C16/2000 FUNERAL BENEFIT - INCREASED BENEFIT EFFECTIVE FROM 1 JULY 2000

Purpose

The purpose of this instruction is to advise the new maximum amount of funeral benefit payable from 1 July 2000.

Background

The funeral benefit has been increased in line with the Government's compensation measures in relation to the introduction of the goods and services tax.  The authority for this increase is contained in A New Tax System (Compensation Measures Legislation Amendment) Act 1999 Schedule 2, Part 1, Sections 9 to 11.

New amount

The maximum amount of funeral benefit has been increased to $572.

Effective date

The increased maximum amount will apply to all decisions to grant a funeral benefit made on or after 1 July 2000 regardless of the date of death or date of funeral.

This is in keeping with advice from Legal Service Group (see DI B50/95) that "there is no authority under the Veterans' Entitlements Act to restrict the amount of funeral benefit payable to the maximum amount prescribed and in force at the time of death in those cases where the veteran's death is not accepted until a number of years after death and the maximum rate of funeral benefit payable under the Act is increased in the interim.....in such cases, the Veterans' Entitlements Act does not preclude the payment of funeral benefit at the rate in force under the Act at the time the application is determined."

GST

The funeral benefit is a contribution to the obligatory costs of the funeral.  This includes GST.  Where there is an entitlement to a payment of funeral expenses from another source (eg a funeral benefit fund) GST on the obligatory costs must be included in the calculation of the residual amount of funeral benefit payable.

New Form

The funeral benefit form D307 is being amended to include the increased funeral benefit amount and reference to the GST.  These updated forms will be available shortly.

Contact

For any enquires on this subject please contact Marie Leach, Disability Compensation Branch, National Office on (02) 6289 6046.