As tax reform discussions broaden beyond super, for many, an investment bond is considered a good alternative. An increased number of client enquiries have seen in this space recently.
Investment bonds are tax-paid investment structures where earnings are taxed internally, often up to 30% before credit.
For individuals exploring structures with an experienced accountant Box Hill, suitability depends on personal marginal tax rates and long-term goals.
Key Considerations
The following should be considered when investing in a bond:
- Period of investment: tax advantages normally only emerge if the investment is held for at least 10 years, with conditions to meet.
- All earnings in an investment bond are taxed at the corporate tax rate of 30%.
- No further tax is payable if no withdrawals are made in the first 10 years.
- Investment risk remains
Who Might Benefit?
- High-income earners
- Parents investing in children
- Investors who have maximised super caps
A Box Hill accountant can assess comparative tax efficiency.
Final Thoughts
Investment bonds are not new, but policy uncertainty often renews interest. Decisions should be based on structural suitability, not headlines.
At Infinity Solution Tax Plus, a trusted accountant in Box Hill can provide structured guidance.
Disclaimer: This article contains general information only and does not constitute financial or taxation advice. You should seek personalised advice from a registered tax or financial professional.
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