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Division 296 and Investment Bonds: why some investors are considering wealth outside superannuation
From 1 July 2026, the Division 296 measure applies a higher rate of tax to superannuation earnings on balances above $3 million, making tax-effective structures outside superannuation more relevant for affected investors.
General information only and not tax advice. Consider your own circumstances and seek independent advice
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The 10-year advantage
The 10-Year Rule for Investment Bonds: how it works
If you hold a Futurity Investment Bond for at least 10 years and do not contribute more than 125% of the previous year's contributions in any year, with the exception of the first year which has no contribution caps, you can withdraw with no personal tax to pay on the Bond's earnings.
Earnings are taxed inside the Bond at up to 30%, not at your marginal rate, with nothing for you to declare in your personal return while you stay invested. Add up to 125% of your previous year's contributions annually to keep building wealth. First year of investment there are no caps to contributions.
You can withdraw with no additional personal tax to pay on your Bond's earnings - the tax has already been paid inside the Bond. You can choose a Regular Withdrawal Plan paid fortnightly, monthly, quarterly, half-yearly, or annually.
Subject to PDS terms and your individual tax circumstances. The 10-year and 125% contribution rules apply; withdrawals before 10 years may have tax consequences
A Futurity Investment Bond offers a tax-effective structure for wealth alongside superannuation, an investment menu of indexed and active options from leading fund managers, Bond Estate Nomination to direct proceeds outside the estate on death, and flexible entry from a lump sum or regular savings plan.
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A tax-effective structure built to invest alongside your superannuation, not compete with it.
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Transfer wealth to the people who matter at a future date or event while preserving the 10-Year Rule tax-paid benefits.
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If you choose to activate this feature, the proceeds are directed to the nominated beneficiary on your death - outside your estate and outside probate.
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Indexed and active options from leading Australian and global managers. Switch any time, with no personal capital gains tax.
See the PDS for the full investment menu, minimums and fees.
Apply for an Investment Bond
Pre-retirees with wealth outside superannuation who want tax-effective growth.
Anyone on high marginal tax rates (32% to 47%) looking for a lower-taxed structure.
Grandparents or parents wanting to pass wealth to the next generation cleanly, outside probate.
Anyone affected by the Division 296 measure on superannuation balances above $3 million.
Anyone wanting estate certainty that a Will alone cannot guarantee.
Families wanting to build wealth outside superannuation and the family home.
Young families saving for future goals.
Downsizers reinvesting the proceeds of a sale.
Anyone wanting to grow and pass on wealth tax-effectively.
The Investment Bond rounds out the Futurity toolkit for intergenerational wealth and tax-effective investing alongside superannuation. Talk to the Futurity team about how it fits your clients' plans.
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