Tax tool
Education bond
Fund education with the Education Tax Benefit.
Models an education (investment) bond: earnings taxed internally at 30.00%, the 125% contribution rule that keeps the tax-paid clock running, and the Education Tax Benefit gross-up when earnings are drawn for a child's education.
The comparison that matters is against an ordinary taxed portfolio in the parent's name, and the tool puts the two side by side over the savings horizon.
What you see on screen
In the app this chart is live: every assumption is on screen, editable, and the projection moves as you change it.
Key inputs
- Starting contribution and ongoing contributions
- Expected return and fees
- Years until drawdown and the education spend profile
- Parent's marginal tax rate for the comparison
What it reports
- Projected bond value year by year under the 125% rule
- The Education Tax Benefit recovered on education withdrawals
- The same savings pattern in a taxed portfolio
- Which structure wins for this family, and by how much
Insights it surfaces
Alongside the numbers, the tool writes plain-language findings you can carry straight into the conversation. Example wording, from sample figures:
For a parent on a 39.00% marginal rate, the bond is projected to fund $138,000 of school fees versus $126,500 from the taxed portfolio, an advantage of $11,500.
Breaching the 125% contribution rule in year 6 would restart the ten year tax-paid period.
Every tool, every time
Rates and thresholds come from the verified Australian rate set for the selected financial year. Every run can be saved as a scenario against the client, exported as a client-ready PDF or an Excel workbook with live formulas, and carried into an SOA or ROA. A methodology and audit PDF documents the calculation, and every output carries the compliance block.