Department of Health

Class B cemetery trust finance

Key messages

  • Class B cemetery trust fees of at least $50 are increased each year in line with the consumer price index (CPI).
  • Fee increases are published in the Victoria Government Gazette. 
  • There are guidelines to assist Class B trusts when they apply for fee increases outside the CPI process
  • Class B cemetery trusts should prepare – for their own use – a budget statement for the coming financial year.
  • Class B cemetery trusts must provide a financial report each year to the department.

Class B cemetery trusts – fee approval process

Departmental policy and legislative instruments acknowledge that cemetery trusts are best placed to determine the services required by the communities they serve and the appropriate level of fees for those services. Under s. 39 of the Cemeteries and Crematoria Act 2003 (the Act), cemetery trusts must, when fixing fees and charges, have regard to the costs of operating and managing any public cemetery for which they are responsible, and the need to provide for the maintenance of that public cemetery in perpetuity.

The role of the department in approving fees for cemetery services is to review applications for fee increases from cemetery trusts to ensure that there are no anomalies in a trust’s application, and to seek justification for increases outside the annual consumer price index (CPI) process.

Annual consumer price index increase

Under s. 43 of the Act, all trust fees of $50 or more are increased annually in accordance with CPI, unless a trust specifically requests and provides an acceptable argument why the increase should not be applied. The CPI increase is based on the All Groups Consumer Price Index number (for Melbourne) for the current December quarter. Fees increased by CPI are effective from 1 July each year.

Setting fees and charges

Under s. 39 of the Act, a cemetery trust may fix fees and charges, or a scale of fees and charges, for its services. In fixing fees, a cemetery trust must have regard to the costs of operating and managing each of its public cemeteries, as well as the need to provide for the maintenance of each of its public cemeteries in perpetuity.

Revenue raised by cemetery trusts through the charging of approved fees and charges is expected to:

  • encompass current cemetery operational costs
  • cover repairs or replacement costs associated with cemetery facilities and equipment
  • ensure adequate financial reserves for future operation.

When setting fees and charges, trusts should also ensure there is a direct relationship between the fees charged for cemetery services and the actual cost of these services. This process ensures trusts are able to provide a transparent account of their current fees to members of the public who may wish to purchase cemetery goods and services.

The Department of Treasury and Finance developed the Pricing for Value Guide(the guide) to clarify the Victorian Government’s policy principles underpinning cost recovery arrangements. The guide provides a rigorous framework for use by government entities when considering, developing and reviewing user charges and regulatory fees. It ensures that cost recovery arrangements in Victoria are transparent, efficient, effective and consistent with legislative requirements and government policy. To access the guide, visit the Department of Treasury and Finance website. The fee-setting processes outlined in the Guidelines for developing fees and charges for Class B cemetery trusts meet the requirements of the guide.

Approval of fees and charges

Cemetery trusts cannot charge any fee that has not been approved by the department and published in the Victorian Government Gazette.

Under s. 40 of the Act, a cemetery trust must make a formal application to the department for consent to make or vary its scale of fees. For Class B cemetery trusts, the department’s fee application form must be signed by three trust members and lodged by the trust with the department. The trust must provide a justification for any proposed new or increased fees, and a breakdown of the total proposed fee amounts.

Class B cemetery trusts – guidelines for approval of fees

There are guidelines to assist Class B trusts when they apply for fee increases outside the CPI process.

The guidelines and associated documents have been developed in conjunction with the Cemeteries and Crematoria Association of Victoria and its members. The guidelines and supporting documents are available for use by Class B cemetery trusts.

The guidelines have been developed to:

  • provide Class B trusts with standard fee descriptors and tools to assist in developing fees that are transparent in terms of what consumers actually purchase and how fee amounts are determined
  • provide descriptors and amounts that accurately reflect the services provided
  • enable trusts to meet their operational and maintenance obligations under the Act
  • provide consistency across the cemetery sector in terms of how services are priced and described.

Publishing fees

Under s. 41 of the Act, a notice of the approval of any amended or new cemetery trust fees must be published in the Victoria Government Gazette before the fees become effective. Cemetery trusts cannot charge any fee until a notice is published in the gazette.

The fees are also published online.

Time period to approve cemetery trust fees

The time taken from lodgement with the department until approval is approximately 3–6 weeks, providing the department does not need additional information from the trust regarding its application.

Applying the approved scale of fees

Section 44 of the Act requires a cemetery trust to charge its approved fees. Fees are only to be waived or reduced on grounds of extreme hardship or other special circumstances.

Exemption of fees and charges from approval

Under s. 40A of the Act, the Secretary to the department may exempt specified fees and charges, or scales of fees and charges, from being approved under s. 40 if, in the Secretary's opinion, there is no public benefit in those fees and charges being approved.

The annual application of CPI will not apply to any fees that are subject to an exemption under s 40A of the Act.

Class B cemetery trusts – financial reporting requirements

The cemetery trust is responsible for the stewardship and proper accounting of its income and expenditure, assets and liabilities.

Abstract of accounts

Under s. 52 of the Act, cemetery trusts are required to submit a financial report to the department by 1 September each year. The report, known as the abstract of accounts, is to give a true and fair view of the financial position and performance of a trust, for the reporting period. The financial year for trusts ends on 30 June. 

See Abstract of accounts for more information on this topic. 

Audit of the abstract of accounts

The department requires those trusts with income or expenditure in excess of $250,000 up to $1 million (inclusive) to arrange for the abstract of accounts to be prepared and reviewed in accordance with the Australian Accounting Standards by a professionally recognised practising accountant or registered company auditor.

Trusts with income or expenditure above $1 million are to arrange for the abstract to be prepared and audited in accordance with the Australian Accounting Standards by a registered company auditor or professionally recognised practising accountant.

Income includes revenue from fees and charges, interest from bank accounts, returns on investment and other income, but does not include government grants. The audit must be printed on letterhead or, if letterhead is unavailable, must be accompanied with documentation that indicates the auditor’s qualifications. The trust must submit a copy of the required review or audit report, along with copies of bank and investment statements to the department when submitting the abstract.

Preparing an annual budget

It is recommended that each trust prepare for its own use a budget statement for the coming financial year, to be considered at a budget meeting held in April or May.

This budget statement should detail:

  • proposed expenditure on both maintenance and development works
  • anticipated revenue from the trust’s fees and charges, based on the anticipated number of funerals.
  • goods and services tax (GST) collected on anticipated sales, less credit for GST on the anticipated purchases, assuming (as is recommended, depending on the revenue of the trust) the trust is registered for GST and has an Australian business number
  • funds and investments on hand, in both the general account and perpetual maintenance account.

The trust is then in a position to determine whether its current fees and charges are appropriate to its requirements for income. It is recommended that a realistic level of fees be charged to reflect the actual cost of operating the cemetery, including the provision of funds for the perpetual maintenance obligations under the Act.

Other Financial Management Documents

Financial guidelines for class B cemetery trusts

Asset Capitalisation Threshold

Change in Asset Capitalisation Thresholds Process

Cost of inventory

Cemetery Land Accounting Policy 

Q & A Cemetery Land Accounting Policy - implementation issues

Mausoleum establishment and construction requirements 

Methodology for the valuation of Victorian cemeteries for financial reporting purposes

Modelling the financial impact of the application of AASB 102 Inventories to cemetery land designated for interment purposes - Final report - August 2008 

Reviewed 12 November 2021


Contact details

Hours: Monday to Friday 9:00am to 5:00pm

Cemetery Sector Governance Support GPO Box 4057, Melbourne, VIC 3001

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