the investment bonds (‘funds’ or ‘benefit funds’) · investment bonds our investment bonds...

The Investment Bonds (‘Funds’ or ‘Benefit Funds’) offered under this Product Disclosure Statement (PDS)are investment products issued by Australian Unity Investment Bonds Limited (AUIBL) ABN 83 087 649 072, AFS Licence No. 234456. AUIBL takes full responsibility for this PDS.

AUIBL is a wholly owned subsidiary of Australian Unity Limited (AUL) ABN 23 087 648 888 and is a member of the Australian Unity Group of companies. However, AULis not an issuer of this PDS.

Monies invested in the Funds offered under this PDSdo not represent investments in, or liabilities of, any member of the Australian Unity Group. You should be aware that investments in benefit funds carry risks including possible delays in repayment and loss of income and principal invested. An outline of some of the risks is contained in this PDS.

Neither AUIBL, AUL, any appointed investment manager nor any member of the Australian Unity Group guarantees the performance of the Funds offered under this PDS, nor any return of capital other than as disclosed in this PDS.

This PDS contains some general investment advice. Itdoes not take into account your individual objectives, financial situation or needs and you should consider the appropriateness of the advice to you (taking into account your individual objectives, financial situation and needs). You should seek your own financial advice from an appropriately licensed adviser or an authorised representative before investing.

In this PDS, a reference to, ‘Australian Unity’, ‘we’, ‘us’ and ‘our’ is a reference to AUIBL. A reference to ‘Australian Unity Investments’ is a reference to AUIBL,Australian Unity Funds Management Limited, Australian Unity Property Limited, Australian Unity Finance Limited and Australian Unity Retirement Living Investments Limited collectively.

This PDS is available in electronic format, including access via our website. If this PDS is received electronically, you should ensure that the complete Application Form and PDS have been received. If you are unsure whether the electronic document you have received is complete, please contact us. A printed copy is available free of charge.

This document can only be used by investors receiving it (electronically or otherwise) in Australia. In this PDS,all amounts are expressed in Australian dollars unless otherwise indicated.

No investments will be accepted on the basis of this document once it is replaced with a later PDS.

The Funds offered under this PDS and the respective Schedules of the Constitution of AUIBL are:

Australian Unity Capital Guaranteed Bond – Schedule 1(‘AUI Capital Guaranteed Bond’)

Australian Unity Capital Guaranteed Mortgage Bond – Schedule 2 (‘AUI Capital Guaranteed Mortgage Bond’)

Australian Unity Conservative Growth Bond – Schedule 3 (‘AUI Conservative Growth Bond’)

Australian Unity Balanced Growth Bond – Schedule 3(‘AUI Balanced Growth Bond’)

Australian Unity High Growth Bond – Schedule 3(‘AUI High Growth Bond’)

1 AUSTRALIAN UNITY INVESTMENTS

Key Features AUI Capital Guaranteed Bond AUI Capital Guaranteed Mortgage Bond

Investment objective To provide investors with a higher after-tax return than an equivalent investment in cash deposits over the medium term, with the added security of a ‘Capital Guarantee’.

To provide investors with a higher after-tax return than an equivalent investment in cash deposits over the medium term, with the added security of a ‘Capital Guarantee’.

Investment strategy The Fund invests primarily in quality fixed interest securities, mortgages, and cash securities.

The Fund primarily invests in a portfolio of loans secured over quality retail, commercial, investment residential and industrial property. The Fund may also invest in other income producing assets.

Indicative risk level Low Low

Suggested investment timeframe At least 3 years At least 3 years

Minimum initial investment $1,000 $1,000

Minimum additional investments $500 $500

Minimum Regular Savings Plan $100 per month $100 per month

Minimum balance $500 $500

Minimum withdrawal $1,000 $1,000

Withdrawal period Generally within 5 business days Generally within 5 business days

Contribution fee Upfront contribution fee optionUp to 3% of each contribution.

Deferred contribution fee optionA policy fee of 0.75% per annum of the average balance in your account payable for 3 years. Exit fees apply under the Deferred Contribution Fee option (please refer to pages 15 to 17 for further details).

Upfront contribution fee optionUp to 3% of each contribution.


Management costs 1.50% per annum 1.50% per annum

Buy/Sell spread Nil Nil

A SNAPSHOT

To make an informed decision please take the time to read the whole Product Disclosure Statement.

AUSTRALIAN UNITY INVESTMENTS 2

AUI Conservative Growth Bond AUI Balanced Growth Bond AUI High Growth Bond

To provide investors with stable growth returns over the medium term.

To provide investors with solid growth returns over the medium to long term.

To provide investors with strong growth returns over the long term.

The Fund invests in a diversified investment portfolio, with the majority of assets in quality fixed interest securities, mortgages and cash securities. The Fund maintains a modest exposure to growth assets such as Australian and international shares and property securities.

The Fund invests in a diversified investment portfolio, with the majority of assets in Australian and international shares and property securities. The Fund maintains a modest exposure to quality fixed interest securities, mortgages, property and cash securities.

The Fund primarily invests in Australian and international shares, with a small allocation to cash securities.

Low to medium Medium High

At least 3 years At least 5 years At least 5 years

$1,000 $1,000 $1,000

$500 $500 $500

$100 per month $100 per month $100 per month

$500 $500 $500

$1,000 $1,000 $1,000

Generally within 5 business days Generally within 5 business days Generally within 5 business days







1.65% per annum 1.85% per annum 1.95% per annum

Nil Nil Nil


Who we are

Australian Unity Investments (AUI) is a specialist fund

manager. We create and source unique investment

opportunities that have the potential to deliver better

returns.

Our approach to investment is simple. We believe that in

an increasingly crowded market the best way to add value

is to provide distinctive products. In taking an approach

that’s different we have witnessed our funds under

management double since 2003 and currently manage in

excess of $3.5 billion.

Our passion is innovative investment. Traditionally

recognised for our quality mortgage and direct property

investments, our desire to source other appealing

investment opportunities has resulted in our expansion

to other investment areas. In addition to managing

significant mortgage and property portfolios we also

partner with talented boutique managers, each specialists

in their respective asset class. These asset classes include

Australian fixed interest, Australian equities, Australian

microcaps and international equities.

Our approach is based on the philosophy that size is often

not an indication of organisational expertise. We believe

that by managing money directly and with boutique

managers we maintain our focus on bringing unique

products to market while the investment managers can

focus on their core area of expertise – investing.

About Investment Bonds

Investment Bonds (also known as 10 year bonds) are

generally considered longer term investment vehicles

offering tax efficiency.

An investment bond can be capital guaranteed (investing

in cash and conservative style investments) or unit-linked

(where investors’ funds are pooled together in order to

provide individuals with access to investment opportunities

that may not otherwise be available to them).

Today’s tax system makes investment bonds a tax-

effective way to generate long term returns. By investing a

lump sum or regular amount for 10 years or more, provided

certain conditions are met, earnings are tax-paid after this

period. This works in the following manner:

The contributions (investments) you make will

generally be in after tax dollars.

The returns earned on your investment will be treated

as income by Australian Unity Investment Bonds

Limited (AUIBL) and taxed at the company tax rate

(currently 30%). Unlike other managed investments,

you are not required to include the income earned on

your investment in your annual tax return (unless you

withdraw your investment within 10 years).

As AUIBL pays tax on the income earned, you don’t

pay further tax on withdrawal of the investment,

provided you hold the bond for more than 10 years. If

you decide to withdraw before 10 years, some or all

of the income earned will need be included in your tax

return (refer to page 22 for more information).

The Benefits of Investing in Australian Unity

Investment Bonds

Our Investment Bonds can meet the needs of various

investor types and styles.

A tax effective way to invest for the long term.

You can choose to invest in one or more of the five

Funds available.

You can switch from one Fund to another at any

time free of charge.

Your investment has no Pay-As-You-Go (PAYG) tax

liabilities.

You don’t need to make any annual tax declarations, or

keep capital gains records from year to year; provided

you hold your investment for 10 years.

There are no Tax File Number (TFN) requirements

when you start your investment.

You can nominate beneficiaries to receive your

investment proceeds in the event of your death.

Your investment is managed by a team of professional

investment managers, each specialists in their field.

So whether you are seeking capital security, capital growth,

or tax benefits, you can find an investment bond that suits

your needs.

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OUR INVESTMENT EXPERTISE

Investment Objective


Investment Strategy

The AUI Capital Guaranteed Bond (the ‘Fund’) invests primarily in quality fixed interest securities, mortgages, and cash securities.

Investment Manager

The current investment managers are Australian Unity Funds Management Limited (AUFM) and Vianova Asset Management Pty Ltd (Vianova). AUFM and Vianova are related parties to AUIBL. For more information on related parties please refer to page 24.

The Fund may invest in assets directly or through managed investment schemes.

We may add or remove an investment manager without prior notice to you.

Capital Guarantee

The Fund provides a capital guarantee. This means that your initial and subsequent contributions and annually declared bonuses (net of fees and taxes) are guaranteed to be paid by AUIBL on or after the selected maturity date or death of the life insured.

Investment Approach

The security of the capital guarantee is provided by the conservative nature of the Fund’s investments and continuous solvency reserve requirements that AUIBL maintains in accordance with Australian Prudential Regulation Authority (APRA) standards.

The solvency requirement was $228,420,971 as at 30 June 2005.

Investment Process

We select investment managers after conducting an extensive and rigorous research process that examines their investment style and process, the expertise of their investment team, past performance and a range of other factors. We review each investment manager’s performance on an ongoing basis, ensuring that they operate within agreed expectations and guidelines.

Derivatives

It is not our current policy to use derivatives for gearing purposes or for speculative activities for this investment. We and/or the underlying investment managers may use derivatives for implementation of interest rate risk strategies and management of the investment’s interest rate exposures.

Indicative Risk Level

The risk level indicator provides an estimate of the risks and volatility of the Fund. For more information about risks see page 9.

Suggested Investment Time Frame

At least 3 years.

Note: To achieve the tax-paid status you must hold the investment for a minimum of 10 years.

Portfolio Details

The information in this section may change from time to time. For up to date information please call Client Services on 13 29 39 or visit www.australianunity.com.au.

Asset allocation as at 31 March 2006

Bonus rates declared over the past 5 years

(1) Actual returns calculated after payment of tax by AUIBL. Rates used are 33% prior to 1 July 2001 and 30% since 1 July 2001.(2) Equivalent pre-tax return calculated assuming no payment of tax by AUIBL.

These bonus rates are calculated after management costs and Fund expenses. Past performance is not indicative of future performance.

Asset Class Range %

Actual %

Cash/short term securities 15 – 80 78

Mortgages 0 – 50 22

Australian fixed interest 0 – 60 0

Total 100

AUI CAPITAL GUARANTEED BOND

Low Medium High

Year to 30 June Tax paid%pa(1)

Pre-tax equivalent%pa(2)

2005 3.02 4.31

2004 3.38 4.83

2003 3.00 4.29

2002 2.50 3.57

2001 3.50 5.22





Investment Strategy

The AUI Capital Guaranteed Mortgage Bond (the ‘Fund’) primarily invests in a portfolio of loans secured over quality retail, commercial, investment residential and industrial property. The Fund may also invest in other income producing assets.

Investment Manager

The current investment managers are Australian Unity Funds Management Limited (AUFM) and Vianova Asset Management Pty Ltd (Vianova). AUFM and Vianova are related parties to AUIBL. For more information on related parties please refer to page 24.



Capital Guarantee

The Fund provides a capital guarantee. This means that your initial and subsequent contributions and annually declared bonuses (net of fees and taxes) are guaranteed to be paid by AUIBL on or after the selected maturity date or death of the life insured.

Investment Approach

The security of the capital guarantee is provided by the conservative nature of the Fund’s investments and continuous solvency reserve requirements that AUIBL maintains in accordance with Australian Prudential Regulation Authority (APRA) standards.

The solvency requirement was $55,908,102 as at 30 June 2005.

Investment Process


Derivatives

It is not our current policy to use derivatives for gearing purposes or for speculative activities for this investment. We and/or the underlying investment managers may use derivatives for implementation of interest rate risk strategies and management of the investment’s interest rate exposures.




At least 3 years.


Portfolio Details



Bonus rates declared over the past 5 years


These bonus rates are calculated after management costs and Fund expenses. Past performance is not indicative of future performance.

AUI CAPITAL GUARANTEED MORTGAGE BOND

Low Medium High

Asset Class Range %

Actual %




Total 100

Year to 30 June Tax paid%pa(1)

Pre-tax equivalent%pa(2)

2005 3.46 4.94

2004 4.31 6.16

2003 4.00 5.71

2002 3.05 4.36

2001 4.00 5.97


To provide investors with stable growth returns over the medium term.

Investment Strategy

The AUI Conservative Growth Bond (the ‘Fund’) invests in a diversified investment portfolio, with the majority of assets in quality fixed interest securities, mortgages and cash securities. The Fund maintains a modest exposure to growth assets such as Australian and international shares and property securities.

Investment Manager

The current investment managers are Australian Unity Funds Management Limited, Acorn Capital Limited, Platypus Asset Management Pty Ltd, Intech Fiduciaries Limited, INVESCO, Legg Mason Asset Management Australia Limited, Credit Suisse Asset Management Limited and Vianova Asset Management Pty Ltd.

Some of these investment managers are related parties to AUIBL. For more information on related parties please refer to page 24.


Investment Approach

This is a diversified fund with a bias toward income producing assets.

The Fund offers the benefits of asset diversification as well as the skills of a strong team of specialist investment managers who are recognised as being experts in their particular asset class. This approach aims to provide consistent returns with controlled risk across all market cycles.


Investment Process


Derivatives

It is not our current policy to use derivatives for gearing purposes or for speculative activities for this investment. We and/or the underlying investment managers may use derivatives for hedging purposes and for implementing portfolio positions.




At least 3 years.


Portfolio Details



Returns to 31 March 2006


These returns are calculated after management costs and Fund expenses. Past performance is not indicative of future performance.

AUI CONSERVATIVE GROWTH BOND

Low Medium High

Asset Class Range %

Actual %




Property 0 – 20 10

Australian shares 0 – 25 15

International shares 0 – 20 6

Total 100

1 year%

3 years%pa

5 years%pa

Tax-paid return(1) 7.91 6.92 5.10

Pre-tax equivalent(2) 11.46 10.02 7.36




To provide investors with solid growth returns over the medium to long term.

Investment Strategy

The AUI Balanced Growth Bond (the ‘Fund’) invests in a diversified investment portfolio, with the majority of assets in Australian and international shares and property securities. The Fund maintains a modest exposure to quality fixed interest securities, mortgages, property and cash securities.

Investment Managers

The current investment managers are Australian Unity Funds Management Limited, Acorn Capital Limited, Platypus Asset Management Pty Ltd, Intech Fiduciaries Limited, INVESCO, Legg Mason Asset Management Australia Limited, Credit Suisse Asset Management Limited and Vianova Asset Management Pty Ltd.



Investment Approach

This is a diversified fund with a bias toward growth assets.

The Fund offers the benefits of asset diversification as well as the skills of a strong team of specialist investment managers, who are recognised as being experts in their particular asset class. This approach aims to provide consistent returns with controlled risk across allmarket cycles.


Investment Process


Derivatives





At least 5 years.


Portfolio Details





These returns are calculated after management costs and Fund expenses. Past performance is not indicative of

future performance.

AUI BALANCED GROWTH BOND

Low Medium High

Asset Class Range %

Actual %




Property 0 – 20 10



Total 100

1 year%

3 years%pa

5 years%pa

Tax-paid return(1) 15.29 11.10 6.82



To provide investors with strong growth returns over the long term.

Investment Strategy

The AUI High Growth Bond (the ‘Fund’) primarily invests in Australian and international shares, with a small allocation to cash securities.

Investment Manager

The current investment managers are Australian Unity Funds Management Limited, Acorn Capital Limited, Platypus Asset Management Pty Ltd, and Intech Fiduciaries Limited.



Investment Approach

This is a diversified growth fund that invests primarily in growth assets.

The Fund offers the benefits of asset diversification as well as the skills of a strong team of specialist investment managers who are recognised as being experts in their particular asset class.


Investment Process


Derivatives





At least 5 years.


Portfolio Details





These returns are calculated after management costs and Fund expenses. Past performance is not indicative of

future performance.

AUI HIGH GROWTH BOND

Low Medium High

Asset Class Range %

Actual %




Total 100

1 year%

3 years%pa

5 years%pa

Tax-paid return(1) 19.22 12.33 3.44




Investors should carefully consider all risks before making

an investment decision. Investors should also consider

their own personal circumstances (including financial and

taxation issues). The following comments are general in

nature and are intended as a guide only. We recommend

that you seek professional financial advice when making an

investment decision.

Generally speaking, an investment with a higher expected

return would exhibit a higher level of risk.

Return generally refers to the change in value of an

investment and includes any capital growth and income

earned. It is possible for returns to be negative. Risk

generally refers to the variability and volatility of returns

and also may provide an indication of the frequency of a

negative return.

The graph below provides an estimate of the level of risk

relative to the expected return from particular types of

investments.

Risk versus return

The relationship of risk to return may change from time to

time for each asset class. But over the long term (a period

greater than five years) growth assets such as shares

and property tend to achieve greater returns than income

assets such as cash, mortgages and fixed interest.

It is important to note, however, that in the short term (a

period of less than three years), growth assets are likely

to experience greater variation in returns (including the

possibility of negative returns), than income assets.

All investments are subject to risk. Some of the investment

risks that we believe investors should consider before

investing are listed below. The risks outlined in this PDS

are not a comprehensive assessment of all possible risks.

Investors should be aware that all the risks outlined may

impact returns.

General Investment Risks

Government fiscal or monetary policy changes may

impact on investment markets.

Social and technological change may make certain

investments less attractive.

There may be changes in investment conditions

including taxation treatment, new Government policy

and statutory changes.

Changes may occur in the interpretation and

application of the law by the courts and revenue

authorities.

Economic conditions, global events, local and

overseas political events, interest rates, inflation

and inflationary expectations may cause adverse

investment returns.

Inadequate diversification associated with not

spreading investments across different asset classes

may impact on returns.

Financial and investment market changes and values

can impact directly or indirectly on investment returns.

Natural disasters, social unrest and war can occur.

Specific Investment Risks

Fixed interest

The market value of fixed interest securities can fall

significantly when interest rates rise and rise when

interest rates fall.

An issuer of a fixed interest security may not be

able to repay either the principal or make interest

repayments (an event of default).

Mortgages

The borrower may not be able to repay the principal or

make interest payments.

In the event of a default, sale proceeds from the

property securing the loan may be less than the

principal and interest outstanding.

Falling interest rates can result in lower interest

payments on variable rate loans. Conversely, rising

interest rates can result in higher interest payments

on variable rate loans.

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INVESTMENT RISKS

High

Low

Low HighRelative Risk

Rel

ativ

e R

etu

rn

Fixed Interest

Cash

Int'l Shares

Property

Aust. Shares

Mortgages

Property

Investment in property (other than through listed

property trusts) is generally considered less liquid than

most other asset classes.

Similar to shares, listed property trusts can rise and/or

fall in value. Returns from listed property trusts are

affected by fluctuations in interest rates, the supply

and demand for properties and consequent changes in

rental levels.

Properties may experience movements in rental and

occupancy levels as well as tenancy lease defaults.

Properties can also rise and/or fall in value.

Shares

Share prices can experience volatile price movements

and dividend payments.

A company in which the Fund invests in, or the

industry or business in which it operates, may not

perform as well as expected.

Shares and other equity securities may decline in

value or may not pay income for a variety of reasons.

These include falls in investor confidence, poor

management or changes in a company’s competitive

environment or internal operations.

Rising interest rates can have a negative impact on

a company’s value, as increased borrowing costs

incurred by a company may cause earnings to decline,

and as a result the share price may fall.

Derivatives

Where derivatives are used, there is the risk that the

counter-party to the transaction may not be able to

meet its obligations. The investment manager may

then have to replace the transaction, which may be

at rates that are not favourable to the Fund. The use

of exchange-traded derivatives mitigates the counter-

party risk.

Other Risks

The following risks are inherent within any investment

bond:

There may be different tax outcomes if you invest in

an investment bond compared to investing directly.

There may be delays in withdrawing your investment.

A fund may be terminated.

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Managing Risk

While we are not able to eliminate all investment risks, we

seek to manage the impact of these risks through the use

of carefully considered investment guidelines.

Investment diversification is employed within each Fund

to help reduce risk. Where possible, the investment

managers seek to spread each Fund’s investment portfolio

across different investments and sectors, as diversification

can achieve long term objectives while minimising the

impact of short term volatility.

All related party transactions are conducted on normal

commercial terms and conditions, and on an arm’s length

basis.

How can you manage your risk?

We recommend that you seek your own professional

advice to help you understand your current financial

situation, set your investment objectives and establish a

plan to meet them.

It is important to consider your investment timeframe, your

investment objectives and your risk tolerance.

Diversifying your investments can also help reduce risk and

the volatility of investment returns.

Additional information on our Investment Bonds

For the AUI Capital Guaranteed Bond and the AUI Capital

Guaranteed Mortgage Bond, repayment of capital and

declared bonuses is guaranteed (see pages 4 and 5).

For the AUI Conservative Growth Bond, the AUI Balanced

Growth Bond and the AUI High Growth Bond, repayment

of capital is not guaranteed.



Applications

Application can be made in individual or in joint names. Up to three people may jointly own an investment bond policy. If any of the joint owners dies, the surviving owners automatically become the full owners of the policy. All transactions require the authorisation of all joint owners.

As investment bonds are a type of life insurance policy, you must nominate a policy owner and a life insured. The policy owner and the life insured are usually the same person. However, they can be different people.

The policy owner has all the legal ownership rights applicable to the investment.

Unless a person other than the policy owner is specified as the life insured, the policy owner will automatically be taken to be the life (or joint lives) insured. In this case, the policy will mature upon the death of the surviving joint owner. For example where a husband and wife own a policy, if one party dies, the policy will continue in the name of the survivor until the normal policy maturity date or the death of that surviving party.

Nominating a Beneficiary

You can nominate a beneficiary to receive the proceeds of your bond if you die before the maturity date. Proceeds will be paid directly to the nominated beneficiary. To nominate a beneficiary, simply complete section G ‘Beneficiary details’ on the Application Form. If you don’t nominate a beneficiary, the proceeds of your bond will form part of your estate.

Choosing your Policy Term

When you start your investment bond, you need to decide your policy term (that is, the number of years until bond maturity).

You can select a term of between 10 years and 40 years. The selection of a policy term does not affect your right to withdraw your investment at any time. If you do not select a policy term, the default term of 40 years will apply.

Your Initial Investment

To invest, complete the Application Form located at the back of this PDS, and return it to us with your cheque or direct debit request. The minimum initial investment into any Fund outlined in this PDS is $1,000. We reserve the right to vary this minimum at our discretion.

We can only process your application when we receive a completed current Application Form with your initial investment amount.

Your instruction to invest, and your investment proceeds, must be received at our registered office by 3.00pm (Melbourne time) on a Melbourne business day for you to receive the application price effective for that day. This price is generally released the following Melbourne business day.

If your instruction to invest, and your investment proceeds, are received after 3.00pm you will receive the application price effective for the next Melbourne business day.

Additional Investments

As a result of the ‘tax paid’ nature of investment bonds, the Government has placed limits on the amount of additional investment you can make to an investment bond.

During the first year following your initial investment, there is no maximum limit on the amount of additional investments you can make. In the second and subsequent years, you can contribute up to 125% of the total of your previous year’s contributions. You cannot make additional contributions following a year of zero additional contributions.

The minimum amount for additional investments is $500. We reserve the right to vary this minimum at our discretion.

To make additional investments, please complete a current application form. If you need another Application Form please contact Client Services on 13 29 39 Australia-wide.

Additional investments are made on the terms and conditions set out in the PDS current at the time the investments are made.

Regular Savings Plan

The Regular Savings Plan provides you with the opportunity to use a disciplined approach to your personal savings. The minimum regular investment amount is $100 per month and can be made either monthly, quarterly, half yearly or yearly, without having to complete a current Application Form each time. We reserve the right to vary this minimum at our discretion. Simply tick the Regular Savings Plan option on the current Application Form and nominate the amount you would like to invest on an ongoing basis.

We will arrange for funds to be automatically drawn from your Australian bank, building society or credit union account, normally on the 12th day of the month or the next Melbourne business day if the 12th is a weekend or public holiday.

Changes can be made at any time by notifying us in writing at least five Melbourne business days before the next automatic contribution is due. You can:

Change your regular investment amount provided it stays above $100 per month (or other amount notified to you).

Change the frequency of payment.

Change your nominated Australian bank or financial institution account.

Suspend the Plan.

Stop the Plan (recommencing the Plan will require a new Application Form to be completed).

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INVESTING WITH US

The normal contribution fees and management costs apply to investments made through the Regular Savings Plan (see page 15). In addition, bank transaction fees and Government charges may apply. Bank dishonour fees may also apply if you do not maintain sufficient funds to cover the regular investment.

Participation in the Regular Savings Plan will automatically cease if two consecutive payments are dishonoured, or if you close your account.

We are entitled to change or terminate the Regular Savings Plan by providing you with prior written notice.

If you select the Regular Savings Plan, we will send you a copy of the current PDS, and any updates while we continue to offer this facility. You should keep the current PDS and any updated information for your reference.

When using the Regular Savings Plan it is important to remember the additional investment limits described on page 11.

Further Information about Applications

If your financial institution dishonours your cheque your application will be reversed.

We reserve the right to accept or reject any application or additional investment (in whole or in part) at our discretion.

Switching between Funds

You can switch part (a minimum of $1,000) or all of your investment between the Funds described in this PDS at any time, free of charge. A minimum balance of $500 must be maintained in any one Fund.

Unlike many other forms of investment, switching can be done without affecting the valuable tax status of your investment. Please see ‘Taxation Information’ on page 22 for more information.

If you wish to switch all or part of your investment to another Fund, please contact Client Services on 13 29 39 Australia-wide or email us at [email protected] for the relevant switching forms.

Withdrawing Your Investment

You can withdraw some or all of your investment at any time by writing to us and providing your bank account details. If you are withdrawing your investment in full you are also required to provide the original Certificate of Membership. All withdrawal requests must be signed by you or your authorised representative.

The minimum withdrawal amount is $1,000 subject to the requirement that you maintain a minimum balance of $500 in the relevant Fund or you withdraw your entire investment. We reserve the right to vary these amounts at our discretion.

Withdrawal proceeds will only be paid to a nominated bank account. Cheque withdrawals are not available. You can send partial withdrawal requests to us by mail or fax (see page 24 for more details on faxing withdrawal requests). However, full withdrawal requests can only be made in writing with the original Certificate of Membership attached.

Your instruction to withdraw must be received at our registered office by 3.00pm (Melbourne time) on a Melbourne business day for you to receive the withdrawal value effective for that day. This value is generally determined the following Melbourne business day.

If your instruction to withdraw is received after 3.00pm you will receive the withdrawal value effective for the next Melbourne business day.

If you wish to withdraw your investment in the AUI Capital Guaranteed Bond or the AUI Capital Guaranteed Mortgage Bond, you can maximise your investment earnings by keeping $500 invested in your investment bond until after 30 June the following year. By doing so, the annual bonus that you receive as at 30 June will be based on the actual amount that you had invested during the year to 30 June calculated on a pro-rata daily basis.

On the other hand, if you withdraw your investment in full on or before 30 June, the withdrawal value will only be credited with the most recently declared interim bonus.

Payment period for withdrawals

AUIBL will generally pay withdrawals within five Melbourne business days. While all reasonable steps are taken to meet withdrawal requests within five Melbourne business days, the Benefit Fund Rules allow us up to 28 days to meet withdrawal requests.

Full Withdrawals during the Bonus Calculation Period

Each year between July and October withdrawals may be delayed while year-end bonus rates and unit prices are being determined.

If you would like to withdraw in full during this period you have two available options depending which Fund you have selected:

AUI Capital Guaranteed Bond and AUI Capital Guaranteed Mortgage Bond (Capital Guaranteed Funds)

Unless otherwise stated in your written withdrawal, we will pay your investment balance, plus the interim bonus, generally within five Melbourne business days. If requested in your written instruction, we will pay your withdrawal in two payments:

The first payment will consist of your total holding less $500. This will generally be paid within five Melbourne business days.

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The second payment will consist of the remaining $500 plus the full bonus owed. This payment will occur once the bonus rates have been calculated

generally in October each year.

AUI Conservative Growth Bond, AUI Balanced Growth Bond and AUI High Growth Bond (Unit Linked Funds)

Unless otherwise stated in your written withdrawal, we will pay your investment balance using the last known unit price. This payment is generally made within five Melbourne business days.

If requested in your written instruction, we will pay your withdrawal in two payments:

The first payment will consist of 80% of your investment balance. This will generally be paid within five Melbourne business days.

The second payment will consist of the remaining 20% of your investment balance plus the movement in unit price. This payment will occur once the unit prices have been finalised generally in October each year.

Regular Withdrawal Facility

If you need a flexible and regular income stream, you can choose to automatically receive regular payments from your investment bond policy.

You can choose from monthly or quarterly payments to suit your needs. The minimum payment amount is $500. Regular payments can only be made where you have sufficient investments in your policy to meet the withdrawal request.

Proceeds will be directly credited into your Australian bank, building society or credit union account. Payments will generally be made on the 15th day of the month.

If you wish to change or stop your Regular Withdrawal Facility, we require five Melbourne business days written notice from you in order to process any alteration to your Regular Withdrawal Facility.

Note: A withdrawal may be equivalent to a partial surrender of your investment or a return of capital. In the first case, investment gains will be included in your assessable income. In the second case, the cost base of your investment for capital gains tax purposes may require adjustment. We recommend you obtain taxation advice from an appropriately qualified taxation adviser.

Payment on death of the Life Insured

We will pay the full surrender value of the policy to the policy owner following the death of the life insured.

If the life insured and the policy owner are the same person, we will pay the full surrender value to the nominated beneficiaries or to the deceased’s estate.

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In the case of joint ownership, the policy continues in the name of the surviving owners.

Transferring Your Investment to Another Person

You can transfer (assign) your investment to another person (the assignee) at any time, subject to the assignment being in the form approved by us and the assignee meeting the application requirements of the Fund.

Suspension of Applications and Withdrawals

In exceptional circumstances where we consider it to be in the best interest of investors, we may choose to suspend the processing of all applications and/or withdrawals.

If this occurs, your application or withdrawal will be processed using the next available price. For further information on withdrawing or transferring, please call us on 13 29 39.

Cooling Off Period

Generally you have a 14 day cooling off period to decide if this investment is right for you. The 14 day period starts on the earlier of the date you receive your Certificate of Membership or five Melbourne business Days after we sent it to you.

Should you wish to cancel your investment during this period, please write to us prior to the expiration of this period (our contact details are located on the inside back cover) and return your Certificate of Membership.

The amount repaid to you is adjusted in accordance with the Corporations Act 2001 to reflect:

any increase or decrease in the value of your investment;

any tax or duties payable by us; and

transaction costs associated with the acquisition and termination of your investment.

You may also be charged a fee for reasonable expenses incurred by us (see page 20 'Cooling off-fee' for further information). Accordingly, depending on the circumstances, the amount repaid may be greater or less than the amount invested.

Labour Standards or Environmental, Social or

Ethical Considerations

We do not take into account labour standards or environmental, social or ethical considerations in the selection, retention or realisation of investments in the Funds offered under this PDS. However, we do have an overall policy of always acting legally, acting in the best interests of investors, and dealing with parties who, to the best of our knowledge, are reputable organisations.

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The AUI Capital Guaranteed Bond and the AUI Capital

Guaranteed Mortgage Bond are designed as accumulation

funds, with investment balances, add-on contributions and

annual bonus entitlements.

The AUI Conservative Growth Bond, the AUI Balanced

Growth Bond and the AUI High Growth Bond are designed

as unit linked accumulation funds, with investment

balances, add-on contributions and earnings being reflected

in their respective unit prices.

Capital Guaranteed Funds

The earnings achieved from the AUI Capital Guaranteed

Bond’s and the AUI Capital Guaranteed Mortgage Bond’s

underlying investments are allocated to policyholders in the

form of bonuses. A ‘bonus’ is the amount credited to your

account as earnings on your investment.

Bonuses are calculated annually as at 30 June each year

and credited to policyholder accounts generally by 30

September each year.

Annual bonuses are credited to accounts current as

at 30 June each year and are calculated on a pro-rata

daily basis.

Interim bonuses are payable to investors who

withdraw their investment during the year, based on

the length of time that they were invested in the bond

since the last bonus was payable (calculated from 1

July each year). The interim bonus rate is normally

less than the annual bonus rate.

The bonus rates are determined by an independent

actuary after consideration of the returns achieved by the

underlying investments and APRA solvency and capital

adequacy reserve requirements. The AUIBL Board of

Directors reviews the actuary's recommendations and

decides on the declared annual bonus and interim bonus

rates.

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Unit Linked Funds

Unit Pricing

The unit price for each Unit Linked Fund is generally

calculated for each Melbourne business day, taking into

consideration the market value of the investments of

the Fund, less any amounts owing and any accurals for

expenses, and interest, (i.e. the net asset value of a Fund)

then divided by the number of units issued in the Fund.

The market value for a Fund’s assets includes the value

of all its investments, any cash held in the Fund and

income accrued, but not received. These values are based

on the information most recently available at the time of

calculating the application and withdrawal unit price.

For daily unit price updates please visit our website

www.australianunity.com.au or call us on 13 29 39.

Benefits of Compounding

As earnings are not paid out until your investment is

withdrawn, you benefit from the effects of compounding.

That is, your reinvested earnings will themselves generate

earnings for you

BONUSES AND UNIT PRICES



Type of Fee or Cost Amount How and when paid

Option to pay contribution fees upfront

Option to pay contribution fees later

Fees when your money moves in or out of the Fund

Establishment feeThe fee to open your investment.

AUI Capital GuaranteedBond

AUI Capital GuaranteedMortgage Bond

AUI Conservative GrowthBond

AUI Balanced GrowthBond

AUI High Growth Bond

Nil

Nil

Nil

Nil

Nil



AUI Conservative GrowthBond



Nil

Nil

Nil

Nil

Nil

There are no establishment fees.

FEES AND OTHER COSTS

Government regulations require the inclusion of the following consumer advice warning in all product disclosure statements:

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the fund assets as a whole. Taxes are set out in another part of this document.

You have 2 different fee payment options:

(a) to pay contribution fees upfront, at the time when you make each investment into the fund; or

(b) to pay contribution fees later (for example, on the termination of your investment or by way of other increased fees).

Note: You may pay more in total fees if you choose to pay contribution fees later.

You should read all the information about the fees and costs because it is important to understand their impact on your

investment.

DID YOU KNOW?

Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your

fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to

negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser.

TO FIND OUT MORE

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.fido.asic.gov.au) has a

managed investment fee calculator to help you check out different fee options.





Fees when your money moves in or out of the Fund

Contribution fee (1)

The fee on each amount contributed to your investment.

AUI Capital Up to 3%Guaranteed Bond

AUI Capital Up to 3%Guaranteed Mortgage Bond

AUI Conservative Up to 4%Growth Bond

AUI Balanced Up to 4%Growth Bond

AUI High Growth Up to 4%Bond

An annual policy fee payable over 3 years of 0.75% per annum of the average balance in your account.

Upfront Contribution fees: Deducted from the initial

and every subsequent investment you make in

the Fund.

Contribution fees paid later:Deducted from your

account on 1 July each year for 3 years, or

when you withdraw your investments, whichever

occurs first.

You and your financial adviser may agree to a reduced Initial

Remuneration, which will have the effect of reducing

the contribution fee.

Withdrawal feeThe fee on each amount you take out of your investment.



AUI Conservative Growth Bond



Nil

Nil

Nil

Nil

Nil

For all Funds, withdrawals made in:

1st year:

2nd year:

3rd year:

After 3 years:

3%

2%

1%

Nil

Deducted from and calculated on, the amount

that is withdrawn from the Fund at the time of

withdrawal.

Termination feeThe fee to close your investment.






Nil

Nil

Nil

Nil

Nil






Nil

Nil

Nil

Nil

Nil

There are no termination fees.





Management costs(1)

The fees and costs for managing your investment.

AUI Capital Guaranteed Bond

1.50% per annum of the net balance of the Fund.



Management Fees are accrued daily and paid monthly in arrears by being deducted from

the Fund’s assets.

You and your financial adviser may agree

to a reduced Service Remuneration, which will have the effect of reducing Management

Fees.

AUI Capital Guaranteed Mortgage Bond








AUI Balanced Growth Bond








Service fees

Investment switching feeThe fee for changing investment options.






Nil

Nil

Nil

Nil

Nil






Nil

Nil

Nil

Nil

Nil

There are no switching fees.

(1) This fee includes an amount payable to an adviser. (See ‘Adviser remuneration’ under the heading ‘Additional Explanation of Fees and Costs’.)


Example of annual fees and costs

This table gives an example of how the fees and costs in the AUI Capital Guaranteed Bond can affect your investment over a

1 year period. You should use this table to compare this product with other investment products.

Example – The AUI Capital Guaranteed Bond BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING YEAR

Contribution Fees Up to 3% For every additional $5,000 you put in, you will be charged $150.

PLUS Management Costs 1.50%pa And, for every $50,000 you have in the Fund you will be charged $750 each year.

EQUALS Cost of Fund

If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000 during that year, you would be charged fees of from $750 to $900.(1)(2)

What it costs will depend on the investment option you choose and the fees you negotiate with your financial adviser.

Additional fees may apply: (1) It is assumed that the contribution of $5,000 is made at the end of the year.(2) If you choose to pay contribution fees later and you leave the Fund within the first 3 years, you may also be charged withdrawal fees of between 0% and 3% of the amount withdrawn (between $0 and $1,500 for every $50,000 you withdraw).

This table gives an example of how the fees and costs in the AUI Capital Guaranteed Mortgage Bond can affect your investment over a 1 year period. You should use this table to compare this product with other investment products.

Example – The AUI Capital Guaranteed Mortgage Bond BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING YEAR



EQUALS Cost of Fund

If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000 during that year, you would be charged fees of from $750 to $900.(1)(2)



This table gives an example of how the fees and costs in the AUI Conservative Growth Bond can affect your investment over a 1 year period. You should use this table to compare this product with other investment products.

Example – The AUI Conservative Growth Bond BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING YEAR



EQUALS Cost of Fund

If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000 during that year, you would be charged fees of from $825 to $1,025.(1)(2)




This table gives an example of how the fees and costs in the AUI Balanced Growth Bond can affect your investment over a 1 year period. You should use this table to compare this product with other investment products.

Example – The AUI Balanced Growth Bond BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING YEAR



EQUALS Cost of Fund




This table gives an example of how the fees and costs in the AUI High Growth Bond can affect your investment over a 1 year period. You should use this table to compare this product with other investment products.

Example – The AUI High Growth Bond BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING YEAR



EQUALS Cost of Fund





Additional Explanation of Fees and Costs

Stamp duty

Entry into an investment bond may have stamp duty consequences. Any stamp duty will be debited fromyour account.

Tax

All fees, charges and adviser remuneration shown are

inclusive of the impact of GST (where applicable) and net

of any Input Tax Credits (ITCs) available to each of the

respective Funds, except where otherwise indicated. Please

refer to the ‘Tax Information’ section on page 22 for further

information on tax.

Other expenses and costs

Expenses incurred in the day-to-day operation of a Fund (such as audit, compliance, custody, registry and regulatory costs) and which are recoverable under the Benefit Fund Rules are included in the Management Costs detailed in the table on pages 15 to 17, except for the following:

expenses that would have been incurred by a direct investor in the underlying assets such as transaction costs (see ‘Fund transaction costs’ below); and

abnormal operating expenses – these are costs not generally incurred in the day-to-day operation of the Fund (see ‘Abnormal operating expenses’ below).

Each Fund may also incur other costs directly associated with transactions made on your policy. Examples of these costs include Government taxes, bank dishonour and transaction fees, and any other charges resulting from you transacting on your policy. These costs will be directly deducted from your policy.

We are unable to estimate these costs until they are incurred.

Abnormal operating expenses

These charges represent a reimbursement to us from each of the Funds in accordance with the Benefit Fund Rules to cover abnormal operating expenses incurred by us in connection with the performance of our duties and obligations in administering each Fund.

These abnormal operating expenses are not generally incurred during the day-to-day operation of each Fund and are not necessarily incurred in any given year and have not been included in the Management Costs outlined in the table on pages 15 to 17. They are due to abnormal events such as the cost of running investor meetings or the legal costs of defending legal proceedings.

Fund transaction costs

Fund transaction costs are Fund costs relating to the buying and selling of investments (such as asset acquisition and disposal costs), asset origination costs (including, where applicable, fees and commissions), brokerage and Government charges.

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These costs are incurred in the day-to-day management of each Fund and will be paid directly from each Fund. These costs are not included in the Management Costs referred to in the table on pages 15 to 17.

Cooling off – fee

If you decide that you no longer wish to invest in the Fund within the 14 day cooling off period, we may charge you a fee of $50.00. This fee is deducted from your investment prior to us returning your money to you.

Fee rebates

From time to time, we may rebate some of our fees (or issue units in the Funds) to employees of AUIBL and related entities so that they pay reduced fees. We do not enter into individual fee arrangements with other investors.

Where a Fund invests in funds managed by us

The Funds may invest in funds or investment companies including those managed by us or our associates.

Where we, or an associate, are the responsible entity or manager of that fund, full management fees will not be received by us from both funds. Instead, our management fees will be adjusted to reflect the Fund’s fees described on pages 15 to 17.

Fee changes and maximum fees

Fees may increase or decrease for many reasons, including changes in the competitive, industry and regulatory environment or simply from changes in costs. We can change fees without your consent. We will not increase fees without providing at least three months written notice to you. If you withdraw within this notice period, the increased fees will not apply to you.

The maximum fees we are allowed to charge the Funds offered under this PDS (excluding GST) is stated in the Benefit Fund Rules as follows:

Contribution Fee: 5% of contributions to the Fund.

Management Fee: 2%* per annum.

Policy Fee: 1% per annum.

Switch Fee: 1% of amount to be switched.

Withdrawal Fee: 4% of the amount withdrawn.

* In the case of the AUI High Growth Bond, the maximum Management Fee is 3% per annum.

The Benefit Fund Rules govern the recovery of any other expenses.

For the actual fees charged, refer to pages 15 to 17.

Adviser remuneration

The financial adviser providing you with initial and ongoing advice may receive payment (remuneration) for providing this advice. Your financial adviser has to meet his/her expenses from this remuneration and also relies on it for income. Any adviser remuneration payable will be paid out of the fees we receive. Your financial adviser is required to disclose to you all remuneration received for placing your investment in a Fund. You and your financial adviser may agree that you will pay your financial adviser an additional fee outside the Fund.

If you choose not to use a financial adviser you will not generally be entitled to any rebates of the remuneration amounts outlined below.

From time to time, we may also offer other incentives (alternative remuneration) to your financial adviser, which are determined by us and paid out of our own money. A register of these payments and incentives is maintained by us (please see below).

All adviser remuneration quoted is inclusive of GST unless otherwise specified.

Where the Upfront Contribution Fee option is selected:

(1) Including initial and subsequent investments.(2) Calculated on the average daily value of your account and payable quaterly in arrears.

Where the Deferred Contribution Fee option is selected:

(1) Including initial and subsequent investments.

Your financial adviser may decide not to take any or all of the initial remuneration and/or service remuneration although there is no obligation for your adviser to do so.

Where this occurs:

any Contribution Fee applicable will be reduced by the same proportion as the percentage of initial remuneration foregone; and

the amount of service remuneration rebated (partial rebate is not available) will be paid to your account in the form of additional deposits or units each quarter. Depending on when you withdraw your entire investment in the Fund, the final quarter’s rebate may not be paid.

Alternative remuneration register

AUIBL maintains an Alternative Remuneration Register in accordance with the IFSA/FPA Industry Code of Practice on alternative forms of remuneration in the wealth management industry. The register outlines alternative forms of remuneration that are paid and received by us. Investors may inspect a copy of the register at our registered office at any time between 9.00am and 5.00pm on a Melbourne business day.

Financial adviser details

If you wish to negotiate the fees or costs as described above, contact your financial adviser, or if you cannot locate their details you can obtain them by contacting us on 13 29 39.

You will need to agree the above cost with your financial adviser and they will contact us to confirm those arrangements.

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InitialRemuneration(1)

Service Remuneration(2)

AUI Capital Guaranteed Bond; and


3.22%($322.00

per $10,000 invested)

0.44%($44.00 per

$10,000 invested)

AUI Conservative Growth Bond;

AUI Balanced Growth Bond; and


4.29%($429.00


0.44%($44.00


InitialRemuneration(1)

Service Remuneration

AUI Capital Guaranteed Bond; and


2.75%($275.00


Nil

AUI Conservative Growth Bond;

AUI Balanced Growth Bond; and


4.40%($440.00


Nil


The following is a broad summary of the basic taxation matters applicable to investment bonds and Australian resident investors (unless otherwise indicated) who hold their interest in an investment bond for long term investment on capital account. It is based on information, taxation legislation and industry practice that is current at the date of this PDS. Given the complexity of taxation legislation and the ongoing changes introduced by the Government and changes in the Australian Taxation Office interpretation, it is strongly recommended that investors obtain advice from a professional adviser particular to their circumstances.

No Tax paid by you while you hold an investment

bond

The earnings/growth in value of an investor’s investment bond will not attract a PAYG liability. Similarly, it will not be taken into account in determining any PAYG liability from year to year, or upon surrender of the investment after 10 years.

If an investor withdraws their investment within 10 years, some or all of the earnings will need to be included in the calculation of an investor’s taxable income at the time of withdrawal (refer to withdrawal information below).

Tax paid by AUIBL on your investment in the Fund

Investment earnings, including gains and losses on investments held in respect of investment bonds, are taxable at the corporate tax rate applicable to AUIBL (currently at the rate of 30%).

Where a Fund invests in Australian shares, imputation credits for any franked dividends received will reduce the tax payable in respect of the particular fund’s income.

Tax paid by investors on withdrawals

Withdrawals made after 10 Years

Provided an investor holds their investment bond for more than 10 years, they will not be subject to income tax or capital gains tax upon withdrawal.

Withdrawals made within 10 Years

Withdrawals made within 1 to 8 years

For withdrawals made within the first 8 years of the bond’s term, the full amount of any gain and earnings will be included in the investor’s assessable income.

Withdrawals made within 9 to 10 years

For withdrawals made within year 9 or 10, only two-thirds or one-third respectively, of their investment growth and earnings will be assessable.

The amounts included within assessable income (regardless of the withdrawal timeframe) will however be eligible for the 30% rebate. Accordingly, where an investors’ marginal tax rate

is less than 30%, the excess rebate can be used to reduce the investor’s tax liability payable in respect of other income.

If an investor uses the Regular Withdrawal Facility described on page 13, this will result in a partial withdrawal on each withdrawal, with tax consequences dependent on the period of investment as described above.

No Taxation upon Transfer

The transfer or assignment of an investment bond to another owner (provided this is done without consideration or payment), will generally entail no income taxation or capital gains tax for either the transferor or transferee. For tax purposes, the new owner will simply adopt the tax position of the former owner; with a full preservation of the investment’s tax advantaged status.

Similarly, investors can switch (fully or partially) to another investment bond option, and not be subject to taxation. This is because switching does not constitute a withdrawal from, or a surrender of, an original investment bond.

However, as some transfers or assignments may involve taxation consequence, it is recommended that professional taxation advice be obtained before this transaction is undertaken by an exiting investor.

Taxation Relief – for Death, Accident or Difficulty

In the event that death occurs before the maturity date of an investment bond, the investment earnings on the investment bond will not be subject to tax, even if the investment bond has been held for less than 10 years. If an investor suffers severe financial difficulty, accident, illness or other disability within 10 years of holding their investment bond, an exemption from income tax is available should they require the proceeds from their investment within the first 10 years of the term of the investment.

Tax File Numbers (TFN)

Under current legislation, investors in an investment bond are not required to provide AUIBL with their tax file number (TFN).

Further information about TFNs can be obtained from the Australian Taxation Office.

Goods and Services Tax (GST)

The acquisition, redemption or transfer of an investment bond is not subject to GST. Furthermore, no GST is payable upon any payment of benefits under an investment bond.

For specific advice in relation to the GST implications of your investment in the Funds you should contact your

accountant or financial adviser.

TAX INFORMATION

Benefit Fund Rules

The Australian Prudential Regulation Authority (APRA) in accordance with the Life Insurance Act 1995 has approved the Benefit Fund Rules (Rules) for all the investment bonds offered in this PDS.

Under the Rules, the assets of each Fund maintained by AUIBL are kept separate and distinct from the other assets held by AUIBL.

The approved Rules of each Fund, the Corporations Act 2001 and the Life Insurance Act govern the conduct of AUIBL and the terms and conditions of the policy owner’s entitlement under a Fund, including the payment of benefits and the operation of each Fund.

The statements in this PDS only provide a summary of some of the provisions of the Rules. Investors may inspect a copy of the Rules at our registered office at any time between 9.00am and 5.00pm (Melbourne time) on a Melbourne business day.

Contract with Policy Owners

On acceptance by AUIBL the applicant becomes a policy owner and is subject to the rights and obligations set out in the approved Rules. Two years following acceptance of the Fund application, the policy owner is eligible to become a member of Australian Unity Limited provided they retain the policy for that period. If accepted by Australian Unity Limited, the policy owner will then also be subject to the rights and obligations set out in the Constitution of Australian Unity Limited. The Rules and Constitution operate as a contract between members and AUIBL and Australian Unity Limited respectively.

Interest in the Fund

Capital Guaranteed Funds

Policy owners of the relevant Fund have an entitlement to a share in the AUI Capital Guaranteed Bond and the AUI Capital Guaranteed Mortgage Bond, being the proportion which the policy owner’s Accumulation Account Balance on the relevant date bears to the aggregate of the Accumulation Account Balances of all policy owners who have entitlements in relation to that investment bond, but do not have any specific interest in any part of the investment bond or any authorised investment thereof.

Unit Linked Funds

Policy owners have an entitlement to a share in the Flexi-Choice Fund (which covers the three Unit Linked Funds – the AUI Conservative Growth Bond, the AUI Balanced Growth Bond and the AUI High Growth Bond), being the proportion which the policy owner’s investment balance on the relevant date bears to the aggregate of all investment balances of all policy owners who have entitlements in relation to that

investment option, but do not have any specific interest in any part of that investment option or any other investment bond, or any authorised investment thereof.

Your Liability

Policy owners are not under any personal obligation to indemnify AUIBL (or its creditors) in respect of its liabilities in relation to the Funds.

Investment Managers

Any investment managers appointed by AUIBL are entitled to receive fees for investment management as agreed from time to time with AUIBL.

AUIBL has selected each of the investment managers appointed to manage the investment strategies, and may, during the life of the PDS, change the investment strategy and/or any of the appointed investment managers. We regularly review and monitor the performance of our investment managers and may change them at any time without giving notice.

Authorised Investments

Under each Fund’s Rules, AUIBL can invest in a broad range of investments. However, AUIBL currently limits the range of investments for the relevant Funds to those set out on pages 4 and 8 . Where AUIBL believes it to be in the investors' best interests, it can amend a Fund's investment guidelines without notice.

The Funds may invest in derivatives such as put and call options, futures contracts, forward rate agreements and foreign currency contracts for hedging purposes and to gain exposure to individual securities, currencies and sharemarkets.

The Life Insurance Act and Prudential Standards include requirement for minimum levels of funds to be held in liquid assets, generally defined as cash deposits and short term securities of less than 12 months duration. In addition, the Capital Guaranteed Funds are required to maintain a solvency reserve to protect against volatility in the value of their investments. The AUI Capital Guaranteed Bond and the AUI Capital Guaranteed Mortgage Bond both meet this requirement.

Borrowing

The Rules of the investment bonds do not permit AUIBL to borrow on behalf of any of the Funds.

Material Contracts

There are no material contracts other than the Rules for each Fund, the investment management agreements between Australian Unity Investment Bonds Limited and Australian Unity Funds Management Limited, and the investment management agreements with investment managers.

ADDITIONAL INFORMATION



Meetings of Policy Owners

Policy owners, as members of AUIBL, may attend and vote at general meetings of members of AUIBL convened in accordance with the Benefit Fund Rules. However, under the Life Insurance Act and Prudential Rules, meetings of policy owners may be convened for specific purposes, such as to approve the consolidation of benefit funds.

Terminating a Fund

AUIBL has the power to terminate the Funds in the manner prescribed by law.

Related Party Transactions

All transactions, including with related parties, are conducted on normal commercial terms and conditions, and on an arms length basis.

Entities of the Australian Unity Group may provide investment management, accounting and registry services, project services and other services to the Funds for which fees are charged at a commercial rate.

The Funds may invest in a managed investment scheme of which a related party is the responsible entity.

Australian Unity Funds Management Limited, Australian Unity Property Limited, Acorn Capital Limited, Platypus Asset Management Pty Ltd and Vianova Asset Management Pty Ltd are related parties to AUIBL.

Fax Instruction Service Conditions

By using our fax instruction service you release us from, and indemnify us against, all losses and liabilities arising from any payment or action we make based on any instruction (even if not genuine) that we receive by a fax bearing your investor code, a signature apparently yours or that of an authorised signatory for the investment. You also agree that neither you, nor anyone claiming through you, has any claim against us, or a Fund in relation to these payments or actions. Please be careful. There is a risk that a fraudulent fax redemption request can be made by someone who has access to your policy number and a copy of your signature. We reserve the right to add further requirements at any time.

Use of Your Information – Privacy

The privacy of your information is important to us. Your personal information is collected for the following purposes:

To administer products and services and manage our

relationship with you and to fulfil our obligations in

providing these products and services to you.

To process transactions, to answer queries and for

security purposes.

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To develop products and services.

To allow the Australian Unity Group to market

products and services to you (subject to your right to

opt-out of receiving various direct marketing materials

at any time). A current sample of these products and

services appears on the back cover of this PDS.

In managing your account, we may need to disclose your personal information to:

your financial adviser either directly or through other

service providers which we may have arrangements

with;

reputable service providers who may carry out

functions associated with our products and services

on our behalf. For example, mailing houses who

conduct mailouts for us;

our financial institution to initiate the drawing to your

nominated account (where you have selected the

Direct Debit facility); or

a third party as required by law.

You are entitled to request reasonable access to information we have about you. You should notify us immediately if any of the information we hold about you changes, so that we may ensure that your information is always complete, accurate and current. If you do not provide the information requested on the Application Form, we may be unable to process your application.

Our privacy policy can be found at:

www.australianunity.com.au

If you have any complaints or questions about the privacy of your personal information, please contact our Privacy Officer by writing to:

Australian Unity Privacy Officer

114 Albert RoadSouth Melbourne VIC 3205

If your complaint is not resolved by us to your satisfaction, you may write to the Privacy Commissioner at:

Office of the Federal Privacy Commission

GPO Box 5218Sydney NSW 1042

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Regular Reporting

We will keep in touch by sending you:

a Certificate of Membership confirming your initial

application;

a confirmation statement after each additional

investment (other than those made using the Regular

Savings Plan);

a bonus certificate or benefit schedule (depending on

which Funds you select) after each financial year; and

AUIBL’s financial statements at the end of each

financial year (unless you choose not to receive an

Annual Report). You can obtain a copy of the latest

AUIBL annual financial statements by calling us on

13 29 39.

If you have any queries on your investment or your personal

details change (e.g. change of address, name or bank account

details), please contact Client Services on 13 29 39 Australia-

wide or email us at [email protected].

For general information on your investment please visit our

website www.australianunity.com.au.

If a financial adviser’s stamp appears on the Application

Form, you authorise us to give information relating to your

account and investment in your account to your financial

adviser and acknowledge that your financial adviser is your

agent for the purpose of receiving this information.

Dispute Resolution

We take complaints seriously and aim to resolve them

as quickly as possible. You can either call us on 13 29 39,

email us at [email protected] or write to

us at the following address:

The Administration Manager

Australian Unity Investments

114 Albert Road

South Melbourne VIC 3205

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We will promptly acknowledge your complaint in writing

within 14 days, investigate it and decide in a timely manner

what action needs to be taken. We will notify you of our

decision within 45 days after receipt of the complaint,

together with any remedies that are available, or other

avenues of appeal against the decision.

If you are not satisfied with our handling of your complaint,

and your complaint was put to us in writing, you may

contact:

Financial Industry Complaints Service Limited

PO Box 579

Collins Street West

Melbourne VIC 8007

Telephone: 1300 780 808

Facsimile: (03) 9621 2291

Website: www.fics.asn.au

This service has been set up as an objective party to hear

unresolved complaints. There is no cost to you for using

this service.

KEEPING IN TOUCH



Please complete the Application Form in blue or black pen,

write in BLOCK LETTERS and sign where indicated.

You must complete at least sections A, C, E, F and J.

If you wish to:

nominate a life insured that is different to the

applicant(s) (policy owner(s)), complete section B;

start a Regular Savings Plan, complete sections D and

the Direct Debit Request;

nominate a beneficiary, complete section G; or

receive a regular withdrawal, complete section H.

Lodgement

Forward the completed Application Form, together with

either:

your cheque made payable to, Australian Unity

Investments – <name of applicant> and crossed ‘Not

Negotiable’; or

your completed Direct Debit Request and send to:

Australian Unity Investments

114 Albert Road

South Melbourne VIC 3205

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HOW TO APPLY

Our Commitment to You

This section sets out your rights, our commitment to you

and your responsibilities to us. It also specifies where

you should go for assistance in respect of your direct

debit arrangement with AUIBL. In terms of the DDR

arrangement made between us and signed by you, we

undertake to debit your nominated account in accordance

with your signed authority to direct debit.

Drawing Arrangements

For one off debits, payment will be drawn from

your nominated account on the date we accept your

application.

For regular debits, payment will normally start to be

drawn from your nominated account from the 12th

day of the month; in the month following the date

we receive your application (e.g. For an application

received on 1 March, the first deduction will occur on

12 April).

If any drawing falls due on a non-Melbourne business

day, it will be drawn from your account on the next

Melbourne business day following the scheduled

drawing date.

We will give you at least 14 days notice when we

intend to make changes to the initial terms of the

arrangement.

Changes to the Arrangement

If you want to make changes to the drawing arrangements,

please notify us in writing at least five Melbourne business

days prior to your next scheduled drawing date. These

changes may include:

deferring the drawing;

altering the schedule;

stopping an individual debit;

suspending the DDR; or

cancelling the DDR completely.

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Enquiries

If you have any enquiries they should be directed to

Australian Unity, rather than to your financial institution.

All personal customer information held by us will remain

confidential, except for information that may be provided

to our financial institution to initiate the drawing to your

nominated account, or information that may be disclosed

to a third party as required by law. Information may also be

provided to any of Australian Unity Limited’s wholly owned

subsidiaries to enable the DDR to be effected as required

by law.

Disputes

If you believe that a drawing has been initiated

incorrectly, you should raise the matter directly with

Australian Unity.

If you do not receive a satisfactory response from us,

your financial institution will respond to you with an

answer to your claim:

within seven Melbourne business days (for claims

lodged within 12 months of the disputed drawing);

or

within 30 Melbourne business days (for claims

lodged more than 12 months after the disputed

drawing).

You will receive a refund of the drawing amount if we

cannot substantiate the reason for the drawing.

Note: Your financial institution will ask you to contact us to

resolve your disputed drawing prior to involving them.

Your Commitment to Us

It is your responsibility to ensure that:

your nominated account can accept direct debits (your

financial institution can confirm this);

on the drawing date there are sufficient cleared funds

in the nominated account; and

you advise us if the nominated account is transferred

or closed.

If your drawing is returned or dishonoured by your financial

institution, we will notify you in writing. Any transaction

fees payable by us in respect of the above may be passed

on to you. Consecutive returns or dishonours may result in

the Direct Debit facility being cancelled by us.

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DIRECT DEBIT REQUEST (DDR) SERVICE AGREEMENT



AUIBL

means Australian Unity Investment Bonds Limited (AUIBL)

ABN 83 087 649 072, AFS Licence No. 234456.

AUI

means Australian Unity Investments, which refers to

the investment management business of the Australian

Unity Group and comprises the following entities:

Australian Unity Funds Management Limited, Australian

Unity Property Limited, Australian Unity Finance Limited,

Australian Unity Retirement Living Investments Limited

and Australian Unity Investment Bonds Limited.

Benefit Fund Rules

means the relevant Schedule of the AUIBL Constitution,

which established each Fund and as amended from time

to time.

Capital Guarantee

means that initial and subsequent contributions and annually

declared bonuses (net of fees and taxes) are guaranteed to

be paid by AUIBL on or after the selected maturity date or

death of the life insured.

Corporations Act 2001

means the Corporations Act 2001 (Cth) and Corporations

Regulations 2001 as amended from time to time.

Funds

means those funds offered under this PDS:






GST

means Goods and Services Tax.

ITC

means Input Tax Credits.

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Melbourne Business Day

means any day in which Australian banks are open for

business in Melbourne excluding a Saturday and Sunday.

Policy Owner

means the registered holder of the Policy.

Unit

means an undivided beneficial interest in a Fund, the value

of which is calculated in accordance with the Benefit Fund

Rules.

GLOSSARY

This page has been left blank intentionally

Submitting your application without the assistance of a fi nancial adviserIf you are submitting this application form directly, without having consulted with a fi nancial adviser, you must submit certifi ed copies of your identifi cation documents with the application form. The required identifi cation documents are set out on page 3.

Please take your time to complete the application form, ensuring that all of the required information is included, or we may not be able to process this application.

Incomplete applicationsThere may be instances where we do not receive suffi cient information from you. Where this happens, we will contact you to request the necessary information. Any delay in providing the necessary information may result in you receiving a diff erent unit price than you expected. We recommend you carefully complete the application form and use the ‘How to apply’ on page 2 and ‘Application form checklist’ on page 4 to ensure that you provide all of the required information. If you require assistance with completing the application form, please call us on 13 29 39.

If your application is incomplete and if the additional information is not provided on request, we may return the application and your application monies to you.

Certifi cation of documentsWhere your identifi cation documents need to be certifi ed, we suggest that the person certifying the document(s) for you use the following statement on the copy being certifi ed:

‘I certify this to be a true copy of [name of document] the original of which, was produced to me at the time of signing’.

The document must also be dated, and have the signature, printed name, occupation, employer and address of the person certifying the document.

Some persons who may certify copies of original documents are:

Offi cer with or authorised representative by an Australian Financial

Services licence holder with 2 or more years of continuous service with one or more licensees

Chartered Accountant, CPA or member of the National Institute

of Accountants with 2 or more years of continuous membership

Offi cer of a fi nancial institution or fi nance company with 2 or more

year continuous service with one or more institutions or companies

Permanent employee of the Australian Postal Corporation with

2 or more years continuous service, or someone who operates as an agent of the Australian Postal Corporation

Police Offi cer

Lawyer, magistrate, registrar of a Court, Justice of the Peace

Notary Public

Investment BondsApplication Form – 12 December 2007

Australian Unity Investments - Investment Bonds 1

Completing the application formAnti-money laundering legislation has been introduced to help combat money-laundering and fi nancing terrorism. This requires signifi cant changes to the information we are required to collect from investors. If you are applying through a fi nancial adviser, your adviser will assist you in providing the necessary verifi cation documents prior to lodging the application.

If you are submitting your application directly (without the assistance of a fi nancial adviser), please refer below to the information that should be provided with your application.

If you are an existing investor with Australian Unity Investments and are making an additional investment using the same customer name, then you are not required to provide us with verifi cation documents. However, we may, at our discretion, request these documents from you in an eff ort to comply with the new anti-money laundering legislation.

The following information is provided to assist you in completing and lodging the application form.

Completing the application form use a blue or black ballpoint pen

print in BLOCK letters inside the boxes

answer all sections unless otherwise indicated

(if a section does not apply, please indicate using “N/A”)

ensure you sign on page 9

complete the Direct Debit Request details page 11

or if you are paying by cheque, make it payable to:

Australian Unity Investments – <name of investor(s)>

mail your application form, identity documents (where required)

and cheque or direct debit instructions to our Reply Paid address (see ‘Lodgement’).

Signing the application formRead the declaration section carefully before signing the application form. Each signatory to the investment account must sign the application form.

If signed under Power of Attorney, the Attorney must certify

that they have not received notice of revocation of the Power (We require a certifi ed true copy of the Power of Attorney for our reference.)

LodgementYou can send the completed application together with a cheque or your Direct debit request instructions to:

Australian Unity InvestmentsReply Paid 64466South Melbourne VIC 3205 (No stamp required if mailed in Australia)

The application will be considered lodged when it is received in our Melbourne offi ce on a business day*, prior to 3.00 pm.

* A business day is a Melbourne business day on which Australian banks are open for business in Melbourne excluding Saturday and Sunday.

How to apply

2 Australian Unity Investments - Investment Bonds

If you are applying through a fi nancial adviser, your fi nancial adviser will assist you in providing the necessary verifi cation documents. The following verifi cation documents are required if you are submitting your application directly, without the assistance of a fi nancial adviser.

Type of applicant

Your account must be in the name of: Signature(s) required Verifi cation documents required

(in support of this application form)

Individual account The individual E.g. Jane Citizen

The individual’s Certifi ed copy of any of the following that verify your name, date of birth and current address:

Birth Certifi cate

Citizenship Certifi cate

Pension Card

Drivers Licence

Passport

Notice issued by a government body

or utility provider

Joint account Both or all joint applicantsE.g. Jane Citizen and

John Citizen

All joint applicants’

Applying for diff erent types of investment accounts


To ensure that we are able to process your application form quickly and effi ciently, please “X” that you have completed all of the following:

Section 1 Investment details – Indicate if you are a new or existing investor (mandatory).

Section 2 Applicant details – Indicate your name and residential address (mandatory).

Section 3 Life insured details – Indicate who's life is to be insured (if diff erent from applicant) (mandatory).

Section 4 Mailing address – Confi rm if your mailing address is diff erent to your residential address.

Section 5 Contact details – Provide contact details of the applicant(s).

Section 6 Investment details – Indicate the amount you wish to invest in a Fund(s) (mandatory).

Section 7 Regular Savings Plan – Indicate the amount and frequency of your Regular Savings Plan (if applicable).

Section 8 Fee option – Choose the Upfront or Deferred contribution fee option.

Section 9 Term – Indicate your elected term for the policy.

Section 10 Benefi ciary Details – Provide details of beneficiaries in the event of death prior to bond maturity.

Section 11 Regular Withdrawal Facility – Indicate the amount and frequency of your Regular Withdrawal Facility (if applicable).

Section 12 Fax instruction – Confirm if you wish to provide transaction details via fax.

Section 13 Annual reports – Indicate if you would like to receive printed copies of Annual Reports.

Section 14 Declaration and investor signature(s) (mandatory)

Individual investors – Provide your signature and date the form.

Joint investors – Provide your signatures and date the form.

Power of Attorney – Provide your signature and date the form. Attach a certified copy of the Power of Attorney. A Justice of the Peace, Solicitor or Notary Public must certify each page of the Power of Attorney. You also need to provide the same type of information requested for an Individual account as it relates to the Attorney named in the application. Should the Power of Attorney document not contain a sample of the Attorney's signature, please also provide a certified copy of identification documents for the Attorney, containing a sample of their signature, e.g. Driver's Licence, Passport, etc.

Section 15 Adviser arrangements – This section is to be completed by your financial adviser. If you are not using the services of a financial adviser, please leave blank.

Application form checklist



Please use BLOCK letters and a black or blue pen to complete this application form.

Please indicate using an “X” where appropriate. If a section does not apply to you, please indicate using “N/A”. Reference Number 5 0 1 Offi ce use only

1. Investment details

New investor: Are you a new investor with Australian Unity Investments?

Yes – Go to Section 2 and complete all details

No – See belowExisting investor:

Initial investment

Additional investment

Existing account number

Existing account name

If any of your details have changed please provide them below, otherwise go to Section 6.

2. Applicant(s) details

Applicant 1

Title Mr Mrs Ms Miss Date of birth / /

Surname

Given name(s)

Occupation

Country of residence (if outside Australia)

Email

Applicant 1 residential address (not a P.O. Box)

Unit Street Number

Street name

Suburb State

Postcode Country

(if not Australia)

Australian Unity Investments – Investment BondsApplication Form – 12 December 2007

Applicant 2


Surname

Given name(s)

Occupation


Email

Applicant 2 residential address (not a P.O. Box)

Unit Street Number

Street name

Suburb State

Postcode Country

(if not Australia)

3. Life insured details (only if diff erent from applicant(s))

Title Mr Mrs Ms Miss

Surname

Given name(s)

Relationship to Applicant(s) Date of birth / /

4. Mailing address

Same as Investor 1 residential address/business address or Same as Investor 2 residential address

Otherwise complete mailing address details below.

Unit Street Number P.O. Box

Street name

Suburb State

Postcode Country

(if not Australia)

5. Contact details

Phone

(after hours) Phone

(business hours)

Mobile Facsimile

Email


6. Investment details

Minimum initial investment is $1,000 per Fund. Minimum additional investment is $500 per Fund.

AUI Capital Guaranteed Bond $ , , .

AUI Capital Guaranteed Mortgage Bond $ , , .

AUI Conservative Growth Bond $ , , .

AUI Balanced Growth Bond $ , , .

AUI High Growth Bond $ , , .

Payment Method: Cheque (Make cheques payable to: Australian Unity Investments – <name of investor> and crossed 'Not Negotiable’.)

Direct Debit (Please complete the Direct Debit Request on page 11 of the application form.)

7. Regular savings plan

Please tick if you wish to participate in the regular savings plan. (Please complete the Direct Debit Request on page 11 of the application form.)

Investment amount Regular Savings PlanRegular savings plan (Minimum is $100/month.) Please tick the frequency of payments for your

AUI Capital Guaranteed Bond $ , , . Monthly Quarterly Half-yearly Yearly

AUI Capital Guaranteed Mortgage Bond $ , , . Monthly Quarterly Half-yearly Yearly

AUI Conservative Growth Bond $ , , . Monthly Quarterly Half-yearly Yearly

AUI Balanced Growth Bond $ , , . Monthly Quarterly Half-yearly Yearly

AUI High Growth Bond $ , , . Monthly Quarterly Half-yearly Yearly

8. Fee Option

Upfront contribution fee Deferred contribution fee (Pay contribution fees later.)

The Upfront contribution fee option will apply if no election is made.

9. Term

I/We elect a term of (Minimum of 10 years, maximum of 40 years.)

I/We understand that if I/we do not elect a term the policy will automatically mature in 40 years (the maximum term of a policy).

10. Benefi ciary Details

Pursuant to the provisions of the Life Insurance Act 1995 and the Rules, I/we hereby that upon my/our death, all monies or any other benefi taccrued on, or due in respect of, the benefi t applied for on the Australian Unity Investment Bond Application Form, to which I am/we are entitledare to be paid as set hereunder:

Please note: If the policy is jointly owned there is no need to complete this nomination. In the event of death, the surviving owner assumes fullpolicy ownership. If the life insured is diff erent to the policy owner, the benefi ciary nomination is not eff ective. In the event of death of the lifeinsured, the benefi t is payable to the policy owner.

Benefi ciary 1's details

Benefi ciary 1's full name % of benefi t

payable



Benefi ciary 2’s details

Benefi ciary 2’s full name % of benefi t

payable




payable




payable


11. Regular Withdrawal Facility

Please tick if you wish to participate in the Regular Withdrawal Facility.

Withdrawal amount (Minimum Regular Withdrawal amount is $500 per month.) Please tick the frequency of withdrawals from your

AUI Capital Guaranteed Bond $ , , . Monthly Quarterly Half-yearly Yearly

AUI Capital Guaranteed Mortgage Bond $ , , . Monthly Quarterly Half-yearly Yearly

AUI Conservative Growth Bond $ , , . Monthly Quarterly Half-yearly Yearly

AUI Balanced Growth Bond $ , , . Monthly Quarterly Half-yearly Yearly

AUI High Growth Bond $ , , . Monthly Quarterly Half-yearly Yearly

Please withdraw from my investment as detailed above and deposit the amount via direct credit in the following account:

Name and address of your Australian Bank, Building Society, Credit Union or CMT account where account is held

Name of Financial Institution

Branch name

Name of account holder(s)

Branch number (BSB) – Account number

I/We acknowledge that direct deposits not accepted by my/our Australian Bank, Building Society, Credit Union or CMT will be reinvested.

12. Fax Instructions

Do you wish to provide account transaction instructions via fax?

Yes No

13. Annual reports

Annual reports are available from our website at www.australianunityinvestments.com.au. If you wish to receive a printed copy of the annual report(s), please indicate using an ‘X’ below.


14. Declarations

I/We hereby apply for membership of the relevant Fund.

I/We agree to be bound by the terms and conditions of the attached Australian Unity Investments – Investment Bonds PDS dated 1July 2006

and the relevant Fund’s Benefi t Fund Rules, which may be amended from time to time.

I/We acknowledge that neither Australian Unity Investment Bonds Limited, any appointed investment managers nor any member of the

Australian Unity Group guarantee the performance of the Funds, nor any return of capital other than as disclosed in the PDS dated 1 July 2006.

I/We acknowledge that monies invested in a Fund do not represent investments in Australian Unity Investment Bonds Limited, nor with any

member of the Australian Unity Group and are subject to investment risk.

I/We have read and understood the PDS dated 1 July 2006. If I/we have obtained the PDS dated 1 July 2006 through electronic means,

then I/we declare that I/we received a printout, which comprises the whole PDS and the Application Form before making an application.

I/We acknowledge that Australian Unity Limited and its related bodies corporate may off er goods and services appropriate for my needs and

interests (a current sample of which appears on the back cover of this PDS). I/We consent to my information being disclosed between those entities, and to its use for direct marketing (subject to my right of opt-out), product management and development and for other related purposes.

I/We authorise Australian Unity Investment Bonds Limited to give information relating to my/our account and investment in that account to

my/our adviser whose stamp appears on the Application Form.

I/We acknowledge that if this application is signed under a Power of Attorney, the Attorney verifi es that no notice of revocation of that power

has been received at the date of completing this application.

I/We acknowledge that all of the information provided in this application form is complete and accurate to the best of my/our ability/abilities.

I/We will provide any supporting or additional information which might be required in order to process this application, or subsequently,

as a consequence of my holding units in the Fund.

I/We have no reason to suspect that the monies used to fund this application, or any subsequent contributions into the Fund, is or will be

derived from or related to any money laundering, terrorism fi nancing or other illegal activities.

Signature of Applicant 1(Legal representative, parent or guardian if applicant is under 16 years.)

Signature of Applicant 2(Legal representative, parent or guardian if applicant is under 16 years.)

Investor signature X

Investor signature X

Date / / Date / /

Witness Signature(Required if section 10 – Benefi ciary details completed.

Nominations are only valid if witnessed by an independent party i.e. other than the applicant/member and benefi ciary(s)).

X

Date / /

Legal Representative/Parent/Guardian Details


Surname

Given name(s)

Phone

(business hours) Mobile Phone


Email


Complete all relevant sections below as incomplete applications may not be accepted.

Please use BLOCK letters and a black or blue pen to complete this application form. Please indicate using an “X” where appropriate. If a section does not apply to you, please indicate using “N/A”. Reference Number 5 0 2 Offi ce use only

1. Investor Details

Title Mr Mrs Ms Miss

Surname

Given name(s)

Unit Street Number

Street name

Suburb State

Postcode Country

(if not Australia)

Phone

(business hours) Mobile Phone

Email

2. Initial Terms of the Arrangement

Initial investment by direct debit to be deducted at time of application.

Regular Savings Plan direct debits to commence from 1 5 / / until further notice in writing.

(Regular direct debits will commence the month following your initial investment.)

Frequency of direct debits: Monthly Quarterly Half yearly Yearly

3. Details of your Australian Bank, Building Society, Credit Union or CMT account

Name and address of your Australian Bank, Building Society, Credit Union or CMT account where account is held

Name of Financial Institution

Branch name

Name of account holder(s)

Branch number (BSB) – Account number


Australian Unity Investments – Investment BondsDirect Debit Request (DDR) – 12 December 2007

4. Your Authorisation

I/We request Australian Unity (User ID 001721, User ID 063678 or User ID 253816) to debit funds from my/our nominated account according

to the details specifi ed above.

I/We have read and understand the Australian Unity Direct Debit Request (DDR) Service Agreement on page 27 of the Investment Bonds

Product Disclosure Statement dated 1 July 2006.

Signature of Applicant 1

X

Date /

/

Signature of Applicant 2(If joint Account)

X

Date /

/

If debiting from a joint account all signatures are required.


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