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There may be situations where you want to appoint someone else to do certain tasks on your behalf. For example, you might want a family member to enter into a contract for you, or you may ask your tax agent to handle certain finances on your behalf.
When this happens, you may want to look into an Authority To Act Form. An Authority to Act Form allows you to appoint someone to act on your behalf and sets out the roles and responsibilities of both the agent and the principal. It also clarifies any ambiguity around the scope or purpose of the required action. In 2025, our form has been updated to include provisions for digital authorisation and secure e-signatures, ensuring your delegation remains robust and legally compliant.
Put simply, you’re giving permission for someone to make certain decisions for you, and you document this arrangement in writing.
What About A Power Of Attorney?
You might be thinking, ‘How is this any different to a Power of Attorney?’
The key difference here is that a Power of Attorney is an official legal document that authorises someone to act on your behalf for an ongoing period of time (subject to the terms of the agreement), whereas an Authority To Act Form is typically used for a single, specific task. In today’s digital age, this distinction is even more critical as businesses and personal matters often require different scopes of authority.
For example, if you want a friend to enter into a contract on your behalf as a one-off task, then you’d opt for an Authority To Act Form. However, if you require them to handle all contracts for you over an ongoing period, a Power of Attorney would be the more appropriate document.
Why Do I Need An Authority To Act Form?
If you are authorising an individual or another business to act for you, it’s essential to have a legal document in place that clearly outlines the rights and responsibilities of each party. This helps prevent misunderstandings and protects both sides as circumstances evolve in 2025.
The document should explicitly set out the limits and scope of the authorised conduct to avoid any confusion or disputes later on. For example:
- What tasks are you asking them to perform?
- What is the precise scope of the task?
- What will happen if the person is unable to complete the task?
It’s also important to note that the Authority To Act Form does not replace a full agreement; rather, it should be used alongside another service agreement where the authority to act forms a key component of the service offering. For instance, if you authorise a tax agent to manage your finances, the form works in tandem with the existing service agreement you have with that agent.
Who Can I Appoint?
The rules surrounding who you can appoint are not overly strict, as long as the individual or business is a ‘trusted person’. You might choose a family member, a friend, or an agent with whom you have a fiduciary relationship. In today’s 2025 environment, remote appointments facilitated via secure, digital channels are increasingly common, provided all parties comply with current electronic signature regulations.
Remember that you can also appoint a business to act on your behalf, so long as the relationship is clearly defined in your agreements.
Agency Relationship
Like a Power of Attorney, an Authority To Act Form generally creates an agency relationship between the principal and the agent. This relationship includes a fiduciary element, with several duties to consider. For example, a real estate agent and their client share an agency relationship—which you can learn more about here.
In any agency relationship, the arrangement is subject to conditions and rules, such as:
- Duty of care, skill, and diligence
- Duty to avoid any conflict of interests
- Duty to act in the best interests of the principal
- Duty not to exceed the agreed scope of activities
- Duty to reimburse the agent for expenses incurred in relation to the agreed conduct
To further ensure that your agency relationship remains clear and legally binding, it’s a good idea to periodically review your arrangements. For more detailed guidance on forming legally sound agreements, check out our article on What Makes a Contract Legally Binding and our guide on Legal Requirements for Starting a Business.
Do I Need An Agency Agreement?
You don’t necessarily need a separate Agency Agreement if your circumstances automatically give rise to an agency relationship through your Power of Attorney or Authority To Act Form. However, whether or not an additional agreement is required will depend on your specific situation.
Generally speaking, an agency relationship can arise naturally based on your circumstances or necessity.
What’s Included?
Our lawyers will draft an Authority To Act Form tailored to the precise requirements of your business. Each form is customised to reflect current 2025 legal standards, including provisions for digital signatures and remote authorisation processes.
Within our package, you’ll receive a consultation with one of our experienced lawyers who will learn about your business, take your project instructions, and advise you on the key legal issues to consider. For additional support, you might also find our Legal Health Check and Online Business Privacy guides very useful.
Need Help?
If you’re ready to have an Authority To Act Form drafted for your business, Sprintlaw’s friendly and experienced lawyers are here to guide you through every step of the legal process. For a free, no-obligations chat about your options, call us on 1800 730 617 or email team@sprintlaw.com.au.
As we advance into 2025, it’s more important than ever to ensure that all your legal authorisations are current and tailored for the digital age. Our updated Authority To Act Forms incorporate cutting-edge provisions—such as secure digital signatures and online verification—to give you complete peace of mind. For further insights on maintaining compliance and streamlining your legal documentation, be sure to explore our Legal Health Check and Online Business Privacy pages.
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