Recent updates have changed how Property Managers oversee the finances of people who cannot manage their own affairs.
The Protection of Personal and Property Rights Act (PPPR Act) was updated in October 2024, changing both who needs to file annual reports and how much those reports cost to audit.
While the goal was to make the system easier for families, the new fees have left some people facing unexpected costs, as highlighted in a recent Stuff article about a caregiver who received a surprise $2,400 bill from the Public Trust.
What changed?
Under the PPPR Act, when someone cannot manage their own property or money, the Family Court can appoint either:
- a Property Administrator - for smaller estates (simpler, no audit required), or
- a Property Manager - for larger estates (stricter oversight, annual reporting, and audit by the Public Trust).
Until recently, these limits were low, meaning many families had to go through the full Property Manager process, even when dealing with modest sums.
That has now changed. From 3 October 2024, the income limit increased from $20,000 to $38,800 per year, and the asset limit rose from $5,000 to $25,000. These new limits will also continue to increase in stages until 2029, when the income threshold will reach $45,000.
In practical terms, if the person you care for earns less than $38,800 a year and has assets worth under $25,000, you may now qualify as a Property Administrator rather than a Property Manager. This means a simpler process with no annual reporting to the court and no audit fees from the Public Trust.
However, if you still fall under the Property Manager category, the costs have gone up. The Public Trust’s audit fee has increased from $132 an hour to $247.47 an hour — the first rise in over thirty years. The Government subsidy that previously covered these audit costs for people with assets under $20,000 has also been removed. These fees cannot be waived, even in cases of financial hardship.
The Ministry of Justice says the higher thresholds should reduce the number of families who need full Property Manager appointments — but for those who still do, the financial burden will be greater.
Why the changes were made
According to the Ministry of Justice, the update was meant to modernise outdated thresholds and make it easier for families caring for loved ones. In the past, even small savings could trigger the full Property Manager process, involving ongoing reporting, and audit costs. By lifting the income and asset limits, fewer people now need to go through this process.
However, for families who still fall above the new limits, the costs have increased significantly, as one caregiver in Te Puke discovered when she received a $2,447 invoice from the Public Trust.
What this means for families and property managers
If you are helping someone manage their finances, it is worth reviewing your current arrangement:
- Check what order you have: Administrator or Property Manager.
- Compare your situation to the new thresholds (you might now qualify for the simpler Administrator role.)
- Budget for the new audit fees if you are still a Property Manager.
- Keep your records clear and up to date (Public Trust charges by the hour for audits, so well-prepared financial statements can reduce costs.)
Key takeaway
If you are acting as a Property Manager, it is a suitable time to review the type of order in place, understand the new fees, and plan.
Professional advice can help ensure compliance with the PPPR Act while avoiding unexpected costs or delays. If you need assistance or advice with your obligations as a Property Manager contact the life law team at Godfreys Law.
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