Death and bereavement are hard enough without having to worry about money.
And unfortunately, death doesn’t come free – funerals are expensive and if you are a casual or part-time worker, you may miss some income.
Fortunately, Centrelink recognises this is a difficult time in your life and there is some financial support available if you are receiving a Centrelink payment or the person who has died is receiving any payments.
If they were your partner
If your partner or spouse dies, you may be eligible for a lump sum bereavement payment, but you both need to be on an income support payment or a pension for at least 12 months.
According to Centrelink the amount paid is equal to the total you and your partner would have received as a couple, minus your new single rate, over a 14-week bereavement period, which starts on the day your partner died.
If you aren’t on a Centrelink payment and your partner has died, you may be eligible for the JobSeeker Payment.
It’s also worth checking if your partner was registered for the Pension Bonus Scheme. If so, you may be eligible for the Pension Bonus Scheme Bereavement Payment. Find out the details here. The Pension Bonus Scheme closed to new applicants on 1 July 2014, so only a small number of people will still be on it.
You may also be eligible for a bereavement payment if you are receiving the Farm Household Allowance for 12 months or more. Farm Household Allowance is a payment for farming families facing financial hardship.
If you cared for the person who died
Many people who care for others often put their lives on hold to carry out their duties. If you have been caring for others, you may be eligible for bereavement assistance if the person you care for passes away.
You may get a Carer Allowance bereavement payment if you are on:
- a Carer Allowance for an adult who dies
- an income support payment other than Carer Payment, not qualifying you for bereavement assistance.
You may be eligible for up to 14 weeks of the Carer Allowance as a lump sum. These rates will change when the allowance is indexed every year.
If you are on the Carer Payment, you may continue to receive this payment for up to 14 weeks after the person you cared for died.
This is to give you time to apply for another support payment if needed. When you contact Centrelink about the death of the person you cared for, they will calculate if you are eligibel for a bereavement payment.
Find out if you are eligible for other payments here.
If the person who died was single
Any Centrelink allowances to single people stop the day they die, and there is no extra bereavement assistance if no one is being paid to care for them under the Carer Allowance or Payment.
If they are a pensioner, Centrelink covers one regular fortnightly payment only and then their payments stop.
Mutual obligations
You may be exempt from Centrelink mutual obligation requirements if someone close to you dies. However, the exemption period is different depending on the situation.
The time periods are:
- up to eight weeks from the date of death of an immediate family member
- up to 14 weeks from the date of death of your partner
- for the length of the pregnancy if you were pregnant at the time of your partner’s death.
These are the bare facts, but if you are having difficulty coping, Centrelink has compiled a list of support services that may help during this difficult and often devastating time. Find the links here, or you may find comfort in a local support group. Search online for the one closest to you.
Did you know about these payments? Do you think people need more support? Why not share your thoughts in the comments section below?
Also read: Are funeral bonds counted as an asset?
