South Australia first in Australia in 1876 to introduce probate and succession duties on estates of the deceased
South Australia's Probate and Succession Duty Act 1876, with similar effects to those operating regarding the wills of deceased estates in England, was originally introduced by premier James Boucaut. Above: Nineteenth century Graves at West Terrace, Adelaide city.
South Australia was the first pre-federation Australian state in 1876 to introduce probate and succession duties.
The Probate and Succession Duty Act 1876, with similar effects to those operating regarding wills in England, was originally introduced by premier James Boucaut, after the Legislative Council blocked his move in 1875 to introduce stamp duties to pay the interest on a £3 million vision for an expanded railways network and other piblic works.
The succession duty was a form of death duty paid to the government after an assessment of the value of the deceased person's estate. Duties were not paid on property:
• passing from spouse to spouse
• where the value of the estate was less than £50
• where the duty to be paid was less than £20
* for objects bequeathed to museums, universities or schools.
The Act created a new position: the commissioner of inland revenue, to collect and manage all money paid as duty. A certificate signed and sealed by the commissioner, saying duties had been paid, was attached to the letters of probate. The persons applying for probate had to make a statement on oath as to the value of the real and personal property of the deceased within South Australia but excluding debts that an estate out of the province was insufficient to liquidate.
Where too little duty had been paid, the executors had to pay the remainder within six months or be liable to a £50 fine. Power was given by to the supreme court to order part of any real estate to be sold to cover a refusal to pay duty. Failure to pay enought excess duty within six months was subject to a penalty of £100. Regarding duties paid by successors, very strict rules were made against pre-death deeds of gift or other instruments, including secret trusts and other arrangements, to avoid paying duties.
The Register newspaper (August 23, 1876), reviewing the legislation regarded succession duties, said the “mode of payment cannot be considered in any way burdensome”. It would be payable as an annuity of the value of the annual income derived from the property, The duty wouldn’t be payable in one sum but in eight half-yearly instalments.
From January 1, 1980, no succession duty was payable in South Australia on any property passing to a beneficiary from a deceased estate. The Succession Duties Act 1929 was repealed in 2013.