In this second instalment of a conversation on investment bonds, Sovereign Advisors Principal Advisor Zaheer Lalani and Head of Centura Life Michael Blake discuss how these structures compare with family trusts and superannuation. They unpack the tax treatment of trusts, the limits of distributing income to children or partners, and how investment bonds can operate within a trust to defer distributions when family members are in higher tax brackets. They also explain why diversifying across structures — super, family trusts, and investment bonds — can reduce legislative and taxation risk as governments continue to review the rules around wealth management.
The discussion then explores how proposed Division 296 changes could reshape the super landscape, introducing taxes on unrealised gains for balances above $3 million. This may push many retirees to reconsider where they hold their wealth, and how investment bonds can provide a tax-efficient, flexible option for long-term estate planning — without the uncertainty now facing superannuation.
