What Is a Decision-Making Capacity Assessment in Victoria?
How decision-making capacity is understood under Victorian law, and how a neuropsychological assessment helps.

Key points
- Capacity is presumed and is decision-specific and time-specific.
- A diagnosis such as dementia does not automatically mean a person lacks capacity.
- Independent assessment protects both autonomy and safety.
Questions about capacity often arise when an older adult is making a significant decision, such as appointing an attorney, changing their accommodation or consenting to medical treatment.
The legal framework
In Victoria, capacity is addressed in legislation including the Medical Treatment Planning and Decisions Act 2016, the Powers of Attorney Act 2014 and the Guardianship and Administration Act 2019. Adults are presumed to have capacity unless there is evidence otherwise.
What capacity involves
Broadly, a person has capacity to make a decision if they can:
- Understand the information relevant to the decision
- Retain that information long enough to make the decision
- Use or weigh the information, including risks and options
- Communicate the decision in some way
Decision-specific and time-specific
Someone may have capacity to decide where they live but not to manage complex investments. Capacity can also fluctuate with illness, so the timing of an assessment matters.
The role of a neuropsychologist
A neuropsychologist examines the specific thinking skills underpinning a decision, such as memory, reasoning and insight, and provides an objective, independent opinion. Where possible, recommendations focus on supporting the person to make their own decisions.
This article provides general information only and is not a substitute for individual medical or legal advice.
How we can help
Related services: Decision-Making Capacity Assessment. View our fees or make a referral.

