After receiving
overwhelming support from Lifeplan members and final
regulatory and court approvals, Lifeplan and
Australian Unity have recently merged to form an
even stronger mutual organisation.
The merger will combine our investment bond
businesses to reinforce our position as the market
leader in this specialist area, and further
strengthen and broaden our expertise in managing our
bond products and education savings plans.
While Lifeplan members at 31 August 2009 have become
members of Australian Unity, the Lifeplan name, and
most importantly our focus on providing you with the
best investment products and service, remains the
same.
For more information about the merger,
click here to download a Merger Summary
brochure.
From now a signed copy of
the acknowledgement slip at the back of
the Supplementary PDS or DD must
accompany application forms for Lifeplan
Products otherwise your application can
not be processed.
About
Lifeplan
Lifeplan aim to provide their investors with simple
and flexible solutions to their investment needs.
With over $1.6 billion in funds under management,
Lifeplan has a long history of offering investments
with competitive returns and unique tax and estate
planning features to Australian investors. As a
specialist fund manager, Lifeplan has grown to
become one of Australia’s leading providers of tax
effective investment bonds, education savings plans
and funeral bonds.
•
A simple and tax smart way
to invest for a child’s education.
•
Access to 16 investment options from 5 of
Australia’s leading investment managers.
•
Ready access to your
funds, including tax free access to your
contributions.
•
Special estate planning
features.
Investment options
The Lifeplan Education Investment Fund offers a
wide variety of diversified investment options
to
suit your own goals and investment timeframe.
AMP Capital
AMP Capital Conservative
Option
AMP Capital Balanced Growth Option
AMP Capital Sustainable Share Option
BT
BT Enhanced Cash Option
BT Conservative Outlook Option
BT Active Balanced Option
BT Future Goals Option
ING
ING Capital Stable Option
ING Managed Growth Option
ING High Growth Option
Lifeplan is the issuer of the Lifeplan Education
Investment Fund and has appointed the investment
managers to manage the various options in the Fund.
For more information on the managers, the various
investment options and the risks of investing,
please refer to the Product Disclosure Statement.
The fund offers
special tax advantages, estate planning features and
a wide range of investment choices. A financial
adviser can assess your personal circumstances
and help you design an investment strategy to
achieve your objectives.
Why invest in the Lifeplan Education Investment Fund?
Being prepared
A quality education not only opens
young eyes to a world of exciting
possibilities, it brings those possibilities within
reach.
Today, with costs on the rise and
formal education now spanning an increasing number of years, how can you
adequately prepare for what could end up being
a considerable financial demand on
your family?
What is the Lifeplan Education Investment Fund?
The Lifeplan Education Investment
Fund is a specially designed savings and
investment product to help fund the education
expenses of your children or grandchildren.
The Fund can be used for a lifetime of
education – primary (including pre-school),
secondary and a wide range of tertiary
(including TAFE) and special needs education.
It offers a valuable combination of
simplicity, flexibility and security, with
special tax benefits and professional investment management.
The benefits of investing in the Lifeplan Education Investment Fund
•
Start with as little as $1,000.
•
Provides access to 16 investment portfolios
investing across a range of asset classes.
•
Professional investment management from 5
leading investment managers.
•
Can significantly reduce the tax you’d
normally incur on investment earnings.
•
Can be established by parents, grandparents, godparents, uncles, aunts – basically any person who wants to contribute towards the education of
someone they care for.
•
Provide a child or grandchild with a helping
hand at the start of their adult life.
•
There is no age restriction on the person
you wish to start a fund for.
•
Access to your money.
The Lifeplan Education Investment Fund at a glance
Covers a broad range of
education
•
The Fund covers primary, secondary
and a wide range of tertiary
education.
•
Tertiary education includes all
full-time and part-time post
secondary education and training
provided by accredited organisations
in Australia and overseas.
•
The Fund covers education programs
for children with physical,
intellectual or learning
disabilities.
Covers a wide range of
education related expenses
Expenses include:
•
Uniforms, tuition fees (including
course related private tuition),
books, materials, student union fees
and travel expenses to and from the
school or course provider.
•
Living allowance – students living
away from home can withdraw an
education benefit of up to $5,000
(reviewed annually) per calendar
year to meet general living
expenses. No proof of expenditure is
required.
•
Education related residential
boarding costs, rent and other
accommodation expenses in excess of
the living allowance.
Tax advantages
•
The Fund operates as a ‘scholarship
plan’ under Australian tax laws,
which allows certain tax advantages
not generally available in other
savings and investment products.
•
While your investment remains within
the Fund, there are no Fund related
annual tax return obligations for
you or your nominated student.
Tax-free easy access to your
contributions
Your contributions are
easily accessible and can be withdrawn tax
free.
EasyClaim withdrawal
EasyClaim makes claiming
education expenses easy and flexible for
you.
Estate planning
•
You can nominate a guardian to look
after your plan arrangements so that
your original wishes are carried out
in the event of your death or
intellectual disability.
•
You can arrange to pass your plan
investment to nominated
beneficiaries or to your estate in
the event your nominated student
dies after your death.
Investment options
The Lifeplan Education
Investment Fund gives you access to 16
investment options managed by 5 of
Australia’s leading investment managers.
Unit prices
Calculated daily for each
investment option.
Switching advantages
You can switch between
investment options with no personal tax
impact.
Maximum contribution
Currently $350,000 (reviewed
annually) per student or child. Lifeplan may
increase this limit from time to time.
Minimum initial
contribution
$1,000
Minimum additional
contribution
$500
Regular Savings Plan
(optional)
Minimum monthly contribution
of $100
Minimum withdrawal
$500
Current fees and costs
Contribution
fee
Up to 4%, as agreed between you and your
financial adviser. However,
100PercentInvesting will rebate 3%.
Management fee
Ranges from 1.36% to 2.15%
pa (varies between investment options).
Investing transaction cost
0.00% to 0.50% per
investment or switch (varies between
investment options).
Adviser service fee
Nil
Switching service fee
Nil
Cooling off period
14 days.
This table is a summary
only. It is important that you read the
Product Disclosure Statement before making a
decision on this investment. Nothing on this
website should be taken as personal advice
and Lifeplan recommends you seek the advice
of a qualified financial adviser. Before
acquiring or deciding to hold the Lifeplan
Education Investment Fund you should
download and read the Product Disclosure
Statement above and
consider whether the product is appropriate
for you.
Did you know? Facts about the cost of education.
►
Over the past
decade, the number of students
attending Australian private schools
has grown by more than 22%. Source: The Age, 24 July 2006
►
Over the last 2
decades, only inflation of tobacco
and medical services costs have
outpaced education costs. Source: ABS
►
Australian
university students are expected to
owe the nation nearly $19 billion by
2008. Source: Courier Mail, 13
September 2006
►
More than 50
full-fee undergraduate degrees cost
at least $100,000, while a few –
such as medicine at the University
of Melbourne – cost $210,000. Source: Sydney Morning Herald, 22
April 2005
►
Of the schools that
participated in a Sun Herald survey,
more than 50% were raising fees by
at least 7% in 2008. Source: Sun Herald, 9 December
2007
►
It’s not unusual to
pay up to $25,000 per year for a
child’s secondary education. Source: Sunday Times, 13 January
2008
►
In 2005, there was a
10% rise in enrolments at 31 private
colleges and universities. This was
attributed to the extension of
Fee-Help to the private sector. Source: Sydney Morning Herald, 22
April 2005
►
Full-fee university
courses can cost $50,000 or more
before the cost of living and
incidentals, such as books and
computers, are taken into account. Source: Financial Review, 20
August 2007
►
The government’s
baby bonus rises to $5,000 on 1 July
2008. $5,000 invested at birth,
assuming compound interest p.a. @
8%, could be worth $12,590.85 by the
time a child turns 12. Source: Lifeplan
►
Enrolments into
full-fee domestic university
positions in 2003 were 7,800. In
2006 that leapt to 30,200. This
means more Australians are paying
for their child or grandchild to do
the course of their choice at the
university of their choice. Source: Australian Financial Review,
20 August 2007
►
In little over a
decade, about US$105 billion has
been invested in "529 Plans"
(America’s tax-advantaged education
savings plan) in more than 9.3
million accounts, with most of those
funds flowing in over recent years. Source: CSPN data as at 31
December 2006
►
By 2011, funds in
"529 Plans" will nearly triple to
more than US$257 billion. Source: Financial
ResearchCorp/USA Today, 12 February
2007
►
At the present rate
of student fees, the average male
student will be 33.8 years old by
the time they have paid off their
student debt. Source: AMP
►
At the present rate
of student fees, the average female
student will be 39.3 years old by
the time they have paid off their
student debt. Source: AMP
►
The average male
student debt takes 14 years to
repay. Source: AMP
►
The average female
student debt takes 28 years to
repay. Source: AMP
►
Between 1982 and
2003, inflation increased on average
by 4.4% annually, whereas the cost
of education grew overall on average
by 7.8% annually. Source: ABS
►
Graduates of higher
education earn substantially more
than upper secondary and post
secondary non-tertiary graduates. Source: OECD
►
Based on the current CPI secondary
education figure of 4.1% (Jan 2008),
average private school fees in year
12 would be $36,766 for a child born
today.
►
The average cost
parents expect to pay to privately
educate their child through primary
and secondary school is $152,000. Source: ‘Saving for the education
of children survey’ Commonwealth
Bank 2006
►
55% of parents
heavily underestimate the costs of
educating their child. Source: ‘Saving for the education
of children survey’ Commonwealth
Bank 2006
►
Education can be the
second largest expenditure next to a
mortgage. Source: ‘Saving for the education
of children survey’ Commonwealth
Bank 2006
►
Australia’s total
public and private expenditure on
education as a proportion of GDP –
5.8% – is lower than the US, Canada
and the UK. Source: ABS, Government Finance
Statistics, ‘A note on the rising
cost of education’(2005) A
Valdakhani
►
In all OECD member countries, the
average earnings premium associated
with tertiary, compared to upper
secondary education, is more than
25% and in some is more than 100%. Source: OECD Education at a
Glance report, 2007
Investing for a child’s
education: The myths about education savings
plans
Are you missing an opportunity?
Australian Tax Act changes in 2003
officially sanctioned ‘scholarship plans’
which assist parents who want to save for
their kids’ education. By mistaking older
scholarship products for the new breed of
education investment funds, are you missing
an opportunity?
Myth – Old fashioned. No!
Some education savings plans have been
around for a number of years and do not
offer modern investment options and
features. The Lifeplan Education Investment
Fund has been designed and built to meet the
standards expected by contemporary investors
and their advisers. The Lifeplan Education
Investment Fund offers flexibility,
attractive features, competitive fees and a
range of professionally managed investment
funds from some of the most respected names
in funds management: AMP, BT, ING, MLC and
Perpetual. It has a ‘recommended’ rating by
Aegis and has been approved by some major
dealer groups.
Myth – Restrictive. No!
There are no age restrictions like some
other education plans and the one investment
plan can be used for a wide range of
education expenses over a lifetime of
education. Investors can put a maximum of
$350,000 per child into the Lifeplan
Education Investment Fund and the earnings
and growth on the value of the investment is
not limited.
Myth – Inflexible. No!
If an investor’s circumstances change, the
nominated student can change with no fees or
taxing event. This simple feature is
important because it counters the
proposition that special trusts, which can
be costly to set up and administer, give
more flexibility and control than education
funds. The Lifeplan Education Savings Plan
can even outlive its investors - the unique
“plan guardian” feature provides for a
specified person to operate the funds
following the death of the original
investors.
Myth – Forfeit earnings. No!
Some education plans may penalise investors
through forfeiture of earnings if the funds
are not used for education expenses or even
specific types of courses. For example, if
the investor’s circumstances change and they
need to use the funds for non-education
expenses, the design of the Lifeplan
Education Investment Fund means that the
investor will not be able to gain access to
the education tax benefit. The investor
still gets all the contributions and tax
paid earnings, with the tax treatment on
earnings that of an insurance bond. That is,
earnings are returned to the investor with
tax already paid at a maximum of 30% with no
forfeiture of earnings and no penalty fees.
Myth – High penalties. No!
The Lifeplan Education Investment Fund has
no exit fees or penalties, irrespective of
whether funds are used for education or
other purposes that are not education
related (apart from the reduction in the tax
benefit as mentioned above). An important
feature that distinguishes the Lifeplan
Education Investment Fund is that
contributions are always available, for any
purpose, for tax-free withdrawal. This is a
flexibility feature allowing for changing
circumstances although an investor’s primary
purpose should be using the Lifeplan
Education Investment Fund for education
expenses.
Myth – Rebranded Insurance Bonds. No!
The Lifeplan Education Investment Fund is
built on the well established insurance bond
structure. It is different in that the tax
benefits are further enhanced for education
related expenses. In effect a bigger tax
saving can be achieved because the usual tax
paid (at a maximum rate of 30%) for an
insurance bond is claimed back from the ATO
and is included in the education withdrawal
proceeds paid to the student. Also,
contributions are not restricted by the
insurance bond ‘125% rule’, giving even more
flexibility in how contributions are made.
The investment bond tax treatment only
applies to earnings withdrawn for
non-education expenses (not to
contributions). Furthermore, investors have
the option of making tax-free withdrawals
from accrued contributions only, giving them
even greater capacity to manage tax affairs
efficiently.
Myth – High commissions and hidden fees. No!
The Lifeplan Education Investment Fund has a
fee and commission structure that is similar
to other types of investment products such
as managed funds and superannuation. All
fees and commissions are disclosed in
accordance with strict disclosure laws in
the PDS. Any commissions payable are
negotiable with the financial planner and
are rebateable to the client. It can be used
by both commission based and fee-for-service
practices.
Myth – Large lump sums are required to
start. No!
The Lifeplan Education Investment Fund does
not need a large lump sum to get started.
Investors can start with as little as
$1,000.
Myth – Locked into contributions. No!
Investors are not forced into a regular
contribution plan with the Lifeplan
Education Investment Fund. Contributions can
be stopped and started to suit investors’
circumstances. Investors can even use the
flexibility of BPAY® to make ad hoc
contributions as their finances permit.
Myth – Closed down by the Australian Tax
Office. No!
From time to time the ATO has closed down
schemes promoted as education investment
products with tax benefits. It is important
to distinguish Lifeplan’s products from
these schemes and also to note that the
Lifeplan Education Investment Fund is
classified as a ‘scholarship plan’ in
accordance with the Income Tax Assessment
Act 1997. Amendments to this Act were passed
in 2003 giving a legislative basis to
Friendly Society’s operating such products.
The Lifeplan Education Investment Fund is
operated under the oversight of the
regulatory agencies ASIC and APRA and
Lifeplan is required to abide by their rules
and regulations.
Lifeplan Funds Management is a business
name of Lifeplan Australia Friendly Society
Limited
ABN 78 087 649 492 AFS Licence 237989 (Lifeplan)
Registered Office: 111 Gawler Place Adelaide
SA 5000
Victorian Office: Level 9, 520 Collins
Street Melbourne VIC 3000
Telephone: 1300 133 285 Facsimile: (08) 8212
2790
Email:
enquiries@lifeplan.com.au Website:
lifeplan.com.au
Simply download an Investment
Brochure/PDS above. It’s that easy!
