How much does a funeral cost?

Funerals have never been an easy thing to think or talk about. And the cost of living crisis has made conversations even more difficult. According to the Golden Insurance Funeral Report, 23% of respondents who had paid for a funeral said they struggled to cope with the additional financial strain.

While no one wants to consider a time where our friends and family are no longer here, being prepared helps you grieve during a stressful time and ensures your loved one receives the send off they deserve.

What's the average cost of a funeral in Australia?

The Golden Insurance Funeral Report found that the average funeral was $8,202. Almost one in
three cost more than $10,000, while 8% cost more than $15,000. These differences in price come down to the type of service you choose and the features you include:

Feature	Average cost
Burial plot	$2,868
Funeral venue/service	$2,309
Coffin/casket	$2,281
Headstone/plaque	$2,126
Funeral director	$1,818
Burial fees	$1,686
Catering at funeral reception	$1,512
Funeral home	$1,463
Venue for funeral reception/wake	$1,255
Embalming	$938
Hearse	$745
Limousine	$736
Officiant	$682
Flowers/other tributes	$640
Invitations/order of service	$469
Death notice	$483
Cremation	$94
Other costs	$1,548

The cost of cremation vs burial

Majority of the time, price is not a factor when determining how to farewell a lot one — it’s most likely down to the deceased’s wishes.

That said, the cost of a cremation remains significantly lower than the cost of a burial, given that cremation doesn’t include the cost of a burial plot, a coffin or ground preparation.

If you added all the elements involved in a burial and cremation, both services sit at $23,000 and $15,000, respectively.

Funeral costs to consider

There are many costly elements associated with a funeral, including:

With so many fees and costs to consider, it’s not surprising that many Australians rely on insurance policies and other payment pathways to help cover the cost.

Funeral payment options

If you want to pay for your own funeral in advance, you can consider:

• Insurance policies- Approximately 25% of Australians used an insurance policy to help pay for a loved one’s funeral. This could either be a lump sum pay out from a funeral or life insurance policy.
• Funeral bonds - Funeral bonds are an investment offered by a friendly society or life insurance company to allow you to set aside money to cover your funeral costs.
• Pre-paid funerals - You can pre-pay, and pre-plan, your own funeral with a funeral director in your local area.
• Superannuation - Your family may be able to use any money that's left in your super to pay for your funeral. However, it can take a while to access, so they might have to pay upfront first.

If you need to pay for the funeral of somebody else, you can consider:

• Payment plan - Many funeral directors offer payment plans so you can spread the cost of a funeral over many months.
• Personal loan - A low-interest loan can help you cover the cost of a funeral, but make sure you can comfortably meet the repayments.
• Local health district - You can apply for help if you're responsible for a funeral but are in financial hardship, but any assistance will only be provided after the funeral.
• Government benefits - You may be eligible for a bereavement payment if your partner dies, and you both receive a government allowance or carer's allowance.
• Department of Veteran Affairs - If the deceased is a veteran, you may be able to get help with funeral expenses from the Australian Government Department of Veteran Affairs (DVA).
• Registered clubs - Some associations, including the Rotary Club and the Returned and Services League (RSL), may pay a funeral benefit to help with the cost of a member's funeral.

How to minimise the financial strain of a funeral

Whether you are thinking about planning ahead for your own funeral or organising the funeral of a loved one, you should never feel like you have to skimp on a celebration of life. Being proactive and comparing service providers is a great way to save on costs you’ll need to pay, plus extra elements you want added to the service.

Other ways to save include:

• Consider direct cremation. Direct cremation is often the cheapest option, as the body is cremated or buried immediately without a viewing or service. Additionally, you could also consider hosting a memorial after the cremation is completed, rather than having a service and wake.
• Skip unnecessary expenses. Depending on the kind of service you want, there are opportunities to ditch non-essential expenses. For instance, rather than paying for a limousine to escort the families to and from venues, opting to drive yourselves can save hundreds.
• Investigate funeral or life insurance. With 19% of Australians having no money set aside for a funeral, taking out an insurance policy can help take care of all the expenses, giving your loved ones peace of mind during an already stressful time.

FAQs

• How much does a basic funeral cost in Australia?

  A basic funeral costs between $3,000-$5,000 in Australia.

• Does Centrelink pay for funerals?

  No. However, Centrelink offers a bereavement benefit to individuals who lose a partner, if both parties were receiving government allowance. This isn't specifically designed for funeral costs, but it can help.

• What is the most expensive part of a funeral?

  The most expensive part of a cremation funeral is typically the funeral director fee. However, if you choose a burial, it's likely the burial plot will be the most expensive element.

• Can pensioners get help with funeral costs?

  If you're a pensioner, you may be able to get help via Centrelink's bereavement payment, through your local heath district, through a registered club, or through the Department of Veteran's Affairs.

• What’s the cheapest funeral you can do?

  The cheapest funeral option is a direct cremation where the body is cremated and the ashes are returned to the family without a service. Doing this eliminates the need for traditional service costs, such as a funeral director, a coffin, hearse and venue.