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An Education Bond is a tax-effective investment issued by a Friendly Society and regulated by APRA, designed to save for education expenses from pre-school through post-graduate study. Futurity pays tax on the earnings inside the Bond at up to 30%, rather than the investor's marginal rate of up to 45% plus Medicare Levy. When earnings are withdrawn for eligible education expenses, Futurity adds a $30 refund for every $70 of earnings withdrawn through the Education Tax Benefit, making Education Bonds one of the most tax-effective structures for long-term education saving in Australia.*

The Education Tax Benefit is a $30 refund paid into the bond by Futurity for every $70 of earnings you withdraw to pay for eligible education expenses.* The benefit is unique to Education Bonds issued by Friendly Societies and is not available on ETFs, managed funds, superannuation or savings accounts.

Eligible education expenses include course and tuition fees, books, devices and computers, uniforms, excursions and camps, musical instruments, travel for study, and living-away-from-home costs. The Bond covers education costs in Australia or overseas, from pre-school and primary school through to university, TAFE, post-graduate study and professional continuing education. Education Bonds are unique tax advantaged investment products designed to meet the cost of education and life's important milestones. The Education Bond is classified as a scholarship plan and satisfies the sole purpose test of providing benefits for the education of education beneficiaries. However, you can make withdrawals from the capital component tax-free at any time and withdrawals may be made using Investment Bond tax rules which may have personal tax implications for you. Please refer to the PDS for more information.

For long-term education saving on a marginal tax rate above 30%, an Education Bond is generally more tax-effective than holding investments in your own name, because earnings are taxed inside the Bond at up to 30% rather than up to 45% plus Medicare Levy, you can switch Investment Options without triggering capital gains tax, and the Education Tax Benefit adds a refund when you withdraw for eligible education expenses.* An ETF or savings account offers none of these features. You can withdraw for eligible education expenses at any time.

Yes. Grandparents can apply for a Futurity Education Bond and nominate one or several grandchildren as beneficiaries under a single Family Education Bond. The Bond can be transferred to grandchildren at a future date using Future Activated Transfer, outside the estate and outside probate. This makes Education Bonds one of the most common ways Australian grandparents save for grandchildren's education without complicating estate planning.*