19 January, 2026
surge-in-unlicensed-funeral-directors-sparks-regulatory-debate

January 18, 2026 — 4:00pm

In a rapidly expanding $1.6 billion industry, the rise of unlicensed and unregulated funeral directors has ignited calls for stricter oversight amid fears that vulnerable families may be exploited. These so-called “pop-up” operators, armed with little more than a briefcase and a mobile phone, are entering the market as traditional funeral businesses express concern over potential corner-cutting and diluted standards.

Established funeral homes, which typically operate from physical locations, argue that the lowering of regulatory barriers to increase competition has inadvertently opened the floodgates to less scrupulous practices. Currently, no formal license is required to operate as a funeral director, allowing new entrants to set up websites, take bookings, and outsource cremations to local state-owned facilities.

Industry at a Crossroads

According to a New South Wales-based funeral director, who requested anonymity due to fear of industry backlash, there has been a longstanding push for regulation. Industry bodies are working on voluntary standards that would require operators to own their own mortuaries and vehicles.

“Operators with no more than a briefcase and a mobile phone can now call themselves a funeral director. They pick up the phone and use one of the shared mortuary facilities to hold and prepare the body, then order a coffin from a manufacturer to be delivered to that shared mortuary,” the director explained.

The director further noted the transient nature of these operations, highlighting that if things go awry, these operators can simply “pack up their tent and leave,” leaving families in distress. The industry, they argue, has grown with little regard for regulation, a sentiment echoed by a 2021 report from major operator Invocare, which noted a 37% increase in the number of funeral directors in Australia since 2010.

Disruption or Degradation?

Despite these concerns, new players argue that their presence is a necessary disruption. Bare, an award-winning challenger brand, began six years ago by offering more affordable cremations and transparency in pricing, which they claim has been historically opaque. Founder Sam McConkey acknowledges the need for better regulation but believes ownership of infrastructure is less critical.

“What is important from the customer perspective is transparency, choice, and informed decision-making,” McConkey stated. “While regulation of specific infrastructure assets is important, we believe ownership of those assets is less important as it is generally self-serving.”

Families choosing Bare are aware that the company does not own traditional funeral parlours, preferring arrangements made via phone or video call. Bare is not alone, with other entrants like Green Heaven Funerals in Sydney and The Last Hurrah in Melbourne also making their mark.

A Patchwork of Regulations

Death is undeniably big business, with 187,268 registered deaths in 2024 alone. However, the regulatory landscape for funerals and cremations varies significantly across Australia, with responsibilities often split between state health departments and cemetery trusts. In Victoria, for example, the Funerals Act 2006 remains largely unchanged for nearly two decades, while other states have minimal laws regarding body transportation.

The National Funeral Directors Association of Australia (NFDA), representing over 230 members, has voiced concerns over declining standards and ethics as operators seek to offer cheaper services amid a cost-of-living crisis. The NFDA estimates the cost of establishing a funeral parlour exceeds $1 million, with a new hearse alone costing $300,000.

“We don’t mind new people coming into the industry, but if you do, we should all play under the same set of rules,” said NFDA President Michael Mackay. “If people realized what was going on, they would be horrified. Their loved one is being transferred all over the city. It’s not the way things should be.”

Looking Ahead

The NFDA is collaborating with Standards Australia to introduce a new voluntary standard, hoping it will prompt the government to enact tighter legislation. Funerals Australia chief Dale Gilson emphasizes the need for government intervention, stating that the public assumes licensing exists when it does not.

“Anyone can be a funeral director right now and can handle the deceased, and we’re not comfortable with that. We’d like the government to play a bigger part in legislating our industry,” Gilson said.

The Australian Competition and Consumer Commission has previously targeted the industry for unethical practices, highlighting the need for consumer protection. As the industry evolves, the balance between innovation and regulation remains a contentious issue, with the potential for significant policy shifts on the horizon.