The KeyInvest Life Events Bond is a tax effective Investment designed to assist you in planning for life’s major events in a tax friendly and compliant investment structure. Your investment can be accessed at any time without restriction and may be an ideal solution for:
- Tax effective wealth accumulation.
- An alternative or complementary strategy to superannuation.
- Non super transition to retirement.
- Estate planning.
- Intergenerational transfer of wealth.
- Protection of Business Assets for the self-employed.
- Investing for a minor.
- May assist in eligibility for Seniors Health Care Card.
Benefits of the KeyInvest Life Events Bond
- Investment earnings are taxed (internally & not in the hands of the investor) at a maximum rate of 30%, which may be further reduced by tax credits.
- No tax to pay on investment earnings while you remain invested, therefore nothing to report to the ATO each year.
- Fully tax paid after the 10-year period.
- Regular/withdrawals are permitted and
- Receive a valuable 30% tax offset from the ATO, reducing tax payable on withdrawals made during the 10 year period.
- No Capital Gains Tax when switching between investment options or transferring ownership to another.
- Ability to increase contributions by up to 125% per year and still maintain eligibility for the ten-year tax paid rule.
Simplicity and ease of use
- Start with as little as $500 and save monthly from $50.
- A set and forget investment that can be put in place for a specific future life event.
- Investment earnings are not declared in a personal tax return while you remain invested for the 10 year period.
- Reduce paperwork. There is no need to track things like Capital Gains Tax, dividend payments and imputation credits on annual tax returns.
- No preservation, work test rules or the same restrictions imposed on Super.
Flexibility and choice
- Access to a wide range of Investment Managers across all of the various asset classes.
- Funds can be used for any purpose.
- Switch between investment options at any time without triggering a Capital Gains Tax event.
- Full control and access to your funds at any time.
- Transfer of ownership is possible with no CGT implications or ‘re-set’ of the 10 year tax rule.
Peace of Mind in Estate Planning
- Nominated beneficiaries receive funds at death, tax free, regardless of the relationship and how long the Bond has been in place.
- Where Beneficiaries have been nominated proceeds do not form part of the Estate*, avoiding the costs and time delays associated with probate.
- Beneficiary nominations are binding and do not need to be constantly renewed.
- Ability to transfer the investment to a nominated child on the age you select. Note: must be between ages 10 – 25.
*Notional Estate Rules apply in NSW
KeyInvest is a trading name of KeyInvest Ltd ABN 74 087 649 474 AFSL 240667. KeyInvest is not authorised to carry on business in any country other than Australia. The information contained in this website is directed to and available for Australian residents only. Copyright © KeyInvest 2017 unless otherwise noted.