Media release – Guy Barnett, Attorney-General and Minister for Justice; Michael Ferguson, Treasurer, 23 September 2024
Restructure of the Public Trustee
The Public Trustee will be restructured, with the commercial will, estate and trustee services currently provided to be transferred to the private sector.
In 2021, the Independent Review of the Public Trustee by Dr Damian Bugg AM KC made a number or recommendations, including that the Treasurer initiate a review by the Tasmanian Economic Regulator of the Public Trustee’s fees and charges for clients required by law to use its services.
The Government has now considered the Tasmanian Economic Regulator’s review after receiving the report earlier this year.
Both the Economic Regulator’s Report and the 2021 Independent Review into the Public Trustee raised questions about the appropriateness of the government business model for the Public Trustee, given the competing tensions between maximising revenue and protecting the interests of its vulnerable clients.
The Government will restructure the Public Trustee following recommendations in the report and the independent review.
Attorney-General and Minister for Justice, Guy Barnett, said the Government’s priority is to ensure our most vulnerable Tasmanians receive quality, efficient and effective services.
“We acknowledge that this is a difficult decision for the Public Trustee Board, along with the significant work that has been undertaken to date to implement the recommendations from previous reviews,” the Attorney-General said.
“Our Government is determined to ensure the Public Trustee’s services are effective and efficient for those clients who access these services, with further independent examination to be undertaken to ensure the service is best practice.”
Treasurer Michael Ferguson said independent expert advice on the appropriate governance structure the services provided by the Public Trustee was being prepared for the Government.
“It is expected that this process will take eight weeks, with the advice to inform a future operating model,” Treasurer Ferguson said.
“Subject to detailed implementation planning, it is anticipated that the new arrangements will be in place in 12 to 18 months.”
While these changes will not occur immediately, existing clients are encouraged to contact the Public Trustee if they have any concerns.
Media release – Public Trustee, 23 September 2024
Statement from the Public Trustee Board
The Public Trustee Board notes today’s announcement by the Government.
The Chair of the Public Trustee, Therese Taylor, said that while the Board was surprised by the Government’s announcement, it will work cooperatively to achieve an appropriate governance structure to ensure the best possible outcomes for clients, staff and the Tasmanian community.
The Tasmanian Government will restructure the Public Trustee to bring it within a Government agency, and transfer the commercial will, estate and trustee services currently provided by the Public Trustee to the private sector.
The Government’s announcement includes further analysis to be undertaken into the appropriateness of the government business model for the Public Trustee with recommendations to inform the future operating model.
The Public Trustee plays a very important role in our community.
“Following the Independent Review into the Public Trustee by Dr Damian Bugg AM KC, the Public Trustee has undergone unprecedented organisational change over the past two years, becoming a more client focused and responsive organisation,” Mrs Taylor said.
“Fundamental changes to the way services are delivered, to the way we communicate with our clients, their families and support services, and the broader community, have been achieved by actively engaging and working with our clients, stakeholders and government.
“This client-centred approach has achieved wide support from the Tasmanian community.
“Pleasingly we are already seeing the impact of these initiatives with very positive feedback from clients, their families and supports, and the wider community.
“A recent survey carried out by Myriad Research invited clients to rank the Public Trustee on a range of client experience measures. The results indicated that the new client-centred approach combined with a move towards supported decision making was showing extremely positive results.
“The supported decision-making framework, which was launched in October 2023, places those with impaired decision making at the centre of decisions that impact their lives. This framework aligns with the recently legislated Guardianship and Administration Amendment Act.
“These important organisational changes at the Public Trustee ensure that vulnerable Tasmanian are receiving quality, efficient and effective best practice services.
“The Public Trustee welcomed the Office of the Economic Regulator (OTTER) inquiry into fees and charges for clients who are required, by legislation, to use the services of the Public Trustee. The OTTER report was one of the remaining items to be implemented from the Independent Review of the Public Trustee.
“We regard the report as another step forward, and an opportunity to further transform the organisation, updating long standing fee structures and systems.
“Following today’s announcement, there are many details relating to the proposed restructuring which will need to be determined. The Board remains committed to working constructively with the Government to represent the interests of our clients, to help inform the transition to ensure the restructured services continue to be best practice and that all clients receive a quality, effective and efficient service.
“The Board would also like to take this opportunity to acknowledge our fantastic team of dedicated staff around the state and assure them we will work with the Government to support them during this process.
“At the end of the day, we are committed to doing what’s right for our clients, our staff and the community and we will absolutely play as constructive a role as possible as the Government decides on how it will now manage these very complex, very sensitive issues.”
A response to the OTTER report is available on the Public Trustee website.
Dean Winter MP, Labor Leader, 23 September 2024
Public Trustee falls victim to minority government budget disaster
In a stunning revelation out of the Premier’s estimates hearing, Jeremy Rockliff admitted that the Public Trustee will be privatised.
Under questioning from Labor, Jeremy Rockliff admitted his minority government’s budget disaster has gotten so bad that he is going to sell off the Public Trustee to keep the lights on.
Placing the Public Trustee into private hands will risk history repeating itself.
Past scandals have included:
- An elderly man in hospital having his lease terminated and his home cleared without his knowledge
- A woman being prevented from using her own money to buy Christmas presents for her family
- A young man awarded $5000 compensation after being injured as a three-year-old, and having the funds invested with the Public Trustee, was paid out just $5,200 fifteen years later after being charged ‘exorbitant’ fees and charges
A review into the Public Trustee in 2021 also found that it misunderstood its core purpose – to act in the best interests of clients.
How will privatising the Public Trustee ensure that it acts in the best interests of vulnerable Tasmanians, rather than private shareholders?
After earlier admitting his government will be axing 1,000 jobs from the public service, this latest revelation shows just how damaging the Liberals’ budget disaster will be for Tasmania.
Media release – Cassy O’Connor MLC, Greens Justice spokesperson, 23 September 2024
Liberals Move to Privatise Public Trustee Services
In a move fraught with risk for already vulnerable clients, Attorney General Guy Barnett today announced the Public Trustee’s commercial will, estate and trustee services will be transferred to the private sector.
Having underfunded the Public Trustee for years, the result is a restructure and privatisation.
This can’t be a lawyers’ picnic, at the expense of vulnerable Tasmanians.
In Budget Estimates today, the Greens asked the Attorney General how this move would not lead to extra, private sector legal costs for Tasmanians whose finances are being managed by the Public Trustee.
Mr Barnett made all the right sounds about having a close eye on managing the impact of this privatisation on vulnerable Tasmanians, but was thin on detail about how they will be protected from unnecessary, expensive legal fees.
The Greens will be watching this space very closely to ensure already vulnerable Tasmanians aren’t bled dry financially by the privatisation of core Public Trustee legal services.
