Superannuation has long been seen as a powerful way to grow wealth. In fact, Generation Life research shows that 1 in 3 Australians believe super is the best way to optimise wealth and leave a legacy.1 But when it comes to transferring that wealth, it’s not always the most effective option.
With more than 80% of inheritances going to individuals aged 50 and over,2 the superannuation death benefit tax which can be 17% (including Medicare levy) or more for non-dependants, is a likely scenario that can significantly erode wealth. For many adult beneficiaries, this can be unexpected and overwhelming at an already emotional time. The same goes for property, you may think you’re inheriting a free house, but capital gains tax could hit you with a large tax bill.
As the great wealth transfer is well underway with $5.4 trillion set to change hands from baby boomers in 20 years,3 and further tax reforms like Division 296 and potential changes to capital gains tax discount and family trust taxation on the horizon, more Australians are asking: Is their wealth still in the right place to grow and transfer tax-effectively?
Reimagine how your clients pass on wealth
As Australia’s regulatory landscape continues to evolve, advisers and clients are proactively reassessing their long-term strategies.
“Many HNWIs are now revisiting their strategies. The landscape is changing, and there’s a clear need for adaptable investment structures,”
Felipe Araujo
Chief Executive Officer at Generation Life
Investment bonds offer a smarter, flexible and tax-effective solution to transfer wealth with clarity, control and certainty.
Key estate planning benefits of investment bonds include:
- No super death benefit tax – proceeds are paid tax-free, regardless of who is the beneficiary
- Bypass the estate – can avoid probate delays, disputes and challenges to the will
- Direct beneficiary nominations – control who gets what, when and how
- Tax-effective growth – long-term effective tax rates can be as low as 10–15% p.a. with Generation Life’s tax-optimised options4
With uncertainty around laws that may apply to the financial landscape, financial advisers are increasingly turning to investment bonds to build and protect their clients’ legacy.
To learn more about how Generation Life’s award-winning investment bonds can help Australians build, protect and pass on their legacy with confidence, click here.
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Generation Life Reimagining Legacy 2023
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Grattan Institute, The story of inheritances in Australia – and why it needs to change https://grattan.edu.au/news/the-story-of-inheritances-in-australia-and-why-it-needs-to-change/, 20 August 2019 accessed 1 August 2025
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JBWere Australia, Family Advisory and Philanthropic Services, The Bequest Report – Reshaping Australia by passing on more than assets July 2024, accessed 20 March 2025
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Estimated average tax rates being the estimated average annual tax as a percentage of earnings for each 12-month period over a period of 15 years. Actual tax amounts payable are not guaranteed and may vary from year to year based on, amongst other things, the earnings of an investment option.
Disclaimer: Generation Life Limited AFSL 225408 ABN 68 092 843 902 (Generation Life) is the product issuer. This information is provided for the use of licensed financial advisers and is not intended for any public or general distribution whatsoever. Professional financial advice is recommended. The information is general in nature and does not consider the investment objectives, financial situation or needs of any person. Generation Life excludes, to the maximum extent permitted by law, any liability (including negligence) that might arise from this information or any reliance on it. Past performance is not an indication of future performance. The product’s Product Disclosure Statement (PDS) and Target Market Determination are available at http://genlife.com.au and should be considered in deciding whether to acquire, hold or dispose of the product. Investment bonds are considered more certain because they are governed by legislation that has changed infrequently. Factual information only is provided, not intended to imply any recommendation or opinion about superannuation products or superannuation investments.
