Among the recommendations in bills the Australian Labor Party plans on introducing into the parliament, as summarised byBill Shorten’s office, is the TLA (enhancing consumer protection) Bill 2019, recommendation 4.2 - is "Removing the exemptions for funeral expenses policies"
Aboriginal Community Benefit Fund (not an Aboriginal company) to sell low-value funeral expenses products without having to comply with the rules around insurance. They are basically unregulated.This exception allows dodgy companies like
Removing the exemption will allow Asic to regulate these products and crack down on dodgy products.
Announcing the proposed bills, Chris Bowen said "In a royal commission full of disturbing evidence, some of the most harrowing was in relation to funeral insurance, which is exempt from protections under the Act, protections under the law at the moment. Particularly concerning was the conduct of some in relation to funeral insurance with our Indigenous community. No other word than shameful exploitation. That should not go on one day longer. The legislation we’ll put in will go on royal ascent - in other words, immediately. There is no excuse for this kind of behaviour to carry on until August or later in the year. It should stop immediately."