Class B cemetery trust fee setting

Cemetery trusts have the power to set fees for the products and services they provide to their communities. Fees set by cemetery trusts must be approved by the department Secretary.

When fees are approved, the department publishes an approval notice in the Victoria Government Gazette. Cemetery trusts cannot charge a fee that has not been approved and published by the department.

The Pricing for value guide issued by the Department of Treasury and Finance sets pricing principles for government entities including cemetery trusts. The department’s fee setting processes for cemetery trusts are consistent with these principles.

Role of cemetery trusts

Cemetery trusts are expected to set fees that are consistent, transparent, affordable and align with community expectations.

In setting fees, cemetery trusts must consider the costs of operating and managing the public cemeteries they are responsible for and the costs of maintaining public cemeteries in perpetuity. Revenue raised by cemetery trusts through their fees is expected to fund:

• current operational costs
• repairs or replacement of cemetery facilities and equipment
• financial reserves for future operations.

When setting fees, cemetery trusts should ensure there is a direct relationship between the fees charged for cemetery services and the actual cost of providing these services. Establishing a direct relationship ensures fees are transparent and can be easily justified to the community.

More information is available in Topic 6 of the Manual for Victorian Class B cemetery trusts.

Role of the department

The department’s role is to ensure cemetery trusts undertake an appropriate fee setting process before submitting fee applications for approval. Cemetery trusts must provide sufficient detail in fee applications for the department’s consideration.

Charging fees for products and services

Cemetery trusts are required to charge approved fees for products and services. Fees can only be waived or reduced on the grounds of extreme hardship or other special circumstances. Cemetery trusts can determine their own definition of extreme hardship and special circumstances.

Annual CPI increase

All approved cemetery trust fees of $50 or more that exist on 1 February are adjusted annually in line with the CPI.

The CPI increase is based on the All Groups Consumer Price Index number (for Melbourne) for the current December quarter, as determined by the Australian Bureau of Statistics. Cemetery trust fees increased by CPI are effective from 1 July each year and are rounded to the nearest five-dollar unit.

Cemetery trusts are advised by the department annually of the upcoming CPI increase for that year.

Standard fee descriptions

In consultation with the Cemeteries and Crematoria Association Victoria, the department has developed a list of standard fee descriptions (fee names). Each fee description has a unique three-digit identification code.

All cemetery products and services should be matched to a standard description. Cemetery trusts can add their own fee name or label to the end of the standard descriptions.

A full list of standard fee descriptions is available in Topic 6 of the Manual for Victorian Class B cemetery trusts.

Fee applications

Cemetery trusts must make a formal application to the department Secretary for approval to make or vary fees.

Cemetery trusts must provide justification for any proposed new or increased fees, and a breakdown of the total proposed fee amounts.

Completing the department’s fee justification model is the preferred method for cemetery trusts to demonstrate the cost drivers of their proposed fees.

Fee justification model

The fee justification model (the model) is a table of cemetery fees broken down into cost drivers that make up the total proposed fee. The model enables trusts to calculate fees based on the costs associated with providing cemetery services.

Before completing the model, please read Topic 6 and Topic 7 of the Manual for Victorian Class B cemetery trusts to become familiar with fee setting concepts and terminology. A sample fee application is included in Topic 7.

Land development costings

Cemetery trusts can use the Cemetery land development costing model (the costing model) to capture the costs associated with the development of cemetery land for the sale of rights of interment for bodily remains, and cremated remains (ground or niche walls).

The costing model helps cemetery trusts incorporate development costs into fees as well as the cost of shared infrastructure, such as toilet blocks, roads, pathways and communal gardens.

The cost proposed by the costing model can be used as the Land Value figure in a fee justification model submitted to the department as part of a fee application.

Recommended memorial permit fees

In consultation with the Cemeteries and Crematoria Association Victoria, the department has developed recommended prices for fees in the memorial permit category.

If the trust wishes to charge the recommended amount or a lower fee, it can submit a Recommended Memorial Permit Fee Application Form instead of using the fee justification model.

Fee approvals

Fee applications are usually approved within six weeks of lodgement to the department if the cemetery trust has provided all required information. The department may ask for additional information about the proposed fees and any figures used in the model.

When fees are approved, the department will publish an approval notice in the Victoria Government Gazette and publish the cemetery trust’s fee schedule on the department’s website.

Current fees for each Victorian cemetery trust can be accessed using the Cemetery search.

Deleting fees

Cemetery trusts can request the deletion of fees by emailing the department. The cemetery trust should list the fees to be deleted and briefly explain why they are no longer required.