Funeral Costs for Pensioners: How Centrelink Can Help in 2026

The death of a husband, wife, or spouse is already an extremely traumatic and difficult experience. But the financial impact of funeral costs for pensioners and other expenses can add significant weight to the stress, especially for those who rely on Centrelink benefits to get by.

The Cost of Death report, published by Australian Seniors, reveals that almost a third (33%) of Australian families are left in financial hardship after paying for a funeral – and they take several months to recover from the debt.

Pensioners dealing with the loss of a partner may be eligible for government assistance through bereavement and pension payments. A Centrelink lump-sum payment can also help with funeral costs for pensioners.

We have put together this guide to help Australian pensioners understand the benefits they may be entitled to, following the death of a spouse. The following will be explained below:

1. The impact on pensioners paying off funerals
2. Centrelink lump sum bereavement payment and other pensioner benefits
3. Other allowances and funds to help with funeral costs for pensioners
4. Ways to pay for a loved one’s funeral
5. Prepaid funerals can save pensioners from hardship
6. Frequently Asked Questions

The cost of a direct cremation with Bare as of May 2026 averages $3,399*. Click below to see the price for your area.

1. The impact on pensioners paying off funerals.

The price of an average Australian funeral costs about $8,200 according to Finder.

When a loved one passes unexpectedly, families often feel the pressure to arrange a funeral at short notice. In the rush to book something quickly, the default choice is generally what has been done for generations – and expensive. But is it necessarily right for your loved one?

The industry, historically, has made its money by upselling grieving families on premium caskets, expensive catering packages, and other things they don’t necessarily need. At the same time, many experience financial strain after paying for a funeral, with some taking months to recover. But why do we need to burden our most vulnerable citizens with such a huge expense?

While it’s a difficult time, it’s worth taking a moment to weigh up your options and consider what your loved one would really want from a funeral service. If the cost puts you under financial pressure, it’s okay to step back and choose a simpler approach.

2. Centrelink lump sum bereavement payment and other pensioner benefits.

Pensioners may be eligible for Centrelink bereavement payments and other government assistance.

The Australian Government provides a number of payments and services to support people after the death of a loved one. These are administered by Services Australia. The type and amount of bereavement support available will depend on your individual circumstances, your relationship to the person who has died, and when you notify Centrelink.

It’s important to notify Centrelink as soon as possible after a death, as this can affect your payments and eligibility. This can be done by calling Centrelink on 132 300 or submitting an Advice of Death form through Services Australia. Centrelink will then update relevant government records, including Medicare.

For other prompts on who to notify after a loved one’s death, you can also download the checklist here.

Australian residents are eligible for the following Centrelink bereavement payments:

Bereavement payment (partner) – If your partner dies and you were both receiving a pension or income support payment, you may be eligible for a bereavement payment. This is usually paid as a lump sum and is based on the combined amount you and your partner would have received, calculated over a 14-week period.

Pension Bonus Bereavement Payment – A lump sum payment may be available to the surviving partner of someone registered in the Pension Bonus Scheme who passed away before claiming their Age Pension and Pension Bonus. You’ll generally need to make a claim within a set period after the death.

Carer Allowance – If you were receiving Carer Allowance for someone who has died, you may be entitled to a lump sum payment of up to 14 weeks.

Carer Payment – If you were receiving Carer Payment, you may continue to receive payments for up to 14 weeks after the death. In some cases, a lump sum bereavement payment may also apply.

Please note that Centrelink entitlements can change without notice, so it’s important to confirm your circumstances directly by calling 132 300.

How to stop age pension payments after a death

Following a pensioner’s passing, their government benefits will stop once Centrelink has been notified.

If the person who died had a partner, payments don’t stop straight away. In most cases, the surviving partner will receive bereavement support for a period (usually based on up to 14 weeks) before their payments are reassessed.

When a single person receiving a payment dies, what is paid will depend on the type of payment. For pensioners, the final payment usually covers the fortnight in which they passed away. For those receiving an allowance, payments are generally made up to the day before death. In both cases, the final payment may be accessed by the estate. Payments then stop from that point.

3. Other allowances and funds to help with funeral costs for pensioners.

You may also be eligible for allowances through the Department of Veterans Affairs, insurance companies, some private health funds and unions. Find out if those apply to you.

Department of Veterans’ Affairs.

If your partner was receiving a pension or support through the Department of Veterans’ Affairs, you may be eligible for financial assistance after their death.

There are generally two types of support:

• a bereavement payment, which helps you adjust financially after payments stop
• a funeral benefit, which may help cover funeral costs (up to a set limit)

Eligibility and the amount you receive will depend on the type of DVA payment your partner was receiving and your circumstances at the time.

In some cases, such as for couples, bereavement payments may be made automatically once the death is reported. In other situations, you may need to apply within a set timeframe.

You should contact the DVA as soon as possible after the death to understand what applies to you either through their website or by calling 1800 VETERAN (1800 838 372). You might also like to read our article: How to plan a veteran’s funeral.

Early release of your Super.

You generally can’t get your super before you reach your preservation age. However, in some circumstances, the law does allow you to access your super early. These limited circumstances include specified compassionate grounds and severe financial hardship. Paying for a funeral can be a time when funds may be withdrawn if you meet certain criteria.

For more information about early release of superannuation due to severe financial hardship, contact your super fund. Alternatively, there are organisations that assist you in these claims. Supercare is one such example.

State-based funeral assistance

In addition to federal support, some states in Australia offer funeral assistance schemes for those who are unable to cover funeral costs. Please contact each state body for specific requirements for each scheme.

Funeral assistance Victoria

In Victoria, support may be available through organisations like Bereavement Assistance, a not-for-profit that helps arrange low-cost funerals for people with limited or no funds. If no one can pay, a destitute funeral may be arranged through the state.

Funeral assistance Queensland

In Queensland, if you are unable to pay for a funeral, support may be available through the Funeral Assistance Scheme administered by the Coroners Court of Queensland.

Applications are made through a Magistrates Court, and are generally considered where the deceased’s estate and any next of kin cannot cover the cost. Assistance may be provided toward funeral expenses, depending on eligibility and approval.

Funeral assistance NSW

NSW offers destitute funerals to those who are unable to pay for the cost of a funeral, and whose friends and relatives are also unable to help with the funeral costs. The service will be a basic cremation unless a burial is requested by the deceased’s next of kin. This is administered by NSW Health.

Funeral assistance South Australia

South Australian residents who are not able to pay the costs for a funeral and have exhausted all other options may be eligible to arrange a funeral through Funeral Assistance SA.

Funeral assistance Western Australia

The Bereavement Assistance Program provides assistance to people who are unable to pay for the cost of a funeral. Applicants must also show that the family is not able to meet the costs.

Funeral assistance Tasmania

In Tasmania, the Department of Health and Human Services manages an Essential Care Funeral Policy, which allows for a publicly funded direct committal.

This may apply where the deceased’s estate does not have enough funds to cover funeral costs, and there is no one able or willing to take responsibility for the arrangements. In these cases, the government can arrange the cremation and cover the associated costs.

Funeral assistance ACT

In the ACT, funeral assistance may be available for residents experiencing financial hardship through the ACT Funeral Assistance Program. If no one is able to arrange or pay for a funeral, the government may step in to arrange a basic service under its Unclaimed Body Scheme.

Funeral assistance Northern Territory

In the Northern Territory, financial assistance for a funeral may be available through the Indigent Persons Funeral Scheme. If the estate can’t cover funeral costs and the family are unable to contribute, the Public Trustee can apply to the Coroner’s Office for support under the Scheme.

Support may also be available through organisations such as the Northern Land Council and the Central Land Council, which can assist with funeral expenses for Aboriginal people who meet their criteria.

4. Ways to pay for a loved one’s funeral.

When arranging a funeral, there are a few different ways to manage the cost.

If the deceased had a prepaid funeral plan, funeral bond, or funeral insurance, this could cover most or all of the funeral costs. Otherwise, families often rely on a combination of personal savings, the deceased’s estate, or financial support.

For pensioners, financial assistance may also be available through Centrelink, including bereavement payments and other allowances which have been discussed earlier.

If you’re looking to reduce costs upfront, choosing a simpler option can make a significant difference.

Direct cremation: a lower-cost funeral option

For pensioners looking to keep funeral costs manageable, a direct cremation (sometimes called a ‘no service cremation’) is one of the most affordable options in Australia.

A direct cremation, or 'no service, no attendance' (NSNA), is a simple way to carry out the cremation of a loved one without a formal funeral service. The cremation is arranged by a funeral provider, with the ashes returned to the family or next of kin. A memorial can then be held later, when the time feels right and in a way that suits your budget.

It’s a more affordable option that still allows you to make arrangements in your own way, without the added cost of a traditional service.

If you’re considering this option and want to understand what it might look like for you, you can learn more or request a quote here, or give us a call on 1800 071 176.

GoFundMe and other crowdfunding to cover funeral costs

There are always generous people out there willing to give a helping hand if asked.

A crowdfunding request can be set up online to help with funeral costs for pensioners through websites like MyCause and GoFundMe.

5. Prepaid funerals can save pensioners from hardship

As new service options become available, many Australians are taking matters into their own hands and prepaying their own funeral to ensure they get the send-off they actually want. These can be arranged with many funeral providers months or even years in advance.

By prepaying your own funeral, you can determine your wishes in advance and cover the costs ahead of time, helping take the burden off your family. 

The other advantage of prepaying is that you can lock in today’s price and have more certainty around future costs. For many, this also means choosing a simpler option upfront, rather than leaving decisions to be made later under pressure.

Bare offers a straightforward prepaid cremation option for those who want a simple, affordable arrangement without added complexity. This includes the essential arrangements such as transfer into our care, a private cremation, a simple coffin, and all required paperwork, with ashes provided to the family.

For more information on a Bare prepaid cremation, call 1800 202 901.

6. Frequently asked questions.

Can funeral costs be paid from the deceased’s bank account?

The funeral can generally be paid from the estate. Funds may be released to the executor or administrator acting for the estate, or to the person who arranged or paid for the funeral themselves. This is assessed on a case-by-case basis, and you will usually need to provide a funeral invoice and supporting documents.

What happens to joint bank accounts after a partner dies?

In many cases, joint bank accounts remain accessible to the surviving account holder. This can help cover immediate expenses, including funeral costs. It’s still important to notify the bank, as account access and arrangements may vary.

What documents do I need to access financial support after a death?

You will usually need the death certificate, proof of identity, and details of the deceased’s accounts or benefits. Requirements can vary depending on the organisation.

Is there a time limit to access bereavement payments?

Bereavement payments and support can depend on your circumstances, and some may need to be assessed or claimed within a set timeframe. It’s best to notify Centrelink as soon as possible after a death to help avoid delays or overpayments.

Final thoughts

It’s easy to feel pressure to organise a more expensive funeral than you’re comfortable with, especially during such a difficult time. But it’s okay to take a step back and choose an option that feels manageable for you.

Bare exists to make funeral arrangements more affordable for Australian families. A Bare Cremation is a simple, lower-cost option that allows the cremation to take place without a formal service. Then, when the time is right, you can have a personalised memorial for them in a way that is reflective of their life and will not break the bank.

At Bare, we don’t believe there is a single way to say goodbye. You can keep things simple, or choose to have a service before the cremation with a Bare Funeral, or a Bare Memorial later when the time feels right. It’s about doing what works for you, without putting extra pressure on your budget.

The loss of a loved one can be a difficult time and you may be going through many different emotions, so it’s also important to speak with your GP if you feel you are struggling with grief more than expected. Your GP can assist you with strategies for coping and referrals. Our article Experiencing grief on the death of a loved one might also help you understand the grieving process a little better.

For emotional support after the loss of a loved one you can also contact Grief Australia on 1800 642 066, or consult your GP. For more immediate help call Lifeline on 13 11 14. 

Understanding the financial support available can make funeral costs feel less overwhelming and offer families some comfort. If you’re arranging a farewell for a loved one and prefer an option that is simple and affordable, our team supports families across Australia with dignified funeral services, including direct cremation for the people of Sydney and Launceston.

To get a free quote, visit our All Services page or call our team at any time, 24/7, on 1800 071 176.

*This is the average price of a Bare Cremation, taken as the average of all zones of Bare’s servicing as of May 2026. Please note that prices vary depending on location and are subject to increase over time. For an accurate quote and cost breakdown for your location, please visit our website.

Disclaimer: This article and all information and pricing within it was accurate at the time of writing. Please see bare.com.au or linked sources for current pricing. This article provides general information only and does not constitute professional advice. Please consult a qualified expert for guidance specific to your situation.