Presented by Firstname Surname Jobtitle/Position A presentation to Client Name Date 2015 Budget summary

This presentation has been issued by 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 advice prior to acting on this information. Information in this presentation is accurate as at 12 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. Neither, the Licensee or any member of the NAB Group, nor their employees or directors 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. They 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. We are not a registered tax agent or a registered tax (financial) adviser. If you intend to rely on any general tax information contained in this presentation to satisfy liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, you should seek professional advice from a registered tax agent or registered tax (financial) adviser. 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

FEDERAL BUDGET – 12 TH MAY Government benefits- social security benefits Superannuation – no significant changes Personal taxation and Small Business tax IMPORTANT: Legislation must pass through parliament before any of these measures become law 2015 FEDERAL BUDGET ANALYSIS OVERVIEW

FEDERAL BUDGET – 12 TH MAY Medicare Levy - Low-income threshold for singles, families and single seniors and pensioners will be increased for the income year. ‘Netflix tax’ - GST on cross-boarder supplied digital products People on a ‘working holiday’ in Australia will be taxed as ‘non-residents’- no tax free threshold Range of issues raised by the Government in a recent discussion paper- not addressed: -negative gearing -tax on bank deposits 2015 FEDERAL BUDGET ANALYSIS YOUR TAX

FEDERAL BUDGET – 12 TH MAY Tax concessions for small business – entities with turnover up to $2m pa Company tax rate for small businesses reduced to 28.5% from 1 July 2015 (dividends will still be franked at 30%) Individuals with business income from unincorporated small businesses - small business tax discount -5% discount, on income tax payable on business income -Discount capped at $1,000 per individual, per income year Small businesses- deduction for cost of assets up to $20,000 in the year acquired. Purchases from 7.30pm 12 May June FEDERAL BUDGET ANALYSIS YOUR BUSINESS

FEDERAL BUDGET – 12 TH MAY FARMERS From 1 July 2016 Primary producers will be able to fully deduct capital expenditure on fencing and water facilities Can be fully deducted in year expenditure occurs Capital expenses in relation to fodder- depreciated over 3 years 2015 FEDERAL BUDGET ANALYSIS YOUR BUSINESS

FEDERAL BUDGET – 12 TH MAY FEDERAL BUDGET ANALYSIS YOUR RETIREMENT As previously announced, there are no significant changes to superannuation Access to super due to terminal illness: -currently, life expectancy needs to be less than 12 months -proposed, less than 24 months -unrestricted, tax-free access SUPERANNUATION

FEDERAL BUDGET – 12 TH MAY FEDERAL BUDGET ANALYSIS YOUR RETIREMENT Employer Superannuation Guarantee to remain at 9.5% Contributions limits SUPERANNUATION Contribution type ExplanationCap applying in 2015/16 ConcessionalComprises all employer contributions (including superannuation guarantee and salary sacrifice contributions), personal contributions claimed as a tax deduction and certain other amounts Aged 49 + on 30/06/2015 $35,000 Aged < 49 on 30/06/2015 $30,000 Non- concessional Comprises personal after-tax contributions, spouse contributions and certain other amounts $180,000 or $540,000 provided you are aged 64 or under on 1/07/2015, don’t exceed this amount over a three-year period and meet certain other conditions

FEDERAL BUDGET – 12 TH MAY AGE PENSION From 1 January 2017 Proposed increase to lower asset threshold- increased payments for lower net worth people Changes to taper rate -Pension will reduce for higher net worth people -Entitlement to pension will cease at lower asset levels Those who lose Age Pension (estimated to be 12% of pensioners) as a result of changes will be automatically entitled to the Commonwealth Senior Health Card Changes to deeming thresholds previously announced will not proceed 2015 FEDERAL BUDGET ANALYSIS YOUR GOVERNMENT BENEFITS-RETIREES

FEDERAL BUDGET – 12 TH MAY FEDERAL BUDGET ANALYSIS YOUR GOVERNMENT BENEFITS-RETIREES Below compares amount of Age Pension received by a homeowner couple under the new proposed measures, with current entitlements Indicates percentage of assets which would need to be drawn down to replace pension reduction Asset ranges effected Assessable assets Age Pension received at current $1.50 taper rate Age Pension under rebalanced asset test Reduction/inc rease in pension % of assets required to replace Age Pension Assessable asset range $200,000$34,923 $0N/A$100,000- $199,999 $400,000$30,965$32,973($2,009)N/A$300,000- $399,999 $600,000$23,165$17,373$5, %$500,000- $599,999 $800,000$15,365$1,773$13, %$700,000- $799,999 $1,000,000$7,565$0$7, %$900,000- $999,999

FEDERAL BUDGET – 12 TH MAY ASSESSMENT OF DEFINED BENEFIT PENSIONS From 1 January 2016 Larger proportion of defined benefit pension income will be taken into account when determining entitlements Maximum amount which can be excluded from income testing capped at 10% Current arrangements allow large proportion of pension income to be excluded DVA Pensions, and Defined Benefit pensions paid from military super funds- exempt 2015 FEDERAL BUDGET ANALYSIS YOUR GOVERNMENT BENEFITS-RETIREES

FEDERAL BUDGET – 12 TH MAY PORTABILITY OF SOME PAYMENTS From 1 January 2017 Proposed that some payments to be proportionately reduced after 6 weeks overseas, if less than 35 years Australian Working Life Residency Currently 26 weeks Applies to Age Pension, Wife Pension, Widow B, and Disability Support 2015 FEDERAL BUDGET ANALYSIS YOUR GOVERNMENT BENEFITS

FEDERAL BUDGET – 12 TH MAY FTB-A Proposed from 1 January 2016, families will only be eligible for 6 weeks in a 12 month period while overseas Currently eligible whilst overseas for 6 weeks, this reduces to base rate for 50 weeks Large Family Supplement to cease from 1 July 2016 PAID PARENTAL LEAVE Government to remove ability to access full amount of both Government Paid Parental Leave as well as employer benefits from 1 July 2016 ‘Top-up’ still available if employer benefits are less than minimum wage for 18 weeks 2015 FEDERAL BUDGET ANALYSIS YOUR GOVERNMENT BENEFITS-FAMILIES

FEDERAL BUDGET – 12 TH MAY CHILD CARE SUBSIDY From 1 July 2017 Replaces some other benefits, such as the Child Care Rebate Single means test - ‘activity test’ Level of support-based on family income 1 : - Up to $65,000: 85% per child - $65,000-$170,000: tapers to 50% per child - $170,000 to $185,000 50% per child - $185,000+: capped at $10,000 per child 2015 FEDERAL BUDGET ANALYSIS YOUR GOVERNMENT BENEFITS-FAMILIES 1 Thresholds reflect ‘future dollars ’

FEDERAL BUDGET – 12 TH MAY AGED CARE Rent from former family home - assessable income for aged care fees Irrespective of whether accommodation payment paid as lump sum or daily payments New residents from 1 January 2016 May increase the cost of care Will not impact social security income test 2015 FEDERAL BUDGET ANALYSIS YOUR GOVERNMENT BENEFITS

Contact details line 1 Contact details line 2 THANK YOU Federal Budget – 12 th May 2015