Guide to your Macquarie tax statement 2008/09

Guide to your Macquarie tax statement 2008/09 Macquarie Investment Lending Who should use this guide? This guide (based on relevant law at June 2009) can help you fill out your 2009 income tax return if you have an investment in the Macquarie Equity Lever or Macquarie CPF Instalment Receipts products. The following information assumes: 1. You are an Australian resident; and 2. Your investment qualifies as a capital investment for tax purposes. You will need to combine the figures from your Macquarie product with any income or deductions from your other investments when completing your tax return. Our Tax Statement contains references to Individual TaxPack, Individual TaxPack Supplement, Trust Tax Returns and Self Managed Super Fund Tax Returns. These amounts can be used to complete your tax return as relevant. Tax return forms can be obtained from the Australian Taxation Office (ATO) website at: www.ato.gov.au. The amounts shown in your Macquarie statements are based on the assumptions outlined in this guide. Please make sure these assumptions are correct for your circumstances before you include this information in your income tax return. If you have any doubt about the taxation position of your investment, or want more information about your personal taxation situation, we suggest you seek professional tax advice. The purpose of this guide This guide will help you complete your 2009 tax return. You will have received a tax statement for the product in which you invested for the year ended 30 June 2009. Your Macquarie tax statements are a record of the income you received from your investments with Macquarie. They include any capital gains distributed from trusts. When using this guide: Please refer to the Macquarie tax statements and in some circumstances you may also need to refer to your transaction statement. The amounts from the Macquarie tax statements that must be included in your income tax return are explained in more detail in the following pages of this guide.

Macquarie Investment Lending Facility Name: <Account Name> Facility No.: <Account Number> 2009 TAX RETURN INFORMATION Australian resident investor for year ended 30 June 2009 Part A - Summary of 2009 Tax Return (supplementary section) Items Tax Return (supplementary section) Amount Individual Tax Pack Ref. No. Trust Tax Return Ref. No. SMSF Tax Return Ref. No. Non-primary production income 1,873.78 13U 8R 10M Other deductions relating to distributions 0 13Y 16P 11I Franking credits 193.58 13Q 8D TFN withholding credits 0 Credit for tax paid by trustee 0 Total current year capital gains 1,801.58 CGT discount applied to total capital gains 50% 50% 33 1/3 % 18A 21A 10A Net capital gain after discount applied 900.79 900.79 1,201.11 FIF Income 0 19C 22Y CFC Income 0 19K 22M, U or X 10D1 & 10D Assessable foreign source income 374.23 20E 23B 10D1 Other net foreign source income 374.23 20M 23V 10D Part B - Capital Gains Tax Information SAMPLE Additional Information for Item 18 Amount Capital gains - discount method 1,801.58 Grossed up amount Capital gains - indexation method 0 Capital gains - other method 0 Total current year capital gains 1,801.58 CGT concession amount - TARP 0 CGT concession amount - NTARP 1,353.63 Tax-exempted amounts 0.29 Tax-free amounts 0 Tax-deferred amounts 140.21

Part C - Components of Distribution Cash Distribution Tax Paid/Offsets Taxable Income Australian Income Dividends - franked 445.27 193.58 638.85 Dividends - unfranked 155.14 0 155.14 Dividends - conduit foreign income 0 0 0 Interest 578.77 0 578.77 Other income 501.02 0 501.02 Non-primary production income 1,680.20 193.58 1,873.78 Capital Gains Discounted capital gain - TARP 0 0 0 Discounted capital gain - NTARP 900.79 0 900.79 CGT concession amount - TARP 0 0 0 CGT concession amount - NTARP 1,353.63 0 0 Capital gains - indexation method TARP 0 0 0 Capital gains - indexation method NTARP 0 0 0 Capital gains - other method TARP 0 0 0 Capital gains - other method NTARP 0 0 0 Distributed capital gains 2,254.42 0 Net capital gain 900.79 Foreign Income Assessable foreign income 366.27 7.96 374.23 Attributed income 0 0 0 Total foreign income 366.27 7.96 374.23 Other Non-Assessable Amounts Tax-exempted amounts 0.29 Tax-free amounts 0 Tax-deferred amounts 140.21 Gross cash distribution 4,441.39 Other Deductions from Distribution Less TFN amounts withheld 0 Less non-resident withholding tax 12H 0 Less other withholding tax 0 Net cash distribution 4,441.39 Interest Expense till 30 June 2009* Fixed Interest Breakcost till 30 June 2009 SAMPLE 4,500.00 200.00 If you require any assistance please contact the Macquarie Equity Lever Account Management Team on 1800 229 848 or email equitylever@macquarie.com

Australian income Dividends and Trust distribution Australian trust income is income received through a trust that is paid on investments situated in Australia, whether in shares in a company, units in a unit trust, bank deposits, property, or other income-producing investments. Net capital gains and foreign income are not included in Australian trust income, but are included in other parts of your income tax return. Also included here is any dividends you have received from fully paid ordinary shares along with any franking credits that may have been distributed. Dividends may include franked and unfranked dividends as well as conduit foreign income. If, on your Macquarie tax statement there is a total amount in the Part A Non-Primary Production income then that amount is your non-primary production dividend and trust distribution from your Macquarie investment. Take the amount of non-primary production dividend and trust income indentified in the Macquarie statement and add any other amounts for non-primary production dividend and trust income you have received from your other partnership and trust investments. Enter the amount from step 1 at the relevant item in your income tax return. Step 3 Add together any deductions you can claim in relation to the total non-primary production income (your answer at step 2) and enter the total deductions at the relevant item in your income tax return. Step 4 For individuals and trusts, subtract the amount at step 3 from the amount at step 2. Enter this amount in the Net non-primary production distribution box. If the amount is negative write L in the box to the right of this figure. Note that the SMSF trust return does not contain this field. Franking credits Dividends and Trust distribution Franking credits received from dividends or through a trust are tax credits for tax paid by a company on its earnings that it has distributed to the trust. The company distributes dividends to shareholders from its after-tax profit. Although you may have received an after-tax dividend, your income statement at Part A will still show the gross amount (shown under Amount ), but may be accompanied by a credit, representing the tax which has already been paid by the company. If there is an amount in the Part A Franking credits then that amount is your franking credits from your Macquarie investment. Take the amount of franking credits identified and add this amount to any other relevant franking credits you have received from other partnership and trust investments. Foreign income Foreign source income As an Australian resident taxpayer, you are liable to pay Australian income tax on income earned from overseas investments held either directly by you or by a unit trust in which you invest. This foreign income may include any foreign tax credits that have been distributed which must also be included as part of your income (see the Foreign Tax Credit Information section at Part C). If there is an amount in the Part A Assessable foreign source income, then that amount represents foreign income that has been distributed to you from your Macquarie investment. Take the amount of foreign source income (including foreign tax credits distributed but excluding deductions) identified with the relevant label and add this amount to any foreign source income (including any foreign tax credits distributed but excluding deductions) you received from other investments. Enter the total amount from step 1 at the relevant item in your income tax return. Step 3 To determine your net foreign income, you need to take into account allowable foreign losses from previous years, as well as this year s deductions. Foreign income tax offsets Foreign tax credits Foreign tax credits represent the amount of tax paid in the country where the income was earned. As with franking credits, the income you receive from a unit trust is distributed after the tax is taken out. However, your tax statement in Part A will show the gross amount. The foreign tax credits may only be used to the extent to which they offset the Australian tax liability on foreign income earned. If there is an amount in the income entries of the Part C "Components and Distribution", you need to calculate the foreign tax credits you can claim. Please refer to the ATO guide How to claim a foreign tax credit to determine the amount that you can claim. Once you have determined the amount in step 1, enter this amount of foreign tax credit at the relevant item in your income tax return. Enter the total amount from step 1 at the relevant item in your income tax return. Once your personal tax liability has been calculated, the amount of the credit will be deducted. Franking credits can only be used to offset your tax liability in the year in which they are received. Franking credits that individuals did not use to offset their tax liability (if any) may now be refunded by the ATO under certain conditions when an income tax return is lodged.

Capital gains Capital gains A capital gain can arise in the event of the sale of assets within a trust or in the event of a corporate action. The net gains in the event of the sale of assets in the trust/corporate action must be distributed to investors and are included in your income distribution. Only gains arising in the event of distribution appear in the Part A Total current year capital gains entry. Working out your capital gain For more information about capital gains tax and how to calculate your net capital gains or losses, see the Background to capital gains tax (CGT) section in this guide. If there is an amount in the Part A Total current year capital gains, then that amount is your total current year capital gains for your Macquarie investment. For your Macquarie investment the total current year capital gains amount is determined by adding together the following: the total of the fully taxable distributed gains on the sale of trust assets or due to the corporate action; and the full amount of the distributed discount gains on the sale of trust assets or due to the corporate action (ie. before the discount has been applied). Please note that the calculation of any capital gain or loss you have made on the sale of assets throughout the year can be obtained from your transaction statements. Add this amount to any other current year capital gains you have received from other investments and any capital gains that have arisen on the disposal of assets in the current year. Enter your total current year capital gains at the relevant item in your income tax return. We recommend you confirm your CGT position with your tax adviser and/or accountant as appropriate. Net capital gains You need to include your net capital gains at the relevant item in your income tax return. Net capital gains for your Macquarie investment are calculated from the capital gains made within a fund and any capital gain on the sale of Underlying Securities after applying any capital losses and/or the discount, where available. Please refer to the ATO publication Personal investors guide to capital gains tax for further explanation of how to calculate the net capital gain. TFN withholding tax TFN withholding tax When you first invested via a Macquarie product you were asked to provide your tax file number (TFN). If you chose not to do so, the responsible entity is required to deduct TFN withholding tax at the rate of 46.5% from distributions of income made to you. If there is an amount in the Part A TFN withholding credits, then that amount is your TFN withholding credit for that particular Macquarie investment. Take the amount of TFN withholding credits identified and add this amount to any other TFN withholding amounts deducted from any other investments. Enter the amount from step 1 at the relevant item in your income tax return. TFN withholding tax is able to be offset against your tax liability on taxable income. In circumstances where the TFN withholding tax exceeds your tax liability, you are entitled to a refund of that excess tax. Step 3 Net capital losses Net capital losses arise when your total capital losses are greater than your fully taxable and gross discounted capital gains. For your Macquarie investment, you may have net losses in respect of the sale of Underlying Securities. You may also have net losses that have arisen this financial year, or which have been carried forward from earlier financial years in respect of other investments. Any net losses from the sale of Underlying Securities in your Macquarie investments, can be obtained from your transaction statements. You may be able to use these net losses to offset any fully taxable and gross discounted capital gains distributed from your Macquarie investments or other relevant investments. It is important to remember that Australian tax legislation requires that if a capital loss is used to offset a discount capital gain, then it must be offset against the full amount of the discounted capital gain (ie. before the discount has been applied) and the discount is later applied to the balance. If you have more capital losses than capital gains (ie. unapplied capital losses), the balance is your capital loss carried forward amount. These can be carried forward to later years indefinitely until you have a capital gain against which you can offset it. Any unapplied capital losses from this current year or from previous years should be included at the relevant item in your income tax return.

Background to Capital Gains Tax (CGT) Certain capital gains may be reduced by 50% or 33 1 /3 % (the CGT discount). These are called discount capital gains and relate to assets that have been held for at least 12 months. Alternatively, where indexation has been applied, the cost base of the CGT asset has been frozen at 30 September 1999. For an asset that was acquired on or before 21 September 1999, there is a choice between using the CGT discount method or the indexation method (assuming the asset has been held for at least 12 months). Where appropriate, in relation to the capital gains included in your distributions from the fund, we have used a combination of these methods when calculating the capital gains liability. That is why there may be two types of capital gains noted on your tax statement: Fully taxable capital gains capital gains that have already been indexed or have not been held for 12 months or more. The full amount of these capital gains is taxable. Discount capital gains capital gains that are eligible for the CGT discount. The full amount has been distributed to you, but only 50% or 33 1 /3 % of this is taxable after any capital losses have been offset against this gross amount. Capital gains are further broken down into 'TARP' and 'NTARP' capital gains. Taxable Australian Real Property (TARP) capital gains are capital gains arising from the disposal of an interest in Australian Real Property. Conversely, non-taxable Australian Real Property (NTARP) capital gains arise from the disposal of an interest in an asset that does not relate to Australian Real Property. Your Macquarie Tax Statement identifies which gains are TARP and NTARP Capital Gains. CGT tax return information for the 2009 tax year The ATO has produced a CGT schedule to help you work out your net capital gain or loss. The instructions for this schedule are provided in the Personal investors guide to capital gains tax booklet. If your situation is more complex, you may need to refer to the booklet Guide to capital gains tax. To work out your position on capital gains or losses, refer to: your individual Macquarie tax statement; your transaction statements (if you have had asset disposals); and ATO publications Personal investors guide to capital gains tax or Guide to capital gains tax. We recommend you seek professional tax advice for guidance in completing your income tax return and the CGT schedule. CGT and Non-Residents Broadly, a non-resident for Australian tax purposes will not be liable for tax unless capital gains distributed to them relate to underlying assets that are taxable Australian real property (hence TARP capital gains). In relation to the disposal of Instalment Receipts in any of the Macquarie products to which this guide relates, we recommend that non-residents seek professional tax advice to determine the CGT liability, if any. Non-taxable amounts You may receive an amount of tax deferred income or a return of capital amount (i.e. income that is non-taxable when you receive it). Any tax deferred income or a return of capital may reduce the cost base of your assets, which will impact your capital gains amount when you eventually sell your Underlying Securities. Please refer to the ATO publication Guide to capital gains tax for more information about the impact of tax deferred and return of capital amounts on selling the Underlying Securities over which you hold Instalment Receipts. Interest Expense The amount you have incurred throughout the year is disclosed on your 30 June statement for your Macquarie Equity Lever or CPF Instalment Receipts facility (as appropriate). The amount disclosed is the entire interest expense across any fixed and variable interest rate positions. Macquarie can confirm that all interest incurred in respect of your investments is below the RBA personal unsecured variable rate (hence no amount will be deemed non-deductable and need to be added to the cost of capital protection). More specifically for CPF Instalment Receipts acquired before 1 July 2007, the deductible proportion of the interest you incurred will be equal to the lesser of: (i) an amount equal to the outstanding Final Instalment multiplied by the Reserve Bank of Australia's (RBA) Indicator Rate for Personal Unsecured Loans Variable Rate; and (ii) the amount determined by the specified percentage amounts of the interest you incurred depending on the term of investment (85% in this case given the investment term is 5 years). On 13 May 2008, the federal government announced a proposed amendment to the provisions which if enacted in the terms announced, will apply to capital protected borrowing arrangements, including any CPF Instalment Receipts or Instalment Receipts under Macquarie Equity Lever entered into after 7:30pm (AEST) on 13 May 2008. If enacted in the terms announced and: (i) if you enter into a new Instalment Receipt, after 7:30pm (AEST) on 13 May 2008, the applicable benchmark rate is the RBA Indicator Rate for Standard Housing Loans; or (ii) if you enter into a new Instalment Receipt, on or after 1 July 2007, but before 7:30pm (AEST) on 13 May 2008, the applicable benchmark rate is the RBA Indicator Rate for Personal Unsecured Loans. This rate will continue to apply for a period of 5 years, following which the applicable benchmark rate will revert to the RBA Indicator Rate for Standard Housing Loans. For more details in relation to CPF Instalment Receipts, please refer to Section 8.2 "Interest" of the Macquarie CPF Instalment Receipts Product Disclosure Statement (PDS) dated 18 April 2007 and the Supplementary PDS dated 14 May 2008. For more details in relation to Equity Lever, please refer to the Section 6.2 "Interest" of the Macquarie Equity Lever Product Disclosure Statement (PDS) dated 14 March 2008 and the Supplementary PDS dated 14 May 2008. The ATO has confirmed that they will not seek to apply the proposed legislation but instead apply the law as it currently stands. However, should you want a detailed breakdown or your interest amount we can provide this to you upon request.

Your income tax return and the Macquarie tax statement Special rules also apply for tax credits attached to Australian dividends or representing tax paid overseas on foreign investments. Expenses that relate to earning your income may also be deductible and can be claimed in your income tax return. They can help reduce your net taxable income. These expenses are not shown on your statement. We recommend you seek professional tax advice for guidance on completing your income tax return. Appendix This guide is relevant if you have an investment in the following Macquarie products: Macquarie Equity Lever Macquarie CPF Instalment Receipts Macquarie Bank Limited, ABN 46 008 583 542. October 2009. Macquarie Bank Ltd ABN 46 008 583 542 (MBL) is the issuer of Macquarie Equity Lever and Macquarie CPF Instalment Receipts ("Products"). This is general advice only and has been prepared without taking into account the individual objectives, financial situation or needs of any particular investors. In deciding whether to acquire or continue to hold an investment in a Product, investors should consider the current Product Disclosure Statement (PDS) which is available from us. Bond Street Custodians Limited ABN 57 008 607 065, AFSL 237 489 (Security Trustee) is the trustee in relation to the Products. The Security Trustee is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959, and the Security Trustee s obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of the Trustee. None of the Trustee, Macquarie or their associates or directors guarantee the success of the Products, the repayment of capital or any particular rate of capital or income return. This guide is provided as a general information service only and is not a complete or definitive statement of the tax consequences of the Products. It should not be relied on as a substitute for professional taxation advice as each investor's circumstances will be different. If you are in any doubt about your tax position, or want more information about your personal tax position, we recommend you contact your accountant or tax adviser. While this guide is given in good faith and is believed to be reliable and accurate, neither MBL nor any member of the Macquarie Group gives any warranty as to its reliability or accuracy, nor accepts any responsibility for any errors or omissions. Commonwealth data included in this publication is copyright. Adviser stamp Equity Lever 1800 229 848 CPF Instalment Receipts 1800 210 475 www.macquarie.com.au/equitylever www.macquarie.com.au/cpf Macquarie Bank Limited GPO Box 4023, Sydney NSW 2001