‘Death Tax’: Inheritance Fees for Victorians Soar 650 Percent

Victorian Labor will slug families of deceased relatives with major fee hikes to process wills for estates worth more than $250,000.
The new fees, listed by the Supreme Court of Victoria, are flagged to apply from Nov. 18, 2024, impacting families dealing with multi-million dollar estates.
The fees are normally paid when the Probate Office must process a deceased individual’s will and estate, which can include property.
Meanwhile, costs on estates between $500,000 and $1 million will increase 180 percent from $367.40, to $1,028.80. The median dwelling value in Melbourne is $776,044, according to CoreLogic, but this is likely to rise in future.
The fees for estates between $1 and $2 million will surge 250 percent from $685.90 to $2,400.50, while costs on fortunes between $2 and $3 million will rise 220 percent from $1,502.40 to $4,801.
In a post to social media, Victorian Opposition Leader John Pesutto called the move a “death tax by stealth”—as the changes were made just before the Melbourne Cup public holiday on Nov. 5.
Shadow Attorney-General Michael O’Brien shared a similar view.
“This is not about cost recovery, because we know that the Probate Office will take in about 1,000 percent more fees than it costs to run,” he told reporters.
However, under the changes announced by the government, new fee brackets will be introduced.
An estate worth $3-5 million will now be charged $7,185.20 under the new system, while a $5-7 million estate will be slugged $12,002.60, and a $7 million plus estate will incur a fee of $16,803.60.
“A total of 124 survey responses and 8 submissions were received in the public submission period. When participants were asked if they support the proposed changes to Probate Office fees, 94 percent indicated ‘no,’” the government said.
One response noted: “The proposed increase in fees will cause financial distress for clients and small and medium sized businesses and practices, and creates a risk that individuals will not seek the professional advice they need.”
Following this feedback, the government acted to remove the fee for estates valued at less than $250,000, and reduce fees for those under $7 million.
The government noted the changes would see Victoria charge less in probate fees compared to New South Wales and South Australia for estates under $2 million—which encompasses 89 percent of all estates.
“The proposed regulations will reduce fees for people with a lower capacity to pay, especially when the proceeds from an estate are less than $250,000,” the government said.
In response, the government said they accepted this concern, but noted elder abuse was a criminal offence that should be reported to police.
“In relation to the proposed probate fee, financial abuse is mostly likely to occur for assets such as cash, where the cost to transfer the asset is minimal.”