Funeral Bond Calculator
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Funeral Bonds in Australia: How They Work
A funeral bond is a specific type of investment designed to cover funeral costs. Your money is invested in a managed fund and grows over time, with the proceeds paid to a funeral director when needed.
Key Benefits of a Funeral Bond
- Centrelink assets test exemption: Funeral bonds up to the threshold ($15,000 in 2025) are exempt from the Centrelink assets test — important for Age Pension recipients
- Grows over time: Unlike a prepaid funeral plan (fixed price), a bond grows with investment returns — potentially covering cost inflation
- Flexibility: Can be used with any funeral director, not tied to one provider
- Transferable: Can generally be used interstate unlike some prepaid plans
Centrelink Assets Test Threshold
The Centrelink funeral bond exemption threshold is indexed periodically. In 2025, funeral bonds up to $15,000 per person are exempt from the assets test. Amounts above this threshold count as assessable assets. Check the current threshold with Services Australia before investing.
Investment return projections are estimates only. Actual returns depend on fund performance. Centrelink exemption thresholds are subject to change — confirm current figures with Services Australia.