Work and Income Funeral Grant: Eligibility, Asset Test, and What to Do If You're Denied

When someone you love dies and you're facing a funeral bill you can't afford, the Work and Income funeral grant is one of the first places to look. But the eligibility rules are specific, the asset test is strict, and applications get declined more often than people expect.

Here's what the grant covers, who qualifies, and what to do if your application is turned down.

What the Grant Pays

The Work and Income funeral grant has a current maximum of $2,697.43. This figure is periodically indexed but doesn't change frequently.

The grant may be paid to the funeral director, a surviving partner or child, the estate, or the person who paid the funeral costs. It is limited to reasonable funeral expenses and the actual cost, up to the maximum; ask Work and Income to assess any disputed item rather than assuming that travel, a wake, or a headstone is automatically excluded.

The grant also won't exceed the actual cost of the funeral. If you've arranged a basic direct cremation for $1,800, that's what the grant pays — not the maximum.

Who Can Apply

The person who is responsible for paying the funeral costs applies. This is typically the next of kin or the person who signed the contract with the funeral home. You don't have to be related to the deceased, but you need to be the one taking on financial responsibility for the funeral.

The deceased and applicant must meet Work and Income's current residence and other eligibility rules. Citizenship and residence status are assessed under those rules, so ask Work and Income to assess your circumstances.

Work and Income will ask you to provide:

• Your identity documents
• The death certificate (or a statement from the funeral home if the certificate hasn't been issued yet)
• Information about your income and assets
• The funeral home's quote or invoice

The Income Test

Work and Income assesses income to determine whether you're eligible and the level of need. Income limits vary by family type.

Current approximate example (check with WINZ for the current figures as these are updated with benefit adjustments):

• Parent with one dependent child: approximately $46,745.92 per year

Other family types have their own current income rules, and Work and Income assesses the household's circumstances.

The exact income assessment depends on your household circumstances. Ask Work and Income to calculate your specific eligibility rather than relying on a general example.

The Asset Test — The Part That Trips Most People

This is where the majority of declined applications happen.

Work and Income applies a realisable assets test. They look at cash and assets that can be readily converted to cash:

• Bank account balances
• Term deposits
• Shares and managed funds
• Cash value of investments

The threshold is low. For a surviving partner, the first $2,351.46 of some cash assets may be excluded; this is not a blanket couple threshold, and the rest of the household's assets and the deceased estate are assessed under the grant rules.

Examples of non-assessable assets under Work and Income's guidance:

• The principal residence and land
• An interest in Māori land
• Household furniture, appliances, tools, and ornaments
• Family-use motor vehicles, caravans, trailers, or boats

Do not assume that KiwiSaver, life insurance, savings bonds, or other investments are automatically excluded.

What trips people up: If the estate of the deceased has bank accounts or investments — money that will eventually be used to settle debts and pay the funeral — those assets may count in the assessment. Explain that the money is needed for estate debts and funeral costs, and ask Work and Income how it treats estate assets before distribution.

If this is your situation, explain it clearly to Work and Income and ask how they treat estate assets during the probate period.

Applying Before the Funeral vs. After

You can apply before or after the funeral, but applying before has advantages:

• Work and Income can give you an indication of likely eligibility before you commit to arrangements
• If you're choosing between funeral options based on cost, knowing the grant amount helps
• Some funeral homes will proceed with arrangements on the understanding that the grant will cover part of their fee

If the funeral has already happened and you haven't applied yet, you can still apply. There is no time limit after the death under Work and Income's current policy, but apply as soon as possible and keep proof of any payment already made.

What Happens When You Apply

1. Contact Work and Income by phone (0800 559 009) or visit a local office in person
2. Tell them you're applying for a funeral grant — they'll ask for the details above
3. They assess your income and assets
4. If approved, Work and Income arranges payment to the appropriate recipient under its payment rules

Processing times vary. For urgent situations — where the funeral home requires payment before releasing the body or before the funeral proceeds — tell Work and Income that it is time-sensitive, but do not assume that processing can be expedited.

If Your Application Is Denied

A decline isn't necessarily final. You have options.

Ask for the reason in writing. Work and Income must provide a written explanation of why your application was declined. Review it carefully — sometimes decisions are based on incorrect information or misunderstanding of your situation.

Provide additional information. If the decline was due to a misunderstanding — for example, if assets were counted that should have been excluded, or income was assessed incorrectly — gather documentation and request a formal Review of Decision.

Use the Work and Income review route. Request a formal Review of Decision within 3 months of the decision. If the internal review upholds the decision, the next step is generally a Benefits Review Committee review; if that also upholds the decision, you can appeal to the independent Social Security Appeal Authority.

Submit the review request to Work and Income with the reasons you believe the decision was wrong and any supporting documentation. If the matter reaches the SSAA, you can represent yourself or have someone help you.

Community Law Centres (free legal services available across New Zealand) can help you understand your rights and prepare a review or appeal.

Contact a Budget Adviser or advocacy organisation. Citizens Advice Bureau (CAB) can help you understand your options and assist with correspondence. They're free and available nationwide.

When the WINZ Grant Isn't the Right First Step

If the death was caused by an accident — a car crash, workplace incident, fall, or any other covered event — ACC's funeral grant should be your first application, not Work and Income.

The ACC funeral grant pays up to $8,236.40 and is not income or asset tested. If ACC applies, you'll almost certainly get more money with fewer hurdles. Only apply to Work and Income for a funeral grant if ACC has declined coverage or if the death clearly wasn't accidental.

For a complete picture of financial entitlements — both immediate and ongoing — following a death in New Zealand, including ongoing ACC survivor benefits, NZ Superannuation changes, and the full estate process, the guide at bereavementstartguide.com/nz/survivor-benefits covers the entire landscape.

A Note on Funeral Home Payment Terms

Funeral directors set their own payment terms. Ask for a written quote, confirm which costs you are asking WINZ to assess, and ask whether the director can wait for the grant decision. Do not assume that a funeral director will proceed without payment.

Always be upfront with the funeral home about your situation. If its terms do not work for you, compare providers and ask each one for clear payment terms before committing.

The Funeral Directors Association of New Zealand (FDANZ) maintains a member directory. Ask any funeral director for a written quote and clear payment terms before committing.

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