Education Plans

Announcement

 We have temporarily withdrawn the Product Disclosure Statement for the Sprout Education Investment Plan from circulation and have suspended all new applications. This is due to 2011 Federal Budget changes that will have a material impact on the way in which students under the age of 18 are taxed from 1 July 2011. An amended PDS will be uploaded in due course.

As part of the 2011 Federal Budget it was proposed that the Low Income Tax Offset be removed for minors (under 18 years of age). The intention of this change stated by the Government was to prevent high income earners from allocating a portion of their income to minors through family trusts, however, in putting forward this change, the government did not consider the impact on Scholarship Plans – of which Sprout is one.

The change will reduce the ability to withdraw investment earnings tax free for a student under the age of 18 – from the current $3,333 per year – down to $416 per year.
The Low Income Tax offset remains unchanged for those students over the age of 18.

The Tax Laws Amendment Bill that brings about the change has now passed both the House of Representatives (on 31 May 2011) and the Senate (on 15 June 2011) and is now awaiting Royal Assent.

The Friendly Society Industry has been working hard to alert the Government to the unintended consequence of this budget initiative and the Industry has made a submission for an exemption for Scholarship Plans in respect of this change. As we have not yet received any indication from the Government on whether Friendly Societies will be exempted, and the legislation has passed Senate unamended, we have determined to withdraw the PDS until the position is clearer.
All existing investors will be provided with a separate detailed update on the change and our Industry efforts to have this matter resolved.

Centuria Education Plans*

The Centuria Education Plan is an investment plan that enables parents and family members start saving for the future education expenses of a child.

Designed specifically to help you prepare for the cost of education, your investment is tax effective and attracts tax credits when investment income is used to meet a wide range of approved education expenses.

There are several advantages of saving for the education of a child using the Centuria Education Plan.

Available to pay for a wide range of Approved Educated Expenses.

The Approved Courses include:

• Pre-school, primary and secondary school courses;
• Tertiary and higher education courses including those offered by TAFEs, universities and registered training organisations;
• Adult and community education courses;
• and Special education courses for people with disabilities or learning problems.

The Approved Education Expenses must be directly related to and incurred in relation to the enrolment and study in the course. Approved Education Expenses include approved education course-related payments to meet:

• HECS and HELP debts;
• Course/school fees;
• Uniforms, books and equipment;
• Education related accommodation costs for students living away from home;
• Home computer and Internet costs;
• Public transport to and from the education institution;
• Sporting equipment; and
• Musical instruments.

*Please note we have changed the name of the Sprout Education Investment Plan to Centuria Education Plan.