Is a prepaid funeral a good idea in Australia?

For many people yes. It locks in today's price, is generally exempt from the Centrelink assets test when paid in full, and removes financial and decision-making pressure from family.

Can you pay a prepaid funeral in instalments?

Yes. Gift of Grace Funerals offers instalment plans. The price is fixed once the contract is signed.

What happens to a prepaid funeral if the funeral home closes?

In WA the money is held by an independent funeral fund in your name, not by the funeral home, so it remains protected and can be applied to a funeral with another provider.

Does pre-planning a funeral cost anything?

No. Recording your wishes with Gift of Grace Funerals is free and can be updated at any time.

Can I pre-pay or pre-plan a funeral, and how does that work?

Yes. You can pre-plan a funeral at no cost by recording your wishes with a funeral director, or pre-pay a funeral at today’s prices under a prepaid funeral contract. In Western Australia prepaid funds are held in an independent funeral fund or bond, not by the funeral home, and a fully paid prepaid funeral is generally exempt from the Centrelink assets test.

Pre-planning versus pre-paying

Pre-planning means sitting down with a funeral specialist and recording your choices: cremation or burial, the venue, music, readings, the coffin, who should be told. It costs nothing, can be changed at any time, and spares your family from guessing. Gift of Grace keeps your plan on file and gives you a copy for your executor.

Pre-paying means choosing a package and paying for it now, either in full or by instalments, under a written prepaid funeral contract. The price is locked in, so your family does not pay more later even if funeral costs rise. Anything in the contract is guaranteed; third party items such as a grave, church fees or a weekend surcharge may be noted as excluded.

How your money is protected in WA

In Western Australia prepaid funeral money must be invested with an independent, registered funeral fund or friendly society bond in the client’s name, not held in the funeral home’s bank account. The funds are released to the funeral director only when the funeral is delivered. If you move interstate or change your mind, the contract sets out how the funds are transferred or refunded.

Prepaid funerals and the Centrelink assets test

A prepaid funeral contract that is paid in full is generally exempt from the Age Pension assets test with no dollar cap. A funeral bond that is not attached to a contract is exempt up to the allowable limit, which is $16,250 from 1 July 2026 and reviewed each July. This is general information only; speak with Services Australia or a financial adviser about your situation.

How to start

Call 1300 856 862 or email info@giftofgracefunerals.com.au to book a pre-planning conversation at our O’Connor office or in your home. It takes about an hour, there is no obligation, and many people describe it as a relief.

Talk to a Perth funeral specialist

Gift of Grace Funerals is a family owned funeral home at 15/11 Sainsbury Road, O’Connor, serving families across Perth 24 hours a day. Call 1300 856 862 or see our funeral packages and prices.

Last reviewed September 2026. Prices are GST inclusive and current at the time of writing.