Features & benefits
Centuria LifeGoals is designed for investors seeking a tax effective investment over the medium to long term.
Centuria LifeGoals incorporates tax planning and estate planning needs in one simple and flexible investment.
It can support a wide range of investment strategies to help you meet future life events with confidence – whether they are wealth creation, estate planning, supplementing superannuation or funding any other life goal.
The key benefits of investment bonds are summarised below.
It is easy to set up your investment and a regular savings plan via our online application form.
Plus you don't have to declare earnings from your investment in your annual tax return or keep any ongoing tax records while your investment is held. We will send you annual reports and regular confirmations to keep you updated on your investment.
You can access your investment at any time, subject to possible delays in extreme circumstances (such as closure of a securities market) and any tax consequences if you withdraw before 10 years.
This compares with super where you have to reach your preservation age before you can withdraw any funds.
Choose from a range of quality investment options, from specialist low cost index funds to high quality actively managed funds selected by Centuria Life. You can invest in one or more investment options.
You can also switch between investment options free of charge and there is no personal tax (including capital gains tax) on switching.
Centuria Life pays tax on the investment earnings at the life insurance business tax rate of 30%, less any applicable tax offsets and deductions. There is no additional tax payable on withdrawals if you hold the investment for 10 years or more if the 125% rule is met.
Tax offset on withdrawals within 10 years
If you make a withdrawal within the first 10 years of your investment, you will normally pay tax on the amount withdrawn but you will receive a 30% tax offset (for the tax already paid by Centuria Life). However, no additional tax may be payable if a withdrawal is made in exceptional circumstances including death, accident, illness or other disability affecting the Life Insured – whether made within or after 10 years.
Unlimited contributions in year one
You can make unlimited contributions to an investment option during the first year after you make your first investment, unlike superannuation which has annual contribution cap limits.
In subsequent years, the 125% rule allows you to contribute up to 125% of the previous year’s contribution without resetting the 10-year original investment date for calculating the 10-year period for tax purposes.
Regular investment plan
Additional investments into your investment option/s can be automatically debited from your bank account by setting up a regular investment plan.
Regular withdrawal plan
You can elect to withdraw a set amount from your Investment Option each month. After 10 years, and subject to the 125% rule, you will not be taxed on these withdrawals.
Transfer of ownership & named beneficiary
You can transfer ownership of your Centuria LifeGoals investment at any time without tax implications if the transfer is made for no consideration. The original start date is retained for tax purposes.
This process is not as easy within a company structure as tax liabilities may be created.
Investment bonds may offer protection from creditors in the case of bankruptcy (subject to certain rules), which may not be possible through a company structure.
Estate planning flexibility
You can select a person (Life Insured) upon whose death your investment will mature and become payable. If you do not select a Life Insured, you will be taken to be the Life Insured. If you are both the Investor and the Life Insured you can nominate one or more beneficiaries (Nominated Beneficiaries) who will receive the proceeds from your Centuria LifeGoals tax paid investment in the event of your death.
This flexibility may reduce the risk of disputes over estates and enable the benefits to be paid more quickly.
39 year heritage
Centuria Life was established in 1980 and is part of the Centuria Capital Group (which is listed on the Australian Stock Exchange ASX: CNI). Centuria Life and Centuria LifeGoals are regulated by the Australian Prudential Regulation Authority (APRA) under the Life Insurance Act.