How to Let the Government Fund Your Funeral Bill

As funeral costs continue to rise, more Australians are looking for smart, dignified ways to manage end-of-life expenses. At eziFunerals, we believe planning ahead shouldn’t be a financial burden — and thanks to recent changes to Centrelink’s asset rules, there’s a little-known strategy that allows eligible seniors to do just that.

Find Funeral Services Across Australia

• Funeral Directors NSW
• Funeral Directors Victoria
• Funeral Directors Queensland
• Funeral Directors Western Australia
• Funeral Directors South Australia

By using a prepaid funeral savings bond, you can not only lock in today’s prices but also increase your Centrelink pension payments — effectively having the government help fund your final send-off. Leveraging pre‑paid funeral savings bonds — now treated as non‑countable assets under new Centrelink rules effective from July 1 — allows pensioners to lock in today’s funeral costs while boosting fortnightly payments.

This article explains how this strategy works, why it benefits part-pensioners, and how eziFunerals can guide you every step of the way.

In essence, you invest once, protect your Centrelink eligibility, and end up letting the government pay for your final farewell. Here’s how.

Pre-paid Funeral Savings Bonds: How They Work

Pre-paid funeral savings bonds essentuially work in the following ways:

• Are locked-in funeral payments — you deposit a lump sum directly with a provider
• Become a non-countable asset in Centrelink’s means test
• Can be paid upfront or in instalments
• Must be specifically designated for your funeral

This differs significantly from funeral insurance, which often accrues premiums (sometimes more than benefits) and is counted as an asset.

Pension Increase via Asset Shift

Here’s the powerful financial boost:

1. You deposit, say, $10,000 into a funeral bond
2. Centrelink removes that amount from your assessable assets
3. Your part-pension may increase by ~$30–$60 per fortnight
4. Over time (often within 5–10 years), the boost pays back the bond and essentially covers your funeral
5. The bond remains intact until your passing — untouched otherwise  

It’s a compelling tactic: secure funeral funding now and improve your pension payments — effectively having the government cover the final send-off.

Benefits Compared to Funeral Insurance

Funeral insurance can have the following drawbacks compared to funeral bonds:

• Premiums escalate over time
• Asset-tested — may count against pension eligibility
• May expire if premiums lapse
• Often pays out less than the total premiums paid  

By contrast, a funeral bond is upfront, transparent, pension-friendly, and cost-effective.

Who Can Benefit?

This strategy suits:

• Part-pensioners subject to asset tests
• Anyone able to deposit a lump sum in a bond
• Seniors wishing to avoid funeral stress for family
• Those seeking a dignified, prepaid, and completely funded funeral

How to Set It Up in 6 Steps

1. Estimate your funeral cost — typically $8,000–$12,000
2. Choose a reputable bond provider (often bundled with funerals)
3. Deposit the bond amount upfront or via instalments
4. Register it with Centrelink as a non-countable asset
5. Monitor your Age Pension — watch for the fortnightly boost
6. Nominate funeral service details — the bond pays out at your passing

How eziFunerals Guides You

We help simplify the process:

• Compare bond providers and funeral directors
• Assist with preparing a comprehensive preneed funeral plan.
• Help with guidance, templates, and transparent pricing

We make smart financial planning for funerals easy, dignified and supportive.

Summary Table

❤️ Final Thoughts

At eziFunerals, we’re passionate about helping Australian families make informed funeral decisions that are both meaningful and financially responsible.

Using a prepaid funeral savings bond isn’t just about reducing stress — it’s about unlocking real value, preserving pension entitlements, and ensuring your family isn’t left with unexpected costs. With the updated Centrelink rules from July 1 now in effect, there has never been a better time to consider this powerful financial planning tool. With no ongoing premiums or asset penalties, it’s a smart, dignified solution that truly lets the government pay your funeral.

Let eziFunerals help you compare your options, understand the benefits, and take control of your future with peace of mind.

👉 Explore prepaid funeral bond options with eziFunerals

⚠️ Disclaimer

The information provided in this article is general in nature and does not constitute personal financial advice. It is intended to help you understand your options when planning and funding a funeral. Before making any financial decisions, we strongly recommend consulting with a licensed financial adviser who can assess your individual circumstances. You should also contact Centrelink or Services Australia directly to confirm eligibility criteria, asset assessments, and payment rules relating to funeral bonds and pension entitlements.

eziFunerals does not provide financial product advice and is not licensed to do so.

Peter Erceg

Peter Erceg is the Founder and Owner of eziFunerals — Australia’s Independent Funeral Planning Authority. With more than 40 years of experience in government and public health, Peter has become one of the country’s leading voices on funeral transparency, consumer rights, and ethical funeral practices. Through eziFunerals, Peter has built a national platform that empowers Australian families to make informed end-of-life decisions — free from pressure, commissions, and confusion. His goal is simple: "to help every Australian plan smarter, save money, and choose funeral services with confidence." 🕊 eziFunerals was founded by Peter in 2011, as an independent funeral comparison and planning platform that allows consumers to: • Compare local funeral directors and transparent quotes, • Understand real funeral costs across Australia, and • Connect with trusted, independent funeral homes that uphold the Fair Funeral Promise. As Australia’s Independent Funeral Planning Authority, eziFunerals is recognised by media, consumers, and funeral professionals for its leadership in price transparency and consumer protection. “We believe every family deserves a fair, dignified, and affordable farewell — without hidden fees or sales pressure.” 📘 Peter is the author of What Kind of Funeral: A Self-Help Guide to Planning a Meaningful Funeral, a practical guide that has helped thousands of Australians understand their options and avoid unnecessary costs. He regularly contributes articles and commentary on: • Funeral cost transparency and industry reform, • Prepaid funerals and consumer protection, • Emerging trends in eco-friendly and digital memorials, and • The role of AI and technology in end-of-life planning. 🎙 Peter and eziFunerals have been featured in major Australian media outlets including ABC News. His insights continue to shape the national conversation on funeral costs, consumer rights, and ethical practices in the funeral industry. ⚖️ Disclaimer: The views and opinions expressed by Peter Erceg are his own and do not necessarily reflect those of eziFunerals or its members. The information provided on this site is general in nature and should not be taken as personal, legal, or financial advice. Consumers are encouraged to conduct their own research and compare funeral services that best meet their needs and circumstances.