8.3.1 Overview of Funeral Benefits

What are funeral expenses?
Funeral expenses are a one–off payment that is intended to help cover expenses incurred in respect of:

• the funeral of a deceased eligible veteran or member of the Forces,
• the funeral of the deceased eligible dependant of a deceased veteran or a member of the Forces; and
• the cost of transporting the body from the place of death to the normal place of residence.

A funeral benefit can still be paid even when there is an outstanding debt against the deceased eligible veteran or member of the Forces, or the deceased eligible dependant of a deceased veteran or member of the Forces. Action to recover the debt should be pursued against the estate of the deceased eligible veteran of member of the Forces, or the deceased eligible dependant of a deceased veteran or member of the Forces.

Eligibility for a funeral benefit
A funeral benefit is payable in respect of the death of an eligible veteran or member of the Forces but not an allied veteran or an allied mariner as defined under section 5C of the VEA. Only one payment of a funeral benefit can be made under the VEA in respect of a deceased veteran or member of the Forces or dependant.

Amount of funeral benefit payable (VEA)
The amount of funeral benefit payable relates to the date of death.

• Up to $3,000 for new claims made on or after 1 July 2026 towards the funeral costs of an eligible veteran or member of the Forces, or dependant who died on or after 1 July 2007 (for claims prior to 1 July 2026 up to $2000);
• Up to $1,000 towards the funeral costs of an eligible veteran or member of the Forces, or dependant who died between 1 July 2004 and 30 June 2007 (inclusive); 
• Up to $572 towards the funeral costs of an eligible veteran or member of the Forces who died on or before 30 June 2004.

Maximum amount of funeral benefit payable
A date of claim approach is used for funeral benefit. If the claim is lodged after 1 July 2026, it is considered under MRCA – regardless of when the death occurred. If the claim is lodged before 1 July 2026, it will be assessed under the current tri-Act system.

The categories of funeral benefit eligibility under the VEA (sections 98B, 99 and 100) will be preserved and moved into the MRCA (section 268AA), including auto-grants and benefits in respect of dependents. This means, from 1 July 2026, the auto granted entitlements (previously under VEA) will continue after 1 July 2026.

From 1 July 2026, the maximum amount of funeral benefit payable will be increased from $2,000 to $3,000 (not indexed).

Additional costs for transportation may also be paid in the case of a deceased eligible veteran or member of the Forces.

All claims for funeral expenses lodged after 1 July 2026 that meet the MRCA eligibility criteria will be considered MRCA deaths and paid the higher rate for funeral expenses. For more information on MRCA eligibility please see Ch 7 Compensation for Death

A claim can be submitted for the higher (MRCA) rate of reimbursement for funeral expenses even where an automatic payment of $3,000 has been made (e.g. VEA auto grant). The maximum amount payable under MRCA, however, will be reduced by the $3,000 already received under VEA (section 267A). 

What funeral expenses are allowed?
Funeral expenses are intended to assist with the funeral expenses incurred. This includes the costs associated with disposal of the remains of the deceased, together with the costs of any ceremony, observance, rite or solemnity connected with the disposal.  The purchase of a burial plot or a wall niche (including advance purchases) can be accepted, where the delegate is satisfied that the purchase is an expense, or will become an associated expense, in respect of the person's funeral.  The costs of wakes, memorial ceremonies and other cultural observances associated with the funeral are also allowable. Acceptable funeral expenses can also include memorial services or similar observances in the absence of a body, where the body has been donated to science or where the body is missing and there is a legal presumption of death.

Restrictions on dual payment of funeral expenses
There is no eligibility for additional funeral expenses if compensation has been paid under previous Acts prior to 1 July 2026.

Dual Act eligibility
For a new claim, situations may arise where a claimant meets eligibility criteria under MRCA and one of the VEA categories (for example, the veteran was TPI but also died of a service condition). In these cases, the higher MRCA rate would apply.

Some scenarios are available below to illustrate the changes from 1 July 2026.

Scenario 1 – VEA veteran

• A VEA veteran passes away in April 2026 of a service-related condition and the funeral expenses claim is lodged in July 2026.
• The claimant will receive the lower rate ($3,000).
• The veteran’s dependant or legal personal representative can then apply for funeral benefits under MRCA after 1 July 2026, and if eligible, the claimant will receive up to the maximum rate under MRCA, or the actual cost of the funeral (whichever is less).

Scenario 2 – VEA TPI veteran

• A TPI VEA veteran passes away in July 2026 of a non-service-related condition.
• The $3,000 benefit would be automatically paid to the estate under existing auto-grant arrangements.
• The veteran’s dependant or legal personal representative can then apply for funeral benefits under MRCA, and if eligible, receive up to the maximum rate under MRCA.

Scenarios 3 and 4 – VEA/DRCA veteran

• A VEA/DRCA veteran passes away in April 2026 and the funeral expenses claim is lodged after 1 July 2026.
• The claim is assessed under MRCA and if eligible, the claimant will receive up to the maximum rate under MRCA, or the actual cost of the funeral (whichever is less).
• A VEA/DRCA veteran passes away of a service-related condition in January 2026. The $2,000 funeral benefit would be automatically paid to the estate. The dependant or legal personal representative is not able to make claim under MRCA after 1 July 2026 as they have already been paid for funeral expenses prior to 1 July 2026.

Funeral benefit and bereavement payment:
The VEA allows the payment of both bereavement payment and funeral benefit for one pensioner if that person is eligible for both.