Prepaid Funerals Act 2004

The custodian of a funeral trust must not pay any money out of the funeral trust unless the payment is made – to a person carrying on a funeral business for provision of funeral services under a prepaid funeral agreement following the death of the recipient; or to the contributor on the termination of a prepaid funeral agreement in accordance with this Act; or for reasonable expenses incurred by the custodian in the administration of the funeral trust and investments of the funeral trust; or for charges by the custodian in accordance with a scale approved by the Director for the administration of the funeral trust; or in accordance with section 23(2). Fine not exceeding 100 penalty units.

The custodian of a funeral trust must not make a payment from the funds of the funeral trust otherwise than in accordance with this Act. Fine not exceeding 100 penalty units.

Where an offence has been committed in respect of the payment of money from a funeral trust, a magistrate may, on the application of a contributor, custodian or other interested person, direct such reimbursement of the funeral trust as would be required to restore – any payments improperly made from the trust; and any other loss to the trust that arose from that improper payment.

Where a payment out of a funeral trust is made following the death of a recipient, the custodian must make the payment to the person carrying on the relevant funeral business but the amount paid is not to exceed an amount required for – the funeral business to provide the funeral services required under the prepaid funeral agreement; and any additional amount of GST payable for goods or services provided under the agreement.

Where a payment out of a funeral trust is required following termination of a prepaid funeral agreement in accordance with this Act, the payment is to be made to the contributor and is to include an amount representing a reasonable proportion of the value of the funeral trust, having regard to the time that the funds have been deposited in the funeral trust.

Where a payment is made to a transferee in accordance with this Act, the payment is to be the same amount as would have been payable if the contributor had terminated the agreement.