Page 1280 - Week 04 - Thursday, 8 May 2014
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time to obtain legal advice and commence proceedings while still allowing the estate to be wound up within a more reasonable time. There is no uniformity between jurisdictions on this matter, but a six-month time frame brings the ACT more into line with most states. The proposed amendments will not adversely affect potential claimants as there is existing provision to apply to the court for an extension of time.
The bill reduces the time available to creditors to make a claim against an estate and reduces the time in which a family provision claim may be made. Presently, any creditor who has a claim against the estate of a deceased person has six months after the Public Trustee has provided notice to notify the Public Trustee in writing. This is delaying the finalisation of estates and causing distress and potential financial hardship to estate beneficiaries, particularly if they were reliant on the deceased for financial support. The bill reduces the time for a creditor to make a claim to three months. This still allows sufficient time for creditors to obtain legal advice and commence proceedings. The reduced time frames for these claims will provide a better balance between the interests of potential claimants and the interests of the beneficiaries of the estate.
The bill also amends the Public Trustee Act to standardise and modernise processes for trust fund advances, and ensures that all beneficiaries have equal access to trust funds in times of need.
While the Public Trustee Act empowers the Public Trustee to advance the whole of trust funds under administration for the maintenance of the beneficiary where needed, that power is currently limited to trusts established under direction of the court. Intestate estates with infant children, victims of terrorism and superannuation trusts with no advancement provisions are becoming more common; however, these are not administered by the courts. For advances in trusts established other than by order of the court, the Public Trustee has had to rely on the Trustee Act 1925, and was limited to advances up to the whole of the income and half the trust capital.
Taken together, these amendments will minimise delays in finalising estates, while ensuring that potential claimants have a reasonable window of opportunity to pursue claims against the estate.
The bill also implements a Council of Australian Governments decision to phase out the existing travel agent industry regulatory framework and initiate the travel industry transition plan. This plan will reduce red tape by introducing a voluntary industry accreditation scheme, and assist Australian travel agencies to become more competitive with offshore providers. Consumers will continue to be protected under the provisions of the Australian Consumer Law. These include consumer guarantees which require travel agents to provide services with an acceptable level of skill and technical knowledge, and to take all necessary care to avoid causing loss or damage to their customers. The changes to travel agent regulation will assist the approximately 99 licensed travel agents operating in the ACT. Removing red tape for travel agents is another good example of the government’s commitment to supporting Canberra businesses.
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