Statutes Amendment (Public Trustee and Litigation Guardian) Bill

Second Reading

The Hon. J.K. SZAKACS (Cheltenham—Minister for Trade and Investment, Minister for Local Government, Minister for Veterans Affairs) (12:50): I move:

That the time allotted for all stages of the bill be 60 minutes.

The house divided on the motion:

Ayes 22

Noes 14

Majority 8

AYES

NOES

PAIRS

Motion thus carried.

The Hon. J.K. SZAKACS: I move:

That this bill be now read a second time.

Today, I introduce the Statutes Amendment (Public Trustee and Litigation Guardian) Bill 2023, a bill that will enhance the efficiency of the Office of the Public Trustee, as well as make related amendments to legislation governing the Public Advocate. The Public Trustee has an important role to safeguard and manage the estates of deceased persons and vulnerable persons who are under financial administration due to temporary or permanent mental incapacity. It is important that the Public Trustee can operate in a way that is efficient and consistent with industry best practice.

Several provisions of the Public Trustee Act 1995 have been identified as requiring improvement and are addressed in this bill. The Public Trustee is empowered to invest money from estates under its control in common funds. The Public Trustee Act 1995 determines how income and capital gains and losses of the fund are distributed back to relevant estates.

Currently, capital gains and income are distributed by slightly different methods, which necessitates separate calculations and distributions. This bill would apply the same tests for distributing both types of profits so that the distribution process can be simplified and estates can be finalised more efficiently. This will not place clients in a less advantageous financial position.

The Public Trustee has obtained independent evaluation of the proposed change to ensure that clients would not be materially disadvantaged. The evaluation concluded that any difference in financial position would be negligible and that the change would be in line with industry standards and would lead to efficiency gains.

The Public Trustee is required to conduct a monthly official evaluation of common funds. Currently, this must take place on the first business day of the month. The bill changes this to the last business day of the month, and this is in line with current industry practice. This change is administrative in nature and will not affect clients' financial positions.

The bill also proposes a new method for the Public Trustee to certify its authority to transact on behalf of a client that better protects clients' privacy. When undertaking its functions, the Public Trustee may be called upon to prove its authority to act on behalf of a client or a deceased estate. For example, a bank holding a client's money may seek proof of authority before it releases the funds to the Public Trustee as part of the bank's own due diligence process and to avoid risk of liability.

Currently, the Public Trustee Act 1995 provides that third parties transacting with the Public Trustee may seek a copy of the relevant court order granting the Public Trustee authority. This creates two issues in practice. First, administration orders are made by the South Australian Civil and Administrative Tribunal, which is not a court and so is not captured by this provision. Second, it is not always appropriate to provide third parties with copies of court or SACAT orders, as they can contain personal information about Public Trustee clients.

The bill would allow the Public Trustee to issue a certificate attesting that a court or SACAT has granted it authority as a protected person's administrator or the administrator of a deceased estate. The certificate must identify the date of the order and the scope of the authority granted. I seek leave to continue my remarks.

Leave granted; debate adjourned.

Sitting suspended from 13:00 to 14:00.