Save for the future

Annual caps apply to the amount you can voluntarily contribute to your super - before additional tax rates apply. This isn’t the case with investment bonds, so if you’re reaching your super contribution cap for the year, a bond can be used as an alternative investment vehicle.  

Additionally, unlike super, investment bonds do not carry restrictions on withdrawals prior to preservation age. You can draw down on your investment at any time – of course this has tax implications if doing so before the 10-year anniversary of your initial investment.

When a bond has been held for 10 years or more, withdrawals are non-assessable for income tax purposes.

Investment bonds can be used to transfer wealth to your beneficiaries – on your terms. This can reduce upfront and ongoing legal costs associated with setting up trusts and complex wealth transfer structures.

Investment bonds can be used by parents, grandparents, family members or friends to create wealth on behalf of a child or children. The investment can then be transferred to the child/ren when they reach a specified age.

©Products issued by Lifeplan Australia Friendly Society Limited ABN 78 087 649 492 AFS License number 237989 (‘Lifeplan’), a wholly owned subsidiary of Australian Unity Limited ABN 23 087 648 888. Information provided here is general information only and current at the time of publication and does not take into account your objectives, financial situation or needs. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Product Disclosure Statement (PDS) and consider whether the product is appropriate for you. A copy of the PDS is available at www.australianunity.com.au or by calling 1300 1300 38. Investment decisions should not be made upon the basis of past performance as this is not a reliable indication of future performance.

Any tax information provided here and in any disclosure documents is general in nature and is only intended to provide a guide on how tax may affect investors. Tax laws may change in the future and may affect an investor’s tax position. Investors should seek independent tax advice relevant to their particular circumstances.