Funeral bonds tax exemption doubles
The opportunity for Australians to invest money to provide for their own funerals has been boosted with the Federal Government’s decision to double the tax exempt threshold for funeral bonds from $5,000 to $10,000.
The existing social security income and asset test exemption ceiling for funeral bonds has been increased to $10,000 with the threshold also indexed for the first time since 1991. The changes come into effect on January 1, 2008, and will allow a person or couple to have a second policy exempt from the means test.
The changes will benefit people receiving income support payments including the age pension, carer payment, Veteran Affairs’ service pensions, and income support supplementary payments who take out a funeral bond from next January.
It will also benefit people who currently hold a funeral bond for over $5,000 but under the $10,000 threshold and couples or individuals who now have one funeral bond who will now be able to have a second policy exempt from social security income and asset tests.
