SOCIAL SECURITY ACT 1991 - SECT 19E Exempt funeral investments

SOCIAL SECURITY ACT 1991 - SECT 19E

  (1)   Work out whether a funeral investment that relates to a particular funeral is an exempt funeral investment by applying these rules:

  (a)   the expenses for the funeral must not be prepaid; and

  (b)   in relation to that funeral:

  (i)   only one investment of not more than $10,000 can be an exempt funeral investment; or

  (ii)   only two investments that combined are not more than $10,000 can be exempt funeral investments.

Note:   The amounts in paragraph   (1)(b) are indexed each year on 1   July (see Division   2 of Part   3.16).

  (2)   Disregard any return on an investment in determining the amount of an investment for the purposes of this section.

  (3)   For the purposes of subsection   (1), a funeral investment means an investment, being an investment that cannot be realised before maturity and the return on which is not payable before maturity, that:

  (a)   matures on the death of whichever member of a couple dies first or dies last and is to be applied on maturity to the expenses of the funeral of that member of the couple; or

  (b)   matures on the death of:

  (i)   the investor; or

  (ii)   if the investor is a member of a couple at the time the investment is made, the investor's partner at that time;

    and is to be applied on maturity to the expenses of the funeral of the person on whose death it matures.