1. No income to declare in a personal tax return where you make no withdrawals during the first 10 year period
2. This assumes an investment return of 8% per annum, net of fees and taxes. Amounts quoted are in today’s dollars.
3. Income on withdrawals during the 10 year period is assessable, however you will receive a tax offset equal to 30% of the assessable income
With a good education the opportunities are endless.
A good education has an enormous influence on a child’s future. No matter what type of education you choose for your children, the costs are likely to add pressure to the family budget.
Over the last 10 years education costs have increased at nearly twice the rate of inflation and this trend is predicted to continue. If parents want to exercise choice over the type of primary, secondary or tertiary education their children receive then starting early with a regular savings plan is crucial.
The KeyInvest Life Events Bond is an ideal way to save for education in a tax effective way. You can invest from as little as $1,000 and $100 per month and the investment can be held in the name of a parent, grandparent or child, without impacting that person’s personal tax1. For example, by investing $1,000 up front and $200 per month when a child is born you could have an investment worth $50,7052 by the time your child starts high school.
The Life Events Bond has other great benefits as well including:
- A choice of 6 professionally managed investment options
- Access to your money at any time
- Receive a full 30% tax offset if you withdraw funds during the 10 year period3
- Switch between investment options without incurring Capital Gains Tax
- The Life Events Bond can be transferred to a child using the Child Advancement feature
- Children can invest from 10 years of age without incurring penalty tax rates
Who is it for?
- Parents, Grandparents’ wanting to save for their children’s education, house deposit or other long term savings
- Those wanting tax simplicity — no income to declare in your personal tax return
- Those wanting to pass on inheritance monies while you are alive
- Those wanting certainty in estate planning outcomes. Nominated beneficiaries can bypass the estate
- Investing in the name of a child to avoid penalty tax rates.
For more information, contact your Financial Planner or download a copy of the Life Events Bonds PDS found here.
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