Prepaying funeral expenses or investing in a funeral bond can result in significant tax savings in the future.
Bonds of up to $12,000 are classified as ‘exempt assets’ for the age pension under the Centrelink and Department of Veterans’ Affairs means test.
To receive tax advantages for funeral bonds, the total amount invested must be for “reasonable” funeral expenses.
Prepaying for funerals allow individuals to be very specific about what they want while also being able to pay at today’s prices.
It may seem a rather drab way to end our top 30 ways to reduce tax, but satisfying to know that you have paid the minimal amount of tax to the ATO right to the very end.