Does a prepaid funeral affect Centrelink payments or the assets test in Australia?
A fully paid prepaid-funeral contract generally does not count in the Centrelink assets test when it sets out the services and confirms there is nothing more to pay. Funeral bonds have separate exemption limits and reporting rules; a non-exempt amount may be treated as a financial investment. Check the current Services Australia rules and tell Centrelink about any funeral bonds you own.
For related guidance, see is a prepaid funeral plan worth it in Australia?.
Read the video transcript
It can affect that. So, it's always best to check with Centrelink when you're making these arrangements just to see what affects your Centrelink payments or what won't. It's always best to check with Centrelink to see if those payments will be impacted by taking out a prepaid plan. That would be my recommendation.
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