2011 -12 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
2011 Budget Briefing
Taxation
 Limitation of the ability of minors (children under
age 18) to access the low income tax offset (LITO)
from 1 July 2011.
 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
2014.
Active Asset
Management Service
Your current portfolio
$
4 Australian Shares

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Specialist Fund Managers
Large (ish)
Active (Alpha)
Blend of Styles in portfolio
 Value
 Growth
Why Change ?
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Times have changed
Markets are more volatile
Proven 94% return generated by asset allocation
More efficient portfolios
Reduce costs
Potentially increase returns
Active Management Approach
Tactical Asset Allocation
Enables us to monitor Asset Classes for Overselling and Overbuying
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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
Core of your new profile

Market (Beta)
 Index Funds
 Enhanced Index Funds
Low cost
 No surprises

Satellite / Active Alpha Management
- Low correlated, complement core component
Active Managers
 Brain Power
 Non-correlated
 Small (ish)
 Can move quickly

New Core Satellite Approach
Satellite
Satellite
Platinum
Huge in
Australia but
small in world
CORE
Fidelity
-Market returns
- Costs
Huge in the
world, 1% in Aust
Market
Efficient / responsive
  investment costs
  potential returns

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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