(Image: Private Media)

Australian cities are running out of space to bury the dead, causing the cost of burials to skyrocket. But land scarcity isn’t the only thing causing the price hike. Large funeral companies and a sector with almost no regulation and little price transparency mean many people are paying for services they don’t want or need.

The funeral industry is a massive money-making machine. Projected revenue for 2020-21 is $1.6 billion, with Australia’s ageing population fuelling that figure. The sector was only moderately affected by the pandemic. The number of Australians aged 85 years and over is expected to double to more than 1 million people by 2042.

Funerals can cost thousands, with many grieving families unaware of their choices when it comes to saying goodbye to their loved ones.

In this four-part series on the industry, Crikey reports:

  • The two biggest funeral providers in Australia are ASX-listed companies that account for a third of the entire market. InvoCare, which owns companies including Le Pine Funerals and White Lady Funerals, dominates 25.6% of Australia’s market.
  • The $1.6 billion funeral industry relies on selling expensive packages to families, with many purchasing optional add-ons they believe to be mandatory. The sector has a profit margin of about 15%.
  • Crown-owned burial plots in NSW will run out in the next decade in some states — with most of the remaining space owned by a single company, limiting competition.
  • The sector has limited regulation, with many funeral providers acting as service brokers, subcontracting out services for whoever can do it for the cheapest price, and instances of staff carrying out invasive procedures on bodies with little to no training.

The lack of competition and transparency in the sector is such a concern that this year the Australian Competition and Consumer Commission (ACCC) has launched a probe into the industry, with the report due in the coming months.

Part one: ‘If you have a mobile phone, you can call yourself a funeral director’