Overview
Concerns are increasing within Australia's funeral industry regarding the rise of unlicensed and unregulated funeral directors. This has led to calls for stricter regulations to protect vulnerable families and ensure service standards in the $1.6 billion sector.
Industry Concerns
Established funeral businesses express apprehension that new operators, often without physical premises, are cutting corners. Currently, no license is required to operate as a funeral director.
- These new directors often establish an online presence, outsourcing services such as cremations to state-owned crematoriums and hiring hearses and drivers as needed.
- A NSW-based funeral director anonymously stated that operators can use shared mortuary facilities and order coffins, raising concerns about accountability if issues arise due to a lack of permanence.
- The number of funeral directors in Australia reportedly increased by 37 percent since 2010, according to a 2021 Invocare report.
Challenger Brands and Disruption
Newer players, such as Bare, contend that their operations represent a healthy disruption to an industry historically lacking transparency in pricing.
- Bare, founded six years ago, initially operated without equipment but has since invested in vehicles and mortuary facilities, utilizing government-owned crematoriums.
- Bare co-founder Sam McConkey agrees on the need for better industry regulation but suggests that ownership of infrastructure is less critical than transparency, choice, and informed decision-making for customers.
- Families using Bare often arrange services remotely, without visiting traditional funeral parlours.
Regulatory Landscape
The regulation of funerals and cremations varies by Australian state and territory, with responsibilities often split across different government departments.
- The Funerals Act 2006 in Victoria has not seen significant updates in nearly two decades.
- State health departments manage public health regulations concerning the handling and transportation of human remains. While NSW has clear rules for body transport, other states have minimal laws.
- State-managed cemeteries and crematoria organizations govern the establishment and operation of crematoriums.
- There is no mandatory licensing for funeral directors, though professional diplomas are available. In Victoria, providers must register their business with Consumer Affairs.
Calls for New Standards
Industry bodies are advocating for enhanced regulation.
- The National Funeral Directors Association of Australia (NFDA), representing over 230 members who own licensed mortuaries, funeral homes, and hearses, highlights a perceived drop in standards.
- NFDA President Michael Mackay expressed concern about bodies being transported across cities in unmarked vans to access shared crematoriums, calling for all operators to adhere to consistent rules.
- The NFDA has been working with regulators and government departments to improve standards.
- Funerals Australia chief Dale Gilson emphasizes that the industry is largely unregulated and believes the government should play a larger role in legislation.
- Both organizations are collaborating with Standards Australia to implement a new voluntary industry standard, which would require operators to own their own mortuaries and vehicles, hoping this will prompt stricter government legislation.
- Cremation-only packages can cost as little as $1190, while burials can reach up to $15,000, amid cost-of-living pressures.