Education Savings Plan

 

Your children’s education is important, but the lifetime costs of that education can also be significant. That’s why it’s important to be steadily saving and investing for their education as they grow. If you start contributing today while they’re still little, you won’t be hit hard when they enter those expensive high school and tertiary years.

 

The Education Savings Plan is a professionally managed fund that can provide for your children throughout their entire education. A range of investment choices means that you can choose between conservative and high-growth options, depending on your comfort levels and children’s savings needs.

 

The Education Savings Plan offers a number of benefits over other savings plans, including unique tax benefits.

 

 

• Important information
  Education Savings Plan (the Plan) is issued and administered by Lifeplan Australia Friendly Society Limited ABN 78 087 649 492 AFSL 237989 (Lifeplan). The Commonwealth Bank of Australia markets and distributes the Plan but the Commonwealth Bank and its subsidiaries to not guarantee the Plan or any rights or obligations in respect of the Plan and are not issuing or underwriting the Plan. Lifeplan and the Commonwealth Bank and its subsidiaries do not guarantee the performance of any of the Plan's investment options or the repayment of contributions and investment returns by the Plan. Investments in the Plan are not deposits or other liabilities of the Commonwealth Bank or its subsidiaries and investment-type products are subject to investment risk, including possible delays in repayment and loss of investment returns and contributions invested. A Product Disclosure Statement (PDS) (PDF 1MB) for the Plan is available here or at any branch of the Commonwealth Bank. You should consider the PDS in making any decision about this product. For a student under 18 there will normally be no tax payable as long as the sum of eligible education expenses withdrawn, plus investment income (from any source), is less than $3,000. If you wanted to take out more than this for education expenses for the nominated student, the first $3,000 comes from investment earnings (which isn't charged tax provided the student has no other assessable investment income for the year). The remaining balance comes from capital on which no tax is payable either. When the nominated student turns 18 there is normally no tax liability, as long as the sum of the education expense reimbursements, together with the student's employment and investment income from all sources, falls below $15,000 in a financial year The information provided on each investment option is a suggested guide only and is not intended as investment advice. Please refer to the Product Disclosure Statement (PDF 1MB) and your investment advisor for more information.