Proposed changes to probate fees
Benjamin Franklin had it right when he said, …in this world nothing can be certain, except death and taxes, and while never truer words were spoken, these two inevitabilities have grabbed the headlines recently and not for being two distinct topics.
When the State Government recently announced it was undertaking a review of Victoria’s probate fees, the reaction from Opposition was swift and vitriolic. While the premier was still insisting that no decisions had yet been made regarding any fee changes, phrases such as ‘death tax by stealth’ and ‘Labor taxes the grave and beyond’ were already being bandied about in the media.
So, what is the fuss all about? In short, the State Government is currently considering potential changes to the state’s probate fees following a finding from the Department of Justice and Community and Safety (DJCS) that present-day probate fees ‘…do not cover the costs of hearings and can be prohibitive to small estates.’ Adding to this, the Engage Victoria website states, ‘The proposed fee changes would not only improve access to justice but would improve the Supreme Court’s ability to provide quality services.
As the government reviews its options, it also affirms that any change to probate fees would still be (on average) lower than those charged in NSW and South Australia. Indeed, the preferred option for change currently under consideration ‘…would make fees cheaper for many people-especially when proceeds are less than $500K.’
While this last comment is attributed to a Victorian Government spokesperson, the opposition claims that the Labor Government is in fact preferring another option and one that would see estates of up to $250K or more being hit with a proposed fee increase of 281 percent, taking the current fee from $68.60 to $261.30. More than this, as political opponents are eager to claim, the preferred Labor option would implement a sliding scale of fees that at its worst, would implement a fee hike of 650 percent on estates between the $250K to $500K bracket.
Outlining three, somewhat ambiguous options for proposed change on its Engage Victoria website, you can find out more about how the State Government is considering its way forward to increase probate fees. You can also have your input about these options by heading to https://engage.vic.gov.au/review-of-probate-fees
