Education Savings Plan

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Press Releases

For Media Enquiries, contact:
Brian Mahoney
Financial and Corporate Relations
Telephone: 02 9235 1002
Mobile: 0413 437 627
Email: b.mahoney@fcr.com.au

Company News

The following are press releases issued by Lifeplan Funds Management with regard to their Education Savings Plan, a savings and investment vehicle that is purpose-built for parents, grandparents or significant people in your life to save towards the education of children.

• Lifeplan's Education Savings Plans not linked to Australian Tax Office warning, 15 June, 2007
• Australian Education Costs Increasing Faster than Inflation, 24 January, 2007
• Revolutionary Education Savings Plan Eases Rising School Boarding Costs, September 2004
• Educating the Future Can Offer Benefits for Those Who Save, July 2004
• Using a Scholarship Plan, by Paul Clitheroe, June 2004
• Federal Budget "Bonuses" Ideal To Help Ease Rising Schooling Costs, May 2004
• Ads that Let the Customers Do the Talking! October 2003
• Lifeplan Launches Revolutionary Education Savings Plan, 12 October 2003
• Special Tax Benefits for Education Plans Now Law, April 2003
• Lifeplan Spots Gap in Education Savings Market, December 2002

Lifeplan's Education Savings Plans not linked to Australian Tax Office warning

One of Australia's leading providers of education savings plans today announced an Australian Tax Office warning on specific "scholarship trusts and education funding programs" did not affect its products in any way.

Lifeplan Funds Management said today its popular Education Savings Plans were not one of the financial schemes identified by the ATO.

The Australian Tax Office yesterday warned taxpayers to be cautious of particular "education and scholarship trusts" for students, which offered tax free deductions.

"It is very clear that our Education Savings Plans investment product is in no way associated with the warning issued by the Australian Tax Office," Lifeplan General Manager Strategic Development, Mr Matt Walsh, said today.

"On the contrary, a Lifeplan Education Saving Plan remains one of the most effective ways to save for a child's education, with the added advantage of offering tax benefits for any interest earned," he said.

"Anyone with one of our Plans who has any concerns about the ATO ruling is urged to contact one of our consultants on 1300 1300 38."

About Lifeplan's Education Savings Plan

Lifeplan Funds Management announced earlier this year that total investments in its Education Savings Plans had topped $25 million.

Key elements of the Plan include:

- it can be utilised for a lifetime of education - from early primary school to tertiary education.

- the investor decides where the money is spent - school fees, uniform costs, music tuition, boarding expenses, TAFE courses, etc

- tax benefits for interest earned.

- the Plan is open to parents, grandparents, guardians or anyone else who wishes to commit to a child's education costs.

"An Education Savings Plan is a sensible way of saving for a child's education because of the flexibility and benefits it offers both parents and students based on their individual needs.

"We believe this is why they are being embraced by mums and dads, grandmothers and grandfathers, and many other people, across Australia."

Australian Education Costs Increasing Faster than Inflation, 24 January, 2007

The cost of education in Australia is increasing faster than the rate of inflation, new figures released today have revealed.

The revelation has prompted one of Australia's leading providers of education savings plans to warn parents that the outlook was even gloomier in terms of the cost of going to school.

Official figures by the Australian Bureau of Statistics - and analysed by Lifeplan Funds Management - were unveiled on the eve of the start of the 2007 Australian school year, which starts next week.

And they follow reports earlier this month that private school fees across the country have increased by up to 10 per cent this year, with some private school fees now topping $20,000 per annum.

The ABS figures reveal
- the Consumer Price Index (CPI) increased 3.3% in the year ending December 2006, compared with the education component of the CPI which rose 4.8% in the same period.

- pre-school and primary education costs rose by 6.6%, secondary education by 6.9%, and tertiary education costs by 2.4% through the year ending December 2006.

- the Education component of the CPI at 4.8% is the third highest percentage hike in the past 12 month period, only behind the index groups of Food (8.6% increase) and Health (5.3% rise),

- in the year ending December 2006, the education increase was 1.6% greater than the rise in the cost of housing (3.2%).

"These new figures are a stark reminder to parents - and indeed anyone who pays for a person's education - about the very real costs associated with educating a child, and the need to save for that education," Lifeplan Funds Management General Manager Strategic Development, Matt Walsh
"It is a daunting reality that paying for education is not only one of the most expensive outlays for families, but also one that in the current economic climate is increasing significantly every year," he said.

"Never before has it been more crucial to set aside money on a regular basis to help absorb some of these spiralling costs.

"And whether your child/grandchild is in university, high school, or hasn't even started primary school yet - it's never too late to begin an education savings plan."

Mr Walsh said many Australian families faced gruelling financial hardships this year as they confronted rising education costs, record levels of credit card debt, rising energy bills - especially petrol and the likelihood of another interest rate rise.

"Educating our children is one of the largest and most important investments we will ever make, behind the family home. In today's money, those costs can be in excess of hundreds of thousands of dollars for a private education and university degree," Mr Walsh said.

"As school fees continue to increase - both in the private and public systems - we believe more people will embrace education savings plans and we are seeing increasing enquiries every month," he said.

"They are a sensible way of saving for a child's education because of the flexibility and benefits it offers both parents and students based on their individual needs."

Lifeplan's Education Savings Plan was the first of its type to be introduced in Australia after new taxation laws came into force four years ago, which allowed tax benefits for saving plans designed exclusively for children's education needs.

Revolutionary Education Savings Plan Eases Rising School Boarding Costs
September 2004

Hundreds of parents in regional South Australia are making significant personal financial sacrifices to send their children to boarding schools.

With some boarding fees in SA costing more than $10,000 a year per child, on top of normal school fees, country-based families may be confronted with fees of over $25,000 per annum per student to send their children to some private schools in Adelaide.

To help reduce the financial burden of education costs, leading Australian niche funds management group, Adelaide-based Lifeplan, has designed a revolutionary education savings plan.

The Lifeplan Education Savings Plan - introduced in October last year – is the first of its type to be introduced in Australia since new taxation laws came into force in April 2003.

The new laws allow tax benefits for saving plans designed exclusively for children’s education needs.

Key elements of the Lifeplan Education Savings Plan include:

• The investor decides where the money is spent – boarding expenses, school fees, uniform costs, etc
• It can be utilised for a lifetime of education - from early primary school to tertiary education.
• Tax benefits for interest earned.
• Capital guaranteed.
• No entry or exit fees.
• The Plan is open to parents, grandparents, guardians or anyone else who wishes to commit to a child’s education costs

“Education is one of the greatest gifts a child can receive,” Lifeplan Managing Director, Mr Chris Wright, said.

“It provides an ideal foundation to ensure a child is given every opportunity to reach his/her full potential in life,” he said

“However for many of us, educating our children can be the biggest investment of our lives, behind the family home.

“It is a well-known fact that many parents in regional South Australia make significant personal financial sacrifices to send their children to boarding schools in the city to assist in their education.

“Whether it be for a child’s primary, secondary or tertiary education years, the impost to most families of boarding fees is substantial.

“This Plan is a purpose-built education savings and investment initiative specifically designed to reduce the increasing financial hardships of educating a child.

“It has the ability to be tailor-made to suit whoever takes out a Plan – whether it be for their own children, their grandchildren, or children they have a particularly close relationship with, like a Godchild.”

Mr Wright said the tax benefits available to investors were a significant advantage of the Plan.

“This is a smart way of maximising to save for a child’s education because people are able to reduce the tax they have to pay,” he said.

Using 2003 costings, Lifeplan’s research has calculated that educating a child can cost up to $190,000 for a full-time private education including a University degree – excluding boarding fees.

At current rates, the addition of boarding fees for a child’s five-year secondary education would add more than $50,000 to the total cost.

Mr Wright said the Plan could be started with as little as $50 a month.

“There is nothing currently in Australia that compares with the Plan – nothing has the simplicity, flexibility and security that we have designed,” Mr Wright said.

“We all want the best for our children – and that includes the best education we can provide.

“The Lifeplan Education Savings Plan will assist many parents and grandparents in obtaining this goal.

“Like any investment strategy, the earlier a Lifeplan Education Savings Plan is started, the better the long-term results.

“The Federal Government’s recently announced $3000 ‘baby bonus’ represent an ideal opportunity for many families to commit to their child’s future education needs by taking out a Lifeplan Education Savings Plan.”

Adelaide-based Lifeplan Funds Management is one of Australia’s largest niche funds management groups, with more than $1 billion under management.

More information is available at the Lifeplan Website on www.lifeplan.com.au or by ringing 1300 1300 38.

Educating the Future Can Offer Benefits for Those Who Save
July 2004
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Using a Scholarship Plan, by Paul Clitheroe
June 2004
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Federal Budget "Bonuses" Ideal To Help Ease Rising Schooling Costs
May 2004

Tax and maternity payment windfalls announced as part of this year's Federal Budget could provide even longer-term benefits for many Australian families if directed towards the costs of educating a child, according to one of Australia's largest niche funds management groups.

Lifeplan Managing Director, Mr Chris Wright, said that while the immediate aim of the $3000 maternity payment to first time mothers was to help with the costs of having a baby, careful planning could see part of that payment used to ease the financial burden of a child's education.

He said the Lifeplan Education Savings Plan was the first of its type to be introduced in Australia to take advantage of new taxation laws which came into force in April last year, allowing tax benefits for saving plans designed exclusively for children’s education needs.

Key elements of the Plan include it can be utilised for a lifetime of education - from early primary school to tertiary education; the investor decides where the money is spent – school fees, uniform costs, etc; tax benefits for interest earned; the Plan is capital guaranteed; there are no entry or exit fees, and the Plan is open to parents, grandparents, guardians or anyone else who wishes to commit to a child’s education costs.

"Many Australian families are about to receive extra income through weekly tax cuts, and/or a $3000 lump sum maternity payment for first-time mothers, which increases to $5000 from July 2008," Mr Wright said.

"This is an ideal opportunity to direct some, or all, of this money towards investing in a child's education," he said.

“ For many of us, educating our children can be the biggest investment of our lives, behind the family home.

" Our research has found that those costs can be up to $190,000 for a full-time private education, including a University degree.

“The Education Savings Plan is a smart way of maximising to save for a child’s education because people are able to reduce the tax they have to pay.

“The Plan is a purpose-built education savings and investment initiative specifically designed to reduce the increasing financial hardships of educating a child.

“It has the ability to be tailor-made to suit whoever takes out a Plan – whether it be for their own children, their grandchildren, or children they have a particularly close relationship with, like a Godchild.”

The Lifeplan Education Savings Plan has been developed after extensive market research, including questioning parents and grandparents with school age children/grandchildren to gauge what they wanted in an education savings plan.

It can be started with as little as $11.55 per week, with contributions paid monthly.

“There is nothing currently in Australia that compares with the Plan – nothing has the simplicity, flexibility and security that we have designed,” Mr Wright said.

“We all want the best for our children – and that includes the best education we can provide," he said.

“The Lifeplan Education Savings Plan will assist many parents and grandparents in obtaining this goal.”

For more information, call Lifeplan on 1300 1300 38, or visit its website at www.lifeplan.com.au.

Ads that Let the Customers Do the Talking!
October 2003

You may have caught the new Lifeplan Education Savings Plan television ads. The first thing you’ll notice is that here is a company that lets its product stand up on its own merits, against the real issues of consumers! Not a bad tack to take in today’s over-hyped advertising market.

The ads originate from Lifeplan Funds Management, a specialist Australian-owned funds manager with over $1 Billion in funds under management, who has recently launched their revolutionary Education Savings Plan.

Lifeplan’s Managing Director, Mr Chris Wright, said "We expect parents, and grandparents, will be delighted when they take a closer look at our education savings plan. After all, we built it to directly address their concerns and needs that we discovered during our extensive research and development program."

"So when it came to advertising the product, it occurred to us - why not use real parents and real grandparents, not actors, talking about their real concerns around funding their children’s and grandchildren’s education, and simply show how our education savings plan answers these." Mr Wright added.

"So this is how we approached it, and from those real statements, unscripted and from the heart, the ads just then made themselves." Mr Wright said.

Mr Wright added, "It was a delight to see the strong values grandparents have around helping finance their grandkids’ educations. They have the benefit of a lifetime of experience to see the difference a good education can make, and they are worried about the demands modern life will have on their children and grandchildren. So we made a special ad using footage from grandparents because we need to get the message out that now there is a solution".

Lifeplan Launches Revolutionary Education Savings Plan
12 October 2003

Lifeplan Funds Management, an Australian-owned $1 Billion specialist funds manager and market leader in niche products in Australia, such as investment bonds and pre-paid funeral bonds, has today launched a specialised education savings and investment product, mainly for use by parents and grandparents.

Called the Lifeplan Education Savings Plan, the launch of this product culminates well over 12 months of research and development.

Mr Chris Wright, Lifeplan’s Managing Director said, "We are delighted to be bringing our revolutionary new Education Savings Plan to the market for the benefit of parents and grandparents Australia-wide."

"There is nothing quite like it on the market – not with the combination of simplicity, flexibility and security that we’ve put together." Mr Wright added.

"This product has been built from ground up, specifically with the customer in mind. We purposely set out to create a truly original product -- not just a modification of an existing financial product into education savings. We were especially conscious of not creating an old-style scholarship plan." Mr Wright stated.

"The parents and grandparents that were involved in our research groups said to us – give us a product for all types of education, with no age restrictions, no penalties, low fees, good returns but with a high degree of security, a tax benefit if possible, accessibility to funds if they are needed, allow for changes in our income and lifestyle, and above all, keep it simple." Mr Wright said.

"The Lifeplan team rallied behind this challenge, and now we’ve delivered on all fronts." Mr Wright added.

"I think that parents and grandparents are going to be pleasantly surprised when they take a look at our education savings plan. They won’t be used to seeing such a consumer friendly financial product, and for such a important purpose." Mr Wright said.

"Helping with the education of children has always identified with the Lifeplan ethos. Traditionally, our investment bond products have had strong demand in this area so we’ve been around education funding for a long time – but we saw the need to go much further and come up with something tailor-made with even better tax benefits." Mr Wright said.

Mr Wright added "With the advent of new tax legislation earlier this year, bringing in the tax benefit for families that save and invest for genuine education expenses, and building on our research and development work in this area, we pushed ahead and built the Lifeplan Education Savings Plan."

Mr Wright says the education savings market is a long-term proposition for Lifeplan "We’ve invested a lot of effort into this and are definitely in it for the long haul. We’ve been around for 163 years and we plan on being around for a long time yet. Our customer centred approach and our ability to carefully select specific investment products, then to focus on these over a long period of time has enabled us to build several market leadership positions in Australia," he said.

The Lifeplan Education Savings Plan is available directly from Lifeplan to the public. Lifeplan have an information kit, which can be obtained by calling them on 1300 1300 38, and a comprehensive web site which can also accept online applications – www.lifeplan.com.au/educationsavings.

Special Tax Benefits for Education Plans Now Law
April 2003

Lifeplan Funds Management, an Australian-owned $1 Billion specialist funds manager, has welcomed the passing of new tax laws giving special tax benefits to education savings plans offered by friendly societies.

Mr Wright, Lifeplan’s Managing Director, said "The new act giving special tax benefits for education savings plans - Taxation Laws Amendment Act (No 1) 2003 - received Royal Assent on 2 April 2003. It had earlier been passed by the House of Reps on 13 December 2002, and been passed by the Senate on 4 March 2003."

"We are delighted that the tax benefits are now law. This a huge win for Australian families, and we are pushing ahead with our plans to launch a revolutionary new savings and investment product that works within the framework of this tax law."

Mr Wright added "I think that Lifeplan is ideally suited to provide a solution for parents and grandparents to capitalise on this tax benefit."

Lifeplan Spots Gap in Education Savings Market
December 2002

Lifeplan Funds Management, an Australian-owned, $1 Billion specialist funds manager and market leader in niche products in Australia (such as investment bonds and funeral bonds), has commenced development of a specialised savings and investment product for the education savings market.

Lifeplan’s Managing Director, Chris Wright, said "There is a growing need for quality education funding products in Australia, and unfortunately for parents, the alternatives are pretty grim. There is clearly a gap in the market for a completely consumer-oriented product, that is tailor made for education savings."

"We have conducted focus group research with parents and identified the key concerns and drivers in this very important area. We now have some deep insights into exactly what parents are looking for." Mr Wright said.

Mr Wright added, "Following enquiries from our own customers, we have also conducted research into the grandparent market and have some interesting findings about their interests for a product which enables them to assist with the education of their grandchildren. There simply is not a complete solution for grandparents out there, and we intend to fix that – the mature investment consumer is a particular strength of ours and therefore a good fit."

"Lifeplan’s brand is oriented towards very consumer friendly investment solutions that are designed for lifestyle needs. We have a great track record in focusing on specific products and achieving market leadership in those niche markets, mainly by providing the most superior combination of product, service and performance tailored to the needs of the customer. We will be applying the same philosophies to the needs of parents and grandparents who wish to provide financially for their children’s and grandchildren’s education." Mr Wright added.

Lifeplan plans to launch a new product sometime after draft legislation is approved giving education savings plans offered by friendly societies special tax concessions.

Mr Wright said "We expect the tax concessions will be law in early 2003, and development of our product with the quality, features and online web support that we believe is needed, would see us launching around September/October 2003."

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