Prepaid Funerals in Australia: How They Work and What They Cost
A prepaid funeral lets you choose a funeral now and pay a funeral director at today's prices, upfront or by instalments. As at October 2026, prepaid direct cremations in the price lists we checked start at about $3,200. Every state protects the money by law, and NSW, Queensland, WA and SA (since September 2026) give a 30-day cooling-off period.
Get Free QuotesWhat is a prepaid funeral?
A prepaid funeral is a written contract with a funeral director: you choose the funeral now, pay today's price, and the funeral director carries it out when the time comes. You can buy one for yourself or someone else.
In every state, the law says the money must be held in a fund, trust or investment until the funeral. A prepaid funeral isn't a financial product, according to ASIC, so state laws, not ASIC, cover it. A pre-arranged funeral, where you record your wishes but don't pay, isn't a prepaid contract.
How much does a prepaid funeral cost?
A prepaid funeral costs about what the same funeral costs today, plus any administration fee (about $400 in two Perth price lists below) and, in some places, a higher cemetery or crematorium fee. Prepaid direct cremations start at about $3,200 in the lists we checked, and Moneysmart says funerals cost from $8,000 to around $20,000. Prices below include GST, as at October 2026.
| Example | Where | Prepaid | Paid at the time | Difference |
|---|---|---|---|---|
| Direct cremation, Bowra & O'Dea | Perth | $4,918 | $4,170 | $400 administration fee and $348 cemetery surcharge |
| Cremation with a chapel service, Bowra & O'Dea | Perth | $9,348 | $8,600 | The same fee and surcharge |
| Direct cremation, Bare | All states and the ACT, by postcode | $3,169 to $4,469 | Not compared here | Paying monthly over 24 months adds about $150 |
| Direct cremation, Silkwood Funerals | Perth | Not listed as a total | $3,500, with a $1,354 cremation fee listed separately | $395 administration fee for the prepaid option |
| Cremation fee only, Metropolitan Cemeteries Board | Perth | $1,787 | $1,422 | $365 more |
| Weekday cremation with a small chapel, Southern Metropolitan Cemeteries Trust | Melbourne | $1,200 | $1,430 | $230 less, but $220 to hand it back |
Sources: Bowra & O'Dea price list (February 2026); Bare prepaid cremations (October 2026); Silkwood Funerals price list (July 2026); Metropolitan Cemeteries Board and Southern Metropolitan Cemeteries Trust fees (2026-27). Examples only, not a ranking.
Is the price fixed? For the items in the contract, generally yes. Victoria (Funerals Act 2006, s 31), Western Australia (Prepaid Funerals Code, clause 9) and Tasmania (Prepaid Funerals Act 2004, s 7) stop funeral directors charging more than the contract price. Anything left out is charged on the day, and the NSW Government warns some schemes don't include the burial or cremation. See our guide to funeral costs for current prices by funeral type.
How is your money protected?
Six states have laws that make funeral directors put prepaid money into a fund, trust or investment. Moneysmart says the ACT and the Northern Territory offer fewer protections, and we couldn't find a prepaid funeral law in either. (Moneysmart also lists WA, although WA has had a mandatory code since March 2021.)
| State | Law | Where your money must go | Regulator |
|---|---|---|---|
| NSW | Funeral Funds Act 1979 | A fund registered with NSW Fair Trading, within 10 days | NSW Fair Trading |
| VIC | Funerals Act 2006 | Invested in the person's name with a friendly society or life insurer, within 3 to 7 business days | Consumer Affairs Victoria |
| QLD | Funeral Benefit Business Act 1982 | Held in trust, unless the business is a bank or life insurer | Office of Fair Trading |
| WA | Prepaid Funerals Code of Practice | Invested in the client's name with a life insurer, friendly society, trustee company or the Public Trustee, within 16 days | Consumer Protection WA |
| SA | Pre-paid Funerals Industry Code 2026 | An approved investment manager, within 7 days of payment or, if later, once the cooling-off period ends | Consumer and Business Services |
| TAS | Prepaid Funerals Act 2004 | An approved funeral trust within 14 days, or a life insurance policy | CBOS |
| ACT, NT | No prepaid funeral law found | Whatever the contract says | General consumer law |
Sources: the laws and regulators linked above and the NSW Funeral Funds Regulation 2016. Checked October 2026.
Can you cancel a prepaid funeral and get a refund?
Yes, within the 30-day cooling-off period in NSW, Queensland, Western Australia and South Australia (for contracts signed from 1 September 2026). After that, you can only cancel in the situations your state's law or your contract allows, and you'll usually lose any administration fee.
If a salesperson came to your home or phoned you without being asked and the contract is over $100, the Australian Consumer Law also gives you 10 business days to cancel, in every state and territory.
| State | Cooling-off period | Refund in cooling-off | Cancelling later |
|---|---|---|---|
| NSW | 30 days | Generally everything | Only as the Act or contract allows |
| VIC | None in the Act | Not set by law | If the funeral director breaks the investment rules or stops trading, or as the contract allows. The investment comes back to you, but not the administration fee. |
| QLD | 30 clear days from receiving the signed contract | All but $50, within 7 days | As the contract allows |
| WA | 30 days from receiving the signed contract | All but any administration fee for cancelling | As the contract allows, which must list any fees |
| SA | At least 30 days for contracts from 1 September 2026; none set by law for earlier contracts | All but 2% of the price or $200, whichever is less, within 14 days | As the contract allows, which must list the costs |
| TAS | None in the Act | Not set by law | For plans held in a funeral trust: if you leave Tasmania, your relationship status changes, the regulator agrees payments would cause serious hardship or the contract shouldn't continue, or the business closes. You get a fair share of the trust's value, less reasonable costs. Plans invested in a life insurance policy don't have these rights, so check the contract. |
| ACT, NT | As the contract says | As the contract says | As the contract says |
Sources: NSW Government; Funeral Funds Regulation 2016 cl 15 and 17; Funerals Act 2006 s 35 and 38; Queensland Government; WA code clauses 12 and 13; SA code clause 3; CBOS. Checked October 2026.
What happens if the funeral director closes or you move?
If the funeral director closes, your money should be safe in its fund, trust or investment in any of the six states (in WA, for contracts signed since 1 March 2021). The next step depends on the state:
- NSW: once the government accepts the business has stopped trading, you can cancel and the fund repays what it holds for you.
- Victoria: if a funeral company is wound up or goes into receivership, the contract ends and the investment must be handed to you.
- Tasmania: for plans held in a funeral trust, if no other funeral director takes over the contracts, the trust repays the people who paid. For plans in a life insurance policy, check the contract.
- WA and SA: the contract must say what happens if the funeral director stops trading.
If the business is sold, ask the new owner in writing whether it will honour your contract.
If you move: Moneysmart suggests checking whether your plan can move to another funeral director. NSW funeral directors must explain, before you sign, what happens if you move interstate, WA contracts must cover it, and in Tasmania moving out of the state lets you cancel a plan held in a funeral trust.
Prepaid funeral, funeral bond or funeral insurance: which is better?
A prepaid funeral can cost less, because it fixes today's price: Moneysmart says prepaid plans can cost less than funeral insurance or bonds. A bond suits people who want money put aside without choosing the funeral. Moneysmart warns that funeral insurance can cost a lot more than the benefit your family receives.
| Feature | Prepaid funeral | Funeral bond | Funeral insurance |
|---|---|---|---|
| What you get | A set funeral at today's price | Money set aside, earning interest | A fixed payout, usually $5,000 to $15,000 |
| Regulated by | State laws | ASIC and APRA | ASIC and APRA |
| Keeps up with funeral prices? | Yes, for items in the contract | Only if the interest keeps pace | No, the payout is fixed |
| Money out early? | Only in cooling-off or set cases | No, it can only pay for your funeral | No, and if you stop paying you'll probably lose what you've paid |
| Main risk | Protection varies by state | Money locked away until death | Premiums rise with age and can exceed the payout |
Sources: Moneysmart, Paying for your funeral; Moneysmart, Funeral insurance; ASIC. General information, not financial advice. We don't recommend any product or provider.
What should you check before signing?
Check these eight things before you sign a prepaid funeral contract:
- 01
Compare the prepaid price with the price for the same funeral paid at the time.
- 02
List what isn't included, such as cemetery fees, a celebrant, flowers or death notices.
- 03
Check the contract shows the total cost including GST and that the price can't rise.
- 04
Get the name of the fund, trust or investment manager holding your money in writing.
- 05
Read the cooling-off and cancellation terms, including every fee.
- 06
Ask what happens if you move, miss an instalment, or the business is sold or closes.
- 07
Confirm whether you're dealing with the funeral director itself or a broker, and whether your chosen funeral director is guaranteed.
- 08
Keep the contract with your will and tell your executor where it is.
How does a prepaid funeral affect the Age Pension?
Services Australia doesn't count a prepaid funeral in the Age Pension assets test, with no upper limit, if the contract lists the services, says they're paid in full and can't be refunded unless you move out of the funeral director's service area. Our guide to funeral plans for pensioners explains this and the limit on funeral bonds. Cancelling a prepaid funeral, even in a cooling-off period, can affect your pension, so check with Services Australia first.
A direct cremation can be prepaid too. See our guide to no-service funerals.
Compare funeral directors in your city
Many local funeral directors sell prepaid funerals. Our city pages list them with their services and published prices.
Sydney
NSW funeral directors must display their prices, including on their website if they have one. Compare Sydney funeral directors and their packages.
Compare funeral directors in Sydney
Melbourne
Victorian funeral directors must publish a price list. Compare Melbourne funeral directors and what they include.
Compare funeral directors in Melbourne
Brisbane
Queensland funeral directors must show their least expensive option. Compare Brisbane funeral directors.
Compare funeral directors in Brisbane
Perth
WA funeral directors must display a basic package price. Compare Perth funeral directors.
Compare funeral directors in Perth
Adelaide
Funeral AssistanceSA can help families who can't pay for a funeral. Compare Adelaide funeral directors.
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Tell us what you have in mind and we'll put you in touch with local funeral directors who can quote on a prepaid funeral.
Frequently Asked
Questions
More questions about prepaid funerals
Can my family change a prepaid funeral?
Usually. In Victoria the executor can choose a different or extra service after signing a statement that the prepaid funeral was available at no further cost, and what was paid, less any administration fee, is credited to the new bill. Elsewhere, check the contract: some prepaid packages allow no changes, and extras are charged at the price on the day.
Does a prepaid funeral cover all the costs?
No, only the costs written into the contract. Some plans leave out cemetery fees, a celebrant or flowers, and the NSW Government warns that some pre-paid schemes don't include the burial or cremation itself. Ask for a written list of what isn't covered before you sign.
Can you pay off a prepaid funeral in instalments?
Yes, but it can cost more. One provider's monthly plan over 24 months adds about $150 to its upfront price. Ask what happens if you miss a payment or die before it's paid off. In WA the contract must answer both. In Tasmania you can cancel a trust-held plan if the regulator agrees the payments would cause serious hardship.
What if the family didn't know about a prepaid funeral?
The money can usually still be recovered. In Victoria, if a different funeral was held, the executor can end the prepaid contract and the investment goes to the estate. In NSW the executor can cancel if the government accepts that whoever arranged the funeral didn't know the contract existed. Keep your contract with your will so this doesn't happen.
Can you buy a prepaid funeral for someone else?
Yes, a relative can sign and pay for another person's funeral. In Western Australia the funeral director must first be satisfied the person agrees, or lacks the capacity to agree. In Tasmania the person must also receive the contract details, unless the buyer holds their enduring power of attorney or is legally responsible for them.