Finances

Financial Position for the Year Ending Bank Account Sale proceeds - Ellington Purchase consideration - Nouvelle Stamp duty paid Deposit paid Savings/(Draw down) Line of Credit - Home Loan account balance

30/6/2009 245,800 (380,915) + $96,000 funded by Sam 7,980 30,000 119,301 22,166

PAYG instalments paid - 2009 Pro-rata tax payable on non-salary income - 2009

39,859 (53,718)

PAYG instalments paid - 2008 Tax payable - 2008 (including bonus)

13,534 (59,507)

Pro-rata profit share - 2009 Equity draw - 2009 Total net tax owing and pro-rata profit share owed

51,526 Bud profit (38,937) My share Fortnight number (47,243)

BDO Kendalls working capital contribution Line of Credit - Working Capital account draw down Interest on Line of Credit Working Capital account Line of Credit - Working Capital account balance

37,500 (37,500) (1,079) (1,079)

Real position

(26,156)

Debt left =

Limit 140,000 35,000 40,000 215,000

Used 22,166 0 (37,526) (15,360)

423,311 (26,156) 397,155

530,000

12,365 22,408

30 12.52

Line of Credit Accounts Home Loan Transaction Working Capital

Net Wealth Market value of property (79.87%) Net debt Net equity in property Add: Leave entitlements AL entitlement after tax LSL entitlement after tax

Bal to pay

Bal to pay Tax owed

Add: Super benefits Net wealth

44,241 476,169

22/1/2009

6,000 funded by Sam

$13,859

$45,973 $59,832 $12,000,000 0.5172% 21.58 29/4/2009

2.9248 months Available 162,166 35,000 2,474 199,640

per realestate.com

days years

Cash Budget for the 2008/2009 Year Annual Income (After Tax) BDO Kendalls ICAA - CA Focus Sessions Expenses Bank Fees Body Corporate Electricity Gas Car Expenses - Petrol Car Expenses - Registration Car Expenses - Repairs & Maintenance Entertainment Groceries Insurance (Car) Insurance (Health) Insurance (Contents) Interest on Line of Credit - Private Interest on Line of Credit - Working Capital Rates Skincare Ingredients Superannuation Contributions Telephone (Incl Internet) Transfer to Hongkong

146,954 0 146,954 $375 per year $2,800 per year x 79.87% $180 per quarter $140 per quarter $60 per fortnight $557 per year ($593 from 1/7/2009) $500 per year $250 per week $100 per week $1,001 per year $56 per fortnight $480 per year x 50% $50,000 x 7% $37,500 x 7% x 150 days $380 per quarter x 79.87% $1,000 per year $0 per year $70 per month $500 per month

Potential Cash Savings (Incl Line of Credit Repayments)

(375) (2,236) (720) (560) (1,560) (557) (500) (12,000) (4,800) (1,001) (1,456) (240) (3,500) (1,079) (1,214) (1,000) 0 (840) (6,000) (39,638) 107,316

Monthly

Fortnightly

Weekly

12,246 0 12,246

5,652 0 5,652

2,826 0 2,826

(31) (186) (60) (47) (130) (46) (42) (1,000) (400) (83) (121) (20) (292) (90) (101) (83) 0 (70) (500) (3,303)

(14) (86) (28) (22) (60) (21) (19) (500) (200) (39) (56) (9) (135) (41) (47) (38) 0 (32) (231) (1,578)

(7) (43) (14) (11) (30) (11) (10) (250) (100) (19) (28) (5) (67) (21) (23) (19) 0 (16) (115) (789)

8,943

4,074

2,037

Income

Fixed profit share - BDO Kendalls

Tax Position 107,308

Equity profit share - BDO Kendalls

62,069

Salary package - BDO Kendalls Gross salary per PAYG Payment Summary

64,513

Less: Superannuation contributions (lower of MCB or 9%) Less: Allowable deductions Interest on working capital Value of fringe benefit GST on fringe benefit

(1,079)

Cash salary

232,811

Income tax Medicare Levy Less: Tax paid on PAYG Payment Summary Tax payable on non-salary income Less: PAYG instalments paid Net tax payable/(refund) on tax return

82,365 3,492 85,857 (21,147) 64,710 (39,859) 24,851

Net annual take home pay after-tax

146,954

Gross per fortnight Less: Income tax per fortnight Net per fortnight

8,954 (3,302) 5,652

Cash Budget for the 2007/2008 Year Annual Income (After Tax) Profit Share - BDO Kendalls Bonus - BDO Kendalls -2006/2007 ICAA - CA Focus Sessions

$1,556 per module x 1 per year

Expenses Bank Fees Body Corporate Electricity Gas Car Expenses - Petrol Car Expenses - Registration Car Expenses - Repairs & Maintenance Entertainment Groceries Insurance (Car) Insurance (Health) Insurance (Contents) Interest on Line of Credit Rates Skincare Ingredients Superannuation Contributions Telephone (Incl Internet) Transfer to Hongkong

$375 per year $2,800 per year x 79.87% $180 per quarter $120 per quarter $70 per fortnight $550 per year $500 per year $250 per week $50 per week $609 per year $49 per fortnight $566 per year x 79.87% $100,000 x 8% $350 per quarter x 79.87% $1,000 per year $0 per year $70 per month $500 per month

Potential Cash Savings (Incl Line of Credit Repayments)

106,000 6,336 910 113,246 (375) (2,236) (720) (480) (1,820) (550) (500) (12,000) (2,400) (609) (1,274) (452) (8,000) (1,118) (1,000) 0 (840) (6,000) (40,375) 72,872

Monthly

Fortnightly

Weekly

8,833 528 76 9,437

4,077 244 35 4,356

2,038 122 18 2,178

(31) (186) (60) (40) (152) (46) (42) (1,000) (200) (51) (106) (38) (667) (93) (83) 0 (70) (500) (3,365)

(14) (86) (28) (18) (70) (21) (19) (500) (100) (23) (49) (17) (308) (43) (38) 0 (32) (231) (1,599)

(7) (43) (14) (9) (35) (11) (10) (250) (50) (12) (25) (9) (154) (22) (19) 0 (16) (115) (800)

6,073

2,757

1,378

Income Profit share - BDO Kendalls

Annual Package 160,000

Bonus - 2007/2008 Less: Allowable deductions Super contributions ($1,000 per month) Other deductions

Cash salary Add back: Super deduction Less: Income tax Less: Medicare Levy Net cash salary Gross cash per fortnight Less: Income tax per fortnight Net cash per fortnight Notional income tax per fortnight Notional superannuation contribution per fortnight Minimum amount to be saved per fortnight

160,000 0 (51,600) (2,400) 106,000 6,154 (2,077) 4,077 2,077 2,077

NEW THINGS Ambrose delivery Balcony pots Bed sheet set Bed & mattress Bed quilt cover set Bed end chest Bedside lamps Bedside tables Bookcase CD Tower Chest of drawers Coffee Dining set IKEA delivery Mario Party 8 Office chairs Rug Toliet brushes Wii

Eddie 38

1,795 189 695 369

Mortgage per week Months funded by residual

189 695 138

1,495 56 2,152 33 365 1,390 30 8,607

First Home Owners Grant Grant amount Less: Building inspection ($410 x 20.13%) Less: Insurance (contents) ($566 x 20.13%) Less: Legals ($935 x 20.13%) Less: New things (per above) Less: Settlement Adjustment ($78 x 20.13%) Residual

Sam 38 160 90 2,253 135

49 33 44 365 30 471 4,690

Total 75 160 90 2,253 135 1,795 378 1,390 369 138 1,495 105 2,152 66 44 730 1,390 60 471 13,297

7,000 (83) (114) (188) (4,690) (16)

(5,091) 1,909 159 3.00

NEW PROPERTY Property value Stamp duty Legal fees Total costs Funded by: Eddie's equity Eddie's new debt Sam's debt

Ownership Eddie Sam

468,000 7,980 935 476,915

245,800 135,115 (balancing) Repayment per week = 226 96,000 Repayment per week = 160 476,915 386

380,915 96,000 476,915

EXISTING PROPERTY Net Equity Property value 370,000 Debt (113,000) Less: Legal fees (425) Less: Body corp disclosure (105) Less: Sale Commission (10,670) Net sale proceeds 245,800

79.87% 20.13% 100.00%

Fringe Benefits Tax - Motor Vehicles Statutory Method Client

BDO Kendalls

Benefit Provided From Car Held by Employer in FBT Year From

01-Apr-06 01-Apr-06

Motor Vehicle Registration Number Employee/Associate

Peugeot 307 218 IVR Eddie Chung

Original Cost of Motor Vehicle Did Employer Claim ITC? (Y/N) Date Acquired

$26,644 Y 30-Aug-05

Period Held as at April 1, 2005 1/3 Cost Reduction if Held > 4 Years (1,461 Days) GST-Inclusive Base Value of Motor Vehicle

Odometer Reading as at Beginning of Period Odometer Reading as at End of Period Total Kilometres Travelled in FBT Year Number of Days in Fringe Benefits Tax Year Number of Days in the Holding Period Annualized Total Kilometres Travelled in FBT Year (K x 365/C) Number of Days Fringe Benefit Was Provided Statutory Fractions - Annualized Number of Kilometres Travelled <15,000 Km 26% 15,000 Km - 24,999 Km 20% 25,000 Km - 40,000 Km 11% > 40,000 Km 7%

Statutory Fraction

Recipient's Contributions Taxable Value

[ (A x B x C) / F ] - E Apportionment of Taxable Value Post-GST Pre-GST Gross Up Factor Fringe Benefits Taxable Amount Fringe Benefits Tax Liability (X x 46.5%)

Calculated By Checked By

otor Vehicles hod To To

30-Jun-06 30-Jun-06

(GST-Inclusive) (ITC on Cost of Car OR Lease Payments)

214 Days $26,644

A

8,796 12,546 3,750 Km

K

365 91 15,041 91

Days Days Km Days

D C F

20%

B

$799 (GST Inclusive)

E

$530 Type 1

Type 2 530 2.13

1.94

$1,128

$-

$524

$-

Date 30-Nov-09

Initials EC

X

Car Expenses Insurance

121.95

Petrol 1/4/2006 15/4/2006 22/4/2006 25/4/2006 6/5/2006 21/5/2006 9/6/2006 9/6/2006 18/6/2006

57.96 69.50 20.32 30.04 39.95 50.50 39.99 42.64 50.49

401.39 Rego

137.50

R&M

138.00

798.84

Rental Performance Value of property Stamp duty Rent per week Body Corp/Year Rates/Year Interest Rate Loan Rent Body Corp Interest Rates R&M

Tax Payable/(Benefit) Net Cost

430,000 13,475 360 2,360 1,520 9.50% 443,475 100.00% 18,000 (assumed 2 weeks vacant) (2,360) (42,130) (1,520) (500) (28,510)

(548) per week

13,257

255 per week

(15,253)

(293) per week

Annual % value increase to breakeven

6.82%

Investment Comparison Geared Managed Fund Investment Assumptions Value of Units Borrowings Interest Rate Interest Income Return B/Tax Capital Gain B/Tax Imputation Credits % Imputation Credits

97 20,000 10,000 8% 689 9.10% 12.24% 10% 78

98 22,448 7,521 8% 434 8.53% 15.62% 10% 82

99 25,954 3,760 8% 158 8.36% 16.67% 10% 93

00 30,281 8%

01 31,002 8%

7.61% 2.38% 10% 99

9.20% 7.85% 10% 122

1,820 78 (689) 1,209 2,448 3,657 (1,180) 78 2,555 (78) 2,477 24.77% 14.00% 10.77%

1,915 82 (434) 1,563 3,506 5,069 (1,608) 82 3,543 (82) 3,461 23.19% 14.00% 9.19%

2,170 93 (158) 2,105 4,327 6,431 (2,070) 93 4,454 (93) 4,361 19.65% 14.00% 5.65%

2,304 99 0 2,403 721 3,124 (1,340) 99 1,882 (99) 1,784 5.89% 14.00% (8.11%)

2,852 122 0 2,974 2,434 5,408 (2,033) 122 3,498 (122) 3,375 10.89% 14.00% (3.11%)

Closing Capital Value Increase/(Decrease) in Equity

22,448 2,448

25,954 3,506

30,281 4,327

31,002 721

33,435 2,434

Cash Flow Income from Units Less: Loan Repayment Less: Tax Cash Inflow/(Outflow)

1,820 (3,760) (508) (2,449)

1,915 (3,760) (676) (2,521)

2,170 (3,760) (928) (2,518)

2,304 (3,760) (1,067) (2,523)

2,852 (3,760) (1,320) (2,229)

(47) (204)

(48) (210)

(48) (210)

(49) (210)

(43) (186)

Return on Investment Income from Units Imputation Credits Less: Interest Net Capital Gain Tax @48.5% Imputation Credits Remove Imputation Credits Net Return A/Tax A/Tax Return % H/Loan A/Tax Equivalent Net Advantage/(Disadvantage)

Per Week Per Month

Total

11,061 474 (1,281) 10,254 13,435 23,689 (8,231) 474 15,932 (474) 15,458 16.88% 14.00% 2.88% 33,435 13,435

11,061 (18,802) (4,499) (12,240)