A New NCAT Ruling Explains
When unpaid fees pile up and a resident with dementia can’t manage their money, can the aged care facility itself step in and ask the Tribunal for a financial management order?
A recent decision from the NSW Civil and Administrative Tribunal (NCAT) says yes – but only if the facility’s primary motivation is the resident’s welfare, not just getting paid.
Let’s break down the case of Fiona (a pseudonym) [2026] NSWCATGD 1.
The situation
Fiona is an 82-year-old woman with dementia living in a regional NSW aged care home run by HammondCare, a not-for-profit company. She owes more than $72,000 in unpaid accommodation and other costs. Her daughter, Debbie, acts as her representative but has no formal legal authority (like an Enduring Power of Attorney).
HammondCare tried to sort things out with Debbie for a long time, with no success. So, they applied to NCAT for a financial management order – basically asking the Tribunal to appoint someone (like the NSW Trustee & Guardian) to manage Fiona’s finances.
But there was a hitch: does a company even have the right to make such an application?
The legal hurdle – “standing”
Under NSW law, anyone applying for a financial management order must have “genuine concern for the welfare” of the person. That test is usually easy for family members or close friends. But what about a corporation that runs an aged care home?
The Tribunal had to answer two questions:
Is a company a “person” who can bring an application?
If yes, did HammondCare have a genuine concern for Fiona’s welfare – or was it just trying to recover a debt?
What the Tribunal decided
1. Yes, companies can be “persons”
Under NSW’s Interpretation Act, the word “person” includes a corporation. NCAT has confirmed this in earlier cases, so that part was straightforward.
2. HammondCare did have a genuine concern – here’s why
At first glance, the Tribunal was worried. The application looked like a debt collection exercise. But HammondCare made some key concessions:
They admitted the chance of recovering the $72,000 was “low” and said they might write off the debt entirely.
Their real concern was that Fiona’s pension money wasn’t being used for her benefit. She had no access to discretionary funds for things like pharmacy, hairdressing, or small comforts – HammondCare was covering those out of their own pocket.
They argued that without a financial manager, Fiona remained vulnerable to potential exploitation or mismanagement of her affairs.
The Tribunal accepted that while HammondCare might partially want its money back, its primary motivation was to make sure Fiona’s own funds were used to improve her quality of life. That’s a genuine concern for welfare.
The outcome
The Tribunal made two procedural rulings:
HammondCare has standing to bring the financial management application.
HammondCare is allowed to be legally represented in the proceedings (which makes sense – a company can’t argue its own case in person).
The substantive hearing – whether a financial manager will actually be appointed for Fiona – is yet to come.
Why this matters
This decision is a big deal for aged care providers across NSW. It confirms that a residential aged care facility can, in appropriate cases, ask NCAT to step in and manage a resident’s finances. But there’s a crucial condition:
The provider’s main goal must be the resident’s welfare, not just collecting unpaid fees.
If the debt is the real driver, the application will fail. But where a resident is unable to access their own money for basic needs, and informal arrangements have broken down, providers now have a clear pathway to seek help from the Tribunal.
For families and residents, it’s a reminder that aged care homes aren’t just landlords – they can (and sometimes must) act as advocates for vulnerable residents, even if that means going to court.
This article is based on the published reasons in Fiona (a pseudonym) [2026] NSWCATGD 1. Names have been anonymised as required by law. This article is not a substitute for tailored legal advice and should not be taken as such. You should seek tailored legal advice that considers your individual circumstances.
