Investment Bonds
A smart way to grow your money and support those you care about.
Seniors Investment Bond
At Australian Seniors, we know that your financial legacy matters. Whether you're planning for retirement or looking to support your loved ones in the future, a Seniors Investment Bond offers a simple and flexible way to grow your wealth – even after 50.
You can get started with just $1,000, with the option to make regular contributions from $50. With a range of professionally managed investment options to choose from, it’s easy to tailor your investment to suit your goals and comfort with risk – keeping things simple!
Plus, you can nominate one or more beneficiaries and specify the percentage of benefit payable to each, giving you full control over who receives your investment and how much they receive. It’s easy to get started – no complex paperwork, just a straightforward way to invest in your future.
DARE magazine
As a valued Australian Seniors customer, when you open a Seniors Investment Bond, you’ll receive ongoing complimentary digital issues of DARE magazine, sent straight to your email inbox. Learn more and view the applicable Terms and Conditions.
Benefits of choosing a Seniors Investment Bond
Start investing from just $1,000
Start with a low minimum investment and grow your wealth over time.
Choose from a range of investment options
Select options to suit your goals and comfort with risk.
No personal tax reporting required
The earnings on your investment are taxed inside the bond at a rate of up to 30%, so you usually don’t need to include anything in your personal tax return – unless you make a withdrawal in the first 10 years. After 10 years, withdrawals generally incur no additional personal income tax, subject to the 10-year and 125% rules.
Withdraw anytime with no personal income tax after 10 years
Access your money when you need it, and pay no personal income tax on withdrawals if you hold the bond for more than 10 years (subject to the 125% rule). If you make a withdrawal within the 10-year period, some or all of your earnings may be assessable for personal income tax. In these circumstances, you may also be able to take advantage of the 30% tax offset to reduce your personal income tax.
Nominate unlimited beneficiaries
Nominate one or more beneficiaries and specify the percentage of the benefit payable to each.
Add regular contributions from $50
You can choose to top up your investment monthly, quarterly, or whenever suits you. Just keep in mind that contributing more than 125% of the previous investment year’s contributions will restart the 10-year period. See the 125% rule below for more information.
Estate planning made easy
Payments go directly to your nominated beneficiaries, bypassing probate delays.
Switch investment options without triggering capital gains tax
Adjust your strategy as your needs change, without tax consequences.
Contribute up to 125% of the previous year’s amount
Grow your investment each year by adding up to 125% of what you contributed the year before. If you contribute more than 125% of the previous investment year’s contributions you will reset the 10-year period of your bond. The new 10-year period will commence from your policy’s anniversary date in the investment year in which the excess contribution occurred. Further, if you don’t make any contributions in an investment year and then make contributions in a later year, the 10-year period for your investment bond will reset.
Simple to set up – no complex paperwork
Apply online in just a few steps.
What is the 125% rule and why 10 years?
The 125% rule and 10-year tax rule can make your Seniors Investment Bond a tax-effective investment. After 10 years, you can withdraw your money with no additional personal income tax. But if you withdraw earlier, you can benefit from a tax offset up to 30%.
You can top up your investment each year by up to 125% of the previous investment year’s contribution. Go over that amount, and your 10-year tax period resets.
So, steady contributions and a little patience can help maximise the tax benefits of a Seniors Investment Bond. It’s a simple, long-term strategy designed to support consistency and your financial wellbeing.
How to apply
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Read the Product Disclosure Statement (PDS) to understand our product and the options that best fit your needs.
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Complete an online application
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Lifeplan invests your initial deposit, you receive your welcome pack with instructions to sign up to the Investor Portal and you’re good to go!
Things you should know
- Full tax benefits apply after holding the bond for 10 years. Withdrawals before 10 years may attract full or partial personal income tax implications.
- Contributions above 125% of the previous investment year will reset the 10-year tax period.
- You can invest on behalf of a child up to age 16 and retain full control until it transfers to them at a vesting age you choose (between 10–25), while preserving the 10-year tax benefits.
Why Australian Seniors
You and your family need solutions that deliver real value. With Australian Seniors, you get just that and more.
Simple solutions
Protect you and your loved ones financially with products that are simple to use and understand.
Award-winning insurance
We’ve got years of experience, helping you to protect your family and assets with award-winning products and award-winning service.
Dedicated to seniors
We focus on providing the best possible solutions for Australians over 50.
Backed by experience
We’ve been doing what we love for years, just like you. Put yourself in good hands with Australian Seniors.
Investment Bonds FAQsFrequently Asked Questions
What is an investment bond?
Investment bonds are not government or corporate debt instruments. They’re an investment vehicle offered by friendly societies and life companies, designed to help you invest over the long term with potential tax benefits. Investment bonds offer a range of underlying investment options to suit a range of risk and return profiles.
Your money is pooled with other investors and allocated across selected investments, allowing you to grow your wealth in a tax-effective way – especially when held for 10 years or more.
How to invest in bonds?
Simply complete the application form online, choose your investment options, and make an initial contribution of at least $1,000.
Are bonds a good investment?
Investment bonds as an investment vehicle can be a smart choice for long-term investors, especially those looking for tax-effective growth, estate planning benefits, or an alternative to superannuation. They’re also useful for investing on behalf of children or building a legacy. You should obtain and read the Product Disclosure Statement before making any decisions about whether to invest in the Seniors Investment Bond. We recommend you speak to your financial adviser who can help you understand the risks associated with investing and assess whether this product and the underlying investment option(s) are appropriate for you.
How an investment bond works
You invest a lump sum (and optionally make regular contributions), which is pooled with other investors’ funds and managed by professional fund managers. Earnings are taxed within the bond up to a maximum rate of 30%, and if held for 10 years, withdrawals are tax-paid subject to the 10-year rule. See below for more information on this requirement.
What is the investment process?
- Read the Product Disclosure Statement
- Choose your investment options
- Complete the application form and provide supporting information (e.g. ID)
- Make your initial contribution
- Set up regular contributions (optional)
- Monitor and adjust your investment as needed
We're here to help you invest with confidence
For peace of mind and support in planning your financial future, speak with our friendly team today on 1300 027 889.