Prepaid Funeral Rights in Tasmania: What CBOS Protects You From

Prepaid funerals in Tasmania are governed by stronger consumer protections than many people realise — but only if you know what the law requires and what to do when a funeral home does not comply. The Prepaid Funerals Act 2004 creates specific, enforceable rights for anyone who has paid for a funeral in advance, and Consumer, Building and Occupational Services (CBOS) is the regulator with authority to act on complaints. If you or someone you know has a prepaid funeral agreement in Tasmania, here is what that agreement must contain, where the money must be held, and what recourse exists if the rules are broken.

What a Prepaid Funeral Agreement Must Include

Under the Prepaid Funerals Act 2004, a funeral director cannot accept money for a prepaid funeral without providing the consumer with a written contract that meets specific legal requirements.

The contract must:

• Be written in a minimum 10-point font — specifically to ensure readability for elderly consumers who make up the majority of prepaid funeral buyers
• Describe the specific goods and services included (exact coffin type, transport method, location of service, etc.)
• State the total amount payable and how it is to be held
• Identify the independent custodian who will hold the funds
• Be provided to the consumer as a signed physical copy within 14 days of signing

Any contract that does not meet these requirements is non-compliant, and the funeral business is exposed to regulatory action by CBOS.

Where Your Money Must Be Held

This is one of the most important consumer protections in the entire Act: your prepaid funeral funds cannot be held in the funeral director's own bank account.

By law, all prepaid funeral money must be deposited with an independent custodian — typically a trust company, friendly society, or approved financial institution. The funds are held separately from the funeral home's operational finances. If the funeral home goes bankrupt, closes, or is sold, the consumer's prepaid money is protected and can be retrieved.

This protection was introduced specifically because funeral homes in financial difficulty have historically misappropriated prepaid funds, leaving families with no funeral and no money. The custodian arrangement prevents this.

If a funeral director is holding your prepaid funds in their own account rather than through an independent custodian, they are in breach of the Act. Report to CBOS immediately.

The Price Freeze: No Increases After Signing

Once a prepaid funeral contract is signed, any clause attempting to increase the price of the agreed-upon goods and services is legally void. This protection is absolute.

It does not matter if prices for coffins, cremation, or transport rise in the years between signing the contract and the person's death. The funeral director cannot charge more for anything that was specifically included and priced in the original agreement. Additional services requested at the time of death that were not included in the original agreement can be charged for separately — but not the contracted items.

This protection is frequently violated informally. Funeral directors sometimes tell families at the time of death that "prices have gone up" or that the prepaid amount "no longer covers" certain items. This is unlawful for items included in the original contract. Families should request an itemised comparison against the original agreement before paying any additional amounts.

Cancelling a Prepaid Funeral Contract

Consumers have the right to cancel a prepaid funeral agreement and receive a refund. The refund process involves:

1. Submitting a written cancellation notice to the funeral director
2. The funeral director notifying the independent custodian
3. The custodian processing the refund within 14 days of receiving the cancellation notice

The refund must be the full amount held by the custodian — including any interest that has accrued on the funds while they were held. The funeral director may not deduct a cancellation fee unless that fee was clearly disclosed and agreed to in the original contract.

If the refund is not processed within 14 days, that is a breach of the Act. Escalate to CBOS.

What Happens to a Prepaid Contract When the Funeral Director's Business Is Sold

This is a situation that catches many families off guard. If the funeral home where the prepaid contract was signed is sold to new owners, the contract transfers with it. The new owners are bound by the same terms and the same price freeze.

However, the new owners may contact the family seeking to "update" the agreement or transition to a new contract. Any new contract is subject to fresh negotiation, and signing one may forfeit some of the original price protections. If you receive communication from a funeral home saying the business has changed hands and asking you to sign new paperwork, read the new agreement carefully before signing — or seek independent advice.

If the Funeral Director Dies or the Business Closes

Since funds are held by the independent custodian and not the funeral home, closure of the business does not mean the money is lost. The custodian holds the funds on trust for the consumer and will transfer the arrangement to another funeral director of the consumer's choosing, or refund the money in full.

Contact the custodian directly — not the closed business — if you need to act on the contract.

How to Complain: CBOS and the Magistrates Court

If a Tasmanian funeral director:

• Refuses to refund a cancelled prepaid contract within 14 days
• Demands additional payments for items included in the original agreement
• Fails to provide a written contract in the correct format
• Is holding prepaid funds in their own account rather than with a custodian

...the complaint pathway is:

Step 1: Write to the funeral director formally identifying the specific breach and requesting resolution. Keep a copy.

Step 2: If the funeral director does not resolve the matter, lodge a complaint with CBOS at cbos.tas.gov.au or by calling 1300 654 499. CBOS has authority to investigate and take regulatory action.

Step 3: If CBOS cannot resolve the dispute or if you have suffered financial loss, you can make a claim through the Magistrates Court under the Australian Consumer Law provisions.

Funerals Australia, the industry association, also operates a complaints process. While they cannot award compensation, industry association involvement sometimes accelerates resolution.

What to Check in an Existing Prepaid Agreement

If a parent or family member has a prepaid contract and you are not sure whether it is compliant, these are the key things to verify:

• Who is holding the funds — get the custodian's name and contact details
• What exactly is included in the contracted service — compare this to a current price list
• Whether a signed copy of the agreement exists and can be located
• Whether the original funeral home is still operating under the same ownership

The full framework — including the CBOS complaint procedure, the checklist for reviewing an existing prepaid agreement, and what to do when a funeral director adds unauthorized charges at time of death — is in the Tasmania Funeral Laws & Consumer Rights Guide.

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