Budget Briefing Superannuation  Refund of excess concessional contributions.  One off  Max $10,000 concessional  From July 1, 2011 Issues  Doesn’t address previous concessional contributions  Errors not picked up for years (ATO way behind)  Fails to address impact on large non-concessional contributions  Minimum payment draw down relief extended in 2011/12.  Extension of reduced amounts for 2011/12 at 75%, rather than 50% currently available.  Back to normal levels from 01/07/2012. Issues  Review with your adviser, we can easily adjust levels for you.

Example Jackie, age 60 has an Account Based Pension to the value of $400,000 and has elected to take the minimum pension draw down. Required draw down 2010/11 =$8,000 (50%) 2011/12 =$12,000 (75%) 2012/13 =$16,000 (Regular)

 Concessional contributions cap  Continuation of $50,000 concessional cap for those over 50 from 2012, if their account is less than $500,000. Issues  How and when will the $500,000 be counted?  Will pensions, withdrawals etc be added back?  This has got “Stuff Up” written all over it!  Those still working with balances close to $500,000 could consider various strategies to stay under the $500,000 level and therefore potentially extend their ability to heavily salary sacrifice.  Review with your adviser

Taxation  Limitation of the ability of minors (children under age 18) to access the low income tax offset (LITO) from 1 July  Tax rates unchanged however a temporary flood and reconstruction levy introduced from 1 July 2011 for individuals earning more than $50,000.  Car Fringe Benefits Tax – Current valuation factors using the statutory method will be replaced by a single valuation factor of 20% by 1 April Budget Briefing

Active Asset Management Service

Your current portfolio  Specialist Fund Managers  Large (ish)  Active (Alpha)  Blend of Styles in portfolio Value Growth $ 4 Australian Shares

Why Change ?  Times have changed  Markets are more volatile  Proven 94% return generated by asset allocation  More efficient portfolios  Reduce costs  Potentially increase returns

More indepth Research – Farrelly’s Long term outlook – 5 to 10 years Repeatable - works right through the cycle Objective – based on fact… not emotion Timely ○ Updated monthly ○ LAMA – LIMITED authority to change profile ○ CFS = T+1 Tactical Asset Allocation Enables us to monitor Asset Classes for Overselling and Overbuying Active Management Approach

Core of your new profile  Market (Beta) Index Funds Enhanced Index Funds  Low cost  No surprises

Satellite / Active Alpha Management  Active Managers  Brain Power  Non-correlated  Small (ish) Can move quickly - Low correlated, complement core component

 Efficient / responsive   investment costs   potential returns CORE -Market returns -  Costs Satellite Fidelity Huge in the world, 1% in Aust Market Satellite Platinum Huge in Australia but small in world New Core Satellite Approach

FFA Service  10 Actively managed portfolios  Monitored monthly  Portfolios updated as necessary  Client portfolio updates implemented immediately  Record of advice provided  Plus all usual services – Client functions, Seminars, Monthly Newsletters

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