Ballooning burial costs spurs call for government to increase funeral subsidy

Skyrocketting burial costs in Tauranga has spurred a call for the government to increase its funeral subsidy.

The Funeral Directors Association this week released its latest review of council burial and cremation costs, with most council's having increased their costs between two and four percent this year.

An extreme exception was Tauranga, where burial costs rose 50 percent and ash burial 200 percent.

The centres reviewed showed an average burial cost of $4359. In Tauranga, it had increased from $5614 in 2025 to $8426. An ash burial had increased from $803 to $2425.

The maximum Work and Income Funeral Grant available to struggling families was $2697.43.

"Some really disproportionately high prices there," Funeral Directors Association chief executive Gillian Boyes said.

"It is up to councils to set their own rates. We appreciate that. Our point is that when you're making these massive increases, are you listening to funeral directors and families about what that means for the way that the family can celebrate someone's life and is it really supporting dignity in death when you're having such an enormous jump in one hit?

"It's clear central government is unlikely to increase the Work and Income Funeral Grant enough to cover even the average burial cost, so as the monopoly provider of deathcare infrastructure in many centres, we think councils should do more to support their communities. Every New Zealander deserves dignity in death."

Following the report's this week, the New Zealand Cemeteries and Crematoria Collective was backing the call for the Government to increase the funeral grant as rising costs put increasing pressure on grieving families.

Its chairperson Daniel Chrisp said all New Zealanders should be able to access a dignified farewell regardless of their financial circumstances.

"The cost of a basic burial has increased significantly in recent years. With burial plots in many parts of New Zealand now costing between $3500 and $4000, it is time for the WINZ Funeral Grant to be reviewed so it better reflects the real costs families are facing today."

At the same time, he said, cemetery and crematorium operators were facing their own financial challenges, often operating at a substantial loss, with councils absorbing a significant portion of the actual costs involved.

"Throughout the country, many councils are operating cemetery services with subsidy levels of between 30 and 60 percent in order to keep fees as affordable as possible for their communities," Chrisp said.

"Every New Zealander deserves a dignified farewell. The reality is that councils continue to subsidise these services because they recognise their importance to the community.

"The question many councils are now grappling with is whether cemeteries should operate primarily on a user-pays basis, or whether they are an essential community service that deserves ongoing public subsidy. Regardless of the model chosen, the actual costs must ultimately be met."

He said the collective was concerned about families struggling with the costs of funerals and burials, but said on the flipside that many councils were already making significant contributions to keep cemetery services affordable while balancing increasing operational costs and long-term financial sustainability.

Tauranga City Council's acting head of spaces and places Ross Hudson earlier said cemetery and cremation services were funded entirely through user fees and previously made a loss each year of about $500,000.

This fee increase, Hudson said, moved burial and ash burial fees closer to full cost to support the long-term sustainability of providing the services.

"Council acknowledges that the size of the increases may impact some families and that affordability is an important consideration. However, council also needed to address the financial sustainability of these services and ensure fees more accurately reflected the cost of delivery."