"Consumers who have pre-paid cemetery and crematoria services may be entitled to a partial refund", the Australian Competition and Consumer Commission Chairman, Professor Allan Fels, said today.
"Service Corporation International Australia, a major provider of cemetery and crematoria services, has already moved to overcome a Goods and Services Tax incorrectly levied on pre-paid cemetery and crematoria services", he said.
"After receiving two consumer complaints about the charging of GST by SCIA on cemetery and crematoria services, the ACCC raised these concerns with SCIA. Following discussions with SCIA it became apparent that there was confusion within the funeral industry as to the implications of the New Tax System on that industry. The Australian Tax Office, in response to this confusion, recently issued a clarifying document.
"SCIA responded quickly to the ACCC's concerns by assessing the details of the two complaints raised and providing refunds to these consumers. SCIA was already in the process of undertaking a review of all contracts for cemetery and crematoria services in which GST may have been incorrectly charged and has subsequently offered full refunds to these consumers. As a result of these reviews SCIA has offered refunds to 637 customers.
"SCIA has also put administrative procedures in place to ensure that if funeral packages on which a GST has been levied are used prior to 1 July 2000, the GST is immediately refunded to the customer or estate.
"Many cemetery and crematoria customers throughout Australia who have purchased cemetery and crematoria services on or after 1 December 1999 and before 1 July 2000, may be entitled to a refund of GST paid.
"Accordingly, the ACCC is calling on the entire funeral industry to immediately review their contracts for the provision of cemetery and crematoria services to ensure that any GST which may have been charged incorrectly is refunded immediately. Also consumers should contact their funeral service provider and the ACCC if they think they have been incorrectly charged GST on cemetery and crematoria services bought prior to 1 July 2000.
"SCIA rapidly and comprehensively addressed these issues. It was pro-active in seeking to assess all of its cemetery and crematoria contracts and immediately provided refunds to all customers where it had determined that a GST refund was payable.
"Businesses like SCIA which act positively and effectively to address such issues have nothing to fear from the ACCC. Failing such a response, the ACCC will not hesitate to take whatever action is necessary to ensure price exploitation does not occur.
"If consumers are not satisfied with the response they receive from their funeral service provider, they should contact the ACCC GST Price Line on 1300 302 502".