Work and Income Funeral Grant: Eligibility, Asset Test, and What to Do If You're Denied

When someone you love dies and you're facing a funeral bill you can't afford, the Work and Income funeral grant is one of the first places to look. But the eligibility rules are specific, the asset test is strict, and applications get declined more often than people expect.

Here's what the grant covers, who qualifies, and what to do if your application is turned down.

What the Grant Pays

The Work and Income funeral grant has a current maximum of $2,697.43. This figure is periodically indexed but doesn't change frequently.

The grant doesn't go to you — it's paid directly to the funeral director. Work and Income settles the amount with the funeral home as part of what's owed. This means the grant can only be used for the actual funeral service and associated costs, not for related expenses like travel, a wake, or a headstone.

The grant also won't exceed the actual cost of the funeral. If you've arranged a basic direct cremation for $1,800, that's what the grant pays — not the maximum.

Who Can Apply

The person who is responsible for paying the funeral costs applies. This is typically the next of kin or the person who signed the contract with the funeral home. You don't have to be related to the deceased, but you need to be the one taking on financial responsibility for the funeral.

The deceased must have been ordinarily resident in New Zealand at the time of death. New Zealand citizenship isn't required, but permanent residency or an equivalent settled status generally is.

Work and Income will ask you to provide:

• Your identity documents
• The death certificate (or a statement from the funeral home if the certificate hasn't been issued yet)
• Information about your income and assets
• The funeral home's quote or invoice

The Income Test

Work and Income assesses income to determine whether you're eligible and the level of need. Income limits vary by family type.

Current approximate limits (check with WINZ for the current figures as these are updated with benefit adjustments):

• Single adult: income up to approximately $28,000–$33,000 per year
• Couple: combined income limit higher, but the asset test is usually the binding constraint
• Parent with one dependent child: approximately $46,745.92 per year

These aren't hard cutoffs — there's a sliding scale. Higher income doesn't necessarily mean zero grant; it may mean a reduced amount. The only way to know your specific entitlement is to apply.

The Asset Test — The Part That Trips Most People

This is where the majority of declined applications happen.

Work and Income applies a realisable assets test. They look at cash and assets that can be readily converted to cash:

• Bank account balances
• Term deposits
• Shares and managed funds
• Cash value of investments

The threshold is low. For a couple, cash assets must generally be under $2,351.46 to pass. Single people have an even lower threshold.

What's excluded from the asset test:

• The family home
• One motor vehicle
• KiwiSaver balances (this is a significant protection)
• Personal property and household items
• Tools of trade

What trips people up: If the estate of the deceased has bank accounts or investments — money that will eventually be used to settle debts and pay the funeral — those assets may count in the assessment. Work and Income's position is that if the estate has money, the estate should pay the funeral. The fact that it's tied up in probate and not immediately accessible doesn't always change the outcome.

If this is your situation, explain it clearly to Work and Income and ask how they treat estate assets during the probate period.

Applying Before the Funeral vs. After

You can apply before or after the funeral, but applying before has advantages:

• Work and Income can give you an indication of likely eligibility before you commit to arrangements
• If you're choosing between funeral options based on cost, knowing the grant amount helps
• Some funeral homes will proceed with arrangements on the understanding that the grant will cover part of their fee

If the funeral has already happened and you haven't applied yet, you can still apply — but there are time limits. Apply as soon as possible after the funeral is completed.

What Happens When You Apply

1. Contact Work and Income by phone (0800 559 009) or visit a local office in person
2. Tell them you're applying for a funeral grant — they'll ask for the details above
3. They assess your income and assets
4. If approved, they contact the funeral home directly and arrange payment

Processing times vary. For urgent situations — where the funeral home requires payment before releasing the body or before the funeral proceeds — tell Work and Income that it's time-sensitive. They can expedite in genuine hardship situations.

If Your Application Is Denied

A decline isn't necessarily final. You have options.

Ask for the reason in writing. Work and Income must provide a written explanation of why your application was declined. Review it carefully — sometimes decisions are based on incorrect information or misunderstanding of your situation.

Provide additional information. If the decline was due to a misunderstanding — for example, if assets were counted that should have been excluded, or income was assessed incorrectly — gather documentation and submit a reconsideration request immediately.

Appeal to the Social Security Appeals Authority. You have the right to appeal a Work and Income decision. The appeal must be lodged within 3 months of the decision. The Social Security Appeals Authority is independent of Work and Income and reviews whether the decision was made correctly under the law.

To appeal:

• Write to the Social Security Appeals Authority
• Explain why you believe the decision was wrong
• Attach any supporting documentation
• You can represent yourself or have someone help you

Community Law Centres (free legal services available across New Zealand) can help you understand your rights and prepare an appeal. Many people who appeal unfair decisions are successful.

Contact a Budget Adviser or advocacy organisation. Citizens Advice Bureau (CAB) can help you understand your options and assist with correspondence. They're free and available nationwide.

When the WINZ Grant Isn't the Right First Step

If the death was caused by an accident — a car crash, workplace incident, fall, or any other covered event — ACC's funeral grant should be your first application, not Work and Income.

The ACC funeral grant pays up to $7,990.30 and is not income or asset tested. If ACC applies, you'll almost certainly get more money with fewer hurdles. Only apply to Work and Income for a funeral grant if ACC has declined coverage or if the death clearly wasn't accidental.

For a complete picture of financial entitlements — both immediate and ongoing — following a death in New Zealand, including ongoing ACC survivor benefits, NZ Superannuation changes, and the full estate process, the guide at bereavementstartguide.com/nz/survivor-benefits covers the entire landscape.

A Note on Funeral Home Payment Terms

Most reputable funeral homes understand that families often apply for Work and Income assistance. They'll proceed with the funeral and wait for the grant to be processed rather than requiring immediate full payment.

Always be upfront with the funeral home about your situation. Ask whether they'll work with you while you wait for the grant. If they're unwilling to proceed without full payment upfront, contact another funeral home — many are more flexible, particularly community-based directors.

The Funeral Directors Association of New Zealand (FDANZ) maintains a member directory and their code of conduct requires members to be transparent about costs and flexible with families in genuine hardship.

See more New Zealand guides →