The Australian Federal Budget for 2025-26, delivered by Treasurer Jim Chalmers on March 25, 2025, has set the stage for significant economic shifts as the nation approaches a federal election. While much of the spotlight has fallen on cost-of-living relief, tax cuts, and infrastructure investments, the implications for niche sectors like the funeral industry deserve closer examination.
At eziFunerals, we’re committed to helping Australians navigate the complexities of end-of-life planning, and understanding how federal policies influence funeral costs and services is a critical part of that mission.
In this blog, we’ll explore the direct and indirect effects of the 2025 budget on the funeral industry, offering insights into what families, funeral directors, and pre-planning advocates might expect in the year ahead.
A Budget Focused on Cost-of-Living Relief
The 2025-26 Federal Budget is shaped by a pre-election landscape, with the government prioritizing measures to ease financial pressures on households. Key highlights include $17.1 billion in personal income tax cuts starting July 1, 2026, a $150 energy bill rebate extension through 2025, and an increase in the Medicare levy low-income threshold to save some individuals up to $122 annually.
While these initiatives aim to put more money back into Australians’ pockets, they also reflect a broader economic context: inflation is forecasted to rise to 3% in 2025-26, economic growth is pegged at a modest 2.25%, and the budget has shifted from surplus to a projected $42.1 billion deficit.
For the funeral industry, this economic backdrop is a double-edged sword. On one hand, increased disposable income from tax cuts and rebates could alleviate some of the financial strain families face when arranging funerals. On the other, rising inflation and a sluggish economy may drive up operational costs for funeral providers, potentially leading to higher service fees passed on to consumers. Let’s break this down further.
Direct Funding and Policy Impacts
Unlike sectors such as healthcare or infrastructure, the funeral industry rarely receives direct mention in federal budgets. The 2025-26 budget is no exception—there are no specific allocations for funeral services, subsidies for bereaved families, or incentives for eco-friendly burial options. This absence isn’t surprising, as end-of-life services typically fall under state jurisdiction or private enterprise. However, the lack of targeted support doesn’t mean the industry is unaffected.
One area to watch is the budget’s emphasis on disaster preparedness and recovery, with $28.8 million allocated following events like ex-Tropical Cyclone Alfred. Natural disasters often increase demand for funeral services, as seen in Queensland and New South Wales earlier this year. While this funding focuses on rebuilding communities, it indirectly underscores the need for funeral providers to be resilient and adaptable.
At eziFunerals, we’ve long advocated for transparent pricing and accessible options, especially in times of crisis when families are most vulnerable. The budget’s disaster relief measures could prompt funeral directors to bolster contingency plans, but without direct financial aid, any additional costs may fall on the industry itself.
Inflation and Rising Operational Costs
Inflation, forecasted to hit 3% in 2025-26, is a critical factor for funeral providers. The cost of goods and services integral to funerals—coffins, fuel for hearses, flowers, and labor—is likely to rise. For example, coffin prices, which already range from $800 for basic models to over $10,000 for premium options, could see further increases as timber and manufacturing costs climb. Similarly, fuel prices, influenced by global uncertainties and domestic economic conditions, will affect transportation expenses for funeral homes.
Labor costs are another pressure point. The budget’s lack of significant support for small businesses—such as the anticipated extension of the instant asset write-off—means funeral directors, many of whom operate as small enterprises, may struggle to absorb rising wages without adjusting their pricing.
At eziFunerals, we’ve observed that funeral director fees, typically between $3,000 and $6,000, are a major component of overall costs. If inflation pushes these fees higher, families could face even greater financial burdens during an already difficult time.
Tax Cuts and Disposable Income: A Mixed Blessing
The $17.1 billion tax cut package, phased in over two years, offers some relief for households. Starting July 1, 2026, the tax rate for incomes between $18,201 and $45,000 will drop from 16% to 15%, with a further reduction to 14% in 2027-28. Higher earners will also see a $236 annual tax break. This boost to disposable income could make it easier for families to afford funeral expenses, which average around $9,076 nationally but can soar to $20,000 or more in metropolitan areas like Sydney or Melbourne.
However, the timing of these cuts—beginning over a year from now—means they won’t provide immediate relief for families planning funerals in 2025. Moreover, the budget’s deficit spending and inflationary pressures could erode purchasing power, offsetting some of the benefits. For those considering prepaid funerals through platforms like eziFunerals, locking in current prices now could be a smart strategy to hedge against future cost increases.
Energy Rebates and Operational Efficiency
The extension of the $150 energy bill rebate for households and small businesses is a welcome measure, but its impact on the funeral industry is limited. Funeral homes rely on electricity for refrigeration, cremation facilities, and day-to-day operations, yet the $150 quarterly reduction is a drop in the bucket compared to their overall energy costs. Cremation, in particular, is energy-intensive, and rising electricity prices could push cremation fees—currently averaging $3,108 for a basic service—higher.
At eziFunerals, we encourage funeral providers to explore sustainable practices, such as solar-powered facilities or energy-efficient equipment, to mitigate these costs. The budget’s lack of incentives for green technology adoption is a missed opportunity, especially as eco-friendly options like legacy trees or natural burials gain traction among environmentally conscious Australians.
Indirect Effects: Social Security and Aged Care
The budget includes subtle nods to social security and aged care that could influence funeral planning. For instance, superannuation will be paid on government-funded parental leave from July 1, 2025, and social security deeming rates are frozen until June 30, 2025. While these measures target younger families and retirees, they reflect a broader focus on financial security across life stages—a focus that could extend to end-of-life planning.
Aged care, a sector closely linked to the funeral industry, receives continued investment, with $8.5 billion allocated to Medicare and women’s health initiatives. As Australia’s population ages, demand for funeral services will rise, particularly in regional areas where access to providers is limited. The budget’s infrastructure spending, including $17 billion for road and rail over a decade, could improve logistics for rural funeral homes, but without specific support, these businesses may struggle to meet growing demand.
Opportunities for Pre-Planning and Transparency
One silver lining of the 2025 budget is its potential to reinforce the value of pre-planning. With economic uncertainty looming and costs on the rise, more Australians may turn to prepaid funeral plans to secure today’s prices and spare their families future financial stress. At eziFunerals, we’ve seen growing interest in this approach, as it offers peace of mind and cost certainty—two commodities in short supply amid a deficit-driven budget.
Transparency remains a cornerstone of our mission. The funeral industry has long been criticized for opaque pricing, and the budget’s silence on consumer protections in this space is notable. Families facing higher costs due to inflation or operational pressures deserve clear, upfront information.
By connecting Australians with trusted funeral directors through our platform, eziFunerals aims to bridge this gap, ensuring informed choices even in a challenging economic climate.
Looking Ahead: What Funeral Providers and Families Can Do
For funeral providers, the 2025-26 budget signals a need for adaptability. Streamlining operations, exploring cost-effective suppliers, and investing in technology could help offset rising expenses. Offering flexible payment plans or partnering with platforms like eziFunerals to reach cost-conscious clients may also become essential strategies.
For families, the message is clear: planning ahead can mitigate the budget’s indirect impacts. Whether opting for a basic cremation or a more elaborate burial, understanding your options now can prevent sticker shock later. The tax cuts and rebates, while modest, provide an opportunity to set aside funds for future funerals, especially for those nearing retirement or managing chronic health conditions.
Conclusion
The 2025-26 Federal Budget may not directly address the funeral industry, but its ripple effects are undeniable. Inflation, operational costs, and economic uncertainty will challenge funeral providers, while tax cuts and rebates offer a glimmer of relief for households.
Visit eziFunerals today to explore your options and take control of your end-of-life planning.
At eziFunerals, we’re here to help you navigate these changes with confidence. Whether you’re a family seeking affordable options or a funeral director adapting to new realities, our platform connects you with the resources and support you need.
As the budget unfolds into 2025, let’s work together to ensure that honoring loved ones remains a dignified, accessible process—no matter the economic climate.
Peter Erceg
Peter Erceg is the Owner and Founder of eziFunerals. He has had a long history within the funeral industry, and is a published author of ‘What Kind Of Funeral: A self help guide to planning a meaningful funeral’. Prior to eziFunerals, Peter worked in the public sector and health industry for more than 30 years. The views and opinions expressed on posts are those of the author and do not necessarily reflect the opinions of eziFunerals and members.
