Death and taxes: Aussie state’s ‘stealthy death tax’ sparks controversy!
- Replies 0
Significant changes are on the horizon for residents of one Aussie state dealing with inheritance matters.
A recent update has sparked widespread discussions about its implications for families and beneficiaries.
As these changes come into effect, it's crucial for individuals to stay informed and understand how they might be affected.
In a move that has sparked controversy and concern among Victorians, the state government is considering a significant increase in probate fees, which has been criticized as a ‘death tax by stealth’.
This proposed change could see millions of Australians facing hefty fees to process the estates of deceased family members, raising questions about the fairness and timing of such a measure.
Probate fees are paid to the court to approve wills, a necessary step in the administration of an estate after someone passes away.
Currently, Victorians pay a probate fee of $68.60 for estates valued at less than half a million dollars.
However, under the proposed changes, this fee could skyrocket by 281 per cent to $261.30 for estates worth up to $250,000.
The increases continue to escalate with the value of the estate, with those between $250,000 and $500,000 potentially facing a 650 per cent increase to $514.40, and so on, up to a staggering 273 per cent increase for estates worth between $1 million and $2.5 million, which will be $685.90.
Premier Jacinta Allan has defended the review, stating that the fee increases have not yet been confirmed.
‘The preferred option that is being considered would actually see probate fees become substantially cheaper for a large number of people needing the service,’ she explained.
‘There's a bit of fear-mongering and scare-mongering and, frankly, just ridiculous commentary that's coming from the Liberal opposition on this.’
The rationale behind the review, as stated by the Department of Justice and Community Safety, is to improve the overall cost recovery of the Supreme Court.
The changes are expected to generate an additional $33.6 million in revenue, which is a significant 1,086 per cent more than the current cost of running the probate office.
This has led to accusations from Opposition Attorney-General Michael O'Brien that the Labor government is reintroducing death duties by stealth, a practice abolished in Victoria in the 1980s.
He noted that with the new changes, Victorians may face a government fee of up to $15,407.40 to claim their inheritance. In contrast, the maximum probate fee in New South Wales is significantly lower, capped at $6,652.
‘This massive probate fee hike is nothing less than Labor reintroducing death duties by stealth,’ Mr O’Brien argued.
‘Not even dying is enough to save Victorians from Labor's desperation for new taxes. People work hard and pay taxes all their life; they shouldn't have to pay again after they die.’
‘This Labor Government should be ashamed of itself, but it shows just how badly they have mismanaged Victoria's finances. With current probate fees scheduled to continue until 2028, this is nothing more than a grubby cash grab by a broke Labor Government,’ he added.
A government representative stated that the review is still ongoing, and residents are still able to make submissions.
‘Victorian probate fees are considerably lower than other states, they don't cover the costs of hearings in the Supreme Court adequately and any change would still see average fees lower than the fees charged in New South Wales or South Australia,’ she stated.
‘The preferred option would also make it cheaper for many people – especially when the proceeds from an estate are less than $500,000.’
The proposed changes to inheritance and probate laws in Victoria have left many residents concerned about the financial implications of claiming their loved ones' estates.
This issue is particularly pressing as a growing number of Australians are relying on inheritances to secure their financial future.
The trend of banking on inheritances highlights the importance of understanding these new regulations and how they might impact one's financial planning.
Have you or someone you know been affected by probate fees? What are your views on the proposed increases? We invite you to share your thoughts and experiences with estate planning and probate fees in the comments below.
A recent update has sparked widespread discussions about its implications for families and beneficiaries.
As these changes come into effect, it's crucial for individuals to stay informed and understand how they might be affected.
In a move that has sparked controversy and concern among Victorians, the state government is considering a significant increase in probate fees, which has been criticized as a ‘death tax by stealth’.
This proposed change could see millions of Australians facing hefty fees to process the estates of deceased family members, raising questions about the fairness and timing of such a measure.
Victoria's probate fees are set to rise, potentially costing families thousands more. Credit: Shutterstock
Probate fees are paid to the court to approve wills, a necessary step in the administration of an estate after someone passes away.
Currently, Victorians pay a probate fee of $68.60 for estates valued at less than half a million dollars.
However, under the proposed changes, this fee could skyrocket by 281 per cent to $261.30 for estates worth up to $250,000.
The increases continue to escalate with the value of the estate, with those between $250,000 and $500,000 potentially facing a 650 per cent increase to $514.40, and so on, up to a staggering 273 per cent increase for estates worth between $1 million and $2.5 million, which will be $685.90.
Premier Jacinta Allan has defended the review, stating that the fee increases have not yet been confirmed.
‘The preferred option that is being considered would actually see probate fees become substantially cheaper for a large number of people needing the service,’ she explained.
‘There's a bit of fear-mongering and scare-mongering and, frankly, just ridiculous commentary that's coming from the Liberal opposition on this.’
The rationale behind the review, as stated by the Department of Justice and Community Safety, is to improve the overall cost recovery of the Supreme Court.
The changes are expected to generate an additional $33.6 million in revenue, which is a significant 1,086 per cent more than the current cost of running the probate office.
This has led to accusations from Opposition Attorney-General Michael O'Brien that the Labor government is reintroducing death duties by stealth, a practice abolished in Victoria in the 1980s.
He noted that with the new changes, Victorians may face a government fee of up to $15,407.40 to claim their inheritance. In contrast, the maximum probate fee in New South Wales is significantly lower, capped at $6,652.
‘This massive probate fee hike is nothing less than Labor reintroducing death duties by stealth,’ Mr O’Brien argued.
‘Not even dying is enough to save Victorians from Labor's desperation for new taxes. People work hard and pay taxes all their life; they shouldn't have to pay again after they die.’
‘This Labor Government should be ashamed of itself, but it shows just how badly they have mismanaged Victoria's finances. With current probate fees scheduled to continue until 2028, this is nothing more than a grubby cash grab by a broke Labor Government,’ he added.
A government representative stated that the review is still ongoing, and residents are still able to make submissions.
‘Victorian probate fees are considerably lower than other states, they don't cover the costs of hearings in the Supreme Court adequately and any change would still see average fees lower than the fees charged in New South Wales or South Australia,’ she stated.
‘The preferred option would also make it cheaper for many people – especially when the proceeds from an estate are less than $500,000.’
The proposed changes to inheritance and probate laws in Victoria have left many residents concerned about the financial implications of claiming their loved ones' estates.
This issue is particularly pressing as a growing number of Australians are relying on inheritances to secure their financial future.
The trend of banking on inheritances highlights the importance of understanding these new regulations and how they might impact one's financial planning.
