Page 1588 - Week 08 - Thursday, 28 September 1989
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Secondly, the Bill will amend section 18 of the Trustee Companies Act 1947 to provide an increase of 0.5 per cent in the rate of commission on the capital value of an estate, or the gross annual income, payable to a trustee company for its services. Finally, it will introduce proposed new sections which will specify a range of fees payable to trustee companies for the provision of services connected with the management or administration of a deceased estate.
The extension of the facility for ACT citizens to join with a trustee company in the management or administration of an estate is a timely and sensible initiative. At present a citizen with sole responsibility for an estate must act alone or, alternatively, authorise a trustee company to act. There is no middle ground. These amendments, which will repeal existing sections 5 to 8 and substitute for them proposed sections 5 to 8A, will provide an additional option of joining with a trustee company.
The proposed increase of 0.5 per cent for commission payable to a trustee company is a modest increase. For commission on the capital of an estate, the ACT rate will increase from 4 per cent to 4.5 per cent, taking it from the lowest rate in Australia to the second lowest, but still behind States such as South Australia at 6 per cent and Western Australia, which was 6 per cent but where recent amendments have removed a prescribed rate. The increase of 0.5 per cent for commission payable on the gross income of an estate places the ACT at a rate of 5.5 per cent, which is about the average rate but behind Victoria and Queensland at 6 per cent and South Australia at 7.5 per cent.
The introduction of proposed new sections 18D to 18G will define the types of fees, as distinct from commissions, payable to a trustee company. These fees are trust fees; fees for preparation of returns such as a tax return; and fees for an officer of the trustee company who acts as a director of a company included in the management or administration of an estate. A consequential amendment limits the introduction of the fees to only those estates committed to the administration or management of a trustee company on or after the date of commencement of these proposed amendments.
There are no financial considerations for the ACT Government's expenditure or revenue involved in these proposed amendments. I now present the explanatory memorandum to the Bill.
Debate (on motion by Mr Collaery) adjourned.
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