Re R

The case of Re R involved an application by R for the revocation of a financial management order. The order, made under the NSW Trustee and Guardian Act 2009, was based on an assessment that R was unable to manage their own financial affairs. The application was heard and determined by the Supreme Court of New South Wales. The central legal issue was whether the test for capacity to manage one’s own affairs required a subjective assessment of the individual's circumstances or an objective evaluation of their ability to deal with ordinary routine affairs.

The court examined the statutory framework provided by section 86 of the Act, which mandates that a financial management order can be revoked if the individual can now manage their own affairs. The court considered whether the test for capacity to manage one's affairs was inherently subjective, taking into account the individual's unique circumstances, or whether it required an objective assessment of the ability to handle routine financial matters competently. The court concluded that the test for capacity involves a subjective assessment, focusing on the individual's circumstances and their ability to manage their affairs within those parameters. Given this interpretation, the court found that the application for revocation was warranted, and thus granted the application.

In light of the findings, the court ordered the revocation of the financial management order previously made in respect of R. This decision allowed R to regain control over their financial affairs, subject to the court's satisfaction that they could manage those affairs competently within their current circumstances. The court’s decision underscored the importance of a nuanced approach to determining capacity, recognising the individual's personal context in the evaluation process.