EAAA's responds to the Parliamentary Joint Committee on Corporations and Financial Services' tabled report

In April this year, the Parliamentary Joint Committee on Corporations and Financial Services announced the Inquiry into Financial Services Regulatory Framework in Relation to Financial Abuse. EAAA welcomed this important step, recognising the Committee and the broader Government’s commitment to addressing a critical issue which is experienced by more than 92,000 older Australians annually. Anecdotal evidence suggests that this number has risen sharply due to the rising cost of living and pressures from adult children. 

The report handed down last week was thorough in its analysis and demonstrated a deep understanding of the seriousness of the issue. EAAA was particularly encouraged by recommendations 7 and 14, which closely align with our own recommendations to the Inquiry. Recommendation 7 seeks amendments to the Privacy Act 1988 and other relevant legislation to clarify that elder abuse constitutes a serious threat to the life, health, and safety of the individual.  

The importance of this recommendation cannot be understated. Since most cases of financial abuse against older people do not meet the burden to be considered unlawful behaviour, this is the only way to protect those who are disclosing financial abuse within the sector from responding to the abuse without breaching their privacy obligations. 

Recommendation 14 of the report calls for greater consistency of Enduring Powers of Attorney legislation across states and territories. While this falls short of the full harmonisation of legislation recommended by the Australian Law Reform Commission in 2017 – an outcome EAAA continues to advocate for - any progress towards uniformity is a positive step. Greater consistency will help both financial institutions and individuals to better understand the responsibilities and obligations associated with an active EPOA. 

EAAA notes the lack of any reference to a register, or registers, for EPOAs however and remains convinced that this is an essential reform to allow financial institutions and other relevant parties to ascertain the legitimacy and currency of enduring documents. This need is particularly pressing given the variations in state and territory laws, the mobility of the population across jurisdictions, and situations where principals and attorneys reside in different regions.  

Recommendations 19-22, while not specifically recommended by EAAA, also outline the importance of access to physical banks, and the role played by a lack of digital literacy and digital access, (particularly amongst older people), in allowing abuses to take place. The number of bank closures in Australia in recent years has been concerning in and of itself and has also contributed to more than one third of older Australians sharing their bank details, PIN or log in details with others in order for them to navigate the digital process on their behalf. This is something that has naturally made abuses far easier to perpetrate. 

The report emphasises the importance of referring victims of financial abuse to support services but overlooks a critical issue: these services often do not exist. EAAA outlined this problem in our original submission, highlighting the inconsistent access to support services nationwide, and significant strain on those that are already overburdened and under-resourced.  

Without expansion and adequate funding, support services will struggle to meet the demand, rendering efforts to recognise abuse and provide assistance ineffective. This will further strain existing services and leave many without any support at all.  

Further information: 
Vicki Nash, Policy Manager, vicki.nash@eaaa.org.au  

Download the statement