Jon Martul,

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Jon Martul, Senior Financial Planner - CFP
Representative of Elders Financial Planning ABN
15 061 957 122 AFSL 237752
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Disclaimer

• This information is believed to be accurate as
  far as possible, but no warranty is given as to
  its accuracy or reliability and no responsibility
  is taken by Master Fund (WA) Pty Ltd, its
  officers, employees or agents, for any errors or
  omissions.
• This presentation provides general advice only.
• The provider of this advice has not considered
  any of your personal circumstances, financial
  objectives or needs. You must therefore assess
  whether it is appropriate to act on this advice,
  in the light of your own individual
  circumstances.
• The Fund will provide all new members with a
  Financial Services Guide and a Product Disclosure
  Statement as part of their New Member Pack.
• Fund Trustee - Master Fund (WA) Pty Ltd ABN
  70742900857
• Master Fund (WA) Pty Ltd is holder of Australian
  Financial Services Lic. no. 247 034
• Registered Office Ground Floor 179 St Georges
  Tce Perth WA 6000
• www.mastersuperfund.com
• MSF financial planners are Representatives of
  Elders Financial Planning,
• 27 Currie Street, Adelaide SA 5000

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May 2006Peter Costellos BudgetLife Begins at
60!
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From 1 July 2007, Super will become Tax-Free and
Simple once you are 60!
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Good News

• No tax on Lump-sums or Superannuation Pensions
  from age 60
• No RBLs
• No more pre/post calculations or tax issues
• No need to leave super fund at 65
• No limit on death cover in Super
• Effective July 2007

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More Good News!

• Can continue to contribute to super to age 75
• Full tax deduction for self-employed
  (Commissioned agents)
• Centrelink Assets Test relaxed (Couple homeowners
  783,500 Single homeowners 494,000)
• Transition period of 5 years for those aged 50
• Effective July 2007

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Bad News?

• Maximum salary sacrifice/deductible contribution
  after 2012/13 50,000 (including SGC)
• From 9 May 2006, Undeducted contributions are
  capped at 150,000 pa but an average can be
  applied over 3 yrs (450,000) with use it or
  lose it condition
• Not yet passed by parliament with consultation
  till 9 August 2006 and may still change so stay
  tuned!!!

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Other News!

• Splitting of Super may no longer be as beneficial
• Minimum pension relaxed
• No maximum pension
• Nothing changes for those retiring between 55 and
  60!
• Super is now the optimum savings platform for
  retirement funding

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Current situation
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Proposed situation
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Master Super Investment Performance?
Net investment returns to 31 December 2006
(Benchmark)
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Capital Stable Investment Option

• 70 Defensive assets
• 30 Growth assets
• Inflation plus 1 over 7yrs
• Low capital growth
• 1 to 3yr Investment period
• Bad year chance, Less than 1 in 10

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Balanced Investment Option

• 30 Defensive assets
• 70 Growth assets
• Inflation plus 3.5 over 7yrs
• Medium to high capital growth
• 3 to 5yr Investment period
• Bad year, 1 in 56yrs

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Diversified Investment Portfolio
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Australian Shares Investment Option

• 100 Growth assets
• Inflation plus 5.5 over 7yrs
• High capital growth
• 7 to 10yr Investment period
• Bad year chance - 1 in 4

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How different investment options effect the value
of your Super!
Assumptions, Super a/c balance at age 30 of
40,000 Salary of 40,000 pa indexed at 3 SGC
contributions only of 9
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Retail versus Industry/Company Super
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Fund Comparison not all funds are the same
One year net investment return (to 31.12.06) for
the MSF Balanced Fund vs Major Retail Balanced
Funds
Source MSF internal research
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The Difference fees can make!

• 40 year old member on salary of 58,000 pa
• Existing Superannuation funds of 50,000
• Superannuation contributions of 9 pa
• Difference in balance at age 65 between Industry
  fund and Retail fund is 60,000 !!!
• (Assumed earning rate of 7.225 pa net)
• Source The Australian Newspaper 27 May 2005

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The impact of fees
Annual management fees on an account balance of
50,000 Source, AFR 9/9/2006
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The year ahead?

• Positive factors
• Growth of Chinese economy
• Japan awakens?
• Indian economy expanding
• Property market slowed
• Record low unemployment
• Stable Government

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The Year ahead?

• Risks
• Oil prices
• Interest rates?
• High Aussie Dollar?
• China slows down
• American deficit blows out
• Drought in Australia
• Terrorist action
• But there are always risks!

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Where to invest then?
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Superfacts

• How much money is enough?

Never Enough!
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Superfacts - Rule of thumb calculations

• 8 x Salary Multiple
• Eg. 50,000 pa x 8 400,000
• or
• 15 x Estimated Income need in Retirement
• Eg. 30,000 pa x 15 450,000
• Plus
• Paying off mortgage
• House repairs
• etc

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Annual Costs of Living
Source Westpac ASFA
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Reality check!

• Income of Australians over age 65
• 0 - 15,600 70.9
• 15,600 - 36,400 23.3
• 36,400 - 78,000 4.7
• 78,000 plus 1.1
• Source ABS

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Contribution options

• Employer pays admin costs of 0.5 pa plus death
  cover plus 0.291 for two year Disability Income
  benefit for permanent employees
• Employer minimum is 9
• Salary sacrifice
• Co contribution
• Spouse contribution
• Undeducted contributions
• Splitting Super with Spouse (from 1/1/2006) may
  not be needed for many members given 2006 Budget

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(Post July 06)
But tax free at retirement at 60
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Co Contribution

• Earning less than 28,000 pa for maximum benefit
• Stops once income is greater than 58,000 pa
• Government provides 1.50 for each dollar
  contributed to a maximum of 1,500 pa
• Salary sacrifice can improve eligibility
• Most effective if spouse is on a lower income

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Co Contribution
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Spouse contribution

• Tax rebate of up to 18
• Maximum rebate 540 on contribution of 3,000
• Maximum benefit if spouse earns lt 10,800
• Cuts out if spouse income gt 13,300
• Spouse does not need to be employed

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Undeducted contributions

• After tax contributions
• Can count toward co-contribution
• No contributions tax
• No tax on withdrawal
• Do not count toward Reasonable Benefit Limit

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Member Super Fund Choice

• Be aware of costs associated in transferring
  existing benefits to high cost retail funds or
  commencing an expensive self managed
  superannuation fund.
• Remember MasterSuper provides you with low cost
  superannuation and insurance with flexible
  investment options and great investment returns.

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Risk Management

• Solution
• Disability Income Insurance
• Death Cover Insurance
• Total Permanent Disability Insurance

Is your cover enough check your MasterSuper
Statement ?
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Why life cover through MasterSuper?

• Over 12,000 members therefore competitive rates
  from fund insurer
• Base level of Death cover paid by employer
• TPD and Income protection cover can be paid with
  pre-tax dollars

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Total cost of insurance in Super

• 34 yr old male
• a/c balance 50,000
• 200,000 Death cover
• Public Sector Fund 430 pa
• Industry/Company Fund 627 pa
• Retail Master Trust 1,231 pa
• MasterSuper (Personal mbr) 467 pa
• MasterSuper (Employee mbr) 315 pa
• Death cover paid by employer
• (Source Aust Fin Review, 17/2/06)

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Income Protection comparison(40yr old male, 55k
pa, MTR 30, 90 day wait, paid to 65)
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Transition to Retirement Pensions (TRAP)

• Can be commenced as soon as you turn 55
• Enjoy a 15 tax rebate on the non-deductible
  amount of your pension (0 tax on the deductible
  amount)
• Enjoy tax-free earnings on the funds invested in
  your pension account
• Pension payments will be tax-free if you are 60
  or older after 1 July 2007

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Case Study 1
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Case Study 2
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Estate Planning
Do you have an up to date will?
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Why MasterSuper Financial Planners?

• 12,400 members / 570M under management
• Lifestyle choices - Debt / Savings
• Retirement planning / Estate Planning /
  Centrelink
• Risk Management Insurances and Investment
  options
• Strategies like
• Cash out strategy
• Additional undeducted contributions
• Gifting strategies
• Salaried financial planners
• no commission paid no pressure
• Fixed fee for full plan 440 - 1500 max, plus
  GST

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Futuris Employee Share Plan

• Enables permanent employees to invest 3000 in
  Futuris
• Offer via an interest free and non recourse loan
• Tax-effective after 12 months holding of shares
• Hassle free / risk free / cashflow free
• Independent Plan Manager - Computershare
• Set up and Ongoing Plan fees paid by the Company
• Joining the ESP is voluntary - its your choice -
  80 take-up

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Where to Get More Information
MasterSuper Helpline 1300 550 482 Financial
Planning Advice 1300 784 447 Website
www.mastersuperfund.com Financial Planner Jon
Martul 08 8425 4608 Fund Secretary Mark
Sladden 08 9422 2418
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Questions?