Funeral costs in Australia

How much should a funeral cost in Australia?

Planning a funeral is a stressful experience and it can be overwhelming making decisions with a hefty bill looming over your head. But saying goodbye to your loved ones doesn’t have to break the bank. It’s possible to organise a sendoff which is in line with your values and stays within your budget, but it requires careful planning and consideration.

Holding a funeral in Australia can cost anywhere from $1,500 for a direct cremation to around $20,000 for an elaborate burial. Data published in 2019 from the Australian Seniors Cost of Death report found the average price of a basic funeral in Australia is $3,108 while the average cost of a basic burial came to $8,048. But the price you pay can vary significantly depending on which state or territory you reside in and what type of affair you organised. Regardless of what number you end up at it’s important to first consider how you get to that figure in the first place.

When planning a funeral the cost is made up of:

Burial Type

Your choice of burial will directly impact how much you end up paying. If you hold a traditional burial - with a viewing, a church service, and a committal ceremony at the gravesite you could end up paying in excess of $19,000. These sorts of burials usually require hiring a Funeral Director, buying a coffin and splashing out on flowers. On the other end of the spectrum, direct burials and direct cremations are some of the cheapest options because you aren’t paying those additional costs.

Funeral Service

Even if it is your preference to opt for a traditional burial you do not need to pay for an extravagant ceremony. In the same way your method of disposing of the body impacts the price of a funeral, the type of funeral you hold impacts how much everything costs. Compared to a wake or a graveside service, holding a memorial service can be a cost-effective way to say goodbye to your loved ones. You may consider saving money by holding a candelit vigil, a bonfire or a barbeque.

Funeral Director fees

If you’re planning any kind of funeral you have likely enlisted the help of a funeral director. While it can be helpful to have someone experienced doing the hard work their fees can add significantly to the total cost of the funeral. Data from Ibisworld estimates their fees alone may make up 39% of the total cost of a burial. While it’s fair for funeral directors to charge a fee for their services, because the sector operates under a monopoly there is less competitive pricing than other industries.

The largest funeral provider is Invocare, and they own and operate 40 different brands within Australia, including White Lady, Guardian and Simplicity. For this reason when you’re planning a funeral you should do your due diligence and shop around to make sure you’re getting a fair price for your loved ones’ farewell. You should also ask your Funeral Director for an itemised invoice for all the goods and services included as part of the funeral before paying their bill.

Breakdown of costs

Direct cremation ($1,500- $4,000)

A direct cremation is where the body is cremated within days of the death and there is no funeral service. This cuts out any fees for storing the body in a mortuary, fees associated with holding a service (including hiring a celebrant, booking catering and organising flowers) and the cost of an expensive coffin. While you do need to cremate the body in a coffin you can opt for a cardboard coffin or cremation capsule which costs between $300- $700. You will also need to pay for a cremation permit, a certificate and the cost of the actual service itself.

Traditional burial ($19,000)

As mentioned above a traditional burial is the most expensive option when it comes to a funeral. The main reason for this is the cemetery fees. As land supply shrinks the cost and availability of burial plots is rapidly increasing. According to funeral comparison website gatheredhere.com the cost of a plot in Sydney now ranges from $4,000 to $52,000. But it’s not just the burial plot you’re paying for with a traditional funeral- it’s the viewing, church service and committal ceremony and the wake following the funeral. Unlike a cremation, if you hold a traditional funeral you’re usually paying more for a coffin as well- particularly if there is an open casket visitation, and that cost alone could end up costing you thousands of dollars.

Funeral costs by state

The average cost of a funeral changes from state to territory and across metropolitan and regional and rural areas. The numbers below represent the average cost of a ‘basic funeral’ which offers only essential services: the removal and transport of body, storage of body , legal documents and professional service fees.

A basic funeral is the simplest type of funeral and typically includes the essential services. The research found that the average cost of a basic burial in Australia is $8,048, while the average cost of a basic cremation in Australia is $3,108.

New South Wales

Queensland

Victoria

The Australian Capital Territory

South Australia

Western Australia

The Northern Territory

Tasmania

Source: The Cost of Death Report

How to pay for a funeral

There are two different ways you can organise payment for a funeral: pre need, or at need. Pre-need is when you set aside money ahead of time for funeral expenses, while at-need refers to paying at the time of death when the services are required. Paying for a funeral ahead of time can help to take some of the stress out of the situation, and make sure there are finances to cover the cost of burial and funeral arrangements. But even if you're planning ahead there are still multiple options to consider when it comes to paying for your funeral.

Funeral insurance

Funeral insurance is a financial product under which you agree to make regular payments (usually fortnightly or monthly) until you pass away, in exchange for an agreed cover amount paid out at the time of death. While the premiums can be relatively cheap initially, they increase quickly over time, and if you live for many more years (as you would hope to!) you can end up paying many thousands more in premiums than the amount that is paid out upon death. Any additional money you pay for funeral insurance does not end up going back to your Estate but goes directly to the insurance provider.

The other downside of funeral insurance is if you miss a payment it can result in the insurance being cancelled and you lose the money you have already paid. Likewise if you can’t afford the premium payments as you continue to get older, you do not have access to the premiums paid to date and all the money you have saved up is forfeited.

Prepaid funeral plans

A prepaid funeral is a funeral that is planned, contracted and paid for in advance with your selected funeral director. A prepaid funeral can be helpful in locking in prices however it does not provide any flexibility if you change your mind about the type of service you’d like in the future as it is a contract. If your service ends up being much cheaper than expected, the funds end up going to the funeral director and will not be returned to your family. A prepaid funeral is also sometimes referred to as a “funeral plan”. If you move to another state, some prepaid funerals may not cover a funeral in your new state.

Funeral Bonds

A funeral bond is an investment account where money is set aside to cover the cost of your funeral and burial arrangements when you die. The money in the account accrues interest over its lifespan and ensures that when the time comes to organise and pay for your funeral, there is a nest egg for your family to draw on. The funds will only be released when you die, and if the amount in the account is greater than the cost of the funeral, the excess funds will be returned to your family. Funeral bonds are financial products regulated by the Australian Prudential Regulation Authority.

Searching for an affordable, transparent and flexible way to say goodbye to your loved ones? Find out more about Safewill Cremations.

Data used in this article has been compiled from comparison websites finder.com, gatheredhere.com and Australianseniors.com. With changing land rates, taxes and other expenses it is possible prices may increase over time and no longer reflect the rates described above.