A guide to arranging a funeral

The death of a loved one is often painful and overwhelming. Funerals provide an opportunity to remember your loved one, celebrate their life and grieve with others. If you are arranging their funeral, there are some things to consider and steps to take.

Use this guide when you need to arrange a funeral.

What you should do first

First, you should find out if your loved one has pre-arranged their funeral or purchased a grave site. Details might be found in the person’s home, or in the person’s Will. The NSW Government provides advice on finding a Will. If you cannot find details of funeral arrangements, you will need to arrange the funeral yourself.

Then consider:

1. Have any financial arrangements been made to pay for the funeral such as a funeral bond, insurance or pre-paid funeral?
2. Does the deceased have a pre-paid grave?
3. Is there enough money in the deceased person’s bank account to pay for the funeral and have you contacted the bank about accessing the funds?
4. Are there any sickness, accident, life, superannuation or private health insurance policies which may make a payment towards the funeral?
5. Was the deceased a returned service person or did they belong to any club, pensioner association or trade union, which may entitle them to a funeral benefit?

If you or the deceased person received payments from Centrelink, you may be entitled to bereavement payment or allowance. 

Funeral products and services

Using a funeral director

There is no legal requirement to use a funeral director, but they can offer comfort, support and advice during the funeral planning process.

Funeral directors usually provide these services:

• collect and lodge legal documents
• collect and care for the body
• supply the coffin or casket
• contact the cemetery or crematorium and arrange the date and time of the funeral
• arrange floral tributes, newspaper notices and other matters if required
• provide a hearse, and if required, other vehicles for family and friends
• pay the various fees involved (called disbursements), including cemetery or crematorium fees, minister or celebrant fees for example
• complete registration of death with NSW Registry of Births, Deaths and Marriages.

Funeral directors do not need a licence and can set up business without any specific training or qualifications. Some funeral directors may also take commissions for using certain products or suppliers. Know your rights, do your research and ask your family and friends for recommendations so you find the funeral director right for your needs.

Funeral directors are required by law to provide you with:

• details of the funeral goods and services to be supplied
• a reasonable estimate of funeral goods and services.

They must also provide you with the cost of any disbursements for the burial or cremation. For more information see the information standard page. Most funeral directors require payment in full before the funeral.

Cemeteries & Crematoria NSW regulates cemetery and crematoria operators, and provides information on planning for burial, cremation and ways to remember life.

Getting a written quote

Funeral costs in Australia vary widely depending on how simple or elaborate they are. You may want to include or exclude certain non-essential elements for the funeral depending on preferences or customs. Talk to 2 or more directors to discuss options, ask any questions you may have, and get a quote.

Funeral directors might act like other businesses. For example, their staff may have:

• sales targets, or
• commission or referral arrangements with suppliers.

NSW requires businesses to disclose if they have commission or referral arrangements with another supplier.

Funeral directors are required by the funeral information standard to display at their place of business their least expensive funeral package as well as itemised cost of goods and services.

Here is an example of a written agreement (as an itemised quote) showing the way each funeral cost may be displayed. Use this to help you work out how much you need to pay.

Entering into an agreement and paying for a funeral

If you agree to the quote and wish to go ahead with the funeral director and their services, you will need to sign an agreement (contract).

Before you sign an agreement or contract with a funeral director, consider the costs and find out what money is available to help you pay for the service.

Money to pay for a funeral could come from:

• a funeral fund the deceased person may have paid into
• the estate (assets of the deceased person, including any money) - check with the bank if they will allow money in the deceased person's account to be used to pay for funeral expenses before probate is granted which is when the rest of the estate can be accessed
• a prepaid benefit or investment scheme, superannuation fund or life insurance
• the Commonwealth Department of Veterans Affairs if the deceased is a returned service person (they may also be eligible for an official war grave)
• an insurance fund, registered clubs, associations, and trade unions
• bereavement assistance.

Read the terms and conditions and look out for clauses about interest or late fees. Ask the funeral director to go through all the fees that may apply. You can get someone else to help you review quotes and terms and conditions.

For more information, refer to our contracts page.

Laws that apply to funeral directors

Funeral directors in NSW are subject to:

• public health, local government and work health and safety legislation
• Australian Consumer Law and the Fair Trading Act 1987
• the Funeral information standard in the Fair Trading Regulation 2019
• the Funeral Funds Act 1979. 

Think about what you need when planning for the funeral

Think about which activities are needed for the funeral you are planning. You can also ask for advice from family or friends who have organised a funeral. Some activities, such as registering the death, have legal requirements and are marked with an ‘L’ on the funeral checklist.

Further information can be found on the NSW Health website and Cemeteries & Crematoria NSW website.

Contributory and pre-paid funerals

Some people make pre-payments towards the cost of their funeral. There are 2 types of pre-paid funeral arrangements:

1. Contributory

In a contributory fund, the consumer makes small regular payments to go toward part or all of a funeral service with a particular funeral director. Entitlement may vary between contributory funeral funds and will be set out in detail in the fund's constitution.

List of contributory funds:

• Aboriginal Community Benefit Fund Pty Ltd (in liquidation) 
  Aboriginal Community Benefit Fund 
  SV Partners GPO Box 5300 BRISBANE QLD 4001
• ACBF Funeral Plans Pty Ltd (in liquidation) 
  Aboriginal Community Funeral Plan 
  SV Partners GPO Box 5300 BRISBANE QLD 4001
• Australian Muslim Welfare Centre Funeral Fund Pty Ltd 
  19/296 Marrickville Road, MARRICKVILLE NSW 2204
• Community Funeral Plans Pty Ltd (in liquidation) 
  Community Funeral Plan 
  SV Partners GPO Box 5300 BRISBANE QLD 4001
• Darkinjung Funeral Fund Pty Ltd 
  PO Box 401  
  WYONG NSW 2259
• Labor Funerals Contribution Fund Pty Ltd 
  Level 2, 40 Miller Street  
  NORTH SYDNEY NSW 2060
• M Mortality Fund Pty Limited 
  Unit 42, 1 Macquarie Street  
  PARRAMATTA NSW 2150
• Metropolitan Burial & Cremation Society Funeral Contribution Fund Pty Ltd 
  Level 2, 40 Miller Street  
  NORTH SYDNEY NSW 2060
• Unions NSW Funeral Contribution Fund 
  Suite 802, Level 8, 377 - 383 Sussex Street  
  SYDNEY NSW 2000 

2.  Pre-paid

If choosing a pre-paid funeral, you will need to:

• select a funeral director
• decide on the type of funeral that you would like and then paying at the current price in one lump sum or several instalments.

The money is then forwarded to a funeral fund registered with NSW Fair Trading.

When you are considering a contributory or pre-paid funeral fund, the business must provide you with information on each component supplied under the contract and the cost of those components before you enter into an agreement. This information should also detail the services not covered by the contract.

The company must transfer money received to a registered funeral fund within 10 days.

All pre-paid and contributory funeral funds in NSW must be registered with NSW Fair Trading. Registered funds are required to:

• invest all the money paid in secure investments
• lodge annual reports with NSW Fair Trading
• be separate from a funeral director company
• for contributory funds details the amount you paid into the fund in the previous year and specifies the amount you’ll be entitled to upon your death at the date on the report.

List of pre-paid funds:

Australian Funeral Fund Management Pty Ltd 

• The Pre-Paid Funeral Fund Trust 
  PO Box 5661 
  Q SUPERCENTRE QLD 4218

Australian Pre-Arranged Funeral Plan Pty Ltd 

• Australian Pre-Arranged Funeral Plan 
  14 - 20 Delhi Road MACQUARIE PARK NSW 2113

Certane CT (NSW) Pty Ltd 

• Remembrance Pre-arranged Funeral Plan 
• Remembrance Pre-arranged Funeral Plan No 2 
• Simplicity Independence Pre-Paid Funeral Plan 
• Funeral Funds of Australia Trust No 2 
  Locked Bag 3015 
  AUSTRALIA SQUARE NSW 1215

Certane CT Pty Limited 

• Funeral Funds of Australia Trust 
  Locked Bag 3015 
  AUSTRALIA SQUARE NSW 1215

Palmdale Memorial Park & Crematorium Pty Ltd 

• Palmdale Memorial Park & Crematorium Funeral Fund 
  PO Box 55 
  OURIMBAH NSW 2256

Perpetual Trustees Consolidated Ltd 

• Beresfield Funeral Fund 
  GPO Box 4172 
  SYDNEY NSW 2001

Total Care Funeral Plan Ltd 

• Total Care Funeral Plan 
  14 - 20 Delhi Road 
  MACQUARIE PARK NSW 2113 

Pre-paid funeral products

You can prepay for:

• a grave plot
• a wall niche, or 
• a place in a memorial garden.

You can typically purchase these products directly from a cemetery or crematorium.

Some funeral directors limit pre-paid schemes to items of the funeral they have control over such as personal services and the coffin. This might not include the burial or cremation.

Funeral directors must give you a 30-day cooling-off period when you enter a pre-paid funeral contract. Generally, you can cancel the contract within the cooling-off period without incurring a financial penalty.

Make sure you understand your rights and obligations and what the cost covers before you buy a pre-paid funeral arrangement. If you have any concerns about the arrangement, seek independent legal or financial advice.

Only pre-paid funerals that have been fully paid for are exempt from the assets test for Centrelink payments. Contact Services Australia for more details. 

Funeral insurance

Funeral insurance is usually purchased directly from an insurer. It involves small regular contributions for a specified cash payment on death. Age and health restrictions may apply when taking out the policy and premiums can increase to keep up with inflation or other factors.

Like most forms of insurance, the money paid over the years cannot be refunded if you decide to cancel funeral insurance.  Remember that funeral insurance is not a savings account, and you may end up paying more than you will receive from the claim.

Funeral insurance is regulated by the Commonwealth through the Life Insurance Act 1995 and Australian Securities and Investments Commission Act 2001.

Funeral insurance policies fall under the jurisdiction of the Australian Prudential Regulatory Authority (APRA) and the Australian Securities and Investments Commission (ASIC).

Refer to ASIC’s MoneySmart website for more information on funeral insurance and remember:

• an insurance policy isn’t a savings account
• you don’t get your money back
• if you stop paying, the policy ends, and you don’t get a refund of the money you have paid so far
• over time, you may end up paying more that you will receive from any claim. 

Funeral bonds

A funeral bond allows you to set aside your own money for a funeral. The money is held as a bond and paid when the funeral is required. It cannot be withdrawn early.

The funeral bond can be:

• in your own name
• in joint names with the benefit paid in-full upon the death of the first joint owner, or
• assigned to a funeral director.

Certain funeral bonds are exempt from the Centrelink assets test. Find out if your bonds are exempt by contacting Services Australia on 13 23 00. 

Membership benefit schemes

A number of organisations offer a payment upon the death of a member to help with funeral costs.

Under a cash benefit scheme, a set sum is provided for the funeral when a member dies. These schemes may be a membership benefit for a particular organisation (for example, a trade union), or a contribution may have to be made to the fund before death.

Cash benefits schemes requires a member to make regular payments to the scheme to be eligible for the benefit.

It is important to remember that:

• some schemes will not pay benefits if the member failed to keep payments up to date, this could mean years of contributions may be lost and no benefit is received from that fund
• there may not be provision for the member to cash-in the contributions to the fund, in this case, the only benefit the fund offers is the contribution towards the funeral
• the benefit offered by such a scheme is limited as a set sum.

There are also non-cash benefit schemes where the funeral or cremation is performed without charge for the member. These schemes are usually run by the funeral industry itself. 

Your consumer rights

Under Australian Consumer Law, most products or services bought in Australia after 1 January 2011 come with automatic consumer guarantees.

Proof of purchase and documentation

You have the right to receive proof of purchase.

Businesses must give you a receipt for goods or services valued at $75 or more. You can ask for a receipt for a transaction under $75 and the business must give it to you within 7 days.

If the service has a warranty, it will give you some extra protection against faults or defects. Warranties generally have terms and conditions attached and it’s your responsibility to be aware of these.

Advertising

Advertising can be a powerful means of persuasion, so it’s important it is truthful, accurate and easy to understand. Australian Consumer Law protects consumers from deceptive advertising claims and conduct.

Businesses are not allowed to make false or misleading representations about their products or services.  

The remedy if something goes wrong with a funeral product or service

You are entitled to an appropriate remedy from the business when the product or service you purchased does not meet one or more of the consumer guarantees.

This might be:

• a refund
• cancellation of contract
• replacement or exchange
• further service to rectify the problem
• reimbursement for damages and consequential loss in some cases.

The remedy will depend on whether the problem is:

• a major problem, or
• a minor problem.

You can find out more by visiting our repairs, replacements and refunds page.

Making a complaint

If you have an issue with a funeral product or service, you should:

• Contact the funeral director in the first instance and explain the problem. We have tips and sample letters to help you take the first step.
• If you’re unable to resolve the matter with the business, check if they are a member of a professional association like the Funeral Directors’ Association of NSW, the Australian Funeral Directors Association or the National Funeral Directors Association. Professional associations like these often subscribe to a code of conduct which promotes members to deliver a high standard of service and professional conduct in line with the ACL.
• If you choose to go with a funeral director that is not a part of an association, ensure that you do your research and understand that the same guarantees under the code of conduct may not apply. However, the consumer guarantees apply to everyone.

If you cannot resolve your matter, submit your complaint by using our form.

Make a complaint

By mail

Post your complaint form and documentation to: 

NSW Fair Trading

PO Box 972 

Parramatta NSW 2124 

Ask a question 

If you are unable to find the information you need, you can call us between 8:30am to 5pm on Monday to Friday. You can also use our form to make an enquiry. 

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