See our upcoming events – join us!

About
  • About us

    BG Private is an AFR Top 100 accounting, audit, and advisory firm.

  • Our history

    We have a proud 45-year history. Learn more about our journey here.

  • Our purpose statement

    Discover our client service ethos, and the philosophy that drives us.

  • Need a guest speaker?

    Our experts can present on a range of topics. Find out more here.

Services
Services for businesses
  • Accounting & Business Advisory

    Discover how our accounting and advisory services can help your business grow and reach its goals.

  • Audit & Assurance

    Find out how we can assist you with your audit, assurance, and statutory reporting requirements.

  • Tax Advisory

    Learn how we can answer your complex tax questions with our specialist insights and advice.

  • Corporate Advisory

    Find out how our strategic and operational involvement can help your business maximise its value.

  • Private Equity

    Learn how we generate healthy returns for investors by backing ambitious SME founders.

  • Property Advisory

    Discover how we can help maximise your property portfolio with insights, strategy, and transaction support.

  • Bookkeeping

    See how our bookkeeping services can help your business run smoothly so you can focus on growth and profitability.

Services for individuals
  • Accounting Services

    Discover all the ways we can help you navigate and optimise your tax matters.

  • Tax Advisory

    Learn how we can answer your complex tax questions with our specialist insights and advice.

  • SMSF Management

    Discover how we can help with the administration of your Self-Managed Super Fund.

  • Financial Planning

    Find out how we can help you reach your financial goals.

Specialisations
Industries
Business types
  • SMEs

    Learn how we partner you along your journey to help you create a thriving business.

  • Not-for-profits

    Learn how we can help with your accounting and audit needs so you can focus on helping others.

  • Family businesses

    Discover how we can help you every step of the way as you build a legacy-leaving family business.

  • Australian businesses overseas

    We can help you navigate the exciting process of expanding overseas.

  • Foreign companies in Australia

    We can help you set up and run your operations Down Under.

Our People
Insights
  • Articles

    Read the latest BG updates and interesting articles from our expert advisors.

  • Case studies

    See examples of how we have helped clients to learn how we can help you as well.

  • Video & podcasts

    Get the latest insights from our experts on a range of topical money matters.

  • Events

    Discover our upcoming events including webinars, in-person events, and fundraisers.

Careers
  • Why choose us

    Find out how we can help grow your career, and learn about our rewards and benefits.

  • Current opportunities

    We are always looking for talented people! Browse our vacancies and apply today!

  • Recruitment process

    We like to make the recruitment process as seamless as possible. Learn more here.

  • Experienced professionals

    Find out why BG Private is a great place for seasoned professionals.

  • Graduates

    Apply what you’ve been learning to real-world cases – launch your career with us!

  • Interns

    If you’re studying Accounting, kick-start your career with an internship at BG Private.

Pay Invoice
Contact

In Melbourne, 13 years of private school fees costs upward of $300,000 on average. Annually, the average cost is more than $12,000 but it’s not unheard of for independent school fees to be $20,000 or even $30,000 per year.

If you have more than one child, the costs to you can obviously be much higher. And additional costs for things like school camps, uniforms, books, equipment hire, extracurricular sports or music programs, and even class photos can add significantly to the overall cost.

Given this, it’s no wonder that 44% of parents are very intentional about preparing for the cost of education.

In this article, we explore three possible ways to fund private school fees:

  1. Savings
  2. Debt recycling
  3. Education bonds

Keep in mind, you may like to use a combination of these methods, and a Financial Advisor can help you decide which option(s) are best for your unique situation.

Option 1: Fund private school fees using savings

This is the most straightforward method. School fees are paid using after-tax cash savings from your regular pay.

BENEFITS​

DRAWBACKS

Option 2: Fund private school fees using debt recycling method

Debt recycling is the utilisation of an existing debt (like your mortgage) to create a tax effective investment portfolio. For example, you might refinance your mortgage to access additional equity. Meaning you increase the amount you borrow against your home, which will provide you with extra funds.

The additional funds from this refinancing may then be invested into income-generating assets, such as shares or managed funds.

Given that we borrowed additional money to fund the purchase of income-producing investments, the interest incurred on the investment-funding portion of the drawdown will then be tax deductible. The tax savings can then cover some or all of the cost of the private school fees or may provide you with additional financial relief.

Over time, you may choose to use any additional income or tax savings to pay down the original mortgage and redraw more funds for additional investing, thereby continually recycling the debt.

By effectively managing debt and investments, families can potentially create a sustainable way to cover private school fees while leveraging their home equity.

BENEFITS​​

DRAWBACKS

Option 3: Fund private school fees using an education bond

An education bond is designed to assist you in funding education expenses. They are often structured as managed investment schemes, where your money is pooled with other investors’ funds. The bond is managed by a financial institution or fund manager, some bonds have more flexibility in the investment selection then others.

One of the key features of education bonds is that it acts as a tax-effective investment option. The earnings on the investment are generally taxed at a lower rate compared to regular income marginal tax rates.

Funds can usually be withdrawn at any time, however when they are needed for education expenses there are certain tax benefits. Withdrawals for qualified educational purposes are typically see the bond credited back with tax paid on investment earnings, provided certain conditions are met.

Multiple beneficiaries (children) can be listed as beneficiaries of the education bond.

The balance of the bond is comprised of two components – the value of contributions made (capital) and the returns generated by the investments within the education bond (earnings).

Before investing, it’s important to review the specific terms and conditions of the bond, including fees, performance history, and withdrawal rules, to ensure it aligns with your financial goals.

BENEFITS​​

DRAWBACKS​

Seek financial advice

It’s important to seek financial advice before deciding which options might be best for you. Which method may be best can depend on many things including your other debts, your savings goals, your cashflow, your current investments, your risk appetite, your age, your income, and more.

At BG Private, we have experts in how to fund private school fees who can help you navigate the various solutions.

Contact us!

Contact our Financial Advisors via +61 3 9810 0700 or to discuss the best options for you to fund private school fees.

Contact