Victorians will be hit by huge fee increases to process family members’ estates in what has been criticized as a “backdoor death tax”.
Prime Minister Jacinta Allan’s government is considering changes that would mean families will have to pay, in some cases, thousands of dollars in probate fees to have wills sealed by the Supreme Court.
The changes are expected to generate an additional $33.6 million in revenue for the court, which is 1,086 percent more than the cost of operating the probate office. The Herald of the Sun reported.
The current probate rate in Victoria is $68.60 for properties valued at less than half a million dollars.
But under the proposed changes, this could increase by 281 per cent to $261.30 for properties worth up to $250,000.
For properties worth between $250,000 and $500,000, the fee could increase by a staggering 650 percent, to $514.40.
For properties between half a million and one million dollars, the fee could increase from $357.40 to $1,028.80 or 180 percent.
And for properties valued between $1 million and $2.5 million, families could have to pay $2,563.80, 273 percent more than the current rate of $685.90.
Deceased Victorians could have to pay up to thousands of dollars more before their inheritance can be passed on to relatives under new changes to probate fees.
Premier Jacinta Allan said rate increases have not yet been finalized and for properties under $500,000 the preferred rate changes would make them cheaper.
Premier Jacinta Allen defended the review and said the fare increases had not yet been confirmed.
“The preferred option being considered would make probate fees substantially cheaper for a large number of people who need the service,” he said.
“There is a bit of scaremongering and, frankly, ridiculous comments coming from the Liberal opposition about this.”
But opposition attorney-general Michael O’Brien criticized the review, saying it was a rollback to inheritance rights that were scrapped in Victoria in the 1980s.
He said under the changes Victorians could pay the government a maximum of $15,407.40 to claim their inheritance.
In New South Wales, the maximum probate fee is less than half that, at $6,652.
“This massive increase in probate fees is nothing less than Labour’s stealthy reintroduction of inheritance tax,” Mr O’Brien said.
“Even dying is not enough to save Victorians from Labor’s desperation for new taxes,” he said.
‘People work hard and pay taxes all their lives; They shouldn’t have to pay again after you die.
‘This Labor government should be ashamed of themselves, but it shows how badly they have managed Victoria’s finances.
‘With current probate costs scheduled to continue until 2028, this is nothing more than a dirty attempt to cash in by a bankrupt Labor government.’
The opposition has said the increases are a rollback of “unfair” taxes paid to the government that were abolished in 1981.
The Department of Justice and Community Safety, which conducted the review, found that increasing fees would improve the Supreme Court’s overall cost recovery.
A government spokesperson said the review has not been completed and residents can still make submissions.
“Victoria’s probate fees are considerably lower than those in other states, do not adequately cover the costs of Supreme Court hearings and any changes would still result in lower average fees than fees charged in New South Wales or South Australia “, said.
“The preferred option would also make it cheaper for many people, especially when the benefits of an inheritance are less than $500,000.”