An investment bond is a long-term and tax effective investment planfor your future.
Contemporary investment bonds serve a range of purposes and can benefit a wide variety of investors.
In our experience most people use an investment bond to save for something significant – this could be retirement income, complementing your super, a child’s future, a home renovation or setting aside money for that once in a lifetime holiday. You may simply just want to save without the yearly tax return and paperwork.
Your money is pooled with money from other investors and then invested in the option/s you have chosen.
10Invest offers five different investment options based on your risk and performance appetite. To learn more about our options click here.
All investments have an element of risk. 10Invest offers five investment options to choose from with varying levels of risk.
Those who are comfortable with only a low level of risk, should consider conservative options, whereas investors less concerned by short term volatility and wanting to take on more risk might invest predominately in Growth options. Click here to learn more about the investment options
You can invest in one, all, or a mixture of the five investment options, with a range of risk profiles to suit your risk tolerance and investment goals.
The minimum investment into 10Invest is $1,000, and you are able to make additional contributions of $50 per investment option.
Make sure you are eligible:
To make your application as easy and quick as possible, make sure you have ready:
And most importantly make sure you read and understand the Product Disclosure Statement.
Get started now with our online application.
You will only need to provide additional documents to verify your ID if you do not pass the online ID verification process.
The online ID verification process is incorporated into our online application form and allows us to confirm in ‘real time’ your identity based on information you have provided.
You will be immediately advised when completing the online ID process as to whether your verification has been successful. Where your verification has not been successful, you will be informed as to what further information you will need to provide. These will need to be original certified copies, which you can scan and email to the address below to finalise your application.
Scan & email
enquiries@australianunity.com.au
You can invest as much as you would like in your first year. Go for it!
You can also choose to make additional investments, and, every year after that you can increase the contribution and invest a maximum that is equivalent to :
For instance, if you initially invest $5,000, then in the second year you can increase the contribution to $6,250, and in the third you can increase to $7,813. This includes contributions set up through a regular savings plan and/or lump sum contributions you may make through the year.
You don’t have to make additional contributions, but if you do AND
A regular savings plan ensures you do not lose the tax effectiveness associated with your investment bond.
Maximum additional contribution
The graph above shows, starting with a contribution of $10,000 in Year 1, how much you can contribute in each year following the 125% rule.
No one likes financial jargon. But there are some important terms you should know before you apply.
An investment bond allows you to pass your investment to nominated beneficiary(s) tax free if you pass away. Beneficiaries can be of any age, non-related, or even a company, trust or charity.
One of the great advantages of 10Invest is its structure as a life insurance policy, giving you control over how, when and who benefits from your investment when you pass away.
Through 10Invest you are required to nominate a “life insured”, a person whose life is insured under your policy. When this person dies it will trigger the policy to mature. If this occurs your full investment will be paid with no additional tax payments, regardless of whether you have reached the 10-year tax paid status.
The Policy Owner automatically becomes the life insured person, at the time of application, unless you nominate a different person.
You can nominate life insured person(s) at any time during your policy. However, if you nominate one or more persons as the life insured, the policy will not mature until the last nominated life insured person passes away.
You can nominate either a life insured or additional beneficiaries at any time. This can be done through your investor portal access.
What happens will depend on how you have structured the life insured and beneficiary nominations.
Life Insured | Beneficiary nomination | What happens to the investment on your death? |
If you are the Owner and the Life Insured | and you have nominated Beneficiaries | your investment will be paid directly to your nominated beneficiaries, and avoid it being tied up by estate or probate.
Your beneficiaries will receive the proceeds without any personal income tax to pay. |
but if you have not nominated Beneficiaries, then: | the proceeds of your policy will be paid directly to your estate. |
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If you are the Owner but have nominated someone else to be the Life Insured | and there are nominated beneficiaries for the investment | the investment will continue if you pass away before the Life Insured, and will ultimately be paid to the beneficiaries. |
Yes, you can invest on behalf of a child between the ages of 1 to 16 whilst retaining full control of the investment. It can then be transferred to the nominated child, at the vesting age you specify in your application, but must be between the ages of 10 and 25. Policies cannot be transferred to a child under the age of 10.
Vesting age – the age that you choose for the nominated child to receive a transfer of the policy.
Once the nominated child has reached this age the policy automatically converts, without incurring any fees or charges to a 10Invest bond under their name.
Importantly, the 10-year rule does not restart and the original commencement date of the investment continues, ensuring that the 10-year tax concessions are preserved.
If the policy has been transferred to the child during the ages of 10 to 16, any withdrawals and contributions need a parent’s or guardian’s consent.
You can change the vesting age at any time before it occurs. This can be done through your investor portal access.
If you change your mind or your circumstances change after you have made an application, you must write to us within 14 days of receiving your welcome email and advise that you wish to exercise your cooling off rights.
We will issue a refund, but the amount repaid will be net of any applicable costs (transaction, tax, or duty) incurred, and will also reflect any increases or decreases in investment value since its receipt. This could result in you receiving less than your original investment.
In order to finalise your application, we use an online ID verification process, which allows us to confirm in ‘real time’ your identity based on the information you have provided.
If you do not pass the online ID process, your application can still be submitted however you will need to scan and email your identity verification documents to the address below to finalise your application.
You will be immediately advised when completing the online ID process as to whether your verification has been successful.
Scan & email
enquiries@australianunity.com.au
We will contact you if we need anything further to complete the application. (Please note that if your online ID verification was unsuccessful, we will only finalise your application once we have received and processed your ID documents.)
Otherwise, your initial contribution will be deducted from your bank account on the date you nominated. To avoid delays, make sure you have funds ready in your account.
Once the initial contribution has been received, we’ll send a welcome email normally within 5 business days. The email will provide you with details on how to register for the online account where you can download your Certificate of Investment and manage your investment.
You can withdraw your money at any time, and for any purpose, but the main thing to consider is the tax impact when you withdraw your money.
The tax benefits of investment bonds meant that they are designed to be held for 10 years in order to maximise the tax effective nature of the bond.
However, even if you do make a withdrawal within the first 10 years, you can take advantage of the 30% tax offset rule to reduce your personal income tax. This tax offset is available to offset the tax already paid in your account on investment earnings, at the rate of 30%.
Should you need to withdraw from the bond within 10 years the following rules apply:
Withdrawals made | Tax payable on |
8th year or earlier | All earnings |
9th year | 2/3rds of earnings |
10th year | 1/3rd earnings |
After 10 years | Nil |
The minimum amount you can withdraw from your investment is $500.
Please note that at all times you must maintain an account balance of $1,000 in your investment. If you make a withdrawal that brings your account balance below $1,000, we will withdraw the entire amount and close your investment.
No personal capital gains tax is incurred for switching between investment options or when making withdrawals from your investment.
Switching investment options is where you transfer your funds from your current investment option to another on the 10Invest investment menu.
The welcome email which we send will have all of the details required for you to register for the online Investor Portal.
This is where you will be able to see your transactions, download your statements, update your details, and much more.
You can change your investment options at any time. This can be done through your investor portal access.
An investing transaction cost (ITC) will apply at the time you switch across to the newly selected option. For more information on the current ITCs that apply to 10Invest, please refer to the latest version of the PDS
Your switch request will be processed same day, where we receive it before 1:30pm (South Australian time). You will receive confirmation from us within 5 business days of your transaction having been finalised.
While you remain invested in 10Invest, the tax rate that applies to your investment earnings is 30%, and it is paid within the account.
If you make a withdrawal within the first 10 years of your investment, any additional personal tax you may need to pay will depend on when you have taken it out. Even in this case, you may be entitled to a 30% tax rebate to offset the tax already paid in the bond while it was invested.
The following table shows the tax treatment that applies to investment earnings. This is based on an example of $900 in investment earnings being withdrawn:
Year the withdrawal is made | Tax treatment | Assessable income |
In the first 8 years | 100% of the earnings on your investment are considered as assessable income. | The full $900 is deemed assessable income. |
In the 9th year | 2/3 of earnings on the investment are considered as assessable income. | Only $600 is deemed assessable income. |
In the 10th year | 1/3 of earnings on the investment are considered as assessable income. | Only $300 is deemed assessable income. |
After 10 years | All earnings on your investment are tax free and do not need to be included in your assessable income | Nil – after 10 years there is no further tax to pay. |
While you remain in 10Invest, you do not have to pay tax as it is paid from the benefit fund at the tax rate of 30%.
This means that you don’t need to declare anything in your tax return for as long as you remain invested in the product. The only time you may pay any additional tax is where you make a withdrawal within the first 10 years of your investment, but you will be entitled to apply an offset of the 30% tax already paid in the investment bond.
This refers to the tax that is paid from the benefit fund, on your behalf while you’ve been invested. Therefore, it is considered ‘tax paid’ – the tax is paid by the product (and not the individual through a personal tax return.)
Here are some key features that make it a great way to save for your retirement, complementary to your superannuation:
You can change your regular savings plan at any time. This can be done through your investor portal access.
When you change your regular savings plan, it is important to consider the 125% rule which applies to contributions to 10Invest.
Your online account is where you can access your investment information and where we'll save all of your important notifications.
Through your online account access, you can:
The valuation of investments is generally carried out each day and are disclosed on our website once a week.
To see the latest unit prices for 10Invest, please click here.
Yes, they can. If you have family or friends who would like to assist with your savings goals, you can give them the BPAY details for your account. You can obtain your BPAY details from your Investor Portal.
There is no establishment fee, contribution fee, withdrawal fee or exit fee.
Total management fees are:
External Fund Manager Fee p.a. | Our Admin Fee p.a. | Your total management fee p.a. | |
Vanguard Diversified Conservative Index Fund | 0.29% | 0.30% | 0.59% |
Vanguard Balanced Index Fund | 0.29% | 0.30% | 0.59% |
Vanguard Growth Index Fund | 0.29% | 0.30% | 0.59% |
Vanguard Australian Shares Index Fund | 0.16% | 0.30% | 0.46% |
Vanguard International Shares Index Fund | 0.18% | 0.30% | 0.46% |
An investing transaction cost (ITC) will apply at the time you switch across to your new investment option. The cost is deducted from your investment account.
The aim of the ITC is to ensure that you share the transaction costs associated with your investment decision to either enter or exit an investment option, with other investors. It is charged by the underlying fund manager, and is not a fee that is retained by us.
For more information on the current ITCs that apply to 10Invest, please refer to the latest version of the PDS
Each time you make an additional contribution into your account, an ITC will be charged. For each additional contribution of $50, which is the minimum additional contribution into 10Invest, this equates to between $0.06 and $0.11 (depending on the investment option you select – for the latest ITCs, please view the current PDS).
Each time you make contributions into your account, you are purchasing additional units in the investment option. This is the same as a new investment in the option. The ITC therefore ensures you share the transaction costs associated with your investment decision to purchase additional units in the investment option, with other investors.
It is a fee charged by the underlying fund manager and is not a fee that is retained by us.
The 10-year provision is a key part of the unique advantage that investment bonds offer over traditional savings products.
An investment bond held for 10 years, means that you can then start withdrawing your money when you need it and not pay any personal tax.
You can access your funds at any time to take your money out earlier if you need to. If you do make a withdrawal within the first 10 years, the investment earnings portion of your withdrawal will be taxed.
How your investment earnings are taxed will depend on the timing of your withdrawal. Even in this case, you may benefit from a tax offset of 30% to account for the tax paid on your earnings while retained in 10Invest.
Below is a guide as to how withdrawals are taxed, based on an example of $900 in investment earnings:
Year the withdrawal is made | Tax treatment | Assessable income |
In the first 8 years | 100% of the earnings on your investment are considered as assessable income. | The full $900 is deemed assessable income. |
In the 9th year | 2/3 of earnings on the investment are considered as assessable income. | Only $600 is deemed assessable income. |
In the 10th year | 1/3 of earnings on the investment are considered as assessable income. | Only $300 is deemed assessable income. |
After 10 years | All earnings on your investment are tax free and do not need to be included in your assessable income. | Nil – after 10 years there is no further tax to pay. |
The 125% contribution rule is very closely linked to the 10-year rule for investment bonds.
If you remain invested in 10Invest for 10 years, you can withdraw your funds with no personal tax to pay. In order to maintain the original date from which the 10-year period is calculated, if you are making additional contributions, you cannot breach the 125% rule.
This means that in each successive year, you can only contribute up to 125% of the previous year’s contributions. For example, if you contribute $5,000 in Year 1, you can contribute $6,250 in Year 2 and $7,813 in Year 3.
If at any point you contribute more, it will reset the start date of the 10-year period. This is important, as it can delay your ability to maximise the tax effectiveness of your investment.
For more information on the 125% rule refer to the PDS.
We will normally provide a reminder/alert two months prior to your anniversary date, to let you know where you stand with regards to the 125% rule. This will assist you to monitor your additional contributions.
Setting up a regular savings plan with ongoing contributions can also help you manage this.
Investments in investment bonds do not normally attract CGT.
If you make a withdrawal from your bond within the first 10 years (in normal circumstances), your earnings will be simply assessed at your marginal tax rate – which could be as low as zero, depending upon your taxable income. You will also receive an automatic bond tax offset for your personal tax– currently equal to 30% of your assessed amount.
Effectively, you only have to pay personal tax (but not CGT). If your marginal tax rate is greater than 30% you will only pay personal tax on the excess.
Note: The above answers on tax (including CGT) are brief and general information, and should not be taken as specific tax advice to an individual investor. Also, tax laws and guidelines can change from time to time. Appropriate, independent and timely advice should be sought from a professional tax adviser.
The 50% CGT discount is only available if you are assessed for CGT.
Your realised investment bond growth is not treated as a realised capital gain, under current Australian tax rules.
Note: The above answers on tax (including CGT) are brief and general information, and should not be taken as specific tax advice to an individual investor. Also, tax laws and guidelines can change from time to time. Appropriate, independent and timely advice should be sought from a professional tax adviser.
Other investments may generate income and realised capital gains within 12 months even while your investment continues to be held and no withdrawals are made.
In contrast, you may have to pay personal tax on your investment bond the year you make a withdrawal.
But, there will be no personal tax when you withdraw:
None of these special bond tax concessions is available with any other investment.
Any comparison between investments should take into account your current and expected future circumstances, tax and any other relevant considerations. We would encourage consulting a licensed financial adviser.
Note: The above answers on tax (including CGT) are brief and general information, and should not be taken as specific tax advice to an individual investor. Also, tax laws and guidelines can change from time to time. Appropriate, independent and timely advice should be sought from a professional tax adviser.
Australian Unity has a range of investment bonds to help you achieve your savings goals.
A specially designed savings and investment product which gives you more choice and flexibility to fund the education expenses of a child or student of any age.
A comprehensive, tax effective investment bond, designed to fulfil more than wealth accumulation goals, it goes a step further to enable flexibility in wealth transfer for tax effective estate planning, child advancement or supplementary retirement planning. All the features of 10Invest and more.
Fees
Investment option | Vanguard ICR p.a. | 10Invest administration fee p.a. | Total estimate management cost |
---|---|---|---|
Vanguard® Diversified Conservative Index Fund | 0.29% | 0.30% | 0.59% |
Vanguard® Balanced Index Fund | 0.29% | 0.30% | 0.59% |
Vanguard® Growth Index Fund | 0.29% | 0.30% | 0.59% |
Vanguard® Australian Shares Index Fund | 0.16% | 0.30% | 0.46% |
Vanguard® International Shares Index Fund | 0.18% | 0.30% | 0.48% |
© 10Invest (‘Lifeplan Investment Bond’) is issued by Lifeplan Australia Friendly Society Limited ABN 78 087 649 492 AFS License number 237989, a wholly owned subsidiary of Australian Unity Limited ABN 23 087 648 888.
Information provided here is indicative only. In any decision, you should only rely upon the content found in the relevant disclosure document, which you must read, since an investment can only be processed from an application form attached to it. Any decisions relating to a financial investment should only be based upon a consideration of your overall objectives, current and anticipated situation or needs, and should not be influenced by historical data such as past performance.
Illustrative Information only: Case study figures are based off internal calculations over a projected period of time and are not necessarily a projection of future performance. Any examples or information provided in the case studies are for illustrative purposes and investors should therefore place no reliance on this content when making any decision to invest. The case studies do not represent a recommendation or Australian Unity’s view on future events, and in no way bind Australian Unity or its related entities.
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 and the tax information described in any disclosure documents issued. Investors should seek independent tax advice relevant to their particular circumstances.
About this calculator
The purpose of this calculator is to provide an estimate into the future of the total cost of education per student. It provides a result that is based upon current assumptions, such as the cost of private and public school education (which is derived from statistical data of costs paid through the Education Savings Fund operated by Lifeplan Friendly Society Limited). It assumes an annual increase of cost at the rate of 5.3%pa which is based on ABS data and using a historical period of 16 years. The information provided by this calculator is general in nature and is not intended as financial, personal or taxation advice. Neither the calculator, nor the results take into account any individual circumstances, financial situation or needs. You should consider obtaining professional advice before making any decision after using this calculator.
Please enter your details below to download the Product Disclosure Statement and the accompanying Application form for the Education Savings Fund
If you have any questions please feel free to give us a call on 1300 617 670.