The superannuation reforms have now passed the Senate and will be in place from July 2017.
Post July 2017 high income/high net worth clients and indeed some before then who have already triggered their bring forward contributions, will look for alternative, tax efficient and flexible structures to invest in.
Like superannuation, Imputation Bonds are a tax-paid investment structure. Unlike superannuation, funds within an Imputation Bond are totally accessible at any time, the bond itself can be transferred to another owner without tax and mimic, though improve upon, many features of superannuation.
Imputation Bonds provide flexibility, liquidity and are also the next best tax structure after superannuation for higher net worth clients.
Key Imputation Bond benefits and features include:
- Market-leading investment menu covering all investment sectors, including; Australian equities, international equities and fixed interest fund managers, plus infrastructure, property, index funds, cash and Term Deposit funds available.
- Annuity-like withdrawal streams
- Effective tax rates average between 21 -30% on earnings
- Full 30% tax offset on withdrawals under 10 years
- No Tax File Number requirements
- No tax reporting (unless withdrawal made in first 10 years)
- Nil tax on withdrawals post 10 years
- Tax effective and certain estate planning – Bond nominations bypass the estate and probate
- Legislatively stable when compared to superannuation.
Media enquiries:
Richard Atkinson
Head of IFA Product and Relationships
Austock Life Limited
t: 03 8601 2095
m: 0417 541 897
e: RAtkinson@austock.com
www.austock.com