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.
Personal income tax is only payable on withdrawals in the first 10 years from an investment bond – often referred to as the 10 year rule. Withdrawals are based on ATO IT2346 and are part capital and part investment earnings as per the following table:
2/3rds of earnings
1/3rd of earnings
Year 11 onwards
A 30% tax offset applies to the taxable component of any withdrawal.
Tax free lump sum proceeds are paid to the nominated beneficiaries or to the estate where no valid nomination has been made. Lifeplan NextGen Investments provides a unique feature where these tax free proceeds can be utilised to create a flexible income for the beneficiaries – Wealth Preserver.
No – education and non-education related withdrawals (including capital growth) of an education investment fund withdrawal are assessed at marginal tax rates. Non-education related withdrawals will attract a 30% tax offset in the first 10 years.
The 125% rule applies specifically and only to withdrawals that are made for non-education or unspecified purposes. The investment earnings portion of a non-education withdrawal may form part of your assessable income, where it is withdrawn within the first 10 years from the start of your policy. If at any point the 125% rule is breached, it will reset the 10-year period, causing it to restart from the year in which the limit was exceeded.
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 The ETB is only available when investor earnings are withdrawn to pay education expenses.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.
Applications into a funeral bond are subject to a cooling off period of 30 days. Applications into the Travel Protection Plan are subject to a cooling off period of one month and 14, as permitted under the deferred sales model for add-on insurance products.
There is no limit to the amount invested in a funeral bond. If the investor receives Centrelink benefits and wishes 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 $13,500 for 2021/22 financial year. If the investor does not receive Centrelink benefits, this threshold does not apply.
Yes. A FuneralPlan Bond can be held in single or joint names; however the benefit can only be used to pay for the expenses of a single funeral. Upon the death of one owner, the other owner must choose within 30 days to either continue the funeral bond, or have the benefits paid towards the funeral expenses.
The Travel Protection Plan means that eligible transportation costs of up to $3,200 are covered if death occurs more than 70kms away from the funeral home chosen. It is an optional feature and can be purchased as part of a funeral bond, a pre-paid funeral plan, or on its own. This feature does not apply where death occurs overseas.
Please note - In accordance with the deferred sales model for add-on insurance, any applications to invest in the Travel Protection Plan must occur after the completion of the deferral period (please refer to the Product Disclosure Statement for further details).
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.
Are you a registered adviser with Australian Unity?
Take advantage of adviser resources an online applications available
via our dedicated adviser portal. Registered advisers can:
Submit application forms to invest in Australian Unity investment bonds on behalf of clients.
Access our full suite of online tools, calculators and adviser
resources to help you manage client's needs.
It's free to register, simply complete our online registration form
or call us on 1300 133 285.