Prepaid Funerals and Centrelink: A Smart Step for Pension Planning
If you’re receiving the Age Pension or another Centrelink benefit, and you’re planning ahead for funeral expenses, you might be wondering:
“Do prepaid funerals affect my Centrelink entitlements?”
The good news? A prepaid funeral can not only reduce future stress on your family, but also help protect your pension by lowering your assessable assets.
At eziFunerals, we help Australians make informed choices by explaining how prepaid funerals work, how they’re treated by Centrelink, and how to set one up the right way.
What Is a Prepaid Funeral?
A prepaid funeral is an arrangement where you pay in advance for your chosen funeral services, locking in today’s prices and recording your preferences in a legally binding contract.
You choose:
- Burial or cremation
- Type of service (or no service)
- Coffin, venue, transport, celebrant, and more
Once paid in full, the funeral provider holds your plan until it’s needed — giving you peace of mind and relieving your family of financial and decision-making burdens.
Will Centrelink Count a Prepaid Funeral as an Asset?
No — provided it meets Centrelink’s requirements, a prepaid funeral is 100% exempt from the assets test.
This means the money you spend on a valid prepaid funeral plan will not reduce your pension or other Centrelink benefits.
Centrelink Rules for Prepaid Funeral Exemption
To be exempt under Centrelink’s income and assets test, your prepaid funeral plan must:
- Be paid in full (not on a payment plan)
- Be held with a registered funeral provider
- Be covered by a written, legally binding contract
- Clearly specify the funeral services and items provided
- Be non-transferable and non-refundable
If your plan meets these criteria, Centrelink will not count it towards your assessable assets — helping you potentially increase or preserve your pension.
How Does This Help My Centrelink Pension?
By reducing your assessable assets, a prepaid funeral can help you:
- Qualify for a higher Age Pension
- Improve your aged care means test outcome
- Retain benefits you might otherwise lose
- Provide certainty for your estate planning
It’s a valuable financial planning tool — especially for seniors approaching Centrelink thresholds.
What Happens to the Money?
Once you pay for your prepaid funeral, the funds are held securely by the funeral provider. They are only accessed when the funeral takes place, and cannot be withdrawn or transferred.
Your plan details remain on file, and your executor or next of kin simply contacts the funeral home when the time comes.
What Do I Tell Centrelink?
Once you’ve taken out a prepaid funeral:
- Notify Centrelink of your prepaid funeral contract
- Provide a copy of the agreement
- Request they exclude it from your assets under the Social Security Act
This helps ensure your records are up to date — and your benefits are calculated correctly.
Why Prepay with eziFunerals?
At eziFunerals, we help you:
- Compare prepaid funeral options in your area
- Understand your Centrelink benefits
- Get help from independent, trusted providers
- Record your funeral wishes securely online
- Avoid upselling or pressure from providers
We don’t sell funeral plans — we help you make smart, informed decisions without hidden agendas.
Get Started with Prepaid Funeral Planning
A prepaid funeral is more than just a financial tool — it’s a gift to your loved ones and a step toward peace of mind.
Let us help you find the right plan, protect your pension, and ensure your final wishes are honoured.
Visit: www.ezifunerals.com.au
Call: 1300 236 402
Email: support@ezifunerals.com.au
