1. Budget 2012/13

2. 2 No higher contributions cap for people aged 50 or over From July 2012, the $25,000 concessional contributions cap will apply to everyone Previously the Government had committed to increasing the cap for people aged 50 and over with super balances below $500,000 - this has been deferred until 2014. Speak to your financial planner if you are aged 50 or over and: have salary sacrifice strategies in place transition to retirement strategies in place plan to make deductible contributions to super

3. Budget 2012/133 Schoolkids Bonus From 1 January 2013, the Education Tax Refund will be replaced with the new Schoolkids Bonus ›$410 pa for each primary school student ›$820 pa for each secondary school student To be eligible you must be receiving benefits such as Family Tax Benefit Part A or some other income support payments. We recommend you keep hold of your education-related receipts for now as this measure has not yet been legislated.

4. Budget 2012/134 Net medical expenses offset From 1 July 2012 – income test People with an income above Medicare levy surcharge thresholds ›$84,000 for singles with no dependants ›$168,000 for couples/families Can only claim 10 per cent of medical related expenses above $5,000 Was previously 20 per cent of medical related expenses above $2,000 This means, if your income is above the threshold, you could end up paying more in medical expenses even if your medical needs remain the same.

5. Budget 2012/135 Liquid assets waiting period From 1 July 2013 – increase in maximum reserve amount for liquid assets waiting period New maximum reserve amount Max waiting period (13 weeks) if your liquid assets exceed Single person without dependants $5,000$11,500 (up from $9,000) Couple or single with dependants $10,000$23,000 (up from $18,000)

6. Budget 2012/136 Parenting Payment From 1 January 2013, all those who received this payment prior to 1 July 2006 will be assessed under the same eligibility requirements as new Parenting Payment recipients. Eligible parents who move to Newstart Allowance may continue to receive the ongoing carbon tax compensation and other initiatives The measure seeks to seeks to encourage parents to return to work

7. Budget 2012/137 New Supplementary Allowance Will be paid to most recipients of income support allowances such as Newstart Allowance, Sickness Allowance and Parenting Payment. From 20 March 2013, new payment will be introduced. ›Eligible singles$210 pa ($105 per installment) ›Eligible couples $175 pa each ($87.50 per installment)

8. Budget 2012/138 Family Tax Benefit Part A From 1 Jan 2012, eligibility for this benefit will be limited to ›those under 18 years ›those who remain in secondary school until the end of the calendar year that they turn 19 years. From 1 July 2013, all families eligible for FTB Part A will receive an increase of: ›$100 to $300 pa for families with one child ›$200 to $600 pa for families with two or more children Students that fall outside these ages may apply for Youth Allowance.

9. Budget 2012/139 New National Disability Insurance Scheme From July 2013, a new scheme has been proposed to help people with significant and permanent disability receive lifetime care and support.

10. Budget 2012/1310 Aged care $3.7 billion ‘Living longer living better’ plan to reshape aged care sector over ten years Easier to stay in your own home and receive care Change to fee structure Tighter controls for setting of accommodation bond fees Tighter means test to assess home care and residential care fees Part-pensioners and self-funded retirees could end up paying more in fees. Those currently in care or entering care before 1 July 2014 will not be affected. Plan ahead to make sure you can afford your desired level of care.

11. Questions? Bridges Financial Services Pty Limited (Bridges). ABN 60 003 474 977. ASX Participant. AFSL No 240837. Part of the IOOF group. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this article, you should assess your own circumstances or consult a financial planner. In referring members to Bridges, your financial institution does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives. Budget 2012/1311