Investment Bonds are taxed on earnings at an effective rate of up to 30%. This makes them an appealing choice for individuals in higher marginal tax brackets.

After 10 years, and if you don't surpass the 125% contribution limit, you can withdraw the value of an Investment Bond with no additional tax payable. Moreover, there's no need to report interest or capital gains in your personal tax return.

To maintain eligibility for the Investment Bond 10-Year Advantage, it's essential to ensure that the ongoing level of savings or any add-on contributions does not exceed 125% of the previous Bond year's total contribution level. Following this rule safeguards the qualification for the benefit associated with a 10-year investment period.

Diversifying your investment portfolio by including Bonds is a common recommendation among financial advisors. Referred to as strategic investing, this approach entails a long-term perspective aimed at creating and building wealth.

Considering a balanced, risk-averse investment for the long term to complement your portfolio? Bonds might be a prudent financial option.

• Savings plans / lump sum plans
• ‘Will-like’ estate planning
• Future activated transfers
• Asset protection from creditors
• Avenues for tax-free access
• Tax-paid investing

Education Bonds are tax-effective investments designed for education expenses, commonly used for the future financial needs of children or grandchildren.

An Education Bond offers a reliable means to safeguard the funds allocated for your loved ones' investment, ensuring they are passed on as intended.

• Tax-free contributions: Money contributed to the Education Bond is tax-free and can be accessed anytime.

• Estate Planning: Invest outside the Will for smart decisions. Ensure the money for your children's education stays dedicated with an Education Bond.

• Beneficiaries: Nominate multiple beneficiaries for tax-effective inheritance with Education Bonds, aligning with your wishes.

• Tax-Free Capital Access: Withdrawals from the Capital Component of your Education Bond are tax-free, including personally taxed Contributions and capital sums.

Public education in Australia is seen as free, but even public schools increasingly rely on parent fees. Private education is sought, but private school fees can strain the family budget. Free higher education is a thing of the past.

Given escalating education costs, early investment in your children's education, coupled with appealing tax benefits, is a prudent move for savvy investors.