1. MINING SUPER TAX, EURO GOVERNMENT DEBT, TAX REFORM – WHAT NEXT?
JUNE 2010 WITH STEWART, BROWN & CO AND INTRODUCING
HUB WEALTH MANAGEMENT

2. WELCOME INTRODUCTIONS GLOBAL ECONOMY AND MARKET OUTLOOK
ROBERT BARNES PARTNER OF STEWART, BROWN & CO
ANDREW WIEFLER - PRINCIPAL, HUB WEALTH MANAGEMENT
GLOBAL ECONOMY AND MARKET OUTLOOK
DR CHRIS CATON - CHIEF ECONOMIST, BT FINANCIAL GROUP
“A LOOK AT EVERYTHING”
DAVID SMITH - PRINCIPAL, HUB WEALTH MANAGEMENT
DRINKS AND NIBBLES

3. BUDGET, REPORTS AND STRATEGY
“A LOOK AT EVERYTHING”
HENRY AND COOPER REPORTS
FEDERAL BUDGET
30 JUNE CONSIDERATIONS
A REAL INVESTMENT PHILOSOPY

4. THE HENRY REPORT ON TAXATION
GOVERNMENT RESPONDED AS FOLLOWS:
SUPER GUARANTEE LEVY (SGL) TO INCREASE FROM 9% TO
12% FROM 2013/14 TO 2019/20
SGL AGE LIMIT TO 75 FROM 1 JULY 2013
COMPANY TAX RATE REDUCES TO 28% FROM 1 JULY 2014,
OR 1 JULY 2012 FOR SMALL BUSINESS
40% RESOURCES SUPER PROFIT TAX (RSPT) FROM JULY
2012 ON NON-RENEWABLE RESOURCE PROJECTS

5. HENRY REPORT RESPONSE (CONTD.) - RSPT
40% RATE APPLIES TO PROFITS ABOVE 6%
AFTER ALLOWANCE FOR EXTRACTION AND CAPITAL
INVESTMENT COSTS
CURRENT STATE ROYALTIES WILL BE REFUNDED
REFUNDABLE TAX OFFSET FOR EXPLORATION COSTS
NEGOTIATIONS/ARGUMENTS CONTINUE:
WILL THIS DISADVANTAGE AUSTRALIAN MINERS?
IS THE 6% THRESHOLD TOO LOW?
IS THIS A FAIR WAY TO COMPENSATE AUSTRALIA?
HOW SHOULD ANY PROCEEDS BE USED?

6. HENRY REPORT RESPONSE (CONTD.) - RSPT
WHAT COULD IT MEAN FOR AUSTRALIAN MINING COMPANY VALUES?
BHP example:
Analyst
Change
UBS
-17.42%
Citigroup
-13%
Morgan Stanley
-12%
-10.9%
Deutsche
-7.7%

7. HENRY REPORT RESPONSE (CONTD.) - SUPER
CONTRIBUTIONS TAX REFUND.
FROM JULY 2012 FOR THOSE EARNING $37,000 PA OR
LESS EFFECTIVELY PAY NO TAX ON SGL.
IMPACT:
ADDS $270 PA TO SUPER FOR $20,000 PA INCOME
ADDS $482 PA TO SUPER FOR $35,000 PA INCOME
ADDS NIL FOR INCOME OVER $37,000 PA.

8. HENRY REPORT RESPONSE (CONTD.) - SUPER
CONCESSIONAL SUPER CONTRIBUTIONS
LIMIT TO REVERT TO $25,000 FOR ALL FROM JULY
2012 (CURRENTLY $50,000 OVER AGE 50)
NEW MEASURE: CONCESSIONAL LIMIT WILL
REMAIN $50,000 PA FOR PEOPLE AGED 50+ IF
SUPER IS LESS THAN $500,000
MAY MAKE SUPER CONTRIBUTION SPLITTING
USEFUL

9. HENRY REPORT RESPONSE (CONTD.) THINGS THAT WILL NOT HAPPEN
DEATH TAX
FAMILY HOME IN SOCIAL SECURITY MEANS TESTING
GOVERNMENT ANNUITY PRODUCTS
INCREASE IN SUPER ACCESS AGE TO AGE PENSION AGE
REDUCING AGE PENSION INDEXATION
ABOLISHING MEDICARE LEVY
REMOVING PRE SEPTEMBER 1985 CGT EXEMPTION

10. COOPER REPORT - SUPERANNUATION
SELF-MANAGED SUPER FUND FOCUS.
RECOMMENDATIONS INCLUDE:
RE-WRITE AND CLARIFY SIS ACT RULES
IMPROVE COMPETENCY STANDARDS OF PROVIDERS
ATO TO BE ABLE TO GIVE BINDING RULINGS
ANNUAL REPORTING REQUIREMENTS TO MEMBERS:
BALANCE, DEATH BENEFITS, INSURANCE, RETURN ETC

11. COOPER SUPERANNUATION (CONTD.)
NO IN-HOUSE ASSETS FROM JULY 2020
BUSINESS REAL PROPERTY EXEMPTION REMAINS
COLLECTABLES AND PERSONAL USE ASSETS TO BE
PROHIBITED FROM JULY 2020
BORROWING: PANEL EXPRESSED CONCERNS, BUT DID NOT
RECOMMEND CONSTRAINTS. GOVT TO “FINE-TUNE” AND
REVIEW IN 2 YEARS

12. BUDGET NEWS NOT MUCH TO REPORT! PREVIOUSLY ANNOUNCED MINOR CHANGE TO
TAX SCALES
50% TAX SAVING ON FIRST $1000 OF INTEREST
STANDARD TAX DEDUCTION FOR WORK-RELATED
EXPENSES WITH NO TAX RETURN:
$ 500 FOR 2012/13,
$1000 THEREAFTER

13. 30 JUNE ISSUES – SUPER CONTRIBUTIONS
CONCESSIONAL SUPER CONTRIBUTIONS
CAP OF $50,000 IF OVER 50, OTHERWISE $25,000
NO WORK TEST IF UNDER 65
CAN BE USED TO REDUCE TAX ON OTHER
INCOME OR REALISED GAINS
15% CONTRIBUTIONS TAX PAYABLE

14. SUPER CONTRIBUTIONS SPLITTING
ONLY AVAILABLE FOR MAXIMUM 85% OF
CONCESSIONAL CONTRIBUTIONS
EFFECTIVE IF ONE SPOUSE MUCH OLDER
MAY HELP KEEP BOTH BELOW $500,000
BALANCE, SO CAN TAKE ADVANTAGE OF HIGHER
CONCESSIONAL CONTRIBUTIONS CAP OF $50,000
PA FOR THOSE OVER 50
RECIPIENT SPOUSE MUST NOT BE RETIRED OR
OVER 65

15. 30 JUNE - ASSESS DEDUCTIONS AND GAINS
BE AWARE OF TAX SCALES AND WHERE YOU FIT
CONSIDER REALISING LOSSES TO OFFSET ANY REALISED
GAINS
BRING FORWARD DEDUCTIONS: INTEREST, CHARITY
DEFER INCOME: DELAY INVOICE; BUY TERM DEPOSIT
AVOID TAX SCHEMES AND ARTIFICIAL INVESTMENTS

16. 30 JUNE - OTHER SUPER ISSUES
CO-CONTRIBUTION (AFTER TAX CONTRIBUTION):
GOVT INCENTIVE UP TO $1000 IF CONTRIBUTE UP TO $1000.
REDUCES 3.33C EVERY $1 OF INCOME OVER $31,920.
NIL ABOVE $61,920.
10% OF INCOME MUST BE FROM WORK OR BUSINESS IN THE
FINANCIAL YEAR
SPOUSE CONTRIBUTION: (ALSO AFTER TAX CONTRIBUTION)
CONTRIBUTION UP TO $3,000 ATTRACTS TAX REBATE UP TO 18% IF
SPOUSE INCOME IS $10,800 OR LESS

17. SUPER - AREAS FOR CAUTION
SUPER CONTRIBUTIONS:
CONCESSIONAL
CAP $25,000, OR $50,000 IF OVER 50. EXCESS TAX 31.5%
BE SURE TO LODGE S DEDUCTION NOTICE
CHECK ELIGIBILITY: AGE, 10% RULE ETC
NON-CONCESSIONAL
CAP $150,000 PER FINANCAL YEAR, OR
$450,000 ONE-OFF UNDER “BRING FORWARD” PROVISIONS
IF UNDER 65
EXCESS TAX 46.5%

18. ALLOCATED PENSIONS CHECK YOU HAVE RECEIVED MINIMUM PRIOR TO 30 JUNE
MINIMUM PENSION LEVELS RETURN TO “NORMAL” FROM 1 JULY.
AGE
CURRENT MINIMUM
MINIMUM FROM JULY
55 TO 64 2% 4%
65-74
2.5% 5%
75-79 3% 6%
80-84
3.5% 7%
85-89
4.5% 9%
90-94
10%

19. SUPER AND PENSIONS USE ALLOCATED PENSIONS TO ADVANTAGE:
NIL TAX ON INVESTMENT EARNINGS
FRANKING CREDITS FROM AUS SHARE DIVS RETURNED
NO TAX ON INCOME PAID TO YOU FROM AGE 60
CONCESSIONAL TAX ON INCOME AGE 55-60
BIG PICTURE: SUPER FUND EARNINGS TAXED UP TO 15%
CONVERSION TO AP WITH EARNINGS 8% PA GIVES INTERNAL TAX
SAVING OF $1200 FOR EVERY $100,000

20. OUR INVESTMENT PHILOSOPHY
INDIVIDUAL CLIENT FOCUS: WHAT RETURN DO YOU NEED?
TAKE LEAST POSSIBLE RISK TO ACHIEVE DESIRED OUTCOME
ACHIEVE GENUINE DIVERSIFICATION
MAINTAIN STRONG FOCUS ON QUALITY INVESTMENT
REMAIN SCEPTICAL: MOST MANAGERS DO NOT BEAT THE
MARKET; AVOID FADS AND FASHIONS
APPLY THE REAL RESEARCH AND FINDINGS OF EXPERIENCE

21. INVESTMENT - MISSING BEST MARKET DAYS

22. INVESTMENT - CORE PLUS “TILTS” APPROACH

23. INVESTMENT – SUMMARY OF APPROACH
SOME ACTIVE ASSET MIX WITH RISK CONTROL FOCUS
CORE BIAS TO VALUE, SOME SMALLER COMPANIES
DEFENSIVE IS GENUINE: MINIMISE RISKS
TILT TO GENUINE DIFFERENTIATORS
DON’T JUST USE MULTIPLE FUNDS: MOST INVEST IN
SIMILAR THINGS
ADDRESS THE LIMITED SCOPE OF AUSTRALIAN MARKETS
COSTS AND TAX OUTCOMES ARE IMPORTANT

24. CONCLUSION REVIEW YOUR AFFAIRS PRIOR TO 30 JUNE
TAKE ADVANTAGE OF TAX PLANNING OPPORTUNITIES
USE RULES TO ADVANTAGE, BUT BEWARE OF PITFALLS:
TAX SCHEMES, SUPER CONTRIBUTION CAPS
WHEREVER POSSIBLE, TAKE ADVANTAGE OF THE NIL TAX IN
ALLOCATED PENSIONS
LOOK AGAIN AT YOUR PORTFOLIO: IS IT APPROPRIATE AND
EFFECTIVE?

25. THANK YOU! SPECIAL THANKS TO CHRIS CATON
THANKS TO ALL FOR JOINING US –
PLEASE COMPLETE FEEDBACK FORMS
PLEASE JOIN US FOR A DRINK, NIBBLE
AND CHAT.

26. The information provided in this presentation includes by its very nature, general information about complex areas such as taxation, superannuation and investing in securities. The information is current as at 2 June 2010.
In compiling this information Hub Wealth Management has not taken into consideration the investment objectives, financial situation or specific needs of any particular person. We caution you that before making any decisions based on this information you will need to consider, with or without the assistance of an appropriately qualified and authorised adviser, whether the information is appropriate with regards to your particular needs, investment objectives and financial situation. We would be delighted to offer you this assistance.