresentedperson’slifeforimportantdecisions

• takingintoconsiderationtherecommendationsofhealthprofessionalswhererelevant

4 Guardianship and Administration Act 1986 (Vic)s28(1).5 Ibids28(2).6 Ibids35B(5).7 Ibidss35B(1)–(3).8 TheAustralianGuardianshipandAdministrationCouncilcomprisesalltheguardianshiptribunals,publicadvocates,andtheprimarypublic

trusteebodiesineachAustralianstateandterritory.Forfurtherdetails,seetheAustralianGuardianshipandAdministrationCouncil’swebsite:<http://www.agac.org.au/>.

9 AustralianGuardianshipandAdministrationCouncil,National Standards of Public Guardianship(7October2009)<http://www.agac.org.au/images/stories/national_stands_public_guardianship.pdf>.

10 OfficeofthePublicAdvocate(Victoria),Guardianship Standards(11August2010)<http://www.publicadvocate.vic.gov.au/about-us/199/>.



• advocatingfortheleastrestrictivealternativethatmeetstheneedsoftheperson

• makingdecisionsinaccordancewiththelegislativeprinciplesandthetermsoftheorder,andprovidingwrittenreasonsfordecisionsuponrequest

• recordinginformationrelevanttomakingdecisions,includingreasonsfordecisions

• participatinginguardianshipreassessments,includingbyrequestingareassessmentiftheguardianbelievesacancellationorchangeoftheorderisappropriate,andbyprovidingawrittenreporttoVCATdetailingdecisionsmadeandarecommendationabouttheorder

• ensuringtheprivacyandconfidentialityoftherepresentedpersonandkeypeopleintheirlife.11

17.17 ThesestandardsapplytopublicguardiansandcommunityguardiansappointedbythePublicAdvocate,andarealsorecommendedforprivateguardians.12

admINISTRaTORS17.18 Likeguardians,administratorsarerequiredtoactinthebestinterestsofthe

representedperson.TheG&AActstatesthatthisincludes:

• encouragingandassistingtherepresentedpersontobecomecapableofmanagingtheirestate

• actinginconsultationwiththerepresentedperson,takingintoaccounttheirwishesasfaraspossible.13

17.19 Administratorsarealsosubjecttoresponsibilitiesatgenerallaw,astheirrelationshipwitharepresentedpersonisonethatattractsfiduciaryduties.14

17.20 ThePublicAdvocatesummarisesthecoreresponsibilitiesofadministratorsas:

• alwaysactinginthebestinterestsoftherepresentedperson

• consultingwiththerepresentedpersonasmuchaspossible

• avoidingtransactionswherethereisarealorperceivedconflictofinterest

• ensuringtheongoingappropriatenessofanyinvestmentsmadeonbehalfoftherepresentedperson.15

General responsibilities17.21 TheG&AActalsocontainsdetailedinstructionsaboutthepowersanddutiesof

administrators.TheCommissionconsidersthepowersofadministratorsinmoredetailinChapter12,butsomeofthesepowersaredraftedinawaythatalsoencompassresponsibilities.

11 Ibid.12 OfficeofthePublicAdvocate(Victoria),Administration Guide: A Guide for People Appointed as Administrators under the Guardianship and

Administration Act 1986(2009)<http://www.publicadvocate.vic.gov.au/file/file/Administration/Administration%20Guidev2%20for%20web5.pdf>;OfficeofthePublicAdvocate(Victoria),Community Guardianship Manual(2008),23–5<http://www.publicadvocate.vic.gov.au/file/file/Volunteers/Community_Guardianship_Manual.pdf>.

13 Guardianship and Administration Act 1986 (Vic)s49(2).14 Forageneraldiscussionoffiduciaryrelationshipsandtheirobligations,seeHospital Products Ltd v United States Surgical Corporation (1984)

156CLR41.InrelationtothefiduciarynatureofadministrationinVictoria,seeState Trustees Limited v Hayden(2002)4VR229[49];HH (Guardianship)[2008]VCAT2344(12November2008)[103].

15 OfficeofthePublicAdvocate(Victoria),Administration Guide: A Guide for People Appointed as Administrators under the Guardianship and Administration Act 1986 (2009),7<http://www.publicadvocate.vic.gov.au/file/file/Administration/Administration%20Guidev2%20for%20web5.pdf>(‘Administration Guide’).

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17.22 Administrators,totheextentthattheirauthorityundertheG&AActandtheadministrationorderallows,have‘thegeneralcareandmanagementoftheestateoftherepresentedperson’.16Itistheirdutyto:

takepossessionandcareof,recover,collect,preserveandadministerthepropertyandestateoftherepresentedpersonandgenerallytomanagetheaffairsoftherepresentedpersonandtoexerciseallrightsstatutoryorotherwisewhichtherepresentedpersonmightexerciseiftherepresentedpersonhadlegalcapacity.17

17.23 Theyalsohavethepowerto:

doallactsandexerciseallpowersconcerningtheestateaseffectuallyandinthesamemannerasthepersonwhoseestatetheyareadministeringcouldhavedoneiftheywerenotunderalegaldisability.18

Investment of funds17.24 Inexercisingtheirpowerstoinvestthefundsoftherepresentedperson,

administratorsmay:

• continueinvestingtherepresentedperson’smoneyinthesamewayithadbeenpreviouslyinvested

• inthecaseofmoneydepositedintheperson’sbankaccount,redepositthismoneyintotheaccountwhenitbecomespayable

• exercisethesamepowersasiftheadministratorwereatrusteeoftheestateundertheTrustee Act 1958 (Vic).19

17.25 TheTrusteeAct imposesadditionalresponsibilitiesinrelationtothepowerofinvestment.Inparticular,itcontainsthe‘prudentpersonprinciple’,whichguidestheexerciseofinvestmentresponsibilities.20

17.26 Underthisprinciple,professionalinvestorsarerequiredto‘exercisethecare,diligenceandskillthataprudentpersonengagedinthatprofession,businessoremploymentwouldexerciseinmanagingtheaffairsofotherpersons’.21Non-professionalinvestorsarerequiredto‘exercisethecare,diligenceandskillthataprudentpersonwouldexerciseinmanagingtheaffairsofotherpersons’.22

17.27 TheTrusteeAct alsoimposesmorespecificobligationsinrelationtoinvestmentdecisions,whichthePublicAdvocateadvisesshouldguideadministrators.23Thisrequiresadministratorstoconsider:

• thepurposesoftheadministrationorderandtheneedsandcircumstancesoftherepresentedperson

• thedesirabilityofdiversifyingtherepresentedperson’sinvestments

• thenatureofandriskassociatedwithexistinginvestmentsandotherproperty

• theneedtomaintaintherealvalueofthecapitalorincome

• theriskofcapitalorincomelossordepreciation

• thepotentialforcapitalappreciation

• thelikelyincomereturnandthetimingofincomereturn

16 Guardianship and Administration Act 1986 (Vic)s58B(1)(a).17 Ibids58B(1)(b).18 Ibids58B(1)(c).19 Ibids51.20 Trustee Act 1958(Vic)s6(1).21 Ibids6(1)(a).22 Ibids6(1)(b).23 Administration Guide,aboven15,7–8.



• thelengthofthetermoftheproposedinvestment

• theprobabledurationoftheorder

• theliquidityandmarketabilityoftheproposedinvestment

• thetotalvalueoftheestate

• thetaxconsequencesoftheproposedinvestment

• thelikelyeffectofinflationontheproposedinvestment

• thecosts(includingcommissions,fees,chargesanddutiespayable)ofmakingtheproposedinvestment

• theresultsofareviewofexistingtrustinvestments.24

fees17.28 ProfessionaladministratorssuchasStateTrusteeschargefeestotherepresented

personfortheservicestheyprovide,butprivateadministratorsmayonlyclaimout-of-pocketexpensesforperformingtheirroleunlessVCATordersotherwise.25ThefeesaprofessionaladministratormaychargearesetoutintheVCATorder.

VCaT advice and approval17.29 VCATadministrationorderscommonlyrequireVCATapprovalofmajortransactions,

suchasthesaleofrealestate,beforetheycangoahead.AdministratorsmayalsoseekadvicefromVCATbeforeundertakingacourseofaction.26

National Standards for financial managers17.30 In2011,theAustralianGuardianshipandAdministrationCouncilprepared‘National

StandardsforFinancialManagers’.27Thesestandardsareintendedtoapplytofinancialmanagers(called‘administrators’inVictoria)appointedbyanAustraliantribunal.

17.31 Thestandardsrequirethatfinancialmanagers:

• keeptherepresentedpersoninformedaboutallaspectsoftheirfinancialaffairs

• advocatefortherepresentedpersonasnecessary,includingtoensurethatthepersonisnotunfairlytreatedorfinanciallyabused

• seekviewsandinvolvetherepresentedpersoninrelationtomajordecisions

• protecttheassetsoftherepresentedperson,andidentifyanyentitlementsthepersonmayhave

• makedecisionswiththerepresentedpersonthatareintheirbestinterests,includingbyconsultingwiththepersonandotherimportantpeopleintheirlife

• investmoneyforthebenefitoftherepresentedpersonanddevelopabudgettomeettheirneeds

• makepaymentstotherepresentedpersonfortheirbenefit

• keeprecordsoftherepresentedperson’sfinancialaffairsandofmajordecisions

• respecttheprivacyandconfidentialityoftherepresentedperson

• protectandrespectthelegalrightsoftherepresentedperson

24 Trustee Act 1958 (Vic)s8(1).25 Guardianship and Administration Act 1986 (Vic)s47A.26 Ibids55.27 AustralianGuardianshipandAdministrationCouncil,National Standards for Financial Managers (January2011)<http://www.agac.org.au/

images/stories/nat_stds_fin_mgrs.pdf>.

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• beprofessional,bytreatingtherepresentedpersonwithdignityandrespect,communicatinginwaysthepersoncanunderstand,avoidingconflictsofinterestandnotimposingpersonalviewsontheperson

• contributetoreviewsofordersbypreparingreportstothetribunalandmakingrecommendationswhereappropriate.28

aTTORNEyS appOINTEd uNdER ThE INSTRumENTS aCT 1958 (VIC)17.32 Theresponsibilitiesofpersonallyappointedfinancialattorneysarederivedfromthe

Instruments Act 1958 (Vic)andthegenerallaw.Uponacceptingtheirappointment,anattorneymustundertaketo:

• exercisetheirpowerswithreasonablediligencetoprotecttheinterestsoftherepresentedperson

• avoidactingwherethereisanyconflictofinterestbetweentheinterestsoftherepresentedpersonandtheattorney’sinterests

• exercisetheirpowersinaccordancewiththerequirementsundertheInstrumentsAct.29

17.33 TheInstrumentsAct alsorequiresattorneystokeepandpreserveaccuraterecordsandaccountsofalldealingsandtransactionsmadeunderthepower.30

17.34 TheInstrumentsActdoesnotplaceacleardutyonattorneystoconsidertherepresentedperson’spreferenceswhenmakingadecision.

17.35 Aswithadministrators,therelationshipbetweentheattorneyandtherepresentedpersonisonethatattractsfiduciaryduties,includingadutyfortheattorneynottoactintheirowninterest.31

17.36 ThePublicAdvocatehassummarisedattorneys’otherlegalresponsibilitiesas:

• actingintherepresentedperson’sbestinterests

• recognisingtherepresentedperson’srighttoparticipateindecisionsasmuchaspossible

• respectingtherepresentedperson’sworth,dignityandhumanrights

• recognisingtherepresentedpersonasavaluedmemberofsocietyandencouragingtheirparticipationincommunitylife

• takingintoaccounttheimportanceoftherepresentedperson’sexistingsupportiverelationships,values,cultureandlanguage

• ensuringthatdecisionsareappropriatetotherepresentedperson’scharacteristicsandneeds

• ensuringconfidentiality

• keepingtherepresentedperson’spropertyseparate,exceptwhereitisjointlyowned

• notexceedingthepowerssetoutintheappointmentform.32

17.37 TheserequirementsarenotexplicitlysetoutintheInstrumentsAct.

28 Ibid.29 Instruments Act 1958 (Vic)s125B(5).Thisundertakingispartofthecompulsoryformforenduringpowerofattorney(financial)approved

bytheSecretaryoftheDepartmentofJustice.SeeInstruments Act 1958 (Vic)ss123(1),125ZLand‘TheInstruments (Enduring Powers of Attorney) Act 2003—ApprovedForms’inVictoria,Victorian Government Gazette,NoG9,2004,437–41.

30 Instruments Act 1958 (Vic)s125D.31 Foradiscussionoftheobligationsunderafiduciaryrelationship,seeRe OAC [2008]QGAAT72(14October2008)[13]–[20].32 OfficeofthePublicAdvocate(Victoria),Advice for Attorneys (Financial) (18January2011),3<http://www.publicadvocate.vic.gov.au/file/file/

Powerofattorney/OPA_Advice%20for%20Attorneys%20Financial_Web_08.pdf>.WediscussthepersonresponsibleroleinmoredetailinChapter13.



pERSON RESpONSIbLE17.38 Theprimaryresponsibilityofthepersonresponsibleformedicalanddentaldecisionsis

tomakedecisionsthatareinthebestinterestsofthepatient.33Indoingso,thepersonresponsiblemusttakeintoaccount:

• thewishesofthepatient,asfarastheycanbeascertained

• thewishesofanynearestrelativeoranyotherfamilymembers

• theconsequencestothepatientifthetreatmentisnotcarriedout

• anyalternativetreatmentavailable

• thenatureanddegreeofanysignificantrisksassociatedwiththetreatmentoranyalternativetreatment

• whetherthetreatmentisonlytopromoteandmaintainthehealthandwellbeingofthepatient.34

17.39 Thepersonresponsiblemayonlyconsenttoamedicalresearchprocedureiftheybelieveitwouldnotbecontrarytothepatient’sbestinterests.35Thematterstoconsideraresimilartothosethatarerelevantwhenmakingmedicaltreatmentdecisions.36

aGENT appOINTEd by aN ENduRING pOwER Of aTTORNEy (mEdICaL)17.40 WhereanagentdecidestorefusetreatmentundertheMedical Treatment Act 1988

(Vic),theymustbeinformedaboutthepatient’scurrentcondition.Thisinformationmustbesufficienttoallowthepatient,iftheyhadcapacity,tomaketheirowndecisionaboutwhethertorefusethetreatment.37Ifthishashappened,andtheagentunderstandsthatinformation,they38maymakeadecisiontorefusetreatmentonbehalfofthepatient.39Anagentmayrefusemedicaltreatment(ratherthan‘withholdconsent’)onlywhere:

• themedicaltreatmentwouldcauseunreasonabledistresstothepatient,or

• therearereasonablegroundsforbelievingthatthepatient,ifcompetent,andaftergivingseriousconsiderationtotheirhealthandwellbeing,wouldconsiderthatthemedicaltreatmentisunwarranted.40

17.41 WeconsiderissuesaroundmedicalanddentalproceduresandtreatmentforpeoplewhocannotconsentinmoredetailinChapter13.

CONfIdENTIaLITy17.42 TheG&AActdoesnotspecificallyrequiresubstitutedecisionmakerstomaintainthe

confidentialityofanyinformationabouttherepresentedpersonthattheyobtainbyvirtueofthatrelationship.Victoria’slegislationisoutofstepwiththatofsomeotherAustralianjurisdictionsonthisissue.Forexample,theNewSouthWaleslegislationprohibitsdisclosureofinformationobtainedbyaguardianorfinancialmanager41otherthanincompliancewithoneoftheexceptionssetoutintheAct.42

33 Guardianship and Administration Act 1986 (Vic)s42H(2).34 Ibids38(1).35 Ibids42S(3).36 Ibids42U(1).Themajordifferencebetweenmedicalresearchproceduresandmedicaltreatmentisthatformedicalresearchprocedures

theavailabilityofalternativetreatment,andwhethertheprocedureisonlytopromotethehealthandwellbeingofthepatient,arenotmandatoryconsiderations.

37 Medical Treatment Act 1988(Vic)s5B(1)(a).38 Thispowertorefusetreatmentcanalsobegiventoandexercisedbyaguardian:Medical Treatment Act 1988(Vic)s5B(1)(a).39 Medical Treatment Act 1988(Vic)s5B(1).40 Ibids5B(2).41 ‘Financialmanager’isthetermusedinNewSouthWaleslawtodescribean‘administrator’.42 Guardianship Act 1987(NSW)s101.

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17.43 Althoughtheequitabledutyofconfidenceprobablyobligessubstitutedecisionmakerstomaintaintheconfidentialityofanyinformationabouttherepresentedpersonthattheyobtainbyvirtueofthatrelationship,43theCommissionisunawareofanycircumstancesinwhichapersonhassoughttoinvokethisgenerallawduty.

COmmuNITy RESpONSES17.44 Theconsultationpaperproposedthatnewguardianshiplawsshouldprovidesubstitute

decisionmakerswithclearguidanceabouttheirresponsibilities.Itproposed:

• amoreconsistentapproachtodecisionmakingacrossdifferentsubstitutedecision-makingappointments

• moreguidanceabouthowthewishesoftherepresentedpersonshouldguidesubstitutedecisionmakers

• includingtheconceptof‘substitutedjudgment’asadecision-makingprinciple

• replacingthenotionof‘bestinterests’withthatof‘personalandsocialwellbeing’.

17.45 TheCommissionproposedthesereformsinresponsetoconcernsthatcurrentguidancewasinadequateandfragmented,andbecausethelawshouldbetterreflectcontemporaryviewsabouttherightsandinterestsofpeoplewithimpaireddecision-makingability.

17.46 Thesuggestionconcerningtheprincipleof‘substitutedjudgment’—whichinvolvesasubstitutedecisionmakerseekingtomakethejudgmentsanddecisionsthatthepersonthemselveswouldmakeinthecircumstances—wasthemostsignificantreformproposalandtheonethatgeneratedthemostresponses.

ExpRESSEd wIShES, bEST INTERESTS aNd SubSTITuTEd judGmENT17.47 Theconsultationpaperaskedanumberofquestionsaboutthedifferentprinciples

thatshouldguidesubstitutedecisionmakerswhentheyaremakingdecisions.Thesequestionsraisedchallengingissuessuchas:

• howtobalancewishesapersonexpressedinthepast,whentheyhadcapacity,withwishestheyareexpressingnowwhentheynolongerhavecapacitytomaketheirowndecisions

• howtobalancetheperson’swisheswithwhatthedecisionmakerthinksisbestforthem

• howtomakethedecisionthatthepersonthemselveswouldmakenowiftheyhadthecapacitytodoso(substitutedjudgment).

17.48 SeniorsRightsVictorialinkedtheseissuestotheUnitedNations’Convention:

Article12(4)oftheCRPD[theConventions]providesthatmeasuresrelatingtotheexerciseoflegalcapacityshouldrespecttherights,willandpreferencesoftheperson,beproportionateandtailoredtotheperson’scircumstances,applyfortheshortesttimepossibleandbesubjecttoregularreview.Webelievethattherights,willandpreferencesofthepersonshouldbethestartingpoint,andnotjustaconsideration,inthedecision-makingprocessofasubstitutedecisionmaker.44

43 Fordiscussionoftheequitabledutyofconfidence,seeGEDalPont,DRCChalmersandJKMaxton,Equity and Trusts: Commentary and Materials(Lawbook,4thed,2007)170–225.

44 SubmissionCP71(SeniorsRightsVictoria).


17Chapter 17Responsibilities of substitute decision makers17.49 Manysubmissionsacknowledgedthecomplexityoftheseissuesandreferredto

thedifficultiesassociatedwithrelyingtooheavilyuponthestatedwishesoftherepresentedperson,eitherinthepastoratthetimeofthedecision.Difficultiescanarisebecause:

• Allpeoplewillchangetheirmindsovertime.45

• Pastwishesandcurrentwishescanconflictwitheachotherandthewaytobalancethetwohastobedeterminedaccordingtowhatbestpromotesthepersonalandsocialwellbeingoftheperson,ratherthanbyprescribingthatonestatementofwishesshouldhaveprecedenceovertheother.46

17.50 TheLawInstituteofVictoriaalsoarguedthatthelawshouldnotbetooprescriptiveaboutthisissue:

TheLIVcautionsagainstprescriptiveguidanceabouthowasubstitutedecisionmakershouldbalancethewishesapersonexpressesatthetimeadecisionismade,andanypastwishes,views,beliefsandvaluesthepersonhasexpressed.TheLIVconsidersthateachdecisionshouldbedealtwithonacasebycasebasisandwenotethattheapproachmayvarydependingontherelevantdecision,knowledgeofandnatureofwishesexpressedandtheextentthatdecision-makingcapacityisimpaired.Itmayalsodependonwhetherthepersonhaspreviouslyhadcapacityforthosedecisions.47

17.51 VictoriaLegalAidstressedtheimportanceofdialoguewiththerepresentedpersoninthesesituationsofconflictbetweenpastwishesandcurrentwishes.Ithighlightedthewaysinwhichacquiringadisabilitymightitselftriggerachangeintheperson’sviews:

Thedecisionmakershouldalsoberequiredtodiscusswiththerepresentedpersonanyevidenceoftheirpreviouslyexpressedwishes,viewsandbeliefsandseektounderstandthebasisonwhichtheyhavenowchangedthosewishes.Ifthereisareasonablebasisforthechange,thentheprincipleofsubstitutedjudgmentsuggeststhatthecurrentwishesshouldbefollowed.Itisquitehumanforpreferencesandwishestochangeovertime,anditisnotsurprisingthatsomeonewhohasacquiredadisabilityandconsequentincapacitymayhavechangedtheirviewsandwishesovertime.48

17.52 TheFederationofCommunityLegalCentressawsubstitutedjudgmentasameansofhelpingtoclarifyandresolvesomeofthetensionsthatcanariseinrelationtoconflictingstatedwishes.ItreferredtothewayinwhichthisissuehasbeendealtwithintheUnitedKingdom’sMental Capacity Act 2005 (UK):

InthatAct,thephrase‘factorsthatthepersonwouldhavebeenlikelytoconsideriftheywereableto’giveseffecttotheprincipleunderpinningsubstitutedjudgment.Itsuggeststhatifthepersonhadcapacitywhenpastwisheswereknown,thenthesewishesshouldbegivenmoreweightthanwishesexpressedinthepresentwhenthepersonisnowassessedasnothavingcapacitywithrespecttothoseparticulardecisions.49

45 SubmissionCP24(AutismVictoria).46 SubmissionCP19(OfficeofthePublicAdvocate).47 SubmissionCP77(LawInstituteofVictoria).48 SubmissionCP73(VictoriaLegalAid).49 SubmissionCP75(FederationofCommunityLegalCentres).

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17.53 ButtheCouncilontheAgeingsoundedanoteofcaution:

Wewouldagreethatthis[substitutedjudgment]shouldbethestartingpointformakingdecisionsonbehalfofapersonwhocan’tmakedecisionsforthemselves.Itmaynotalwaysbepossibletoknowwhatapersonwouldhavedecided,insituationsthatareneworconflictingwiththeirusualpreferences.Promotionofthepersonalandsocialwellbeingofthepersonmayneedtobeconsideredaswell.50

17.54 Theriskofrelyingtooheavilyonsubstitutedjudgment,withits‘difficultandunclear…evidentiarybasis’,wasraisedbyStateTrustees,whichsawtheproposalastooopentoabuseandtoolikelytoleadtoindividualsbeingdeemedincapableofeverchangingapre-existingmindset.51

17.55 Someresponses,suchasthosegivenintheCommission’sconsultationswithNationalDisabilityServices,sawtheconceptasbeinginprincipleagoodone,butneverthelessonetowhichitwouldbedifficulttogivesubstanceandmeaning.52

OThER CONSIdERaTIONS

Treating the represented person with courtesy and respect17.56 Theconsultationpaperaskedifthelawshouldspecificallyrequiresubstitutedecision

makerstotreatrepresentedpersons,andpeoplewhoareimportanttothem,withcourtesyandrespect.

17.57 ManypeoplewithdisabilitieswhohavehadaguardianoranadministratorandwhospokewiththeCommission,orwhomadesubmissions,stressedtheimportanceofthisissue,aswellasthatofhavingdecisionsexplainedtothem.53

17.58 Theseviewswereechoedinothersubmissions,particularlyinthosebyVictoriaLegalAid54andtheMentalHealthLegalCentre.55

acting honestly and responding to conflicts of interest17.59 TheCommissionalsoaskedwhetherthelawshouldspecificallyrequiresubstitute

decisionmakerstoacthonestlyandtorespondappropriatelytoconflictsofinterest.

17.60 Thisproposalwasbroadlysupported,bothincommunityconsultationsandinsubmissions,56althoughStateTrusteesdrewattentiontowhattheysawasthehighlysubjectivenatureofsomeoftheseconcepts:

Dutiesofhonesty,courtesyandrespectcanhaveastrongsubjectiveelement,especiallyinacontextofdisabilitiesaffectingperception.Breachesofsuchdutiesmaythereforebedifficulttoobjectivelyassessandevenhardertoenforce.Theyshouldthereforebepartoftheguidingprinciples,ratherthanstandaloneduties.57

50 SubmissionCP65(CouncilontheAgeingVictoria).51 SubmissionCP70(StateTrusteesLimited).52 Roundtablewithserviceproviders(inpartnershipwithNationalDisabilityServices(Victoria))(28March2011).53 Foreg,consultationswithVALIDEasternRegionalClientNetwork(21February2011),VALIDWesternRegionalClientNetwork(1March

2011)andVALIDNorthernRegionalClientNetwork(2March2011);SubmissionCP3(AnnaKure).54 SubmissionCP73(VictoriaLegalAid).55 SubmissionCP78(MentalHealthLegalCentre).56 Foreg,SubmissionsCP21(ActionforMoreIndependence&DignityinAccommodation),CP27(CatholicArchdioceseofMelbourne),CP71

(SeniorsRightsVictoria),CP77(LawInstituteofVictoria)andCP78(MentalHealthLegalCentre).57 SubmissionCP70(StateTrusteesLimited).



Separate principles for financial decisions17.61 Intheconsultationpaper,theCommissionaskedifnewguardianshiplawsshould

containthesamedecision-makingprinciplesforfinancialdecisionsandpersonaldecisions.Mostsubmissionsrespondingtothisquestionindicatedthatthesameprinciplesshouldapplytobothareasofdecisionmaking.58VictoriaLegalAid,however,providedaqualifiedresponse:

asageneralrule,theprincipleofsubstitutedjudgmentshouldprevailandthefinancialdecisionmakershouldmakethedecisionthattherepresentedpersonwouldhavewantedtobemadeinthecircumstances.However,iftherepresentedperson’swishesarefinanciallyunviableorwouldundulycompromisetheirfinancialsecurity,VLAsuggeststhatthefinancialdecisioncoulddepartfromtheprincipleofsubstitutedjudgment,butshouldberequiredtofileanoticeandstatementofreasonswiththerepresentedpersonandinvestigationsunit,perhapsattachedtotheVCATGuardianshipList,bothofwhichshouldbeabletoseekaVCAThearingtodeterminewhetherthefinancialdecisionmakershouldbepermittedtodepartfromtheprincipleofsubstitutedjudgment(andtherepresentedperson’swishes).59

17.62 StateTrusteesarguedthatguidingprinciplesshouldbetailoredforthedifferentsubstitutedecision-makingroles.60ThisviewwassupportedbytheTrusteeCorporationsAssociationofAustralia,whicharguedthattheprudentpersonprinciple,assetoutinsection6oftheTrusteeAct,shouldbeincludedinlegislationappointingfinancialsubstitutedecisionmakers.61

privacy and confidentiality17.63 Intheconsultationpaper,theCommissionproposedthatnewguardianshiplegislation

shouldcontainaprovisionsimilartosection101oftheGuardianship Act 1988(NSW),whichregulatesthecircumstancesunderwhichinformationobtainedinthecourseofthesubstitutedecision-makingarrangementcanbedisclosedtoothers.Therewaswidespreadcommunitysupportforthisproposal.62

17.64 SomeorganisationsthatsupportedtheCommission’sproposalalsoraisedadditionalissues.Forexample,StateTrusteesmadethefollowingpoints:

• The‘secrecyprovision’insection17oftheState Trustees (State Owned Companies) Act 1994(Vic)shouldberepealedandreplacedbyaprovisionthatimposesadutyofconfidentialityonalladministrators.

• Theexpression‘otherlawfulexcuse’,asusedintheNewSouthWalesAct,istoovagueandpotentiallytoorestrictive.63

17.65 StateTrusteesalsonotedthatundercurrentlegislation,wherearepresentedpersondiesorceasestobearepresentedperson,anumberofdisclosureobligationsontheadministratorapply.Theseincludetheobligationtoprovidetherepresentedpersonortheirrepresentativewithalldocumentsrelatingtotheestate,64andtoallowtherepresentedpersonortheirrepresentativetoinspectandcopyallbooks,accountsanddocumentsrelatingtotheestate.65StateTrusteeswasconcernedthatitwill

58 Foreg,SubmissionsCP19(OfficeofthePublicAdvocate),CP22(Alzheimer’sAustraliaVic),CP24(AutismVictoria),CP47(DrMichaelMurray),CP56(DisabilityDiscriminationLegalService)andCP66(VictorianEqualOpportunityandHumanRightsCommission).

59 SubmissionCP73(VictoriaLegalAid).60 SubmissionCP70(StateTrusteesLimited).61 RoundtablewithTrusteeCorporationsAssociationofAustralia;ANZTrusteesLtd;EquityTrusteesLtd;TrustCompanyLtd;PerpetualTrustees

(inpartnershipwithTrusteeCorporationsAssociationofAustralia)(4March2011).62 Foreg,SubmissionsCP24(AutismVictoria),CP33(EasternHealth),CP59(CarersVictoria),CP71(SeniorsRightsVictoria),CP73(Victoria

LegalAid),CP77(LawInstituteofVictoria)andCP78(MentalHealthLegalCentre).63 SubmissionCP70(StateTrusteesLimited).64 Guardianship and Administration Act 1986(Vic)s58D(1)(b).65 Guardianship and Administration Act 1986(Vic)s58E.

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rarelyifeverbeappropriateforacorporateadministratortobecompelledtohandoverits‘entirefile’,giventhelikelihooditwillcontainthirdpartyinformationofasensitiveandconfidentialnature.

OThER juRISdICTIONS17.66 The‘bestinterests’oftherepresentedpersonisthecoreguidingprinciplefordecisions

madebyguardiansandadministratorsinVictoriaandinmostotherAustralianjurisdictions.66However,SouthAustraliaandQueenslandhaveadoptedadifferentapproach.67TheSouthAustralianlegislationemphasisesanapproachof‘substitutedjudgment’,whileQueenslandseekstomaximisethepersonwithimpairedcapacity’sinvolvementindecisionmaking.TheAustralianCapitalTerritoryadoptsanapproachthatbalancesaperson’s‘wishes’withtheir‘interests’.68

SOuTh auSTRaLIa—SubSTITuTEd judGmENT aS ThE paRamOuNT CONSIdERaTION17.67 Substitutedjudgmentisanapproachthatrequiresthedecisionmakertoattempt,as

farpossible,tomakethedecisiontherepresentedpersonwouldhavemadeiftheydidnothaveimpairedcapacity.

17.68 InSouthAustralia’sGuardianship and Administration Act 1993 (SA),substitutedjudgmentisthe‘paramount’decision-makingprinciple:

consideration(andthiswillbetheparamountconsideration)mustbegiventowhatwould,intheopinionofthedecisionmaker,bethewishesofthepersoninthematterifheorshewerenotmentallyincapacitated,butonlysofarasthereisreasonablyascertainableevidenceonwhichtobasesuchanopinion.69

17.69 GuardiansandadministratorsinSouthAustraliaaredirectedtodeterminewhattheybelievethewishesofthepersonwouldhavebeeniftheyhadmentalcapacity.However,theapplicationofthisprincipleislimitedbytherequirementthatsuchanapproachcanonlybeadoptedtotheextentthatthereis‘reasonablyascertainableevidence’uponwhichtobasethedecision.70

17.70 Inadditiontoadoptinga‘substitutedjudgment’approach,guardiansandadministratorsinSouthAustraliaaredirectedtoconsiderthe‘presentwishes’oftheperson,‘unlessitisnotpossibleorreasonablypracticabletodoso’.71Theyarealsotodirectedtomakedecisionsthatare‘theleastrestrictiveoftheperson’srightsandpersonalautonomyasisconsistentwithhisorherpropercareandprotection’.72

17.71 TheSouthAustralianPublicAdvocate,JohnBrayley,hasarguedthatsubstitutedjudgmentisapreferableapproachtobestinterests’decisionmaking.73Similarly,JeremyMoore,PresidentoftheSouthAustralianGuardianshipBoard,hasarguedthatasubstitutedjudgmentapproach‘ensuresthegreatestrespectisgiventotheautonomyoftherepresentedperson’,andallowsthepersonto‘livethelifetheywouldhavelived,butfortheincapacity’.74

66 Foreg,Guardianship and Administration Act 1995(Tas)ss6(b),27(1),57(1);Guardianship and Administration Act 1990(WA)ss51(1),70(1);Adult Guardianship Act(NT)s4(b).NewSouthWalesguardianshiplawsrequirethatthe‘welfareandinterests’oftherepresentedpersonbegivenparamountconsideration:seeGuardianship Act 1987(NSW)s4(a).

67 InSouthAustralia,bestinterestsstillguidestheconductofagentsappointedunderamedicalpowerofattorney:seeConsent to Medical Treatment and Palliative Care Act 1995(SA)s8(8).InQueensland,thehealthcareprincipleincludesconsiderationofwhethertreatment‘isinallthecircumstances,intheadult’sbestinterests’:seeGuardianship and Administration Act 2000 (Qld)sch1pt2cl12(1)(b)(ii).

68 SeeGuardianship and Management of Property Act 1993(ACT)ss4(2),5A.69 Guardianship and Administration Act 1993 (SA)s5(a).70 Ibid.71 Ibids5(b).72 Ibids5(d).73 JohnBrayley,OfficeofthePublicAdvocate(SouthAustralia), Supported Decision Making in Australia: Presentation Notes(2009),4<http://

www.opa.sa.gov.au/documents/08_News_&_Articles/Supported%20Decision%20Making.pdf>.74 SubmissionIP60(GuardianshipBoardofSouthAustralia).


17Chapter 17Responsibilities of substitute decision makers17.72 Incircumstanceswhereadoptingthisapproachprovesimpossible,however,South

AustralianPublicTrustee,MarkBodycoat,hassuggestedthattheprincipleofbestinterestsisthemostappropriatealternative.75Hesuggeststhatbothsubstitutedjudgmentandbestinterestsareprinciplesthatremainpronetodecisionmakersimposingtheirownvaluesontheperson.76MrBodycoathasalsohighlightedthatadministratorshavelegalresponsibilitiesastrusteeswhichcancomeintotensionwiththedecision-makingprinciplesintheGuardianship and Administration Act 1993(SA).77

QuEENSLaNd17.73 Queenslandhasacomprehensivesetofprinciplesunderpinningitsguardianship

laws.InChapter6,wediscussthese‘generalprinciples’astheyrelatetoQueenslandguardianshiplawsasawhole.

17.74 WhileguardiansandadministratorsarerequiredtoapplyalltheGeneralPrinciples,78clause7oftheGeneralPrinciples,entitled‘Maximumparticipation,minimallimitationsandsubstitutedjudgment’,outlinesthecoredecision-makingguidelinesforguardiansandadministrators:

(1) Anadult’srighttoparticipate,tothegreatestextentpracticable,indecisionsaffectingtheadult’slife,includingthedevelopmentofpolicies,programsandservicesforpeoplewithimpairedcapacityforamatter,mustberecognisedandtakenintoaccount.

(2) Also,theimportanceofpreserving,tothegreatestextentpracticable,anadult’srighttomakehisorherowndecisionsmustbetakenintoaccount.

(3) So,forexample—

(a) theadultmustbegivenanynecessarysupport,andaccesstoinformation,toenabletheadulttoparticipateindecisionsaffectingtheadult’slife;and

(b) tothegreatestextentpracticable,forexercisingpoweroramatterfortheadult,theadult’sviewsandwishesaretobesoughtandtakenintoaccount;and

(c) apersonorotherentityinperformingafunctionorexercisingapowerunderthisActmustdosointhewayleastrestrictiveoftheadult’srights.

(4) Also,theprincipleofsubstitutedjudgmentmustbeusedsothatif,fromtheadult’spreviousactions,itisreasonablypracticabletoworkoutwhattheadult’sviewsandwisheswouldbe,apersonorotherentityinperformingafunctionorexercisingapowerunderthisActmusttakeintoaccountwhatthepersonorotherentityconsiderswouldbetheadult’sviewsandwishes.

(5) However,apersonorotherentityinperformingafunctionorexercisingapowerunderthisActmustdosoinawayconsistentwiththeadult’spropercareandprotection.

(6) Viewsandwishesmaybeexpressedorally,inwritingorinanotherway,including,forexample,byconduct.

17.75 Theseprinciplesemphasisetheroleofguardiansandadministratorsinensuringthepersonissupportedtomaketheirowndecisionswherepossible,andparticipateinthedecision-makingprocesstothegreatestpossibleextent.Guardiansandadministratorsarealsodirectedtouse‘substitutedjudgment’whereappropriate.

75 MarkBodycoat,PublicTrustee(SouthAustralia),‘IWalktheLine:Someofthechallengesofgoodtrusteeship’(PaperpresentedatRightsResponsibilitiesandRhetoricconference,Adelaide,8–9October2009)<http://www.publictrustee.sa.gov.au/uploads/Mental_Health_Conference/BODYCOAT%20paper.pdf>.

76 Ibid.77 Ibid.Section39(1)(b)oftheGuardianship and Administration Act 1993 (SA)deemsadministratorstobetrustees.78 Guardianship and Administration Act 2000 (Qld)s34.

389

17.76 LikeSouthAustralia,theQueenslandprinciplesdonotrelyonthenotionof‘bestinterests’(exceptinthecontextofmedicaldecisions),79butrequiredecisionsthatare‘consistentwiththeadult’spropercareandprotection’.80

Queensland Law Reform Commission reform proposals17.77 In2010,theQueenslandLawReformCommissionrecommendedamendmentsto

theprinciplesofQueensland’sguardianshiplaws,includingprinciplesabouthowdecisionmakersshouldexercisetheirpowers.81Thereportprovidedamajorityandminorityviewabouthowthelawshouldchange,andtheQueenslandGovernmenthasindicatedsupportfortheminorityview.82

Majority view17.78 Themajorityviewwasthatdecisionmakersshouldact:

• inawaythatpromotesandsafeguardstheperson’srights,interestsandopportunities,and

• inthewayleastrestrictiveoftheperson’srights,interestsandopportunities.83

17.79 Indoingso,decisionmakersshouldadopta‘structureddecision-making’approachwhichrequiresthemtoundertakethefollowingprocessbeforeexercisingtheirpowers:

• First,thedecisionmakershouldrecogniseandtakeintoaccounttheimportanceofpreservingtheperson’srighttomaketheirowndecisions.

• Secondly,theprincipleofsubstitutedjudgmentshouldbeappliedifpossible.

• Thirdly,otherviewsandwishesexpressedbythepersonshouldberecognisedandtakenintoaccount.

• Fourthly,otherconsiderationsoftheGeneralPrinciplesofQueensland’sguardianshiplawsshouldberecognisedandtakenintoaccount.84

Minority view17.80 Theminorityviewalsorequiresdecisionmakerstoactinawaythatpromotesand

safeguardstheperson’srights,interestsandopportunities,andisleastrestrictiveoftheperson’srights,interestsandopportunities.85

17.81 Indoingso,theminorityviewrequiresdecisionmakerstorecogniseaperson’srighttomaketheirowndecisionsiftheyareabletodosoorcanbesupportedtodoso.Ifthepersoncannotbesupportedtomaketheirowndecision,theprincipleof‘substitutedjudgment’shouldbethestartingpointfordecisionmaking,withanyotherviewsandwishesexpressedbythepersonalsorecognisedandtakenintoaccount.86

auSTRaLIaN CapITaL TERRITORy17.82 GuardianshiplawsintheAustralianCapitalTerritoryhavedecision-makingprinciples

thatfollowastructuredapproach.Theseprinciplesseektogiveeffecttotheperson’s‘wishes’,butbalancethiswiththeperson’s‘interests’wherenecessary.

79 Ibidsch1pt2cl12(b)(ii).80 Ibidsch1pt1cl7(5).81 QueenslandLawReformCommission,A Review of Queensland’s Guardianship Laws,ReportNo67(2010)vol1,74–106(‘ A Review of

Queensland’s Guardianship Laws’).82 QueenslandDepartmentofJusticeandAttorneyGeneral,Queensland Government Initial Response to the Queensland Law Reform

Commission’s Report: A Review of Queensland’s Guardianship Laws(2011)12–14.83 A Review of Queensland’s Guardianship Laws,aboven81,vol1,146.84 Ibidvol1,146–7.85 Ibidvol1,147.86 Ibidvol1,147–8.


17Chapter 17Responsibilities of substitute decision makers17.83 DecisionmakersintheAustralianCapitalTerritorymustgiveeffecttotheperson’s

wishesunlessdoingsoislikelyto‘significantlyadverselyaffecttheperson’sinterests’.87Aperson’sinterestsareseparatelydefined,andinclude:

• protectionofthepersonfromphysicalormentalharmordeterioration

• theabilityofthepersonto:

– takecareofthemselves

– liveinandbeapartofthecommunity

– maintaintheirpreferredlifestyle

• promotionoftheperson’sfinancialsecurity

• preventionofthepersonbecomingdestitute.88

17.84 Thedecisionmakermustgiveeffecttotheperson’swishesasfaraspossiblewithoutsignificantlyadverselyaffectingtheperson’sinterests.89Ifthisisimpossible,theperson’sinterestsmustbepromoted.90Decisionmakersmustalsointerferewiththeperson’slifetothe‘smallestextentnecessary’,andencouragethepersontolookafterthemselvesandparticipateinthecommunitytothegreatestpossibleextent.91

ENGLaNd aNd waLES—bEST INTERESTS wITh CLEaRER GuIdaNCE17.85 LiketheG&AAct,actinginthebestinterestsofapersonlackingcapacityremainsa

coreprincipleoftheMental Capacity Act 2005(UK),whichappliesinEnglandandWales.92However,theMentalCapacityActprovidesmoreextensiveguidancethantheVictorianlegislationfordecidingwhatisinaperson’sbestinterests.93TheMentalCapacityAct’sbestinterestsguidanceincludes:

• notmakingsuperficialassumptionsbasedontheperson’sage,appearance,aconditiontheymayhaveoranaspectoftheirbehaviour

• considerationofthelikelihoodthepersonwillregaincapacity

• actingtoencouragethepersontoparticipateindecisionmaking

• consideringtheperson’spastandpresentlyexpressedwishes,beliefsandvalues,andfactorsthatthepersonwouldhavebeenlikelytoconsideriftheywereableto

• consultingwithrelevantpeopleintheperson’slife,includingthosenominatedbytheperson.94

CONfIdENTIaLITy RESpONSIbILITIES IN OThER juRISdICTIONS17.86 OtherAustralianjurisdictionsplaceobligationsonguardiansandadministratorsto

maintaintheconfidentialityofinformationtheyacquireinthecourseoftheirrole.Forexample,aswenotedearlier,section101oftheGuardianship Act 1987(NSW)provides:

ApersonshallnotdiscloseanyinformationobtainedinconnectionwiththeadministrationorexecutionofthisActunlessthedisclosureismade:

(a) withtheconsentofthepersonfromwhomtheinformationwasobtained,

87 Guardianship and Management of Property Act 1991(ACT)s4(2)(a).88 Ibids5A.89 Ibids4(2)(b).90 Ibids4(2)(c).91 Ibidss4(2)(d)–(f).92 Mental Capacity Act 2005(UK)c9.93 Ibids4.94 Ibidss4(1),(3)–(4),(6)–(7).

391

(b) inconnectionwiththeadministrationorexecutionofthisAct,

(c) forthepurposesofanylegalproceedingsarisingoutofthisActorofanyreportofanysuchproceedings,

(d) inaccordancewitharequirementimposedundertheOmbudsman Act 1974,or

(e) withotherlawfulexcuse.

17.87 Itisanoffencepunishablebyafineof10penaltyunitsorimprisonmentfor12months,orboth,tocontravenethisprovision.95Similar,slightlyexpanded,provisionsareintheQueenslandlegislation.96

17.88 InAlberta,Canada,guardianswhoobtainrelevantpersonalinformationmayonlyuseit‘forthepurposeofexercisingtheauthorityandcarryingoutthedutiesandresponsibilitiesoftheguardian’.97Theguardianmust‘takereasonablecaretoensuretheinformationiskeptsecurefromunauthorisedaccess,useordisclosure’.98AguardianisobligednottogatherpersonalinformationabouttherepresentedpersonbeyondthatspecificallyauthorisedbytheAct.99

17.89 TherearesimilarprovisionsintheAlbertanlegislationconcerningthepowersofatrusteeandaspecificdecisionmaker—theequivalentsofanadministratorandapersonresponsible—togatherpersonalinformationaboutarepresentedpersonandtheauthorityoftheholderoftheinformationtodiscloseittothetrusteeorthespecificdecisionmaker.100

CONVENTION ON ThE RIGhTS Of pERSONS wITh dISabILITIES17.90 TheUnitedNations’Convention on the Rights of Persons with Disabilitiescontains

principlesthatarerelevantwhenconsideringtheresponsibilitiesofsubstitutedecisionmakers.Articles12(4)and12(5)arethemostimportantprovisions.

aRTICLE 12(4)17.91 Article12(4)requiresthatmeasuresrelatingtotheexerciseoflegalcapacity(suchas

guardianship,administrationandpowersofattorney):

• respecttherights,willandpreferencesoftheperson

• arefreeofconflictofinterestandundueinfluence

• areproportionalandtailoredtotheperson’scircumstances

• applyfortheshortesttimepossible

• aresubjecttoregularreviewbyacompetent,independentandimpartialauthority.101

17.92 Thefirsttworequirements—thatmeasuresrespecttherights,willandpreferencesofthepersonandarefreefromconflictofinterest—concerntheresponsibilitiesofsubstitutedecisionmakers,whiletheotherrequirementsrelatetohowthesearrangementsareestablishedandreviewed.

95 Guardianship Act 1987(NSW)s101.96 Guardianship and Administration Act 2000(Qld)ss249–249A.97 Adult Guardianship and Trusteeship ActSA2008,cA-4.2,s41(6)(a).98 Ibids41(6)(b).99 Ibids41(7).100 Ibidss72,99.101 Convention on the Rights of Persons with Disabilitiesart12(4).



Respect for the rights, will and preferences of the person17.93 ‘Respectfortherights,will,andpreferencesoftheperson’istosomeextentreflected

inthewaytheG&AActdealswiththe‘wishes’oftheperson.102However,theserequirementsaremorequalifiedthanthewordingoftheConvention,whichprovidesthattherights,willandpreferencesofthepersonarethestartingpointfordecisionmaking.WhiletheConventionemphasisessupportingpeopletoexercisetheirrights,willandpreferences,theG&AActplacestheperson’swishesalongsideotherconsiderations.

freedom from conflict of interest and undue influence17.94 TheConvention’srequirementofsupportthatisfreefromconflictofinterestand

undueinfluenceisdealtwithinpartbytherequirementintheG&AActthatVCATnotappointaguardianoradministratorwhose‘interestsconflictormayconflict’withtheperson’s.103AvoidingconflictsofinterestisnotadutyexplicitlyimposeduponguardiansandadministratorsbytheG&AAct,butitdoesformpartoftheirfiduciaryresponsibilitiesunderthegenerallaw.104

aRTICLE 12(5)—EQuaL RECOGNITION bEfORE ThE Law17.95 Article12(5)oftheConventionrequiresmeasureswhichensurethatpeoplewith

disabilitiesarenotarbitrarilydeprivedoftheirproperty,andhavethesamerightsasothersto:

• ownorinheritproperty

• controltheirownfinancialaffairs

• accessbankloans,mortgagesandotherformsoffinancialcredit.

17.96 PeoplewithDisabilityAustraliahavearguedthatarticle12(5)protectsagainstbotharbitrarydeprivationofpropertyandthearbitrarydeprivationofthecapacitytomanageproperty,andrequiresthatpeoplewithdisabilitiesbeprovidedwiththesupporttheyneedtoexercisethesefinancialrightsthemselves.105

aRTICLE 22—RESpECT fOR pRIVaCy17.97 Article22,whichdealswithrespectforprivacy,isanotherpartoftheConvention

thatbearssignificantlyontheresponsibilitiesofsubstitutedecisionmakers.Article22states:

1. Nopersonwithdisabilities,regardlessofplaceofresidenceorlivingarrangements,shallbesubjectedtoarbitraryorunlawfulinterferencewithhisorherprivacy,family,homeorcorrespondenceorothertypesofcommunicationortounlawfulattacksonhisorherhonourandreputation.Personswithdisabilitieshavetherighttotheprotectionofthelawagainstsuchinterferenceorattacks.

2. StatesPartiesshallprotecttheprivacyofpersonal,healthandrehabilitationinformationofpersonswithdisabilitiesonanequalbasiswithothers.

17.98 ThisprotectionagainstarbitraryorunlawfulinterferencewithprivacyisalsoprovidedformoregenerallyinVictoria’sCharter of Human Rights and Responsibilities Act 2006(Vic)(theCharter).106

102 Guardianship and Administration Act 1986 (Vic)ss4(2)(c),28(2)(e),49(2)(b).103 Ibidss23(1)(b),47(1)(c)(ii).104 Forageneraldiscussionoffiduciaryrelationshipsandtheirobligations,seeHospital Products Ltd v United States Surgical Corporation (1984)

156CLR41.InrelationtothefiduciarynatureofadministrationinVictoria,seeState Trustees Limited v Hayden(2002)4VR229[49];HH (Guardianship)[2008]VCAT2344(12November2008)[103].

105 SubmissionIP28a(PeoplewithDisabilityAustralia).106 Charter of Human Rights and Responsibilities Act 2006(Vic)s13.

393

ThE COmmISSION’S VIEwS aNd CONCLuSIONS17.99 TheCommissionbelievesthatnewguardianshiplawsshouldseektoprovide:

• clearguidanceabouttheresponsibilitiesofsubstitutedecisionmakersthatbetterreflectscontemporaryviewsaboutthisroleasillustratedbytherelevantprovisionsoftheConvention

• amoreconsistentapproachtotheresponsibilitiesofsubstitutedecisionmakersforpersonalappointmentsandtribunalappointments.

pRINCIpLES ThaT ShOuLd GuIdE SubSTITuTE dECISION makING

promotion of personal and social wellbeing17.100 TheCommissionbelievesthatsubstitutedecisionmakersshouldhaveanoverarching

responsibilitytoactinawaythatpromotesthepersonalandsocialwellbeingoftherepresentedperson.

17.101 Theprincipleofsubstitutedjudgment—whichinvolvesattemptingtomakethedecisionsthepersonwouldmakethemselvesifabletodoso—shouldbetheparamountguidingprincipleinnewVictorianguardianshiplaws,asitisnowinSouthAustralia.

17.102 Thisapproachwasbroadlysupportedinconsultationsandsubmissions.However,theCommissionalsoacknowledgesthattherearelimitstotheapplicationoftheprincipleofsubstitutedjudgment.Rigidapplicationoftheprinciplemaybeimpossibleinsomecases,whileinothersitmaynotbethebestwayofapproachingthedecisionbecauseitwouldleadtounacceptableoutcomesfortheperson.TheCommissionthereforebelievesthatsubstitutedecisionmakersmustretainadegreeofflexibilitywhendetermininghowtheyfulfiltheirresponsibilities.

17.103 TheCommission’sproposalthattheoverarchinggoalofsubstitutedecisionmakingshouldbe‘promotionofthepersonalandsocialwellbeing’oftherepresentedpersonisconsistentwiththerecommendationoftheVictorianParliamentLawReformCommitteeInquiryintoPowersofAttorney.107

Substituted judgment—the paramount principleA more structured approach to decision making17.104 Currently,Victoria’sguardianshiplawsrequiresubstitutedecisionmakerstoconsider

aperson’swisheswhenmakingdecisionsforthem,108butprovidenoguidanceaboutwhatthismeans.Inpractice,substituteddecisionmakersoftenprobablyseektomakedecisionsthatthepersonwouldmakethemselves.ThePublicAdvocateexplicitlyencouragestheuseofsubstitutedjudgmentbyitsguardianswhereappropriate.109

17.105 Substitutedjudgmentprovidesdecisionmakerswithamorestructuredapproachtocarryingouttheperson’swishes.Itisnotasimplematterofdoingwhatthepersondidpriortolosingcapacity.Makingthedecisionthepersonwouldmakethemselvesrequiressubstitutedecisionmakerstoconsidertheexpressedwishesoftheperson—bothpastandpresent—andtoplacethesewishesinthecontextoftheperson’scurrentcircumstancesandthedecisionthatneedstobemade.Itisarelativelysophisticatedapproachtosubstitutedecisionmaking,butalsoonethatacknowledgestheuniquenessoftherepresentedperson.

107 LawReformCommittee,ParliamentofVictoria,Inquiry into Powers of Attorney(2010)173–4(‘Inquiry into Powers of Attorney’).108 Guardianship and Administration Act 1986 (Vic)ss4(2)(c),28(2)(e),49(2)(b).109 OfficeofthePublicAdvocate(Victoria),Adult Guardianship in Victoria(2006),2<http://www.publicadvocate.vic.gov.au/file/file/

PracticeGuidelines/PG00_Adult_Guardianship_in_Victoria_09.pdf>.



Enhances autonomy17.106 Substitutedjudgmentdecisionspreservetheautonomyofthepersonbyseekingto

placetheminthesamepositiontheywouldhavebeeniftheyhadthecapacitytomakethedecisionthemselves.Oneofthecoregoalsofguardianshiplawsshouldbetoenablethepersontocontinuetolivetheirownlifeasmuchaspossible.

Consistent with the Convention17.107 TogetherwiththeCommission’sproposalsforsupportedandco-decision-making

arrangementsoutlinedinChapters8and9,theCommissionbelievesthata‘substitutedjudgment’approachtodecisionmakingenhancesthecompatibilityofVictorianguardianshiplawswiththeConvention.Wheresupportedandco-decision-makingmechanismsareunabletoassisttheperson,substitutedjudgmentdecisionmakingprovidesameanstoassistthepersontoexercisecapacityinawaythatrespectstheirrights,willandpreferences.110

Some limitations of substituted judgment17.108 TheCommissionrecognisesthatthereanumberoflimitationstotheuseofa

‘substitutedjudgment’approachtodecisionmaking.

Application may be difficult or impossible in some circumstances17.109 Therearesomesituationswhereitmaybeimpossibletoapplytheprincipleorwhere

anattempttodosowouldbemisleading.Examplesofthismightincludesituationswhere:

• apersonhasneverbeenabletoexpressmeaningfulpreferencesformorecomplicateddecisions

• aprofessionalguardianhasbeenappointed,andthereisverylimitedevidenceavailablefortheguardiantoaccuratelydeterminewhatthepersonwouldhavewanted

• apersonhaslostcapacity,andasituationarisesforwhichthepersonhasgenuinelyneverexpressedanyclearwishes

• aperson’scircumstancesandprioritieshavechangedsomuchsincetheylostcapacitythattheirpreviouslyheldwishesandvaluesareapoorindicationofwhattheymightwantinthefuture.

17.110 Adoptingapurely‘substitutedjudgment’approachtodecisionsincircumstanceswherethereisalackofclearevidenceuponwhichtobasethatdecisionisfraughtwithdifficulties.Tryingtomakeorrationalisedecisionsonthisbasiswillnotnecessarilyenhancetheperson’sautonomy.

17.111 Differentpeopleinaperson’slifemightalsohaveverydifferentinterpretationsofwhatthatpersonwouldhavedonethemselves,whichcouldprovechallengingforthesubstitutedecisionmaker.111

Values of the decision maker can still be imposed17.112 A‘substitutedjudgment’approachdoesnotremoveallconcernsaboutsubjective,

value-ladendecisionmaking.‘Bestinterests’decisionmakingisoftencriticisedforinvitingadecisionmakertodowhattheythinkwouldbebest,therebyimposingtheirownvaluesontheperson.Itisalsopossibleforsubstitutedjudgmenttobeappliedin

110 SeeConvention on the Rights of Persons with Disabilitiesart12(4).111 ThisissuewashighlightedintheCommission’sconsultationwithAlzheimer’sAustraliaVicandroundtablewithpeoplecaringforparents

withdementia(8March2011).

395

thiswaybecauseadecisionmakercouldjustifyimposingtheirownvaluesonapersononthebasisthat‘thisisreallywhatthepersonwouldhavewanted’.112

Substituted judgment is a relatively sophisticated concept17.113 Makingdecisionsonbehalfofanotherpersonisasignificantresponsibilitythat

requiresthedecisionmakertoconsidertheiractionscarefully.Substitutedjudgmentisarelativelysophisticatedconceptthatmayprovechallengingforsomepeopleappointedtotheseroles—particularlythosewhohavealifelongcaringrelationshipwiththerepresentedpersonandmaybeunaccustomedtothinkingaboutdecisionmakinginthisway.

Other approaches to decision making may be preferable in some cases17.114 Theremaybecircumstanceswherethesubstitutedjudgmentapproachdoeslittleto

advanceaperson’swellbeing.Thisissuecanbeparticularlyapparentinrelationtothemanagementofaperson’sfinances.

17.115 Forexample,apersonmayhavemanagedtheirmoneypoorlythroughouttheirlifebecauseitwasnotamatterofgreatinteresttothem.However,theadministratormayhavetheskillsandknowledgetoinvestfundsinamuchmoreadvantageouswaythanthepersonthemselvescould,andtherebyprovidethepersonwithaccesstofundstoimprovetheirqualityoflife.

Unacceptable harm to the person17.116 Theremaybecircumstanceswhereastrictapplicationofthesubstitutedjudgment

principleleadstounacceptableharmtotheperson.

17.117 Anexamplemightbeasituationwhereapersonhasalwaysbeenadamantthat,nomatterwhatthecircumstances,theywishtoremainintheirownhomefortherestoftheirlife.Evenincircumstancesofadvanceddementia,itmightbeclearthatthepersonwouldhavewantedtoremainathomedespitetheriskstotheirsafetyandwellbeing,butasubstitutedecisionmakermightdeterminethatthiswouldinvolveunacceptableriskofharmtotheperson.

17.118 TheCommissionbelievesthattheremustbeapoint—oftendifficulttodetermineinpractice—atwhichitispermissibleforasubstituteddecisionmakertomoveawayfromasubstitutedjudgmentapproachinordertoprotectarepresentedpersonfromharm.

17.119 Forthesereasons,theCommissionbelievesthatsubstitutedjudgmentshouldbetheparamount,butnotthesole,considerationintheexerciseofdecision-makingpower.Newguardianshiplegislationshouldprovidesufficientflexibilitytoallowsubstitutedecisionmakerstoconsiderwhatwouldbethemostdesirableoutcomeforthepersoninthecircumstancesbearinginmind,wheneverpossible,whattherepresentedpersonwoulddointhecircumstances.

17.120 Atpresent,thelawseekstoachievethisbalancethroughapplicationofthe‘bestinterests’principle.Whilewellintentioned,thislegalstandardisoftencriticised.113ThePublicAdvocatehasarguedthatovertime,bestinterests‘hascometoconstitutesomewhatofaeuphemismforoverridingfreewill’.114‘Bestinterests’isalsoatermstronglyassociatedwithdecisionmakingforchildren,115whichtendstoreinforcepaternalisticattitudestoadultswithimpaireddecision-makingcapacity.

112 Thepotentialforsubstitutedjudgmenttohideothermotivesfordecisionmakinghasbeenhighlightedinotherjurisdictions:seeLouiseHarmon,‘FallingofftheVine:LegalFictionsandtheDoctrineofSubstitutedJudgment’(1990)100Yale Law Review1.

113 See,eg,BruceJennings,‘AgencyandMoralRelationshipinDementia’(2009)40(3–4)Metaphilosophy425.114 SubmissionIP8(OfficeofthePublicAdvocate)17.SeealsoBarbaraCarter,Principles and Values in Victorian Guardianship Legislation(Office

ofthePublicAdvocate(Victoria),2009)14.115 See,eg,Family Law Act 1975(Cth)ptVII;Children, Youth and Families Act 2005(Vic)s10;Convention on the Rights of the Child,opened

forsignature20November1989,1577UNTS3(enteredintoforce2September1990)arts3(1),9,18,20–21,37(c).


17Chapter 17Responsibilities of substitute decision makers17.121 Thewayinwhich‘bestinterests’iscurrentlyframedinVictorianguardianshiplaws—

whichincludesarequirementtoconsidertheperson’swishesandencouragethemtobecomecapableofmakingtheirdecisions116—couldnotbedescribedascompletelypaternalistic.However,theCommissionbelievesthecontinueduseof‘bestinterests’astheprimaryconsiderationforsubstitutedecisionmakersisunhelpfulbecauseitwouldimpedeevolutionofthepracticeofactinginamannerthatrespectstherights,willandpreferencesofrepresentedpersonstothemaximumpossibleextent.

17.122 TheCommissionbelievesthattheoverarchinggoalofsubstitutedecisionmakersshouldbeto‘promotethepersonalandsocialwellbeing’oftherepresentedperson.ThisterminologywasinitiallyproposedbythePublicAdvocate,whoarguedthattheconceptof‘wellbeing’avoidedthenegativeconnotationsthathavebecomeassociatedwithbestinterests,andplacedmoreemphasisonthepersonandtheoutcomessoughtforthatperson.117TheVictorianParliamentLawReformCommittee’s2010Inquiry into Powers of Attorneyendorsedthismore‘modern’terminologyasanalternativetobestinterests,andrecommendedthatpromotingthepersonalandsocialwellbeingofthepersonshouldformpartofthedecision-makingprinciplesforpowersofattorney.118

Guidance around the promotion of personal and social wellbeing17.123 Substitutedecisionmakersshouldbegivenadditionalguidanceaboutwhatitmeans

topromotethepersonalandsocialwellbeingoftheperson.Thereareanumberofconsiderationstobalancewhenprovidingthatguidance,including:

• protectionoftherightsofpeoplewithimpairedcapacity

• clearandcomprehensibleguidanceforsubstitutedecisionmakers

• guidancethatispracticallyworkableandcancaterforthemanydifferentdecisionsasubstitutedecisionmakermaybeaskedtomake.

17.124 TheCommissionhassoughttobalancetheseconsiderationswhendevisingrecommendationsabouttheresponsibilitiesofsubstitutedecisionmakers.

17.125 Newguardianshiplegislationshoulddirectsubstitutedecisionmakerstoexercisetheirpowersinawaythatpromotesthepersonalandsocialwellbeingoftherepresentedperson.Thelegislationshouldalsoguidesubstitutedecisionmakersbyinformingthemthattheypromotethepersonalandsocialwellbeingoftherepresentedpersoniftheyapplytheprinciplesthatarediscussedinthefollowingparagraphs.

Substituted judgment—the paramount consideration17.126 Asdiscussed,theCommissionbelievesthatsubstitutedjudgmentshouldbethe

startingpointandtheparamountconsiderationforsubstitutedecisions.Newlegislationshouldalsoprovideadditionalguidanceabouthowtoputthisprincipleintopracticewheneverpossible.

Consult with the person, and give effect to their wishes17.127 Adirectiontoconsultwiththepersonandgiveeffecttotheirwisheswhenever

possiblealsofallswithintheprincipleofsubstitutedjudgment.However,incircumstanceswheresubstitutedjudgmentcannotbeapplied,thepersonwillstillhavewishesandpreferencesthatshouldbeconsidered.

116 Guardianship and Administration Act 1986(Vic)ss28(c)–(d),49(2).117 BarbaraCarter,Principles and Values in Victorian Guardianship Legislation(OfficeofthePublicAdvocate(Victoria),2009)9,14.118 Inquiry into Powers of Attorney,aboven107,173–4.

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Support the person to make decisions17.128 TheCommissionbelievesthatsupporteddecisionmakingcananddoesoccurinthe

contextofsubstitutedecision-makingarrangements.Guidancetosubstitutedecisionmakersshouldemphasisetheirroleinsupportingthepersontomaketheirowndecisionswherepossible.

Advocate for the person, and protect and promote their rights and dignity17.129 Theroleofsubstitutedecisionmakerofteninvolvesrepresentingaperson’sinterests.

Thisinevitablyinvolvesadegreeofadvocacyinpursuitoftheirrightsandinterests.Itisimportantthatsubstitutedecisionmakersnotonlyseektomakegooddecisions,butalsoacttoensurethosedecisionsareimplementedandrespectedbyothers.

Encourage the person to be independent and self-reliant17.130 Guardiansandadministratorsarecurrentlyrequiredtoencouragetherepresented

persontobecomecapableofmanagingtheirownaffairs.119Thisrequirementshouldcontinue,althoughtheoutcomemaybeimpossibleinsomecircumstances.

Encourage the person to participate in community life17.131 Encouragingthepersontoparticipateincommunitylifeisalsopartoftheexistingrole

ofguardians.120TheCommissionbelievesthatthisisanimportantroleforallsubstitutedecisionmakers,andreflectsoneofthebroadgoalsoftheConvention—theinclusionofpeoplewithdisabilitiesinsociety.121

Respect the person’s supportive relationships, friendships and connections with others17.132 Theimportantroleofsupportiverelationshipsinthelivesofpeoplewithimpaired

capacity—includingfamily,friends,advocates,andotherrelationshipsofimportancetotheperson—wasconsistentlyemphasisedinconsultationsandsubmissions.Asexercisingsubstitutedecision-makingpowerscanaffecttheserelationships,itisimportantthatsubstitutedecisionmakersconsiderthosepotentialimpactsandrespecttheserelationships.

Recognise and take into account the person’s cultural and linguistic circumstances17.133 Theimportanceofsubstitutedecisionmakersrecognisingandtakingintoaccountthe

diverseculturalandreligiousvaluesandpracticesofpeoplewithimpairedcapacitywasemphasisedinconsultationsandsubmissions.122RespectforculturalandlinguisticidentityandvaluesalsoformsanimportantprotectionintheCharter123andtheConvention,124andisrecognisedinguardianshiplawsinotherjurisdictions.125

17.134 TheCommissionbelievesitisappropriateforsubstitutedecisionmakerstobespecificallymindfuloftherepresentedperson’sculturalandlinguisticcircumstanceswhenexercisingtheirpowers.

119 Guardianship and Administration Act 1986(Vic)ss28(2)(c),49(2)(a).120 Ibids28(2)(b).121 Convention on the Rights of Persons with Disabilitiesart3(c).122 Foreg,roundtableswithmembersofmigrantcommunities(inpartnershipwithSpectrumMigrantResourceCentre)(19May2011)

andTurkishandVietnamese(inpartnershipwithAdvocacyDisabilityEthnicityCommunity)(10May2011);SubmissionCP32(EthnicCommunities’CouncilofVictoria).

123 Charter of Human Rights and Responsibilities Act 2006(Vic)s19.124 Convention on the Rights of Persons with Disabilitiesart30.125 Guardianship Act 1987(NSW)s4(e);Guardianship and Administration Act 1990(WA)ss51(2)(h),70(2)(h);Guardianship and Administration

Act 2000(Qld)sch1pt1cl9.



Protect the person from abuse, neglect and exploitation17.135 TheG&AActrequiresguardianstoprotectthepersonfromabuse,neglectand

exploitation.126TheCommissionbelievesthisprotectionisalsorelevanttotheexerciseofpowersbyfinancialdecisionmakerswhentheabuse,neglectandexploitationisofafinancialnature.

17.136 Protectionfromabuse,neglectandexploitationisaprinciplethatmayattimesconflictwithotherprinciples,mostnotablytheparamountprincipleofsubstitutedjudgment.Achievinganappropriatebalanceofteninvolvescarefulconsiderationoftheperson’sindividualcircumstances.

financial decisions—prudent person principle17.137 Whilemostofthedecision-makingprinciplesshouldapplytoallsubstitutedecision

makers,therearesomeimportantprinciplesthatareonlyrelevantwhenmakingfinancialdecisions.TheCommissionbelievesthatfinancialsubstitutedecisionmakersshouldbeguidedbythe‘prudentpersonprinciple’.Thisprinciple,whichregulatestheconductoftrusteesininvestmentdecisions,providestwousefulandacceptedstandardsdeterminedbyaperson’slevelofexpertise:

(a) ifthetrustee’sprofession,businessoremploymentisorincludesactingasatrusteeorinvestingmoneyonbehalfofotherpersons,[thetrusteemust]exercisethecare,diligenceandskillthataprudentpersonengagedinthatprofession,businessoremploymentwouldexerciseinmanagingtheaffairsofotherpersons;or

(b) ifthetrusteeisnotengagedinsuchaprofession,businessoremployment,[thetrusteemust]exercisethecare,diligenceandskillthataprudentpersonwouldexerciseinmanagingtheaffairsofotherpersons.127

17.138 TheCommissionacknowledgesthattheobjectivestandardof‘prudence’isaprinciplethatmayconflictwithothermoresubjectiveprinciples,suchastheproposedparamountprincipleofsubstitutedjudgment.128

17.139 TheCommissionbelievesthatfinancialdecisionmakersshouldberequiredtoapplytheprudentpersonprincipleinmanagingaperson’sfinances to the extent this promotes their personal and social wellbeing. Inpractice,theprudentpersonprinciplemightnotbeappliedifitwouldunreasonablydeprivethepersonofaccesstofundsforsomethingthatisofgreatimportancetothem,orwouldrequireinvestmentinamannercompletelyatoddswiththeperson’sconscience.Forexample,ifethicalinvestmentisofgreatimportancetotherepresentedperson,asubstitutedecisionmakershouldproceedonthisbasis,ratherthanseekthehigherreturnsthataprudentpersoncouldachievethroughotherinvestments.

medical decisions17.140 InChapter13,theCommissionrecommendsadditionalconsiderationsthatshould

guidesubstitutedecisionmakerswhenmakingmedicaldecisions.TheselargelyreflectthecurrentguidancefoundintheG&AAct.

126 Guardianship and Administration Act 1986(Vic)s28(2)(d).127 Trustee Act 1958(Vic)s6(1).128 ThistensionhasalreadybeenhighlightedbytheSouthAustralianPublicTrustee:seeBodycoat,aboven75.InSouthAustralia,substituted

judgmentistheparamountconsiderationforadministrators,andadministratorsarealsodeemedtobetrustees:seeGuardianship and Administration Act 1993 (SA)ss5(a),39(1)(b)andTrustee Act 1936(SA)s7(1).

399

RECOmmENdaTIONSDecision-making principles

284.Newguardianshiplegislationshouldrequiresubstitutedecisionmakerstoexercisetheirpowersinamannerthatpromotesthepersonalandsocialwellbeingoftherepresentedperson.

285.Substitutedecisionmakerspromotethepersonalandsocialwellbeingofthepersonwhen,asfaraspossible,they:

(a) haveparamountregardtomakingthejudgmentsanddecisionsthatthepersonwouldmakethemselvesafterdueconsiderationifabletodoso

(b) actinconsultationwiththeperson,givingeffecttotheirwishes

(c) supportthepersontomakeorparticipateindecisions

(d) actasanadvocatefortheperson,andpromoteandprotecttheirrightsanddignity

(e) encouragethepersontobeindependentandself-reliant

(f) encouragethepersontoparticipateinthelifeofthecommunity

(g) respecttheperson’ssupportiverelationships,friendshipsandconnectionswithothers

(h) recogniseandtakeintoaccounttheperson’sculturalandlinguisticcircumstances

(i) protectthepersonfromabuse,neglectandexploitation.

Additional guidance for substitute decision makers

286.Indeterminingthejudgmentsanddecisionsarepresentedpersonwouldmakeafterdueconsideration,substitutedecisionmakersshouldbeguidedby:

(a) thewishesandpreferencesthepersonexpressesatthetimeadecisionneedstobemade,inwhateverformthepersonexpressesthem

(b) anywishesthepersonhaspreviouslyexpressed,inwhateverformthepersonhasexpressedthem

(c) anyconsiderationsthepersonwasunawareofwhenexpressingtheirwisheswhicharelikelytohavesignificantlyaffectedthosewishes

(d) anycircumstancesthathavechangedsincethepersonexpressedtheirwisheswhichwouldbelikelytosignificantlyaffectthosewishes

(e) thehistoryoftheperson,includingtheirviews,beliefs,valuesandgoalsinlife.

Additional financial decision-making principles: prudent person principle

287.Whereexercisingthepowerofinvestment,financialadministratorsmust,totheextentthatitpromotesthepersonalandsocialwellbeingoftherepresentedperson:

(a) exercisethecare,skillanddiligencethatareasonablyprudentpersonwouldexerciseinmanagingfinancialmatters

(b) inthecaseofapersonwhoisaprofessionalfinancialadministrator,exercisetheskillanddiligencethatareasonablyprudentprofessionalfinancialmanagerwouldexerciseinasimilarsituation.



OThER RESpONSIbILITIES17.141 TheCommissionbelievesthatsubstitutedecisionmakerswouldalsobenefitfrom

additionalguidanceaboutthemannerinwhichtheyshouldconductthemselveswhencarryingouttheirrole.

17.142 Whilesubstitutedecisionmakersarecurrentlyobligedtofollowmostofthefollowingrequirements,thesemattersarenotspecificallyreferredtointheG&AAct.Itisunrealistictoexpectmostsubstitutedecisionmakerstobeawareoftheextentoftheirdutiesasfiduciaries.Itisalsoimportantthatsubstitutedecisionmakersareawareofthelimitsoftheauthoritygrantedtothembytheappointmentororder,andtheirresponsibilitynottoactbeyondthescopeofthosepowers.TheCommissionbelievesthattheselegalmattersshouldbesetoutclearlyinnewguardianshiplegislation,asshouldthemoregeneralexpectationsabouttreatingtherepresentedpersonwithrespect.

Not exceed powers17.143 Whiletherequirementnottoexceedthepowersgrantedisimpliedfromthetermsof

appointmentororder,theCommissionbelievesthatsubstitutedecisionmakersshouldbemindfulofthelimitsoftheirauthorityandnotexerciseorpurporttoexercisesubstitutedecision-makingpowerstheyhavenotbeengranted.

act honestly, diligently and in good faith17.144 Theintroductionofaspecificrequirementtoacthonestly,diligentlyandingoodfaith

wasbroadlysupportedinconsultations.Whilethesedutiesprobablyformpartofthefiduciaryobligations129ofallsubstitutedecisionmakers,theCommissionseesmeritinincludingtheminnewguardianshiplegislation.

Respond to situations of conflict and place the represented person’s interest first17.145 Thedutyofsubstitutedecisionmakerstoavoidconflictsofinterestmaybeinferred

fromtherequirementthatguardiansandadministratorsshouldactinthebestinterestsoftherepresentedperson.Italsoclearlyformspartoftheirgenerallawdutiesasfiduciaries,andisspecificallyrequiredofattorneys.130Tounderlinetheimportanceofthisduty,andpromoteawareness,theCommissionbelievesthatguardianshiplawsshouldspecificallyrequiresubstitutedecisionmakerstoidentifyandrespondappropriatelytoconflictsofinterests.

17.146 ThisrequirementcomplementstheCommission’srecommendationsinChapters9,10and12thatthepowerofco-decisionmakersandsubstitutedecisionmakerstoenterinto‘conflicttransactions’bespecificallylimited.

Communicate with the represented person17.147 AconsistentconcernraisedthroughouttheCommission’sconsultationshasbeen

thatsomesubstitutedecisionmakers—particularlyprofessionalsubstitutedecisionmakers—donotalwaysadequatelyinvolvethepersoninthedecision-makingprocess,anddonotalwayseffectivelycommunicatedecisionstheyhavemadeonbehalfoftheperson.TheCommissionrecognisesthattheremaybepracticalbarrierstothisoccurringinsomecases,includingsituationswherethepersonhasaverylimited

129 Forageneraldiscussionoffiduciaryrelationshipsandtheirobligations,seeHospital Products Ltd v United States Surgical Corporation (1984)156CLR41,andmorespecificallyinrelationtothefiduciarynatureoftherelationshipofguardianshipseeClay v Clay(2001)202CLR410,428–430,wherethefiduciarynatureofguardianshipofchildrenisconsidered.InrelationtothefiduciarynatureofadministrationinVictoria,seeState Trustees Limited v Hayden(2002)4VR229(10April2002)[49];HH (Guardianship)[2008]VCAT2344(12November2008)[103].

130 Instruments Act 1958(Vic)s125B(5)(b).

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capacitytounderstandtheimplicationsofthedecisionevenwithsupport.However,itisappropriatethatsubstitutedecisionmakersbeunderageneralobligationtoinvolvethepersonindecisionswhereverpossible,andkeepthepersoninformedaboutdecisionsthataffecttheirlife.

Treat the person and important people in their life with dignity and respect17.148 Theroleofasubstitutedecisionmakerisachallengingonethatmayinvolvemaking

difficultdecisionswithwhichtherepresentedpersonorothersdisagree.

17.149 TheCommissionheardconcernsfromsomerepresentedpersonsandcarersabouttheirdealingswithpublicguardiansandadministrators,withsomepeoplereportingthattheydidnotfeeladministratorshadtreatedthemwithrespect.131

17.150 TheCommissionbelievesthereisvalueinincludingarequirementthatsubstitutedecisionmakersmusttreattherepresentedpersonandimportantpeopleintheirlifewithdignityandrespect.

Respect for privacy and confidentiality17.151 TheCommissionbelievesthatnewlegislationshouldclearlysetouttheresponsibilities

ofsubstitutedecisionmakers,andotherpeoplewhoprovidedecision-makingsupport,tomaintaintheconfidentialityofinformationconcerningthepersontheyarerepresentingorassisting.

17.152 InChapter12,theCommissionrecommendsthatallsubstitutedecisionmakersshouldhaveaspecificpowertoaccessrelevantconfidentialinformationaboutarepresentedperson.TheCommissionalsomakesrecommendationsaboutthirdparties’authorisationofthedisclosureofthatinformation.

17.153 Substitutedecisionmakersshouldalsoberequiredtomaintaintheconfidentialityofinformationtheyobtainaboutarepresentedpersonotherthaninlimitedcircumstances.Thosecircumstancesarewhen:

• itisreasonablynecessarytodisclosethatinformationtoathirdpersoninordertoperformtheirfunctionsasasubstitutedecisionmaker

• disclosureisotherwiserequiredorpermittedbylaw.

17.154 TheCommissionbelievesthatitshouldbeanoffenceforasubstitutedecisionmakertomakeanunauthoriseddisclosureofpersonalinformationaboutarepresentedperson.Thisviewhasalsobeenexpressedinconsultationsandsubmissions.132

17.155 Aprovisionofthisnaturewouldovercometheneedforthe‘secrecyprovision’insection17oftheState Trustees (State Owned Company) Act 1994(Vic),whichunfairlytreatsStateTrusteesdifferentlytootheradministrators.Allsubstitutedecisionmakersshouldhavethesameobligationstomaintaintheconfidentialityofinformationtheyobtaininthecourseoffulfillingtheirduties.Section17shouldberepealedifnewguardianshiplegislationimposesaclearstatutorydutyofconfidentialityonallsubstitutedecisionmakers.

131 Roundtableswithpeoplewithdisabilities,carersandadvocatesinMorwell(inpartnershipwithGippslandDisabilityResourceCouncil)(29March2010),mentalhealthconsumers(inpartnershipwithMentalHealthLegalCentreandVictorianMentalIllnessAwarenessCouncil)(7April2010),carersinHastings(inpartnershipwithCarersVictoria)(8April2010)andStateTrusteesclient(7May2010).

132 Foreg,SubmissionsCP77(LawInstituteofVictoria)andCP78(MentalHealthLegalCentre),whospecificallyrecommendedcriminalsanctions;andSubmissionsCP24(AutismVictoria),CP33(EasternHealth),CP59(CarersVictoria),CP71(SeniorsRightsVictoria)andCP73(VictoriaLegalAid),whogenerallyagreedthatVictorianguardianshiplegislationshouldcontainaprovisionsimilartosection101oftheGuardianship Act 1988(NSW),whichattractsacriminalsanctionifbreached.



addITIONaL RESpONSIbILITIES fOR fINaNCIaL admINISTRaTORS17.156 Financialsubstitutedecisionmakingcanbeanoneroustask,particularlyforpeople

whohavenotreceivedanytrainingabouttheroleandwhohavebeenusedtointerminglingtheirownfinancialaffairswiththoseoftherepresentedperson.TheCommissionbelievesthatitisdesirabletogivefinancialadministratorsadditionalstatutoryguidanceabouttheirroleinordertoencourageproperpracticesfromtheoutset.

maintain appropriate records17.157 Althoughfinancialsubstitutedecisionmakersarecurrentlyrequired,eitherdirectly133

orindirectly,134tomaintainappropriaterecordsoftheirtransactions,theCommissionbelievesthisresponsibilitycouldbemoreclearlyarticulatedinnewguardianshiplegislation.

17.158 Therequirementtokeepappropriaterecordsisanimportantpracticewhenmanagingthefinancialaffairsofanotherpersonbecauseitnotonlyassistswiththemanagementofaffairs,butalsoenablesexternalscrutinytooccurwherenecessary.

17.159 TheCommissionsuggestsuseoftheterm‘appropriate’inrecognitionofthefactthattherecord-keepingrequirementsmightdependuponthenatureandsizeoftheestate,andthenatureoftherelationshipbetweenthesubstitutedecisionmakerandtherepresentedperson.

17.160 InChapter18,theCommissionconsiderstherequirementsoffinancialsubstitutedecisionmakerstoprovideaccountsforexternalscrutiny,andthelevelofdetailwhichshouldberequired.

keep property separate except where jointly owned17.161 Adutytokeeptherepresentedperson’spropertyseparate,exceptwherejointly

owned,alsoformspartofadministrators’andattorneys’responsibilities.135TheCommissionbelievesthatnewlegislationshouldclarifythisresponsibilityoffinancialdecisionmakers,asisthecaseinQueensland.136

CONSEQuENCES fOR faILuRE TO adhERE TO RESpONSIbILITIES17.162 Thelegislativeresponsibilitiesofsubstitutedecisionsmakersareintendedtoprovide

guidanceintheperformanceofsubstitutedecision-makingroles.Theyalsoprovideastandardagainstwhichtheactionsofsubstitutedecisionmakerscanbemeasuredwherenecessary—inparticularbyVCATduringregularandunscheduledreviewsofsubstitutedecision-makingarrangements.FailuretoadheretoresponsibilitiesmightcauseVCATtovaryorrevokeasubstitutedecision-makingarrangement.Seriousbreachesofresponsibilitiesmightalsoleadtosanctionsagainstthesubstitutedecisionmakers.

17.163 Wediscusstheconsequencesofbreachesofasubstitutedecisionmaker’sresponsibilitiesinmoredetailinChapter18.

133 Section125DoftheInstruments Act 1958(Vic)requiresanenduringattorneytokeepaccuraterecordsofalldealingsandtransactions.134 AdministratorsareordinarilyrequiredtoprovideaccountstoVCATforexamination:Guardianship and Administration Act 1986 (Vic)s58.135 See,eg,Administration Guide,aboven15,6.136 Guardianship and Administration Act 2000(Qld)s50;Powers of Attorney Act 1998(Qld)s86.

403

RECOmmENdaTIONSOther responsibilities of substitute decision makers

288.Newguardianshiplegislationshouldprovidethatsubstitutedecisionmakersmust:

(a) notexceedthepowersgrantedundertheappointmentorunderthestatute

(b) acthonestly,diligentlyandingoodfaith

(c) identifyandrespondtosituationswherethesubstitutedecisionmaker’sinterestsconflictwiththoseoftherepresentedperson,ensuretherepresentedperson’sinterestsarealwaystheparamountconsideration,andseekexternaladvicewherenecessary

(d) communicatewiththerepresentedpersonthroughoutthedecision-makingprocessandexplain,asfaraspossible,decisionsbeingmadeontheirbehalf

(e) treatthepersonandimportantpeopleintheirlifewithdignityandrespect.

Responsibilities of substitute decision makers to keep personal information confidential

289.NewguardianshiplegislationshouldprovidethatasubstitutedecisionmakershouldonlycollectpersonalinformationthatisrelevanttoandnecessaryforcarryingouttheirroleundertheAct.

290.AsubstitutedecisionmakershouldhaveanobligationnottodiscloseanypersonalinformationobtainedinconnectionwiththeadministrationorexecutionoftheActunlessthedisclosureismade:

(a) forapurposethatisrelevanttoandnecessaryforcarryingouttheirroleundertheAct

(b) forthepurposesoflegalproceedingsarisingoutoftheActorofanyreportofsuchproceedings,or

(c) withotherlawfulexcuse.

Itshouldbeanoffencetobreachthisobligation.

291.Section17oftheState Trustees (State Owned Company) Act 1994(Vic)shouldberepealedifnewguardianshiplegislationcontainsaprovisionthatimplementsrecommendation290.

Additional financial responsibilities

292.Financialadministratorsshouldalsoberequiredto:

(a) keepappropriaterecordsoraccountsofdealings,transactionsandinvestments

(b) keeptheperson’spropertyseparatefromthatofthefinancialguardian,exceptwherejointlyowned.

Documents

0 Victorian Law Reform Commission – Guardianship: Final Report 24 Chapter 17 0 Responsibilities of substitute decision makers INTROduCTION 17.1 This chapter addresses the responsibilities