Forms and FAQs

• Owner or investor who makes all investment decisions.
• Life insured – may be the same as the owner/investor. If the Life Insured is not the owner/investor, they have no control over investment. The life insured determines the maximum holding period of an investment bond.
• Beneficiaries (optional) receive the proceeds of a death claim.

We pay the tax on annual investment earnings at the corporate tax rate – currently 30%. However, this rate may effectively be less due to the use of allowable tax credits and benefits - e.g. franking credits. Investors will not pay tax on the investment earnings while the funds remain invested.

Australians living offshore may invest in our products provided they were in Australia at the time of receiving the Product Disclosure Statement.

We pay the tax on annual investment earnings at the corporate tax rate – currently 30%. However, this rate may be effectively less due to the use of allowable tax credits and benefits – e.g. franking credits. An education tax benefit (ETB), representing tax paid at the corporate rate of 30%, is credited to the account twice yearly (30 June and 31 December). The ETB is only available when investor earnings are withdrawn to pay education expenses. Investors will not pay personal tax on the investment earnings while they remain invested in the fund.

The maximum lifetime contribution that can be made per student is $575,000 as of 1 October 2018. This limit is reviewed annually on 1 October.

• Tuition fees – including course fees, HELP debts, private tuition, and career training
• Non-tuition fees - including student union fees, uniforms, books, materials, equipment, music lessons and instruments, sports equipment, school outings and travel expenses
• Living away from home costs – including residential boarding costs and rental accommodation
• Foreign education costs – including course electives or entire courses

• Investor – who makes all investment decisions (multiple investors permitted). The investor can also be the nominated student.
• Plan Guardian – provides certainty about who will look after the student interests if the investor dies or becomes intellectually disabled.
• Student – intended recipient of education but has no control over the investment. The student is deemed to be the life insured and determines the maximum holding period of an education fund.
• Beneficiaries (optional) – receive the proceeds of a death claim – the education investment fund becomes a non-estate asset and does not require probate for the distribution of benefits.

The Lifeplan Education Bond allows investors to make both education and non-education withdrawals. The purpose of the withdrawal determines:

• Who is the taxable entity;
• How the withdrawal is assessed for tax purposes; and
• Whether the education tax benefit (ETB) is available.

There is no limit to the amount invested in a funeral bond. If the investor receives Centrelink benefits and wish the funeral bond to be exempt from both assets test and deeming provisions of the income test, then the amount invested cannot exceed the threshold, which is $13,250 for 2019/20 financial year. If the investor does not receive Centrelink benefits, this threshold does not apply.

Capital guaranteed option: Invests in a diversified portfolio of high quality short-term money market securities with some allocation to fixed interest securities.

Conservative option: Invests in a diversified portfolio including growth assets such as shares and property, with a bias towards defensive assets such as highly rated cash and fixed interest.

Moderate option: Invests in a diversified portfolio with an increased allocation to growth assets such as shares and property and a reduced exposure to defensive assets as compared to the Conservative option.