Pauper's funeral in Australia: The complete guide

Losing a loved one is a challenging time and the last thing you want to worry about is the cost of a funeral. Unfortunately, sometimes families can't afford to pay for the funeral, or there is no next of kin to plan the funeral. In such situations, a Pauper's Funeral is an option that helps families arrange a funeral with state-funded assistance.  

In this guide, we'll explain what happens in case of a Pauper's Funeral and what other affordable funeral options are available for families to consider.

What is a pauper's funeral? 

A pauper's funeral is a state-funded funeral that authorities organise for individuals whose family or estate cannot afford to pay for the funeral. The funeral directors coordinate the funeral arrangements with the authorities and usually, the funeral takes place at a crematorium unless the coroner or medical examiner advises otherwise. If the deceased person had expressed different wishes in their will, those wishes will be fulfilled. The grave is left unmarked and the plot number is stored in public records.

What happens when someone dies without a close relative or next of kin? 

If someone dies alone in Australia, authorities will try to contact relatives or friends (if possible) to notify them of the person's death. If they want to arrange the funeral, the family covers the funeral cost. If the next of kin is found but wants nothing to do with the funeral arrangements, the government contractor will take care of the funeral arrangements. The authorities try their best to keep families informed about the funeral details so that they can attend if they wish.

Affordable funeral options in Australia

If you need an affordable funeral option, there are a few available in Australia that can save you and your family from financial hardship. These include: 

Direct cremation 

A direct cremation is a low-cost funeral option that allows the family to carry out the cremation of a loved one without involving a funeral home or arranging a ceremony. Instead, the family receives the ashes and can plan a memorialised funeral when the time is right.

Centrelink bereavement payment

If you're an Australian citizen dealing with the loss of a partner, you may be eligible for Centrelink bereavement payments. The federal government provides several payments to help when a loved one dies and the type and amount of payment depend on individual circumstances.

Department of Veterans' affairs

If your loved one was an ex-servicewoman or man, Australia's Department of Veterans' Affairs could offer financial assistance towards the funeral costs. If you're the spouse or carer of the deceased person and they were receiving a pension from the Department of Veteran Affairs, you may be eligible for a bereavement payment.

Early access to superannuation

You can access your superannuation on compassionate grounds, including funeral expenses for your dependant. However, you're required to provide a copy of your dependant's death certificate or a letter from your dependant's registered medical practitioner or funeral provider stating who passed away, the date of death and the medical practitioner's agency number.

State-based Government funeral assistance

If there is no money to pay for the funeral, some states and territories in Australia can provide government assistance. Families need to meet strict criteria to access state based funds and the specific requirements will depend on the state.

Prepaid funerals

Prepaid funerals are becoming increasingly popular in Australia. This option allows you to prepare and pay for your funeral in advance, saving your family from financial hardship when you pass away. It also ensures that your funeral is exactly as you wish it to be and you can make the arrangements through a funeral service provider.  

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Funeral bonds

Funeral bonds are investment products designed to help people save for their funeral expenses. They work in a similar way to savings accounts, but the money is specifically earmarked for funeral costs. The funds are held in trust until they are needed and there is no requirement to pay tax on any earnings from the investment.  

Funeral bonds are available from a range of providers, including banks, insurance companies and funeral homes.

Funeral insurance 

Funeral insurance is a type of life insurance policy that specifically covers the costs of a funeral. Policyholders pay regular premiums and when they pass away, the funds are paid out to cover funeral expenses. 

Funeral insurance policies can be purchased from a range of providers, including banks, insurance companies and funeral homes. The premiums can vary depending on factors such as age, health and coverage amount. Funeral insurance policies can be expensive and the premiums may increase over time.

DIY funeral

A DIY funeral involves planning and carrying out a funeral without the help of a funeral director. This can include tasks such as collecting the body, preparing for burial or cremation, arranging the funeral ceremony and disposing of the ashes.  

While a DIY funeral can be a more affordable option, it can also be emotionally and physically challenging. Consider whether you have the skills, resources and support needed to carry out a DIY funeral before deciding to go down that path. 

Funeral assistance programs

Some charitable organisations and community groups offer funeral assistance programs to help families who are struggling to pay for a funeral. These programs can vary widely in terms of the assistance they offer and the eligibility requirements. To find out if there are any funeral assistance programs in your area, you can check with your local council or search online.   

You can also contact organisations such as; The Salvation Army, St Vincent de Paul Society, and Red Cross, which may be able to offer support.

Coping with the emotional and practical aspects of a Pauper's Funeral

Arranging a funeral on a limited budget can be a difficult and emotional process. Here are some tips to help you cope with the practical and emotional aspects of the situation:

Seek support from family and friends

When you are dealing with the loss of a loved one and the stress of arranging a funeral, it's important to reach out to family and friends for emotional support. They can help you with practical tasks, provide a listening ear and offer comfort during this difficult time.

Research your options

Take the time to research your options and find out what support and assistance is available to you. This can include government programs, charities and funeral service providers.  

There are options available for families who cannot afford the cost of a traditional funeral. The Australian government provides several bereavement payments to assist citizens and some states and territories offer government-funded funerals. Planning for death is never an easy experience, however, by taking action you can help alleviate some of the financial burden on your family during an already difficult time.