Commonwealth Consolidated Acts

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Exempt funeral investments

             (1)  Work out whether a funeral investment that relates to a particular funeral is an exempt funeral investment by applying these rules:

                     (a)  the expenses for the funeral must not be prepaid; and

                     (b)  in relation to that funeral:

                              (i)  only one investment of not more than $10,000 can be an exempt funeral investment; or

                             (ii)  only two investments that combined are not more than $10,000 can be exempt funeral investments.

Note:          The amounts in paragraph (1)(b) are indexed each year on 1 July (see Division 2 of Part 3.16).

             (2)  Disregard any return on an investment in determining the amount of an investment for the purposes of this section.

             (3)  For the purposes of subsection (1), a funeral investment means an investment, being an investment that cannot be realised before maturity and the return on which is not payable before maturity, that:

                     (a)  matures on the death of whichever member of a couple dies first or dies last and is to be applied on maturity to the expenses of the funeral of that member of the couple; or

                     (b)  matures on the death of:

                              (i)  the investor; or

                             (ii)  if the investor is a member of a couple at the time the investment is made, the investor's partner at that time;

                            and is to be applied on maturity to the expenses of the funeral of the person on whose death it matures.

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