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Investment Bonds

Build long-term wealth outside super with tax-effective bonds and 10-year tax benefits

Investment Bonds

What Are Investment Bonds?

Investment Bonds are a tax-effective, long-term investment solution designed to help individuals build wealth outside of superannuation. They combine the simplicity of a managed fund with the tax advantages of life insurance, making them especially attractive for people looking to invest over the medium to long term with minimal tax complexity.

Investment Bonds

How Do Investment Bonds Work?

When you invest in an investment bond, your money is pooled with other investors and professionally managed across a range of asset classes such as shares, property, or fixed interest. The bond provider pays tax on earnings within the bond at the corporate tax rate (currently 30%), and these taxes are handled internally, meaning you don’t need to declare earnings on your annual tax return as long as you follow the rules.

The 10-Year Rule

The real magic of investment bonds lies in the 10-year rule. If you hold the bond for 10 years or more, you pay no personal tax on the withdrawals, regardless of your income level. This makes them especially useful for:

  • High-income earners looking to invest in a tax-effective way
  • Parents or grandparents saving for a child’s future education
  • Estate planning or creating intergenerational wealth

If you withdraw before 10 years, a portion of the earnings may be assessable in your personal tax return, but tax offsets may apply depending on how long you've held the bond.

Why Consider an Investment Bond?

  • Tax-effective growth without ongoing reporting
  • No contribution limits, unlike superannuation
  • Flexible access to funds (no preservation age)
  • Estate planning advantages, including the ability to nominate beneficiaries directly

How Focused Advisers Can Help

At Focused Advisers, we take a strategic approach to ensure an investment bond is aligned with your broader financial goals. We consider your time horizon, risk tolerance, and tax situation to help determine if this structure is right for you.

Whether you're saving for a child's education, planning ahead for retirement, or looking for an alternative to super, an investment bond could be a smart and effective option worth exploring.

Explore your Investment Bonds Options

Book a free intro call with one of our experienced financial advisers and discover how Investment Bonds can give you peace of mind, no matter what life throws your way.

Book Your Introductory Call

Our Team

Meet Scott and Patrick, your financial advisers for wealth, super, retirement & insurance

Patrick Harrison

Patrick Harrison

Principal Financial Adviser

With over 18 years in financial services, Patrick partners with individuals and high-net-worth clients alike to turn ... Read more

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Scott Hendy

Scott Hendy

Financial Adviser

With over 7 years of experience in the financial advice industry, and a diverse career in public-facing roles before ... Read more

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