7.12.1 Compensation for Funeral Expenses

What constitutes a 'funeral'? 

"Funeral" is not defined in the Act. Therefore, any range of genuine memorialisation activities are compensable, provided that the Department is not paying more than the maximum amount across the activities or ceremonies in totality.

Compensation for funeral expenses is a one-off reimbursement to assist with the costs of a funeral. From 1 July 2026, all veterans will be eligible for the higher rate of reimbursement for funeral expenses available under the MRCA (Section 12) in situations where:

• the death is caused by the veteran’s service, or
• the veteran was assessed with 80 or more impairment points under the MRCA, or 
• the veteran was eligible for the SRDP under the MRCA at some point, or
• the deceased member was eligible for the Additional Disablement Amount under the MRCA at some period during their life; and a
• claim for compensation has been made under section 319 of the MRCA.

The Commonwealth is not liable to pay compensation in respect to the deceased member's funeral if automatic payments have already been made as part of funeral compensation to the estate of the deceased member. Refer to section 268AA & 268AB of the MRCA.

Note: Funerals of persons who were full time serving members at the time of death are generally conducted at the ADF's expense.  This is a condition of service and a determination under the MRCA should not be required in those cases.

If a dependant of a deceased member meeting the above criteria dies in indigent circumstances, a benefit in respect of the funeral expenses of the dependant may also be granted under the provisions contained in s268AB of the MRCA.

Comp and Support policy library 
8.3.3 Funeral Benefit for a Dependant of a Deceased Veteran or Member

Claims for funeral expenses

As noted above, funeral expenses can only be compensated where a claim has been made.  A claim can only be made either:

• on behalf of a dependant of the deceased member (where the dependant incurred the cost of the funeral); or 
• by the deceased member's legal personal representative.

Amount payable for funeral expenses
There is a maximum amount payable for funeral expenses which is indexed annually and is based on the veteran's date of death.  The rates can be accessed in CLIK via the following link Payment Rates

Funeral claims from 1 July 2026
As noted at the beginning of this chapter, changes commenced on 1 July 2026 which mean that claims lodged with the Department from 1 July 2026 are to be considered under the MRCA (which includes claims for funeral expenses). However, any payments made for funeral expenses prior to 1 July 2026 mean that no additional compensation in respect of the funeral is payable under the MRCA.

The 1 July 2026 changes also resulted in certain eligibility categories for funeral expenses previously contained in the Veterans’ Entitlements Act 1986 (VEA) being added under the MRCA. This means that the MRCA effectively has two rates of funeral compensation available (i.e. a ‘high’ and a ‘low’ rate).

High Rate $14,990.43 (indexed on 1 July each year).

• Payable where:
  • death is service-caused,
  • veteran assessed at 80 + impairment points, veteran was SRDP eligible at some point
  • veteran was ADA eligible at some point (from 1 July 2026)
• Payable to maximum rate or the actual cost of the funeral (whichever is less)

Within this statutory limit, the MRCA requires the Commission to determine what amount is reasonable in the particular circumstances.  The MRCA specifies that only the following can be taken into account in this determination:

• the charges ordinarily made for funerals in the place that the funeral is carried out; and
• any amount paid or payable for the funeral under any other law of the Commonwealth.

Note that the second consideration is limited to what is payable under another law of the Commonwealth.  It does not apply in a situation where, as happened following the 2009 bushfires in Victoria, ex-gratia payments were made by the Commonwealth Government to assist with funeral expenses.  That is because those ex-gratia payments were not made under any law of the Commonwealth.

The ‘low’ rate (prescribed as a set $3,000 amount under section 268AD which is not indexed) is automatically paid to the estate of certain veterans who were receiving payments under the VEA for Extreme Disablement Adjustment, Special Rate (TPI) Disability Compensation Payment, ex-prisoner of war payment or additional disability allowance as a multiple amputee. The amount can also be claimed in the following situations:

• where the death was war or defence-caused within the meaning of the VEA
• where the veteran died in indigent circumstances
• where the veteran died in a hospital or other institution
• where the veteran died while travelling to or from a hospital or institution
• where the veteran died after discharge from a hospital or institution where they were receiving treatment for a terminal illness
• in certain situations where a dependant dies in indigent circumstances.

Multiple Claimants 
A payment will generally be payable only once for each accepted death. However, this payment can be split between multiple recipients if more than one person incurred a cost connected with the funeral, as long as the maximum payment is not exceeded for that funeral.

Payment of funeral expenses
Although the list of persons who can claim for reimbursement of funeral expenses is limited, the payment can be made to:
the person who made the claim; or
if the claimant so directs, either to the person who carried out the funeral or to any other person who incurred the cost of the funeral.

Restrictions on dual payment of funeral benefits
In some situations, it may be possible for the family of a deceased veteran to be eligible for both a high and a low rate of funeral compensation under the MRCA. However, section 267A of the MRCA requires delegates to first reduce any amount which is payable under the ‘high’ rate by the amount which has been provided at the ‘low’ rate.

Some scenarios are available below to illustrate changes to funeral arrangements commencing 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 can then apply for funeral benefits under MRCA for up to the higher rate.

Scenario 2 – VEA TPI veteran

• A TPI VEA veteran passes away in July 2026 of a non-service-related condition.
• The veteran will receive the $3,000 benefit automatically.
• The veteran’s dependant can then apply for funeral benefits under MRCA for up to the higher rate.

Scenarios 3 and 4 – VEA/DRCA veteran

• A VEA/DRCA veteran passes away in April 2026 and the funeral expenses claim is lodged in July 2026.
• The claim is assessed under MRCA, and the claimant will receive the higher rate.
• A VEA/DRCA veteran passes away of a service-related condition in January 2026.
• They are automatically granted $2,000 for funeral expenses. The dependant cannot claim under MRCA after 1 July 2026 as they have already been paid for funeral expenses.