Shannon Deery: It’s about to become more expensive to die in Victoria

Victoria has little left to sell and spending cuts are politically problematic so it’s hardly surprising our government will look anywhere to find a buck — so why not in death?

The cost of enacting the wills of loved ones is set to soar by up to 650 per cent in some cases.

There are two things certain in life: death and taxes.

We don’t have a death tax in Victoria, yet, but it’s about to become more expensive to die.

That’s because the cost of enacting the wills of loved ones is set to soar by up to 650 per cent in some cases.

Under a model being considered by the government the Supreme Court’s probate office will rake in more than 1000 per cent more in fees than it costs to operate.

The rest of the money will be used to fund other activities of the court.

All this, remember, after the government cut funding to Court Services Victoria over the next 12 months by almost $20m in last month’s budget.

But that’s OK, because the jacked-up probate fees will rake in an extra $33m, more than enough to cover the cuts.

So not only are Victorians paying more in property, schools, business, fire services and waste taxes (to name a few), we’re copping it in death, too.

It’s the unavoidable effect of the government’s budget woes, as it struggles to rein in spending and reverse the state’s debt trajectory.

As revealed in last week’s NSW state budget, we have become the economic laughing stock of the country.

Not only are Victorians paying more in property, schools, business, fire services and waste taxes, we’re copping it in death, too. Picture: Diego Fedele

Handing down its second budget with its own debt levels blowing out by billions, the Minns government joked that at least they weren’t as bad as us.

Its own budget papers specifically singled out Victoria as the worst case scenario.

Net debt will grow to an estimated $17,000 for every person in NSW by 2028; here it will grow to about $27,000 for every Victorian, or $188bn in total.

And there are only three quick-fix ways to lower our debt: cut spending, raise taxes or sell assets.

With little left to sell, spending cuts are politically problematic, it’s hardly surprising our government will look anywhere to find a buck.

And why not in death?

A review into the probate fees wasn’t due until 2027, but was fast-tracked by assistant treasurer Danny Pearson.

Pearson is an MP who has made his views on death taxes very clear.

If he had it his way, and he may be given he’s a hot favourite to take over from treasurer Tim Pallas when he retires, Victoria would introduce the measure.

Danny Pearson has made his views on death taxes very clear. Picture: Nicki Connolly

“My personal view is that death duties should be instituted,” he told parliament in 2017.

“I think it would be reasonable that if a person passed on and their estate was worth $1m, for argument’s sake, we would say, ‘We will allocate 5 per cent of your estate to the state to ensure that your children and your grandchildren can live in a progressive, harmonious and safe community’. That is just a private view, and many others would violently disagree with it, as is their right.”

A glimpse into our future, perhaps, with a hike in probate fees akin to a death tax by stealth.

At the very same time right now across the state hospital bosses are working out how to slash millions of dollars from their budgets.

They have until the end of the week to submit budget action plans to the state government, who will in turn decide their final budgets.

Already Ambulance Victoria has started axing executive positions and has started consulting on broader redundancies.

The Alfred hospital, too, has started cutting roles.

Other hospitals are considering selling off assets, and some regional services have cut back on cleaning with nursing staff picking up the slack.

Health is not the only area where service delivery is suffering.

But it is both pertinent given the ongoing budget negotiations, and critical given the nature of its work.

It’s been almost six years since Daniel Andrews announced the Suburban Rail Loop. Picture: Andrew Henshaw

It is also a core Labor value that it can no longer afford to properly fund, despite creative accounting that will tell you the government is delivering all hospitals an extra $1.5 billion this financial year alone.

The workers on the ground are telling a very different story: they say there isn’t enough money to properly fund public hospitals, ambulances, community and mental health services, and health infrastructure — all state responsibilities.

It’s been almost six years since Daniel Andrews announced the Suburban Rail Loop — the largest and most expensive transport project in Victorian history.

And still there is contention about whether the project is a winner or a stinker.

It’s become almost trite to argue it is holding Victoria back.

While debt is high and services suffer, Victorians will continue to ask themselves whether the Allan government has its priorities wrong. Picture: Andrew Henshaw

But the $200bn albatross around the Allan government’s neck is hard to ignore considered against the state’s unenviable economic position.

When Andrews announced the rail line it came with a $50bn price tag — that was for the whole 90km loop around Melbourne.

Today the cost has blown out to at least $125bn, with the government committed only to the first stage at an estimated cost of $30-34bn.

Analysis by the independent Parliamentary Budget Office shows Victoria will get no change out of $200bn if the whole thing were to be built.

Six years and two thumping election wins since the SRL was announced, it shouldn’t remain such a political hot potato.

But while debt is high and services suffer, Victorians will continue to ask themselves whether the Allan government has its priorities wrong.