People who held policies with collapsed insurer Youpla as of April 1, 2020, will receive payouts for funeral expenses.
The federal government announced on Monday that as many as 500 people impacted by the collapse will get access to payments in line with the cover eligible policy holders took out in good faith prior to Youpla Group's collapse, typically worth around $8000.
The arrangements will be in place until November 30, 2023.
Indigenous Australians Minister Linda Burney said "Sorry Business" is of the deepest cultural importance to First Nations people.
"It is vital that traditional mourning practices be allowed to continue despite the collapse of the Youpla Group funeral contribution funds earlier this year," she said.
"This company has breached moral responsibility. It has breached cultural responsibility, and it has breached the trust of thousands and thousands of those First Nations people."
Assistant Treasurer Stephen Jones, in announcing the measures, said they were "interim arrangements" while the government investigated further a more complete resolution.
"The government will continue consulting widely on those further steps while these interim arrangements are in place," he said.
Mr Jones said the first priority was to limit the immediate cultural damage and community grief Youpla Group's liquidation had brought about.
'Really good reprieve'
The decision came after a campaign by the Save Sorry Business Coalition, a group of more than 130 organisations and almost 20,000 individuals.
The Save Sorry Business Coalition welcomed today’s announcement for the family of policyholders who have passed and who’ve been deeply affected emotionally and financially by the Youpla folding.
Proud Dunghutti man and solicitor at Mob Strong Debt Help Mark Holden said they welcomed the government’s announcement.
“It’s really good reprieve, particularly for those who've been calling us right now seeking payments for their relatives’ Sorry Business,” Mr Holden told NITV.
“We're really glad the federal government has taken this initiative in the past six weeks to be able to establish emergency funding here and also support a thorough engagement strategy in the next 18 months,” he said.
Mr Holden said while the interim measures are positive, they will only help those who need claims for funerals in the present time.
Solicitor Mark Holden of Mob Strong Debt Help said the Youpla funeral fund had operated unethically under the eye of governments for more than 30 years. Source: Supplied
He says the Save Sorry Business Coalition will continue engaging with the government to try and achieve a full solution for the thousands around Australia who have been affected.
Aboriginal Community Benefit Fund, which traded as Youpla, sold junk funeral plans to Aboriginal and Torres Strait Islander people across Australia for decades before coming to the attention of the banking royal commission and regulators.
The Australian Securities and Investments Commission had been investigating Youpla and its group of funeral contribution funds since the collapse.
