Tax Smart Investing
Investing for high income earners.
The Situation
With high personal income comes a high marginal tax-rate.
While superannuation is usually the most tax-effective investment, many high income earners max out their tax concessional contributions, or simply don’t want to restrict access to their funds until retirement.
That’s where the KeyInvest Life Events Bond comes in.
Benefits for your customers
The Life Events Bond is a tax-paid investment with a tax-rate of 30%, which can be reduced by tax credits.
Investors with a marginal tax rate above 30% can enjoy the tax advantage whilst having nothing to report to the ATO.
Where withdrawals are made prior to the 10-year period, earnings will be assessed as income in the year of withdrawal. A non-refundable 30% tax-offset will apply to reduce the tax payable by the holder due to the tax already applied by the bond provider. Withdrawals made in the 9th year will have 2/3 of the earnings assessed as income and 1/3 for withdrawals in the 10th year.
Tax Rate Comparison
Other benefits & features:
- 30% tax-rate paid by KeyInvest which can be further reduced by tax credits.
- Fully tax-paid after 10 years.
- No tax to pay personally while invested and therefore nothing to report to the ATO.
- No contribution limit in the first year, then contribute 125% of the previous years contributions thereafter.
- Funds can be withdrawn at any time, without restriction.[1]
- Choose from over 40 investment options and switch between investment options tax-free.
- Switch between investment options without triggering a tax event.
- Nominate any beneficiary, funds are paid tax-free in the event of death.
- Highly Recommended by Lonsec.[1]
Other than in relation to KeyInvest product, information available at www.keyinvest.com.au is factual information only and is not intended to imply any recommendations or opinion about superannuation products, superannuation investment or managed funds.
This example is intended for Financial Advisers only and does not represent professional investment or taxation advice. The information presented does not take into account any person’s objectives, financial situation and needs.
Why KeyInvest
We’re an independent, member-owned mutual friendly society, formerly known as IOOF-SA.
Governed by the Life Act, we provide investment solutions with unique tax treatment.
We provide customisable features for a variety of situations.
We’re low-cost and feature rich. We don’t charge additional admin fees for additional features.
We have a personal touch, caring deeply about our members and partners.
We’re committed to offering high-quality products that deliver exceptional outcomes.
How you can help your clients?
Support your clients distinct investment needs with a KeyInvest Life Events Bond and help them build and manage their wealth tax-effectively.
Take advantage of a low-cost and feature rich Life Events Bond so your client can enjoy the unique tax advantages.
No withdrawal restrictions, work test rules, or contribution limits in the first year.
Tax-paid by KeyInvest, no tax to pay personally whilst you remain invested and therefore nothing to report to the ATO.
Funds can be withdrawn at anytime. Withdrawals made prior to 10 years, will have earnings assessed as income in the year of the withdrawal. A 30% tax offset will apply to reduce the tax already paid by KeyInvest.
Highly recommended by Lonsec*
“Lonsec considers the investment bond to be the preferred entry point to the sector. The issuer of the investment bond has competitive advantages in most areas of assessment in people, process and design, with no areas of material weakness.” – Lonsec Research Pty Ltd
*Ratings are only one factor to be taken into account when deciding to take out a financial product. Refer to the disclaimer below. [2]
We’d love to hear from you.
