Welcome back to another episode of the 360 Money Matters Podcast!
In this episode, Billy and Andrew explore investment bonds and education bonds, a tax-effective vehicle most people have never heard of. But with recent federal budget changes, these are about to become far more popular.
If you’re a high-income earner looking for tax-efficient investing outside of superannuation, or a parent planning to fund school fees, investment bonds offer a compelling alternative. They cap your tax rate at 30% (often reducing to 21-22% effective rate), eliminate capital gains tax when held for 10+ years, and sit perfectly between short-term flexibility and long-term wealth-building.
The catch? You need patience. These vehicles require a 10-year horizon and consistent contributions to unlock their full benefits. But if you match the timeframe to your goals, the tax advantages become a hidden weapon against rising government tax rates.
This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of Akumin Financial Planning – AFSL 232706
Episode Highlights
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How investment bonds create a concessionally taxed environment
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Why zero capital gains tax after 10 years makes these outperform personal name investments
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The 10-year timeframe: limitation or feature? Why long-term investing actually wins
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Annual contribution rules: the 125% escalation trap and how to avoid it
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Two cohorts who benefit most: education-focused parents and high-income earners bridging to retirement
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Split strategy: combining flexibility with tax efficiency using $500/month approaches
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Recent budget changes that make investment bonds even more attractive
