What Happens If I Need My Money Earlier?
- If you withdraw before 8 years then the tax benefit will not apply
- During the 9th year, 1/3 of the amount will be tax-free.
- During the 10th year, 2/3 of the amount will be tax-free.
- After the 10th year, the whole amount can be taken tax-free.
Why Is This Good For Australian Expats?
Contact UsReferred to as tax-paid investments, insurance bonds in Australia are taxed by the fund manager at the corporate tax rate of 30% subject to being held for a minimum of 10 years and do not need to be reported on an investor’s tax return.
So, the tax is paid before you as an investor receive a profit. However, expats have access to international products and can set up these plans in offshore markets. When the products are set up outside of Australia they will not be subject to Australian corporate tax, leaving the investor 30% better off.
Contact one of our advisers today to discuss your personal finance plan
