Smart EOFY Strategies For 30 June 2017 A presentation to Client Name Date Presented by Firstname Surname Jobtitle/Position

Disclaimer Important information: This presentation is provided by [Adviser name] of [CAR name] an authorised representative of [Licensee name], AFSL [X], a member of the National Australia Bank group of companies (“NAB Group”)” Any financial advice contained in this publication is general only and has not been prepared having regard to your personal circumstances. You should consider your personal circumstances before acting on any advice. Before making any decision about whether to invest with MLC, please consider the Product Disclosure Statement to which the investment relates. This document contains general information only. <Adviser Business name> is not a registered tax agent. If you wish to rely on this letter to determine your personal tax obligations, you should consult with a Registered Tax Agent. In preparing this information, <Insert adviser Business name> did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, a person needs to consider (with or without the advice or assistance of an adviser) whether this information is appropriate to their needs, objectives and circumstances. Any tax estimates provided in this publication are intended as a guide only and are based on our general understanding of taxation laws. They are 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. This information is based on our interpretation of relevant superannuation, social security and taxation laws as at 11 May 2017 MLC Superannuation (issued by NULIS Nominees (Australia) Limited) is part of the NAB Group’s wealth management business. MLC Life Insurance (issued by MLC Limited) is part of the Nippon Life Insurance Group and is not a part of the NAB Group. An investment with MLC or insurance with MLC Life Insurance is not a deposit or liability of, and is not guaranteed by, NAB. Smart EOFY Strategies for 30 June 2017

Notice Unless stated otherwise, this presentation does not take into account any of the super changes that have an implementation date in future financial years. Smart EOFY Strategies for 30 June 2017

Agenda Why invest via super? Super strategies Insurance strategies Other tax-effective year-end opportunities How I can help? Smart EOFY Strategies for 30 June 2017

Why invest via super? Tax concessions every step of the way 1. When you contribute to super, you could potentially Make contributions from pre-tax salary1 Claim contributions as a tax deduction1 Get a Government co-contribution of up to $500² Get a tax offset of up to $540 Now Retirement 1 Salary sacrifice, personal deductible and other concessional contributions are taxed at up to 15% in the fund. An additional 15% tax is payable if income plus concessional contributions exceeds $300,000 in 2016/17 (or $250,000 from 1 July 2017). ² Certain eligibility criteria apply. Smart EOFY Strategies for 30 June 2017

Why invest via super? Tax concessions every step of the way Now Retirement 2. While build up super Earnings in fund taxed at maximum of 15% Earnings from investments in own name taxed at up to 49%1 1 Includes a Medicare levy of 2% and the Temporary Budget Repair levy (in 2016/17) of 2% . Smart EOFY Strategies for 30 June 2017

Why invest via super? Tax concessions every step of the way Now Retirement 3. If receive super as retirement income stream No tax on investment earnings Tax offset between preservation age1 and 592 Tax-free income at 60 and over 2 1 Your preservation age ranges from age 55 to 60 depending on your date of birth. 2 Assumes no untaxed element. Smart EOFY Strategies for 30 June 2017

Super EOFY strategies Get more from your salary or bonus If you… are an employee You may want to… salary sacrifice your pre-tax salary or bonus into super rather than receive it as cash So you can potentially… reduce tax payable on salary or bonus by up to 34% take advantage of higher contribution cap that applies this financial year grow your retirement savings Can only contribute salary not yet earned Need a salary sacrifice agreement Don’t exceed cap – penalties can apply Smart EOFY Strategies for 30 June 2017

Salary sacrifice – case study William is aged 45 About to receive a $5,000 pa salary increase Will bring his total salary to $100,000 pa Considering salary sacrificing this additional $5,000 into super Smart EOFY Strategies for 30 June 2017

Salary sacrifice – case study Per annum Sacrifice pay rise into super Receive pay rise as after-tax salary & invest outside super Pre-tax pay rise $5,000 Less income tax at 39%1 (N/A) ($1,950) Less tax on super contribution ($750) Net amount invested $4,250 $3,050 Additional amount invested $1,200 Tax payable on investment earnings 15% 39% 1 Includes a Medicare levy of 2%. Smart EOFY Strategies for 30 June 2017

Super EOFY strategies Make tax deductible super contributions If you… are self-employed or not employed You may want to… make personal super contributions So you can potentially… claim some (or all) of contribution as tax deduction take advantage of higher contribution cap that applies this financial year grow your retirement savings Need to complete valid ‘notice of intent’ and receive acknowledgment that form has been received and accepted by your super fund Don’t exceed cap – penalties can apply Smart EOFY Strategies for 30 June 2017 11

Insert relevant picture Personal deductible contributions – case study Bob is aged 55 Self-employed and earns $80,000 pa Plans to retire in 10 years and wants to boost his retirement savings Considering making a personal super contribution of $10,000 and claiming contribution as a deduction Insert relevant picture Smart EOFY Strategies for 30 June 2017

Personal deductible contributions – case study Make personal contribution Make personal contribution and claim deduction Personal super contribution $10,000 Assessable income $80,000 Less deduction claimed Nil ($10,000) Taxable income $70,000 Income tax and Medicare $19,147 $15,697 Income tax and Medicare saving $3,450 Less fund tax on deductible contribution ($1,500) Net tax saving $1,950 Smart EOFY Strategies for 30 June 2017

DON’T EXCEED CAP – PENALTIES CAN APPLY Consider concessional contribution cap Applies to… superannuation guarantee contributions salary sacrifice contributions personal deductible contributions other amounts Age on previous 30 June Annual cap amount In 2016/17 From 2017/18 48 or under $30,000 $25,000 49 or over $35,000 DON’T EXCEED CAP – PENALTIES CAN APPLY Smart EOFY Strategies for 30 June 2017

Super EOFY strategies Make after-tax contributions to super If you… have an investment in your own name You may want to… cash out the investment and use the money to make a personal after-tax super contribution So you can potentially… reduce tax on investment earnings by up to 34% take advantage of higher cap that applies this financial year grow your retirement savings Don’t exceed cap – penalties can apply Smart EOFY Strategies for 30 June 2017

DON’T EXCEED CAP – PENALTIES CAN APPLY Consider non-concessional contribution cap Applies to… personal after-tax contributions made Spouse contributions received In 2016/17 From 2017/18 Annual cap $180,000 $100,000 Bring forward rule (available if < 65) $540,000 $300,000 From 1/7/2017, NCCs can’t be made if have > $1.6 million in super Transitional rules apply if contribute between $180,000 and $540,000 in 2015/16 or 2016/17 DON’T EXCEED CAP – PENALTIES CAN APPLY Smart EOFY Strategies for 30 June 2017

Super EOFY strategies Get a super top up from the Government If you… earn at least 10% of income from employment or self-employment earn a total income of less than $51,0201 You may want to… make personal after-tax super contribution So you can potentially… qualify for a Government co-contribution of up to $500 grow your retirement savings Must earn $36,0211 or less and contribute $1,000 for full co-contribution Spouse may qualify for co-contribution if you don’t 1 Includes assessable income, reportable fringe benefits and reportable employer super contributions. Other eligibility conditions apply. Smart EOFY Strategies for 30 June 2017

Co-contribution – case study Ryan is aged 40 Employed on salary of $35,000 pa Wants to build his retirement savings Considering making a personal super contribution of $1,000 Smart EOFY Strategies for 30 June 2017

Co-contribution – case study Invest outside super Make personal super contribution Amount invested $1,000 Plus co-contribution Nil $500 Total investment $1,500 Tax payable on investment earnings 21%1 15% 1 Includes a Medicare levy of 2%. Smart EOFY Strategies for 30 June 2017

Super EOFY strategies Boost partner's super and reduce your tax If you… have a spouse who earns less than $13,8001 satisfy other eligibility criteria You may want to… make after-tax super contribution on spouse’s behalf So you can potentially… receive tax offset of up to $540 grow spouse’s retirement savings 1 Includes assessable income, reportable fringe benefits and reportable employer super contributions. Other eligibility conditions apply. Smart EOFY Strategies for 30 June 2017

Other super EOFY strategies Make insurance more affordable Buy life and total and permanent disability insurance in super Self-employed Claim super contributions as tax deduction Employee Buy insurance in super with pre-tax dollars Eligible for co-contribution Use co-contribution to help pay for future insurance Concessions can: make it more affordable to insure through super, or enable you to purchase a higher level of cover Smart EOFY Strategies for 30 June 2017

Insert relevant picture Insurance in super – case study Jack is aged 44 Earns salary of $100,000 pa Is married to Claire, aged 41 Claire is on break from workforce looking after their young children Jack needs $700,000 in life and total and permanent disability insurance Annual premium is $1,000 Insert relevant picture Smart EOFY Strategies for 30 June 2017

Insurance in super – case study Insurance purchased outside super (with after-tax salary) Insurance purchased in super (via salary sacrifice) Annual premium $1,000 Plus tax at marginal rate of 39%1 $639 N/A Pre tax salary received or sacrificed $1,639 Pre-tax saving After-tax saving $390 1 Includes a Medicare levy of 2%. Smart EOFY Strategies for 30 June 2017

If you want to manage your cashflow tax-effectively, you could: Other smart EOFY opportunities Pre-pay expenses If you want to manage your cashflow tax-effectively, you could: Pre-pay annual premiums for an income protection policy held in your own name outside of super Pre-pay up to 12 months’ interest on an investment loan (usually only available with fixed rate facilities) Smart EOFY Strategies for 30 June 2017

Other smart EOFY strategies Manage CGT If you make a capital gain on asset sales this financial year… Consider making a personal super contribution and claiming amount as tax deduction (if eligible) If you have received a capital loss from your investments… Consider utilising capital loss against any capital gains If you are thinking of selling a profitable asset this financial year… Consider deferring the sale until a future financial year Smart EOFY Strategies for 30 June 2017

Start planning for EOFY 2017/18 now Strategy wrap-up Before June 30 After June 30 Super strategies Salary sacrifice contributions Personal deductible contributions Personal after-tax contributions Co-contributions Spouse contributions Key issues to consider Review concessional contributions Make the most of your tax refund Insurance strategies Buy life and TPD insurance in super Pre-pay income protection outside super Investment strategies Manage CGT Pre-pay investment loan interest Start planning for EOFY 2017/18 now Smart EOFY Strategies for 30 June 2017

How I can help? Note to adviser: Optional slide(s)- e.g. relevant content regarding your advice services and how people can make an appointment. Smart EOFY Strategies for 30 June 2017

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