Strategic statement - Delivering strong consumer outcomes for Cemeteries and Crematoria in NSW
The NSW Government has released Delivering strong consumer outcomes for Cemeteries and Crematoria in NSW (the strategic statement). The new strategic statement will guide the transformation of the state’s cemeteries and crematoria sector with the goal of ensuring that all people in NSW have access to sustainable and affordable burial and cremation services.
This statement has been developed to inform industry and the community about key sector trends and issues, and how the Government will focus its resources to strengthen the sector and maximise consumer protections.
The statement outlines 3 priority action areas. They are:
- delivering strong consumer protection for customers and communities
- supporting sustainable practices to promote new supply
- providing certainty for our Crown operators.
Expansion of the interment services levy commences 1 July 2024
The industry regulator Cemeteries & Crematoria NSW (CCNSW) will be strengthened to deliver better outcomes for customers and the community, and to support industry to meet the new licensing standards.
The government will implement a recommendation from IPART and the Statutory Review of the Cemeteries and Crematoria Act to expand the interment services levy commencing 1 July 2024. This will ensure that the regulator is properly funded to improve protections for customers, maintain fair and consistent standards for the sector, and deliver continuing education for operators and their staff to help them meet the new standards.
All the funds raised through the levy support stronger consumer protections and better standards across the industry.
Industry consultation and refinements to the levy design
Industry consultation on the proposed expansion of the levy was held and included in-person workshops, webinars, and written submissions.
After considering the feedback, the government will delay the commencement of the change for one year for operators who reported providing 50 or fewer interment services in 2022–23. This is to give operators with lower administrative capacity more time to prepare for the levy. For operators that reported providing more than 50 interment services in 2022–23, the levy will commence from 1 July 2024.
Additionally, a hardship policy will be developed prior to 1 July 2025.
Find out more about the main features of the levy including the changes announced and and answers to your questions in the Interment Services Levy frequently asked question (PDF, 206 KB).
Explaining the levy to customers
CCNSW has prepared a customer facing pamphlet explaining the levy and its rationale. This will help operators and funeral directors communicate to customers who may have questions or concerns. Printed copies, and other languages, will be available shortly.
Download text only version
Why have an interment services levy? (PDF 80.2 KB)
Download text with images version
Why have an interment services levy? (PDF 307.2 MB)
Does the levy attract GST if it is included on operator or funeral director invoices?
It is important to note the interment services levy is a levy on operators. It is not a levy on consumers that operators are administering on behalf of the State government.
CCNSW has obtained a written briefing from the Australian Taxation Office (the ATO) to this effect:
- When CCNSW charges cemetery and crematorium operators the levy, and operators pay that levy to CCNSW (annually or quarterly), this does not attract GST. It is a regulatory government fee/charge that is excluded from the GST.
- If operators increase their prices in response to the levy (i.e. pass it on to customers) then this does attract GST. In this case the nature of that levy changes. It is no longer the supply of a levy but an increase in the consideration paid by the customer for the supply of the interment services.
- GST also applies where a funeral director is acting as an authorised agent for an operator and the operator has increased their prices as per (2) above. The funeral director will collect the GST included in the operator’s prices and send that total amount to the operator. In this case funeral directors are not independently liable for GST.
In sharing this advice CCNSW is not providing taxation advice. Operators should satisfy themselves of their GST obligations given their own unique circumstances.
Interment services levy regulatory amendments
Regulations to enact the interment services levy have been made. View the Cemeteries and Crematoria Amendment (Interment Service Levy) Regulation 2024 on the website of the Parliament of NSW.
The amendments:
- expand the interment services levy to apply to all operators of active cemeteries and/or crematoria in NSW; and
- contain minor amendments to the Interment Industry Scheme to clarify existing provisions.
CCNSW has prepared a Plain Language Explainer for the Cemeteries and Crematoria Amendment (Interment Services Levy) Regulation 2024 (PDF, 140 KB).
Delayed commencement of 3 licence conditions to 1 October 2024
The start date for the consumer contract, pricing transparency and maintenance licence conditions will be amended from 1 July 2024 to 1 October 2024 to allow more time for industry adjustment. We encourage operators who are ready to implement these conditions now to maintain their positive momentum and begin complying from 1 July. For those operators who are not yet ready this extension allows additional time to prepare.
Operators who hold a licence will receive notification of their amended conditions prior to 1 July. The Interment Industry Scheme page will be updated to reflect this change.