On 1 July 2024, the Department of Social Services increased the Exempt Funeral Bond Threshold to $15,500 for the 2024/25 financial year.
The threshold is adjusted annually in July based on changes in the cost of living.
Understanding the changes to the Exempt Funeral Bond Threshold
The updated threshold allows new and existing Funeral Bond investors to have up to $15,500 in contributions exempt from the Assets and Income tests applied by Centrelink and the Department of Veterans’ Affairs (DVA) when calculating entitlements.
Due to the exempt status, investing in a KeyInvest Funeral Bond can provide up to $1,209 per annum in additional Age or DVA Pension entitlements.
If each member of a couple invests in separate Funeral Bond policies, both can contribute up to $15,500, resulting in up to $2,418 per annum in additional combined Age or DVA Pension entitlements.
Conversely, investing in a single Funeral Bond policy under joint names limits the exempt threshold benefit to $15,500, as for a single recipient.
It is important to 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 is exempt, even if it exceeds the limit. A pre-paid Funeral Bond allows investors to pre-pay a funeral director, with the total contract amount exempt from the Assets and Income tests.
For more information
Conditions apply. If you have any questions or need further information, we’re here to help:
- Contact the KeyInvest team at [email protected], or on 1300 658 904
- Speak with your financial adviser,
- Contact Centrelink or the Department of Veterans’ Affairs directly.
To learn more about the KeyInvest Funeral bond, visit our Funeral Bond page.
