By 2025, there will be more than 4 million older Australians, many of whom rely on fixed incomes such as pensions. With the average funeral cost in Australia ranging between AUD 4,000 and AUD 15,000, the financial strain on older people and their families can be unbearable. To address these challenges, the Australian government, Aboriginal community organisations, charities and financial institutions offer a variety of subsidies, funeral assistance schemes and planning tools.

This article explores the most applicable and accessible funeral support options for older Australians, including government subsidies, crisis assistance, prepaid and insurance schemes, Aboriginal-specific services and support from non-profit organisations.

Does the federal government provide funeral assistance for older people?

The Australian federal government provides a funeral subsidy or allowance to every older person, but some means-tested and tailored support is available, particularly through Centrelink.

✅ Bereavement Grant

Centrelink provides a bereavement grant to eligible individuals if their partner dies while they are receiving a pension, allowance or carer's pension.

Amount: When someone you care for dies, you may be able to get a lump sum payment of up to 14 weeks of care benefit.

Purpose: Helps with funeral expenses and immediate living expenses

Eligibility: Must have been receiving an eligible Centrelink grant and living with the deceased

More information: servicesaustralia.gov.au

✅ Crisis Payment for Bereavement

If you are a carer, partner, or dependent family member, you may also be eligible for a one-off Crisis Payment.

Paid under severe financial hardship

Assists in covering funeral or burial costs

Must apply within 14 days of the death

These payments are not labelled as "funeral insurance," but they directly help fund funeral arrangements for low-income seniors and their families.

State and Territory Government Support: Funeral Assistance for the Needy

In addition to federal aid, most state and territory governments offer funeral assistance to low-income or destitute residents. This support is generally reserved for cases where:

✅ New South Wales (NSW)

The Department of Communities and Justice (DCJ) can arrange for a basic funeral through contracted services.

Includes: Simple cremation or burial

✅ Victoria

The State Trustees handle cases where a deceased person has no next of kin or estate.

Public Trustee arranges a dignified but basic funeral

Often involves direct cremation with no ceremony

✅Queensland & Other States

Similar services are offered by the Public Trustee or local coronial offices under public health acts. These programs ensure that no one is left without a respectful burial, regardless of financial means.

Funeral Bonds and Pension Asset Test Exemptions

One form of government-endorsed financial planning for seniors is the funeral bond, which allows people to set aside money specifically for their funeral.

Queensland & Other States

✅ Key Benefits:

Centrelink Asset Test Exemption: Up to $15,000–$16,000 in funeral bonds or prepaid funeral plans is exempt from Age Pension means testing

Guaranteed that money will only be used for funeral expenses

Funds are securely managed by independent providers

This means seniors can plan for funeral expenses without reducing their pension entitlements.

Charities and Nonprofit Assistance

A number of non-governmental organisations also step in to help with funeral costs for seniors, especially in cases of poverty, homelessness, or elder abuse.

Examples:

The Salvation Army: Offers emergency financial assistance on a case-by-case basis

Anglicare Australia: Helps older people with hardship grants, including for funeral-related costs

St Vincent de Paul Society: May assist families of pensioners or disadvantaged seniors

Conclusion: A Patchwork of Support, If You Know Where to Look

While Australia does not offer a single national funeral subsidy, there are multiple pathways of support for seniors:

Centrelink offers bereavement and crisis payments

States and territories provide funerals for those in need

Indigenous services offer culturally appropriate aid

Funeral bonds and prepaid plans are Centrelink-exempt and tax-efficient

Charities and communities provide aid to the most vulnerable

In 2025, informed planning—combined with strategic use of government and institutional support—allows most Australian seniors to ensure their final wishes are respected without causing financial distress to their families.

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