BOOKS>S4.HTML#BANKERS BOOKS FUNERAL FUNDS ACT 1979 - As at 13 January 2023 - Act 106 of 1979

Table of Provisions

• Long Title

PART 1 - PRELIMINARY

• 1 Name of Act
• 2 Commencement
• 3 Objects
• 4 Definitions
• 5 Agreement to supply burial site a pre-paid contract in certain cases

PART 2 - ADMINISTRATION

• 6 Documents
7. (Repealed)
• 8 Inspectors
• 9 Delegation
• 10 Appointment of independent actuary

PART 3 - FUNERAL CONTRIBUTION FUNDS

Division 1 - Registration of funeral contribution funds

• 11 Contributory funeral benefit business to be carried on only by companies registered under this Act
• 12 Application for registration to carry on contributory funeral benefit business
• 13 Requirements for registration
• 14 Registration of company to carry on contributory funeral benefit business
• 15 Alteration or addition to rules of funeral contribution fund
• 16 Cancellation of registration of funeral contribution fund
• 16A Payment of GST by funeral contribution fund

Division 1A - Persons registered as funeral contribution funds on or after 30 November 2004 who were previously exempt

• 16B Provisions applying to previously exempt persons who are registered to carry on contributory funeral benefit business
16C. (Repealed)

Division 2 - Provision of funeral services

• 17 Tied arrangements with undertaker
• 18 Cash payment in certain cases if funeral service not carried out by undertaker designated by fund
• 19 Costs recoverable by undertaker where funeral service provided by fund

Division 3 - Management of funeral contribution funds

• 20 Certain persons prohibited from managing etc affairs of funeral contribution funds
• 21 Management expenses in administration of funeral contribution funds

Division 4 - Investment and borrowing

• 22 Investment of surplus funds etc
• 23 No borrowing except for temporary accommodation

Division 5 - Returns and registers

• 24 Returns
• 25 Funeral contribution fund etc to provide information in certain cases
• 25A Annual report to be provided to contributors
• 26 Registers
• 27 Documents to be available for inspection by contributors etc

Division 6 - Actuarial investigation

• 28 Actuarial investigation of funeral contribution funds
• 29 Basis of valuations
• 30 Procedure where deficiency in assets or management expenses unduly high

Division 7 - Transfer and amalgamation of contributory funeral benefit business

• 31 Transfer or amalgamation to be confirmed by Secretary
• 32 Schemes for transfer or amalgamation
• 33 Transfer by direction of Secretary

PART 4 - PRE-PAID FUNERAL FUNDS AND PRE-PAID CONTRACTS

Division 1 - Registration of pre-paid funeral funds

• 34 Trustee under pre-arranged contract to be registered under this Act
• 35 Application for registration
• 36 Requirements for registration
• 37 Registration of pre-arranged funeral funds
• 38 Additional or substitute co-trustee
• 39 Cancellation of registration

Division 1A - Persons registered as pre-paid funeral funds on or after 30 November 2004 who were previously exempt

• 39A Provisions applying to previously exempt persons who are registered to act as trustees under pre-paid contracts
39B. (Repealed)

Division 2 - Money etc, under pre-paid contracts to be held in trust by pre-paid funeral fund

• 40 Payment of money and giving of consideration under pre-paid contract to pre-paid funeral fund
• 41 Money etc paid under pre-paid contract to be held in trust
• 42 Transfer of trust funds under pre-paid contracts
• 42A Payment of GST under pre-paid contracts

Division 3 - Administration of trust funds under pre-paid contracts

• 43 Pre-paid funeral funds, trust accounts
• 44 Investment of trust funds under pre-paid contracts
• 45 Common fund
• 46 Management expenses in administration of trust funds
• 47 Payment of trust funds where funeral service provided
• 48 Payment of trust funds where funeral service not required
• 49 Payment of trust funds where pre-paid contract cancelled

Division 3A - Actuarial investigation

• 49A Actuarial investigation of pre-paid funeral funds
• 49B Procedure where deficiency in assets or management expenses unduly high

Division 3B - Auditing

• 49C Independent auditor to prepare auditor's report
• 49D Qualifications as an independent auditor
• 49E Form and content of auditors' reports
• 49F Access to books

Division 3C - Returns

• 49G Annual returns to be furnished
• 49H Funds to provide information in certain cases
• 49I Access to annual returns

Division 4 - Pre-paid contracts

• 49J Cooling-off period
• 50 Rise and fall clause not permitted
• 51 Description of certain funeral services specified in pre-paid contract to contain prescribed particulars
• 52 Instalment protection clause
• 53 Costs recoverable by undertaker where funeral service to be supplied under pre-paid contract

PART 5 - SUPERVISION OF FUNERAL FUNDS

Division 1 - Inspections

• 54 Powers of inspection

Division 2 - Inquiries

• 55 Definitions
• 56 Power to hold inquiries
• 57 Procedure with respect to holding of inquiry
• 58 Report of Secretary
• 59 Further powers of Secretary after inquiry
• 60 Privileged communications
• 61 Expenses of inquiry
• 62 Concealing etc of records

Division 3 - Suspension of new business of funeral funds

• 63 Direction to funeral contribution fund not to accept new contributors
• 64 Direction to pre-paid funeral fund not to act as trustee of trust funds under new pre-paid contracts
• 65 Revocation and variation of directions
• 66 Penalty for failure to comply with direction

Division 3A - Disciplinary measures

• 66A Notices to show cause
• 66B Determination of disciplinary measures by the Secretary

Division 4 - Appointment of administrator of funeral fund

• 67 Definitions
• 68 Appointment and powers of administrator of funeral contribution fund
• 69 Appointment and powers of administrator of pre-paid funeral fund
• 70 Holding of meeting for appointment of directors of funeral contribution fund
• 71 Termination of appointment of administrator
• 72 Expenses of administration
• 73 Liability for losses incurred during administration

Division 5 - Winding up of funeral contribution funds

• 74 Exclusion of Corporations Act 2001 of the Commonwealth
• 74A Application of certain winding up provisions of Corporations legislation

PART 6 - APPEALS AGAINST DECISIONS OF SECRETARY

• 75 Appeal against refusal to register funeral contribution fund or to approve alteration or addition of rules
• 75A Appeal against decision to impose conditions on registration of funeral contribution fund
• 75B Appeal against decision to cancel registration of funeral contribution fund
• 76 Appeal against direction to transfer or refusal to confirm transfer or amalgamation in respect of funeral contribution fund
• 77 Appeal against refusal to register pre-arranged funeral fund or decision to cancel that registration etc
• 77A Appeal against decision to impose conditions on registration of pre-paid funeral funds
• 78 Appeal against refusal to confirm transfer in respect of pre-paid funeral fund
• 79 Appeal against direction to suspend new business of funeral funds
• 79A Appeal against imposition of disciplinary measures
• 80 Appeal against appointment of administrator of funeral fund
• 81 Time for making appeal
• 82 Failure of Secretary to act on application deemed refusal
• 83 Reasons for refusal to be given
• 84 Decision of Court final etc

PART 7 - MISCELLANEOUS

• 85 Offence to obstruct Secretary etc
• 85A False or misleading statements
• 86 Enlargement or abridgement of time
• 87 Giving of notice
• 88 Inspection of documents
• 89 Relationship with Corporations legislation
• 90 Liability of directors etc for offences by corporation--accessory to the commission of the offences
• 91 Offences generally
• 92 Regulations

PART 8 - EXISTING FUNERAL CONTRIBUTION FUNDS

Division 1 - Preliminary

• 93 Definitions
• 94 Existing funeral contribution fund to decide whether to transfer business to registered fund or refund contributions
• 95 This Part to apply despite agreement between contributors and existing funeral contribution fund void
• 96 Certain debts of existing funeral contribution fund to have priority
• 97 No stamp duty for transfers etc under this Part

Division 1A - (Repealed)

Division 2 - Provisions applicable where contributions to be refunded

• 98 Application of Division
• 99 Cessation of business on prescribed day
• 100 Repayment fund to be established for purpose of refund of contributions
• 101 Amount to be paid by existing funeral contribution fund as refund of contributions
• 102 Distribution of repayment fund among contributors

Division 3 - Provisions applicable where business to be transferred

• 103 Application of Division
• 104 Restriction on new contributors prior to transfer
• 105 Secretary may give directions for transfer of business
• 106 Transfer of contributions paid by contributors
• 107 Failure to transfer business in accordance with directions of Secretary
• 108 Interest payable on instalments
• 109 Failure to pay instalments
• 110 Existing fund to pay interest on borrowing by fund to which business is transferred in certain cases

PART 9 - EXISTING PRE-PAID FUNERAL FUNDS AND PRE-PAID CONTRACTS

Division 1 - Preliminary

• 111 Definitions
• 112 Person who agreed to supply funeral services under existing pre-paid contracts to decide whether to cancel contracts or not
• 113 Certain debts to have priority
• 114 No stamp duty for transfers etc under this Part

Division 1A - (Repealed)

Division 2 - Cancellation of existing pre-paid contracts

• 115 Application of Division
• 116 Cancellation of existing pre-paid contracts
• 117 Repayment fund to be established for purpose of refund of subscriptions under cancelled contracts
• 118 Amount to be paid as refund of subscriptions
• 119 Distribution of repayment fund among subscribers

Division 3 - Continuation of existing pre-paid contracts

• 120 Application of Division
• 121 Directions relating to existing pre-paid contracts
• 122 Transfer of subscriptions to pre-paid funeral fund
• 123 Failure to comply with directions of Secretary

PART 10 - SAVINGS AND TRANSITIONAL PROVISIONS

• 124 Regulations
125, 126. (Repealed)
• 127 Registration of corporations
• 128 Requirements for registration