Funeral Costs NZ: Grants, ACC Payouts, and What Actually Gets Covered

A funeral in New Zealand typically costs between $8,000 and $15,000, with many families spending over $10,000. When a death is sudden or the family has limited savings, that figure can be devastating.

The good news is that there are two distinct government grants available — and most families don't know about both of them, let alone which one they should be applying for.

The Two Grants: WINZ and ACC

New Zealand has two completely separate funeral assistance schemes, and which one applies depends entirely on how the person died.

Work and Income (WINZ) funeral grant — available for any death, but income and asset tested. Maximum $2,697.43.

ACC funeral grant — available only when the cause of death was an accident or injury covered by ACC. Not income tested. Maximum $7,990.30.

If ACC applies to the death, apply to ACC first. The ACC grant is larger, not income tested, and you don't have to prove financial hardship. If the death wasn't accidental, the WINZ grant is what's available — but it comes with strict eligibility conditions.

The ACC Funeral Grant

ACC (the Accident Compensation Corporation) covers deaths caused by accidents and certain occupational injuries or diseases. This includes:

• Motor vehicle accidents
• Workplace accidents
• Recreational accidents (falls, drowning, etc.)
• Some work-related diseases

The ACC funeral grant pays up to $7,990.30. This is indexed and may change annually. The grant is paid directly to the estate or person responsible for the funeral costs — not to the funeral home.

Unlike the WINZ grant, there is no income test and no asset test. If the death was covered by ACC, the grant is available regardless of how much money the family has.

For homicide victims, an additional amount of up to $10,000 is available on top of the standard ACC funeral grant — recognising the particular circumstances and costs that arise in these cases.

To claim, contact ACC directly and register the claim for the person who died. ACC will assess whether the death is covered under the AC Act and then process the funeral grant as part of the overall claim.

Note: ACC also provides weekly compensation to surviving spouses and children of people who die in covered accidents — this is separate from the funeral grant and is ongoing support, not a one-off payment.

The Work and Income Funeral Grant

If the death was not caused by an accident or injury, the WINZ funeral grant is the primary source of government assistance.

The maximum amount is $2,697.43 (current figure; indexed periodically). However, the actual amount paid depends on the actual cost of the funeral — WINZ won't pay more than the funeral costs, even if your grant entitlement is the maximum.

The grant is paid directly to the funeral director, not to the family. You don't receive cash — the funeral home receives the payment as part of what's owed to them.

Who can apply?

The person responsible for the funeral costs applies. This is typically the next of kin or whoever is organising and paying for the funeral. You don't need to be a NZ citizen, but the deceased must have been ordinarily resident in New Zealand.

The income test

WINZ assesses both your income and your assets to determine eligibility. The income limits are set per family type. As a general guide, a single adult can have income up to around $28,000–$36,000 per year and still potentially qualify, depending on the exact calculation. A parent with one dependent child has a higher limit — approximately $46,745.92 for the 2025/26 year.

These figures change with benefit adjustments, so always check the current limits with Work and Income directly.

The asset test

This is where many applications get declined. WINZ applies a strict asset test based on realisable assets — cash, bank accounts, investments, and other assets that can be readily converted to cash.

For a couple, cash assets must generally be under $2,351.46 to pass the asset test. Single people have a lower threshold.

The family home and one motor vehicle are typically excluded from the asset test. KiwiSaver is also excluded. But savings accounts, term deposits, shares, and similar assets count.

If the estate has significant assets — even assets that will eventually be used to pay funeral costs — the WINZ grant may still be declined because those assets exist. This is one of the more frustrating aspects of the scheme.

Tangi and Cultural Considerations

Tangihanga (tangi) have specific cultural requirements that can affect costs — multiple days at the marae, catering for large numbers of mourners, transportation of the tūpāpaku (body) to the home marae.

WINZ can consider these cultural costs in some circumstances when assessing the funeral grant, but the maximum amount remains the same. Some iwi and hapū also have their own funds for supporting tangi costs — it's worth checking with your local marae or iwi social services.

Some funeral homes that specialise in tangihanga offer flexible payment arrangements. This is worth discussing directly with the funeral director.

What the Grants Don't Cover

Both the WINZ and ACC funeral grants cover the direct costs of the funeral service and disposition of the body. They don't cover:

• Headstones or grave markers (these are separate costs, often arranged months after the funeral)
• Death notices in newspapers beyond a basic notice
• Travel costs for family members to attend
• Post-funeral reception costs

The gap between what grants pay and what a typical funeral costs can still be substantial. If the family has limited means and the WINZ grant is declined due to assets in the estate, the estate itself should pay funeral costs — as an estate expense that takes priority over distributions to beneficiaries.

Applying in the Right Order

1. Determine cause of death first. Was it an accident? If so, contact ACC immediately.
2. If ACC applies, file the ACC claim and request the funeral grant. This takes priority.
3. If ACC doesn't apply, contact Work and Income as soon as possible — ideally before the funeral if you're concerned about costs, as they can sometimes provide guidance on likely eligibility in advance.
4. Tell the funeral home what assistance you're applying for. Reputable funeral homes work with families who are waiting on government grants.

For the full picture of financial support available to surviving family members in New Zealand — including ongoing benefits, ACC weekly compensation, and estate processes — the guide at bereavementstartguide.com/nz/survivor-benefits covers everything in one place.

Finding a Funeral Home That Works With Your Budget

Some funeral homes in New Zealand offer specifically low-cost or basic funeral packages. A direct cremation — where the body is cremated without a funeral service — typically costs $2,000–$4,000, well within or close to the grant limits.

Funeral Directors of New Zealand (FDANZ) maintains a list of member funeral homes. Members are bound by a code of ethics that includes providing price information upfront and offering a basic services package.

You're entitled to receive an itemised quote before committing to any funeral arrangements. Don't let urgency prevent you from asking what each item costs and whether it's optional.

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