Hello, and welcome to the first Investment Bond webinar for 2017 - Investment Bond’s and Education Funding. Presented by Greg Bird, National manager advice and strategy for investment bonds, Australian Unity Wealth. Lifeplan Australia Friendly Society ABN 78 087 649 492 AFSL 237989. Property of the Australian Unity Group. Not to be reproduced without permission.

1. An investment in a child's future Tuesday, 21st February, 2017, 12:15 PM (AEDT)
January 2017
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2. This material has been prepared for financial advisers only.
It is not intended that it be presented to or used by retail investors.
The Lifeplan Education Bond is issued by Lifeplan Australia
Friendly Society Limited (Lifeplan), ABN 78 087 649 492
AFSL 237989.
The information contained in this presentation does not take into
account the specific investment objectives, financial situation or
needs of any particular investor.
It is recommended that appropriate and independent professional
advice be obtained before making any decision based on the
information presented. Please refer to the current Product
Disclosure Statement (PDS) for product details available at
australianunity.com.au/wealth
We do not give tax or legal advice. The information contained in this
presentation is based on our interpretation and general
understanding of the relevant tax, life insurance and other
laws/guidelines applicable at the time of its production.
The application of tax laws depends on the investor’s
circumstances. Tax law and estate planning can be both complex
and different in their application to individual circumstances.
Advisers should seek their own taxation and legal advice.
Examples are based on certain assumptions detailed at each
example and current laws and guidelines. Changes to any of these
would change the outcomes and no guarantees are provided that
outcomes noted will be achieved..
Important information
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© Property is part of the Australian Unity Group, all rights reserved.
Not to be reproduced without permission

3. Agenda
• Cost and complacency
• An alternative solution
• Opportunities and adding value
• Resources
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4. Cost and complacency

5. 5
Why?

6. The cost
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7. The future
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8. Concerns:
• Children later in life
• Schooling years coincide with peak retirement saving years
• Swamped with bills
• Education savings gets stuck on the “to-do” list
Complacency:
• Tap into home equity
• Don’t change savings or spending or debt repayment habits
Concerns and complacency
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9. The traditional approach
• Repay non-deductible debt
• Invest directly in the name of the child
• Invest directly in name of non-working spouse
• Joint investment to income split
• Trust structures
• Scholarship plans
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10. An alternative solution

11. • Scholarship Plan provisions – Income Tax Assessment Act 1997
• Anyone can invest
– Parents, grandparents, relatives, friends, trusts, corporate entities
• Student
– Any age
– Can change student at any time
• Lifetime of education expenses
• Pre-school through to university or adult learning
• Education does not need to be continuous
What is an Education Investment Bond?
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12. Special tax advantages
• Investment earnings do not add to the
investor’s taxable income
• Withdrawals of investment
returns/education
tax benefit is income of the student
• Tax free withdrawal of investor contributions
EasyClaim facility
• Minimises potential to trigger a tax liability
for student
Contributions at any time
• No rules
• Lump sums
• Regular savings
What are the advantages?
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13. How does the tax work?
Investor
contributions
Access any time
for any purpose
with no tax
consequences
Investor earnings
Taxed at the corporate rate (up to 30%) and paid by Lifeplan
If funds in this account are used for education expenses
Lifeplan claims back the 30% tax paid from the ATO and this becomes
part of available funds to spend on education
If funds are
not used for
education or are
withdrawn by
investor
Investment Bond
rules apply -30% tax
offset applies If Student <18 (2016/2017)
• Student can receive $416
per financial year tax free
• Portion of withdrawals >$416
are declared assessable income
If Student >18 (2016/2017)
• Normal adult tax free threshold
and LITO applies
Our EasyClaim facility makes this allocation easy
Source: www.abs.gov.au
The tax liability is passed to the student
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14. Plan Guardian
• Looks after plan if investor
dies or becomes intellectually disabled
• Administers investment in the best
interests of the student
• Limited capacity to amend investment
arrangements
• Independent of Power of Attorney
and Will
Nominated Beneficiary
• Receives investment proceeds should
student die after the investor’s death
• Tax free proceeds
• Avoid delays in Probate
Estate planning features
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15. 1. Tuition fees: Primary/secondary, TAFE/tertiary, Special needs, Adult learning
2. HELP fees
3. Uniforms
4. Books and materials
5. Swimming lessons and sports equipment
6. Internet expenses
7. School outings and camp
8. Overseas courses
9. Travel to and from campus
10. Living away from home allowance
What can you claim?
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16. • Choice of schools
• Quality not cost
• Control over the decision
Controlling your education destiny
Did you know?
The cost of raising two children
from birth until they leave
home for a typical middle income
family is $812,000.
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17. Opportunities & adding value
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18. • Anyone can sponsor a student
• No minimum or maximum ages
• Deposit and withdraw at any time
• Potential to access or maximise:
– Family Tax Benefits A and B
– Low Income/Family Tax Benefits Health Care Card
– Low Income Tax Offset
– Super co-contribution
– Low income super contribution refund
• Peace of mind
Value to your clients
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19. Potential investors
• With children or about
to start a family
• Tax effective investment
• Too young for super
• Access to capital
• Estate planning needs
• Retain control
• Access to capital
• Too old for super
Wealth Accumulators Grandparents
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20. • Want to save specifically for education
• Want access to capital
• Want tax intelligent investment
with earnings potential
• Need flexibility
• Want to:
– Minimise tax
– Maximise tax offsets/rebates
and government benefits
– Maximise super co-contribution
• High income earners
• Divorced couples
• Inheritances and gifts
• Anyone wanting to lend a helping
hand but retain control of capital
Opportunities
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21. 1. Emotive
2. Additional contributions
3. Reinvigorate older client base
4. Inter-generational financial planning
5. Expand business networks
Value to your business
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22. Resources
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24. Partner with specialised businesses that improve your access to knowledge and innovation.
Contact
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Name Area Phone Email
Derek Emery Head of Distribution 0438 509 838 demery@australianunity.com.au
Greg Bird National Business Development Manager 0400 401 676 gbird@australianunity.com.au
Colin Falls Business Development Manager NSW/ACT 0434 338 278 cfalls@australianunity.com.au
James Torrens Business Development Manager NSW/ACT 0422 414 614 jtorrens@australianunity.com.au
Ron Grima Business Development Manager QLD 0408 954 906 rgrima@australianunity.com.au
Ryan Francis Business Development Manager WA/NT 0417 812 958 rfrancis@australianunity.com.au
Paul Bugg Business Development Manager VIC/TAS 0448 458 456 pbugg@australianunity.com.au
Michelle Kaminski Business Development Associate SA 0429 301 828 mkaminski@australianunity.com.au

25. Further information: advisers.lifeplan.com.au
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26. Thank you.