Victorian Consolidated Legislation

Funerals Act 2006 - SECT 29

Investment of money

29. Investment of money



(1) Subject to subsections (2) and (3), a funeral provider must ensure that
all money paid to the funeral provider in respect of a pre-paid funeral
contract by or on behalf of any other party to the contract is invested in-

   (a)  a funeral benefit fund established or deemed to be established under
        the Friendly Societies (Victoria) Code or by a body that is a friendly
        society for the purposes of the Life Insurance Act 1995 of the
        Commonwealth; or



   (b)  a policy issued by or other investment with a company registered under
        the Life Insurance Act 1945 of the Commonwealth under which there is a
        guaranteed payment on the death of a person and the amount of that
        payment is specified at the time the investment is made; or

   (c)  a policy issued by or other investment with a company registered under
        the Life Insurance Act 1945 of the Commonwealth under which there is a
        guaranteed payment on the death of a person which consists of the
        premium paid for the investment-

   (i)  less any costs incurred in respect of the investment; and

   (ii) plus any interest accruing in respect of the investment; or

   (d)  any other manner approved by the Minister, generally or in a
        particular case, by notice published in the Government Gazette.

Penalty: 600 penalty units.

(2) If a pre-paid funeral contract provides for the purchase of a right of
burial or interment in a cemetery or for the payment of any other fees
(including fees for cremation or preservation or disposition of ashes) to the
trustees of a cemetery on behalf of the person in respect of whom the funeral
is to be supplied, the funeral provider may arrange for money paid to the
funeral provider in respect of that contract to be paid to the trustees of the
cemetery for that purpose.





(3) A funeral provider or an associate of a funeral provider holds any money
paid to the funeral provider or associate in respect of a pre-paid funeral
contract by or on behalf of any other party to the contract on trust for that
other party until that money is paid or invested in accordance with subsection
(1) or (2).

(4) Subsections (1) and (3) do not apply to-

   (a)  an administration fee or brokerage fee paid in respect of a pre-paid
        funeral contract; or

   (b)  an amount paid in respect of any GST payable on the supply to which a
        pre-paid funeral contract relates.