Compliance with the Age of Majority Act 1973 is largely automatic for most individuals and organisations. The Act reduces the age of majority to 18, and the general law adjusts accordingly. However, for specific compliance obligations, the following steps apply.
For trustees and administrators: When a beneficiary turns 18, the trustee must determine whether to recognise the beneficiary's capacity to give directions (s 7) or to receive money (s 8). The trustee should review the trust deed, will, court order, or other governing instrument to see if it contains an express age definition or an indication of a contrary intention. If it does, the Act does not change that age. If it is silent or uses generic terms like "adult" or "full age", the Act applies and the beneficiary attains full capacity at 18. The trustee must then decide whether to pay or act on directions. If the trustee considers it imprudent or not in the beneficiary's best interests to pay or comply, they may refuse but must give written reasons. The trustee should document the reasons carefully, including any evidence of the beneficiary's financial immaturity, the amount of money involved, and the risk of dissipation. The trustee should also consider whether all beneficiaries have joined in a direction (s 7(1)(a)) and if not, may refuse on that ground alone. The trustee should be prepared for a possible originating summons from the beneficiary.
For financial institutions: When an account holder or customer turns 18, the institution should update its records to reflect that the person has full capacity. The institution should no longer require a parent or guardian to co-sign or guarantee transactions. The institution should accept receipts and discharges from the 18 year old as valid. However, if the account is held under a trust or court order with terms specifying a higher age, the institution should comply with those terms, not the Act. The institution should review its customer identification and age-verification procedures to ensure that it does not discriminate against 18 year olds by requiring them to transact through a guardian.
For employers: Employers should review industrial awards, enterprise agreements, and employment contracts that classify employees as "junior", "apprentice", or "adult" and that use the age of majority as a threshold. If the award or agreement uses 21 as the threshold for adult wages or conditions, the Act does not change that (s 6(11)). The employer must continue to apply the award or agreement terms. If the award or agreement uses "adult" without definition, the Act supplies 18. The employer should consult the industrial instrument and seek advice if there is ambiguity. Employers should also review their policies on parental consent for employment, liability for employees under 21, and insurance requirements, noting that 18 year olds are now adults for most purposes but not for industrial law purposes if the award says otherwise.
For parents and guardians: Parents should be aware that their legal authority over a child ends at 18, unless a court order or guardianship appointment specifies a different age. Parents should review any wills, trusts, or insurance policies that name them as guardians or trustees for a child. If the instrument uses "minor" or "infant" without definition, the Act ends the guardianship or trust at 18. If the instrument specifies a higher age, the parents retain authority until that age.
For drafters of wills, trusts, and contracts: When drafting documents after the appointed day, drafters should expressly state the age they intend for any age-related provision. If the drafter wants the beneficiary to have full capacity at 18, they can simply use "adult" or "full age" and rely on the Act. If the drafter wants a different age, they should state it explicitly, for example: "For the purposes of this trust, 'adult' means a person who has attained 25 years of age." This qualifies as an "indication of a contrary intention" and overrides the Act. The same applies to contracts: if the contract requires a party to be of full age, specify the age or use "18 years" to avoid ambiguity.
For courts and legal practitioners: When interpreting a statute or instrument that uses "minor", "infant", "adult", "full age", or similar terms, practitioners should first check whether the statute or instrument contains an express definition. If it does, apply that definition. If it does not, apply the Act's default of 18. Practitioners should also check whether the statute or instrument was made before or after the appointed day and whether the instrument was executed before or after the appointed day, because the Act's application to instruments made before the appointed day is limited by the savings provisions.
For government agencies: Agencies should review all legislation, regulations, policies, and forms that use age-of-majority terms. Where the term is used without definition, it now means 18. Forms that ask for parental consent or require a guardian should be updated to reflect that persons 18 and over do not need such consent. Agencies should also ensure that their service delivery to persons 18 and over is consistent with full adult capacity, including issuing licences, permits, and benefits without requiring parental authorisation.