Section 19E — Social Security Act 1991: 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.