Funeral directors offering funeral services in WA, must follow pricing and contract rules.
There are two codes funeral directors must follow covering:
These code enable consumers to make informed choices about funeral packages.
A funeral director is anyone who provides funeral goods and services.
Funeral pricing
You must provide clear and simple pricing information.
Where to show funeral prices
You must clearly show prices:
- at all your business locations
- on your website (if you have one).
What funeral information to provide
You must:
- clearly show prices for goods and services you offer
- include the price of a basic package
- give funeral information within two business days of a consumer's request.
What to include in a consumer agreement
Before a consumer signs, they must be given:
- itemised prices for all goods and services
- list of any extra costs (disbursements)
- a total amount payable.
Funeral information
Funeral price list templates shows an example of the required funeral information.
Your funeral information must include the following details.
Mortuary or crematorium information
- location
- name of owner or manager (if not the funeral director)
- how the body will be transported
Itemised price list
Your price list must itemise the cost of each product and service including:
- coffins, caskets or shrouds (price for each type or a price range)
- transport of the body
- storage at mortuary or holding room
- hire of a refrigeration plate
- care and preparation of the body
- viewing of the body prior
- funeral service (including venue hire)
- any other product or service included e.g. professional service fee
- burial or cremation.
Other costs (disbursements)
You must also include estimate costs for:
- costs of a death certificate
- fees for any other certificates or permits required
- cemetery or crematorium fees
Basic packages
A basic package is a combination of the least expensive essential goods and services. An example could be a 'no service, no attendance' burial or cremation.
You must offer basic funeral package including:
- a basic burial package
- a basic cremation package
Each package must include:
- pricelist of each good and service in the package
- price of any third-party products or services
Packages and pricing
You do not have to use fixed prices for all services.
For example, you can change:
- different rates for viewings during or outside business hours rates
- transport rates based on a flat rate for first 70 kilometres or per kilometre fee.
You must give the consumer the total transport fee before they sign the agreement.
You cannot use a funeral package price instead of providing an itemised price list.
Third party providers costs
You must show third-party costs if they are part of basic package. Showing other third-party costs is optional.
Prepaid funerals
Prepaid funeral code sets rules to protect consumers who are paying in advance for a funeral.
The code only applies to contracts entered into since 1 March 2021.
Prepaid funerals are managed by funeral organisers including funeral directors and funeral brokers.
The person covered by the prepaid funeral contract is called the recipient.
Information to give before signing a prepaid funeral contract
Before a recipient signs the contract, you must give them information that:
- Is developed by the investment manager e.g. product disclosure statement
- explains where the funds will be invested.
Copies of the prepaid contract
You must give a copy of the signed contract to:
- the recipient
- the person arranging the contract
- the recipient's next of kin or will executor.
Cooling-off period and cancellation
The recipient has a 30-day cooling-off period.
You may charge a reasonable administration fee for a cancelled contract.
Managing prepaid funeral payments
You must keep a register of all prepaid funeral investments.
You must ensure the recipient’s payments are:
- held in an account under the recipient’s name
- managed within secure investments by an investment manager
- sent to the investment manager within 16 days
- released only after the recipient’s funeral has taken place.
You can exclude any fees, charges and GST when you send payments to the investment manager.
Prepaid funeral contracts
A prepaid funeral contract must:
- be in writing
- use font size 12 or larger
- be signed and dated.
The contract must include the details of the:
- funeral organiser
- person arranging the contract
- funeral recipient details
- contact person (usually next of kin or will executor)
- investment manager
- selected funeral director (if managed by a funeral broker).
The contract must explain what happens to the money if
- your business closes (bankrupt or insolvent)
- payments are missed or late
- the recipient moves (e.g. relocates interstate)
- the contract ends early
- the recipient dies before all payments are made.
Prepaid contract cost
The contract must clearly show:
- the total cost of the contract, including GST
- itemise the cost of each individual contract component
- details of any fees or charges.
- how the contract can be ended, if allowed.
Changes to prepaid funeral contract
The contract price is fixed unless both parties agree to a change. For example, a change may occur if an extra service is added.
If the recipient has died, their legal representative can agree to changes.
Investment managers
Approved investment managers includes:
- life insurance companies registered under the Commonwealth Life Insurance Act
- friendly societies
- licensed trustee companies under the Corporations Act
- the Public Trustee.
Public cemeteries trust funds
The Cemeteries Act (WA) covers trust funds held by a cemetery manager, such as the Metropolitan Cemeteries Board.
You must send a recipient's payment to the cemetery manager within 16 days.
Resources
The following documents help you meet the requirements of the funeral codes: