Funerals Act 2006

Subject to subsections (2) and (3), a funeral provider must ensure that all money paid to the funeral provider in respect of a pre-paid funeral contract by or on behalf of any other party to the contract is invested in—

a funeral benefit fund established or deemed to be established under the Friendly Societies (Victoria) Code or by a body that is a friendly society for the purposes of the Life Insurance Act 1995 of the Commonwealth; or

a policy issued by or other investment with a company registered under the Life Insurance Act 1945 of the Commonwealth under which there is a guaranteed payment on the death of a person and the amount of that payment is specified at the time the investment is made; or

a policy issued by or other investment with a company registered under the Life Insurance Act 1945 of the Commonwealth under which there is a guaranteed payment on the death of a person which consists of the premium paid for the investment—

less any costs incurred in respect of the investment; and

plus any interest accruing in respect of the investment; or

any other manner approved by the Minister, generally or in a particular case, by notice published in the Government Gazette.

If a pre-paid funeral contract provides for the purchase of a right of burial or interment in a cemetery or for the payment of any other fees (including fees for cremation or preservation or disposition of ashes) to the trustees of a cemetery on behalf of the person in respect of whom the funeral is to be supplied, the funeral provider may arrange for money paid to the funeral provider in respect of that contract to be paid to the trustees of the cemetery for that purpose.

A funeral provider or an associate of a funeral provider holds any money paid to the funeral provider or associate in respect of a pre-paid funeral contract by or on behalf of any other party to the contract on trust for that other party until that money is paid or invested in accordance with subsection (1) or (2).

Subsections (1) and (3) do not apply to—

an administration fee or brokerage fee paid in respect of a pre-paid funeral contract; or

an amount paid in respect of any GST payable on the supply to which a pre-paid funeral contract relates.