The Federal Government has expressed concern that the carbon tax is being used as an excuse to raise the cost of funerals.

A Melbourne cemetery is alleged to have told a grieving family that a $55 charge for burial was due to the carbon tax, a move labelled "reprehensible" by Climate Change Minister Greg Combet.

Mr Combet says cemeteries or crematoriums are not liable under the carbon price mechanism.

"It would be reprehensible to take advantage of grieving relatives by making misleading claims about funeral expenses," he said in a statement.

A grieving family at Springvale Cemetery was allegedly told by a receptionist "even the dead don't escape the carbon tax".

Assistant Treasurer David Bradbury says the Australian Competition and Consumer Commission (ACCC) is looking into the report and warned businesses that any claims they make have to be truthful.

"Without commenting specifically on the details of this case, I think most Australians would say that if a particular company is seeking to rip off consumers and to take advantage of people at a time when they are grieving the loss of their loved ones, then that would be a despicable act," Mr Bradbury said.

"Businesses need to be very careful that if they are increasing their prices and they're making claims about the carbon price that they ensure that those claims are truthful.

"If businesses are caught out jacking up their prices and falsely blaming those prices rises on the carbon price, they stand to find themselves on the wrong side of the law."

Worry

However, John Tribe, chief executive of the Southern Metropolitan Cemeteries Trust which administers Springvale Cemetery, denied there was a carbon tax charge in place.

"If it did (happen), it's nothing that the family need worry about," Mr Tribe told 3AW radio.

"I can never absolutely say that it was not said, but what I can tell you is it has never been discussed by me, the management committee or the sales staff, and therefore if it was said it's a complete figment of somebody's imagination."

Mr Tribe said that while burials would not be affected by the carbon tax, the Southern Metropolitan Cemeteries Trust would assess the need to increase cremation costs after the tax's introduction.

"In the event that there is enough impact on our cost price, then we'll make a submission to government," he said.

"But I wouldn't think that's going to happen for six or nine months at least."

Warwick Hanson from the Australian Funeral Directors Association says the tax will have minimal impact on the industry, if any.

"Our association, which is a national association, has not been advised by any cemetery or crematorium at this point in time of any increase in price that is being directly attributed back to the carbon tax," he said.

ABC/AAP