Probate fees
Michael O’BRIEN (Malvern) (14:17): My question is to the Premier. The main asset in the estates of most Victorians is the family home, so Labor’s hiking of probate fees by up to 650 per cent massively increases an up-front death tax on the family home. Will the Premier now remove the family home from probate duties?
Jacinta ALLAN (Bendigo East – Premier) (14:17): In answering the member for Malvern’s question, I reject his characterisation of the changes that the government announced recently regarding probate fees. There was extensive consultation that was undertaken on these probate fees, and part of the reason why was because previously the probate fee rates in this state had been considerably lower than in other states and territories. Also, importantly, they did not cover the costs of hearings in the Supreme Court. In considering that, we went about setting and putting in place a fairer system by abolishing the probate fees for those smaller estates. That is not something I have heard the member for Malvern talk a little bit about, so I will talk a little bit about that. We have abolished probate fees for small estates, keeping those medium-sized estates in line with New South Wales and South Australia.
James Newbury: On a point of order, Speaker, on relevance, this question was specifically about the Premier’s craven death tax on the family home.
Mary-Anne Thomas: On the point of order, Speaker, the Manager of Opposition Business’s point of order is entirely out of order. The Premier was being responsive to the question, and I ask that you rule his point of order out of order.
The SPEAKER: On this occasion the Premier was being relevant to the question that was asked.
Jacinta ALLAN: I know I disappoint the opposition when I answer their questions directly. As I was saying – and I am providing this information for the member for Malvern because clearly he is not aware of it, because he has not raised it in any of his comments on this matter – we have abolished those probate fees for smaller estates. We have the medium-sized estates aligned with New South Wales and South Australia, and for a very, very small number of very, very large estates – multimillion-dollar estates – the level of fee is in line with the costs to manage that process. That is why we have made those changes.
Michael O’Brien: On a point of order, Speaker, in relation to the Premier’s answer being factual, in fact it is the lowest category of estate which receives the 650 per cent increase.
The SPEAKER: That is not a point of order. The Premier has concluded her answer.
Michael O’BRIEN (Malvern) (14:20): Anna Hacker, a director at Pitcher Partners Advisory, has said that Labor’s decision to hike probate fees by up to 650 per cent is:
… a backdoor death tax that is placing a financial burden on people who are already stressed and vulnerable when someone has died.
Premier, why is this desperate, cash-strapped Labor government attacking grieving families by implementing an up-front death tax on the family home?
Jacinta ALLAN (Bendigo East – Premier) (14:20): Again I remind the member for Malvern that he is wrong. His characterisation of the changes is wrong, and I repeat that because, again, perhaps the member for Malvern has either not heard or perhaps not understood the changes that we have made. I repeat: the changes that we have made result in, for a very, very small percentage of Victorians who are working through multimillion-dollar estates, yes, fees that have been put to a point that covers the level of administration for lawyers – for example, like the one the member for Malvern has referred to. These are changes that are consistent in terms of the smallest estates having those fees abolished, medium-sized ones having fees that are consistent with New South Wales and South Australia and those big multimillion-dollar estates having those fees at a level that meets the administration costs that go with these very complex matters, something I would have thought a former Attorney-General may have understood.