From 18 November 2024, probate fees in Victoria are set to rise, impacting many estates handled in the Supreme Court. This change follows a review by the Department of Justice and Community Safety, which aims to make probate fees more reflective of the administrative and support costs within the justice system. But with fee hikes reaching as high as 625% for large estates, this change has raised eyebrows, with some referring to it as a “Death Tax by Stealth.”
Who Will Be Affected by the New Probate Fees?
One silver lining in the changes: estates valued at up to $249,999.99 will see the previous fee of $68.60 entirely removed. However, for higher-value estates, the new fees represent a substantial increase. For example, the fee for an estate valued over $7,000,000 has jumped from $2,318.90 to a significant $16,803.60.
| Estate Value | Previous Fee | New Fee |
|---|---|---|
| $0 – $249,999.99 | $68.60 | $0 |
| $250,000 – $499,999.99 | $68.60 | $514.40 |
| $500,000 – $999,999.99 | $367.40 | $1,028.80 |
| $1,000,000 – $1,999,999.99 | $685.90 | $2,400.50 |
| $2,000,000 – $2,999,999.99 | $1,502.40 | $4,801.00 |
| $3,000,000 – $4,999,999.99 | $2,318.90 | $7,185.20 |
| $5,000,000 – $6,999,999.99 | $2,318.90 | $12,002.60 |
| $7,000,000+ | $2,318.90 | $16,803.60 |
Potential Impact on Executors
For many executors, the new fee structure may bring added financial strain. While probate fees are generally covered by the estate, funds are often inaccessible until after probate is granted. This can mean executors may need to cover these expenses out of pocket initially, later reimbursing themselves from the estate—a requirement that could deter individuals from accepting executor roles altogether.
The mandatory advertising fee for probate applications is also set to rise, from $26.10 to $35.90, adding another cost layer to the application process.
If you have questions, don’t hesitate to reach out to our team.