1. PRESENTED BY FIRST NAME SURNAME JOB TITLE/POSITION A PRESENTATION TO CLIENT NAME 2016-17 2016 FEDERAL BUDGET SUMMARY

2. This presentation has been prepared 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 and tax and/or legal advice prior to acting on this information. Information in this presentation is accurate as at 3 May 2016. 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. We do not give 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 and 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. 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

3. 2016 Federal Budget Analysis WHAT DOES THIS MEAN FOR YOU? IMPORTANT Legislation must pass through parliament before any of these measures become law. With a potential election pending there may be increased uncertainty regarding this Budget. Superannuation Changes to contributions caps Making contributions after retirement Super pension changes Personal and company tax Personal and business tax cuts No significant changes Social security Negative gearing

4. 2016 Federal Budget Analysis WHAT DOES THIS MEAN FOR YOU? IMPORTANT Legislation must pass through parliament before any of these measures become law. With a potential election pending there may be increased uncertainty regarding this Budget. Understand the changes Interplay with other proposals Once clarity, action required?

5. 2016 Federal Budget Analysis YOUR RETIREMENT Making contributions to super Annual cap on concessional contributions will reduce to $25,000 for all taxpayers What do we need to do? Consider appropriateness of maximising contributions prior to commencement Review your long term contributions strategy Reassess salary sacrifice arrangements Look at other ways to make super contributions

6. 2016 Federal Budget Analysis YOUR RETIREMENT Making contributions to super ‘Catch up contributions’ Concessional contributions Unused concession cap may be ‘carried forward’ for up to 5 years Interplay- ability to claim deductions for contributions Lifestyle, cash flow and tax planning opportunity ^ Ignores indexation of the cap

7. 2016 Federal Budget Analysis YOUR RETIREMENT Making contributions to super Additional tax on contributions- high income earners What can you expect? ATO will make assessment of your liability You will receive notice from ATO Can pay personally, or may ask your superfund to release an amount to you to pay We can help you navigate the process

8. 2016 Federal Budget Analysis YOUR RETIREMENT Changes to non- concessional contributions -Lifetime cap of $500,000 -Replaces existing annual caps -All NCCs made from 1 July 2007 counted -’Penalty tax’ may apply to any future excess Applies from Budget night Making contributions to super What do we need to do? May need to review your contributions strategy Longer term planning to understand expected cash flow, capital accessibility Look at other ways to make super contributions

9. 2016 Federal Budget Analysis YOUR RETIREMENT From 1 July 2017 Making contributions to super Contributions between 65 up to age 74 -Removal of ‘work test’ -’Spouse contributions’ for spouses aged 70-74 -Currently must meet a work test for any contributions after 65 What do we need to do? May need to review your contributions strategy Assess ability and appropriateness of making contributions

10. 2016 Federal Budget Analysis YOUR RETIREMENT Claiming deductions for concessional super contributions -Restrictions on ability to claim deductions for personal contributions- eased -If < age 75, may be eligible to claim deduction, regardless of employment From 1 July 2017 Making contributions to super What do we need to do? May need to review your contributions strategy Assess ability and appropriateness of making contributions We can assess planning opportunities – interplay ‘catch up’ concessional contributions

11. 2016 Federal Budget Analysis YOUR RETIREMENT Super pension limits -Lifetime ‘transfer balance cap’ of $1.6m -Applies to total aggregate transfers to pension phase -Balance to remain in accumulation Accessing your super during retirement From 1 July 2017 What do we need to do? May need to review your pension balance before 1 July 2017 Reassess retirement strategy Super is still taxed concessionally! Don’t forget! Access- lump sum withdrawals

12. 2016 Federal Budget Analysis YOUR RETIREMENT Transition to retirement pension- tax -Earnings in a ‘transition to retirement pension’ will be taxed, the same as accumulation accounts- 15% -Still concessional rate -Currently, all pension earnings tax free Accessing your super during retirement From 1 July 2017 What do we need to do? Revisit and re-evaluate retirement strategy

13. 2016 Federal Budget Analysis YOUR RETIREMENT Death benefit lump sums From 1 July 2017 Anti-detriment payments -Provision will be removed from 1 July 2017 -Currently, fund may pay an additional lump with lump sum death benefit as a ‘refund’ of contributions tax

14. 2016 Federal Budget Analysis PERSONAL TAX Personal tax cuts- good news story

15. Spouse superannuation tax offset Temporary Budget Repair Levy Date of effect MeasuresDetail 1 July 2017Spouse superannuation tax offset  Spouse income threshold will increase from $10,800 to $37,000  Maximum tax offset will remain at $540 1 July 2017Temporary Budget Repair Levy This levy, which is 2% of taxable income in excess of $180,000 will expire on 30 June 2017, as legislated. Other personal tax measures 2016 Federal Budget Analysis PERSONAL TAX

16. Staggered cuts to the company tax rate Maximum business turnover to be eligible for 27.5% company rate Further company tax rate changes 2016 Federal Budget Analysis PERSONAL TAX Other personal tax measures

17. 2016 Federal Budget Analysis Measures not announced

18. THANK YOU