This can benefit people who are:

  • paying an ongoing means tested fee
  • paying an accommodation contribution
  • whose social security entitlements are reduced under either the assets or income test

Potential Benefits:

  • Amounts invested in a funeral bond are asset and income test exempt as long as the amount invested is within the allowable threshold ($13,000 for 2018/19)
  • Where both members of a couple invest in a funeral bond of $13,000 each, the assessable assets of the couple can be reduced by $26,000

Things to be aware of:

  • If a couple invest in a funeral bond under joint names, the amount invested cannot be more than $13,000 (2018/19) combined to qualify for the exemption.
  • Where the person has a pre-paid funeral in addition to the funeral bond, the funeral bond will not qualify for asset test exemption

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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.