Savvy KeyInvest clients who receive means-tested social security entitlements may now find themselves better off due to a little-known government indexing decision.
The decision means that as of 1 July 2025, the Exempt Funeral Bond Investment Threshold has been increased to $15,750.
- This is a $250 increase from last year’s threshold of $15,500
- The threshold is reviewed and adjusted every year on 1 July, based on changes in the cost of living
- This update was made by the Australian Government Department of Social Services, and affects all means-tested social security entitlements
Understanding this change
The increased threshold permits new and existing Funeral Bond investors to have contributions of up to $15,750 excluded from Centrelink and Department of Veterans’ Affairs (DVA) asset and income assessment.
- Investing in a KeyInvest Funeral Bond can increase an investor’s social security entitlements by up to $1,228.50
- If each member of a couple invests in separate Funeral Bond policies, both can contribute up to $15,750, resulting in up to $2,457 per annum in additional entitlements
- However, investing in a single Funeral Bond policy under joint names limits the exempt threshold benefit to $15,750, the same as for a single recipient
Note that this threshold applies to Funeral Bonds only. If you invest in a pre-paid funeral contract with a funeral director, the total amount of your investment is exempt from asset assessment
Want more information?
Naturally, conditions apply. If you have any questions or need further information, the KeyInvest Investor Services team are here to help. To contact our team:
- Email [email protected]
- Call us on 1300 658 904
- Speak with your financial adviser
- Contact Centrelink or the Department of Veterans’ Affairs
To learn more about KeyInvest Funeral Bonds, visit our Funeral Bonds page.
