2016 BUDGET SUMMARY

This presentation has been prepared by John Blangiardo and Apogee Financial Planning Limited ABN , a member of the National Group of Companies. This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and/or legal advice prior to acting on this information. Information in this presentation is accurate as at 3 May In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. We do not give give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Case studies in this presentation are for illustration purposes only. The investment returns shown in any case studies in this presentation are hypothetical examples only and do not reflect the historical or future returns of any specific financial products. Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns. Any tax information provided in this presentation is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or a complete assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent. 2 IMPORTANT INFORMATION AND DISCLAIMER

2016 Federal budget analysis OVERVIEW Superannuation - ‘enhancing flexibility and choice’ - ‘better targeting of concessions’ - ‘improving integrity’ Personal and company tax Social security benefits – no significant changes IMPORTANT: Legislation must pass through parliament before any of these measures become law. With a potential election pending there may be increased uncertainty regarding this budget.

2016 Federal budget analysis YOUR RETIREMENT SUPERANNUATION – BETTER TARGETING OF CONCESSIONS Annual cap on concessional contributions will reduce to $25,000 for all taxpayers ‘Catch-up’ concessional contributions Additional tax on concessional contributions AgeAnnual cap amount In 2015/16 and 2016/17From 2017/18 48 or under on 30 June 2015$30,000$25, or over on 30 June 2015$35,000$25,000 IncomeTax on concessional contributions In 2015/16 and 2016/17From 2017/18 <$250,00015% $250,000 to $300,00015%30% $300, %

2016 Federal budget analysis YOUR RETIREMENT SUPERANNUATION – BETTER TARGETING OF CONCESSIONS Changes to non-concessional contributions - from Budget night -Lifetime cap of $500,000 -Replaces existing annual caps -All non concessional contributions made on or after 1 July 2007 Superannuation pension limits – from 1 July a balance cap of $1.6m on the total amount of accumulation super that can be transferred into tax-free retirement phase

2016 Federal budget analysis YOUR RETIREMENT SUPERANNUATION – ENHANCING FLEXIBILITY AND CHOICE From 1 July 2017 Harmonising contributions between aged 65 and 74 - removal of work test - open up the ability for spouses over 70 to receive contributions Restrictions on personal superannuation contribution deductions eased - all individuals up to age 75 will be allowed to claim an income tax deduction for personal superannuation contributions

2016 Federal budget analysis YOUR RETIREMENT SUPERANNUATION – IMPROVING INTEGRITY From 1 July 2017 Transition to retirement pensions - tax exemption on earnings of assets supporting Transition to retirement income streams will be removed - same taxation as accumulation superannuation to apply (ie 15%) Anti-detriment death benefit provision removed

2016 Federal budget analysis YOUR TAX PERSONAL TAX RATE CHANGES Targeted personal income tax relief Current tax thresholds 2015/16 Tax rateNew tax thresholds 2016/17 Tax rate $0 - $18,2000%$0 - $18,2000% $18,201 - $37,00019%$18,201 - $37,00019% $37,001 - $80, %$37,001 -$87, % $80,001 - $180,00037%$87,001 - $180,00037% $180, %$180, %

2016 Federal budget analysis YOUR TAX OTHER PERSONAL TAX RATE CHANGES Spouse superannuation tax offset Temporary Budget Repair Levy Date of effectMeasuresDetail 1 July 2017Spouse superannuation tax offset  Spouse income threshold will increase from $10,800 to $37,000  Maximum tax offset will remain at $540 1 July 2017Temporary Budget Repair Levy This levy, which is 2% of taxable income in excess of $180,000 will expire on 30 June 2017, as legislated.

2016 Federal budget analysis YOUR BUSINESS COMPANY TAX RATE Staggered cuts to the company tax rate Tax year2016/172017/182018/192019/202020/212021/222022/23 Turn over$10m$25m$50m$100m$250m$500m$1b Maximum business turnover to be eligible for 27.5% company rate Tax year2024/252025/262026/27 All companies27%26%25% Further company tax rate changes

2016 Federal budget analysis MEASURES NOT ANNOUNCED OR AFFECTED Negative gearing Child care rebate Age Pension

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