KeyInvest adds more Div296-friendly options to bond menu

Yasmine Raso

Senior Journalist, Financial Newswire

12 March 2026

In direct response to advisers’ high-net-worth re-strategising following the proposed Division 296 legislation passing Parliament two days ago, KeyInvest has reworked its Investment Bond menu to include four more tax-friendly Dimensional Fund Advisors funds.

As the legislation raises the tax on superannuation investment earnings for balances over $3 million to 30 per cent and balances over $10 million to 40 per cent, KeyInvest chief executive, Craig Brooke, said the mutual friendly society’s “strategic expansion of its offering” comes at a crucial time for advisers as they reassess their high-net-worth clients’ portfolios and wealth structures.

“Advisers are reviewing complementary strategies as superannuation settings evolve,” he said.

“And Division 296 has triggered a genuine reassessment of how wealth is structured for clients with larger super balances, particularly where intergenerational planning, estate complexity and liquidity flexibility are priorities.

“As a result, we are seeing renewed interest in Investment Bonds as a tax-paid structure that can sit alongside superannuation.

“Our adviser partners specifically asked us to include these Dimensional World Allocation options so they could apply the Investment Bond across a broader range of client scenarios, and as a mutual, we listen.

“Following extensive due diligence with our asset consultant partner, Atchison, it was clear that Dimensional’s evidence-based philosophy aligns strongly with our values of trust, results, innovation and care.”

The four Dimensional funds added to the menu form the first part of a full, multi-stage “Investment Menu Refresh” for KeyInvest, which include the Dimensional World Allocation 30/70 Trust, Dimensional World Allocation 50/50 Trust, Dimensional World Allocation 70/30 Trust, and Dimensional World Equity Trust.

According to a statement from the firm, its Investment Bond structure sees earnings taxed internally at a maximum rate of 30 per cent and no annual personal tax reporting required for clients.