"This has been a very sneaky way of introducing what is basically a death tax."

Narromine Shire Council Mayor Craig Davies pulled no punches on his assessment of the State Government's introduction of its controversial 'cemeteries tax' at a time where families are struggling with cost of living pressures.

Cemeteries and Crematoria NSW (CCNSW) has confirmed that the new tax of $156 per burial, $63 per ash interment and $41 per cremation will be levied on large operators from 1 July 2024.

Large operators are those who carry out more than 50 interments per year - including most councils in the western plains region. For smaller operators the levy will commence from 1 July 2025.

"As a council, we had no idea this was coming," Mr Davies said. "All Council budgets have been put together and been out on community consultation.

"In my opinion, this new tax is a pretty weaselly way of introducing something after we have budgeted, not knowing it would be there. There is no choice but to pass this burden onto ratepayers."

LGNSW President Cr Darriea Turley AM says the levy is just the latest example of cost-shifting onto local government.

“Across NSW, council cemeteries undertake more than 40 percent of all burials. This rises to more than 80 percent of all burials in rural and regional NSW so this unnecessary new tax will hit our rural and regional communities the hardest”.

Cost shifting to local governments is nothing new, according to Mr Davies.

"The state government has shifted costs to local governments in the order of a billion dollars in the last four years across all areas," Mr Davies said. "It's not just the Labor Party that does it, it's all of them."

Bourke's historic cemetery. IMAGE: Lyn S. Tripadviser

The State Government announced the levy just before Easter this year, advising that the costs were to fund the increased regulation of the interment industry.

At the time, LGNSW called on the Government to fund the regulation from its core budget rather than seek to recoup cost from operators, including local councils. Now, with the imminent implementation of the tax confirmed, the local government sector says the timelines are simply unworkable.

“Our councils will not have time to properly exhibit and approve any fee increase to cover this, as required under the Local Government Act” said Cr Turley.

“At the same time, we simply cannot absorb this levy into current operational budgets."

Coonamble cemetery. IMAGE: Kojakone Find a Grave.com

"Whether this year or next, councils will therefore have to pass on the levy to their residents and community members, making interment services more expensive for grieving individuals and families who are going through one of the most challenging circumstances of their lives.”

Mr Davies agreed with Cr Turley's sentiment saying that while there are certain statutory costs when someone passes away, this new tax is just adding to the stress of an already difficult time.

"It's basically another death tax which is just adding to the burden of people that can't afford it," Mr Davies said. "So many people in rural and regional New South Wales are living on the threshold of poverty as it is."