Document ID: chunk:federal_register_of_legislation:C2007A00183:clause:4_19e
Version: federal_register_of_legislation:C2007A00183
Segment Type: clause
Provision Reference: sch 4 cl 19E
Character Range: 40406–41748

19E  Exempt funeral investments

 (1) Work out whether a funeral investment that relates to a particular funeral is an exempt funeral investment by applying these rules:
 (a) the expenses for the funeral must not be prepaid; and
 (b) in relation to that funeral:
 (i) only one investment of not more than $10,000 can be an exempt funeral investment; or
 (ii) only two investments that combined are not more than $10,000 can be exempt funeral investments.

Note: The amounts in paragraph (1)(b) are indexed each year on 1 July (see Division 2 of Part 3.16).

 (2) Disregard any return on an investment in determining the amount of an investment for the purposes of this section.

 (3) For the purposes of subsection (1), a funeral investment means an investment, being an investment that cannot be realised before maturity and the return on which is not payable before maturity, that:
 (a) matures on the death of whichever member of a couple dies first or dies last and is to be applied on maturity to the expenses of the funeral of that member of the couple; or
 (b) matures on the death of:
 (i) the investor; or
 (ii) if the investor is a member of a couple at the time the investment is made, the investor's partner at that time;
  and is to be applied on maturity to the expenses of the funeral of the person on whose death it matures.