From www.smsfadviser.com: Superannuation funds are increasingly turning to investment bonds as an alternative strategy to mitigate the impact of proposed Division 296 tax and superannuation death benefits tax, according to Felipe Araujo, CEO of Generation Life.

Investment bonds are appealing for high-net-worth individuals due to their tax advantages, flexibility, and absence of contribution limits, with significant growth in funds under management noted since the announcement of the tax changes.

These bonds effectively address wealth accumulation and transfer while remaining unaffected by superannuation reforms.