Financial Position for the Year Ending 30/6/2009

Bank Account
Sale proceeds - Ellington 245,800
Purchase consideration - Nouvelle (380,915) + $96,000 funded by Sam
Stamp duty paid 7,980
Deposit paid 30,000
Savings/(Draw down) 119,301
Line of Credit - Home Loan account balance 22,166

PAYG instalments paid - 2009 39,859

Pro-rata tax payable on non-salary income - 2009 (53,718) Bal to pay

PAYG instalments paid - 2008 13,534

Tax payable - 2008 (including bonus) (59,507) Bal to pay
Tax owed

Pro-rata profit share - 2009 51,526 Bud profit

Equity draw - 2009 (38,937) My share
Fortnight number
Total net tax owing and pro-rata profit share owed (47,243)

BDO Kendalls working capital contribution 37,500

Line of Credit - Working Capital account draw down (37,500)
Interest on Line of Credit Working Capital account (1,079)
Line of Credit - Working Capital account balance (1,079)

Real position (26,156) Debt left =

Line of Credit Accounts Limit Used

Home Loan 140,000 22,166
Transaction 35,000 0
Working Capital 40,000 (37,526)
215,000 (15,360)

Net Wealth
Market value of property (79.87%) 423,311 530,000
Net debt (26,156)
Net equity in property 397,155
Add: Leave entitlements
AL entitlement after tax 12,365 30
LSL entitlement after tax 22,408 12.52
Add: Super benefits 44,241 22/1/2009
Net wealth 476,169
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 146,954
ICAA - CA Focus Sessions 0
146,954
Expenses
Bank Fees $375 per year (375)
Body Corporate $2,800 per year x 79.87% (2,236)
Electricity $180 per quarter (720)
Gas $140 per quarter (560)
Car Expenses - Petrol $60 per fortnight (1,560)
Car Expenses - Registration $557 per year ($593 from 1/7/200 (557)
Car Expenses - Repairs & Maintenance $500 per year (500)
Entertainment $250 per week (12,000)
Groceries $100 per week (4,800)
Insurance (Car) $1,001 per year (1,001)
Insurance (Health) $56 per fortnight (1,456)
Insurance (Contents) $480 per year x 50% (240)
Interest on Line of Credit - Private $50,000 x 7% (3,500)
Interest on Line of Credit - Working Capital $37,500 x 7% x 150 days (1,079)
Rates $380 per quarter x 79.87% (1,214)
Skincare Ingredients $1,000 per year (1,000)
Superannuation Contributions $0 per year 0
Telephone (Incl Internet) $70 per month (840)
Transfer to Hongkong $500 per month (6,000)
(39,638)

Potential Cash Savings (Incl Line of Credit Repayments) 107,316

Monthly Fortnightly Weekly

12,246 5,652 2,826

0 0 0
12,246 5,652 2,826

(31) (14) (7)

(186) (86) (43)
(60) (28) (14)
(47) (22) (11)
(130) (60) (30)
(46) (21) (11)
(42) (19) (10)
(1,000) (500) (250)
(400) (200) (100)
(83) (39) (19)
(121) (56) (28)
(20) (9) (5)
(292) (135) (67)
(90) (41) (21)
(101) (47) (23)
(83) (38) (19)
0 0 0
(70) (32) (16)
(500) (231) (115)
(3,303) (1,578) (789)

8,943 4,074 2,037

Income

Tax Position
Fixed profit share - BDO Kendalls 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 (1,079)
Value of fringe benefit
GST on fringe benefit

Cash salary 232,811

Income tax 82,365

Medicare Levy 3,492
85,857
Less: Tax paid on PAYG Payment Summary (21,147)
Tax payable on non-salary income 64,710
Less: PAYG instalments paid (39,859)
Net tax payable/(refund) on tax return 24,851

Net annual take home pay after-tax 146,954

Gross per fortnight 8,954

Less: Income tax per fortnight (3,302)
Net per fortnight 5,652
Cash Budget for the 2007/2008 Year
Annual
Income (After Tax)
Profit Share - BDO Kendalls 106,000
Bonus - BDO Kendalls -2006/2007 6,336
ICAA - CA Focus Sessions $1,556 per module x 1 per year 910
113,246
Expenses
Bank Fees $375 per year (375)
Body Corporate $2,800 per year x 79.87% (2,236)
Electricity $180 per quarter (720)
Gas $120 per quarter (480)
Car Expenses - Petrol $70 per fortnight (1,820)
Car Expenses - Registration $550 per year (550)
Car Expenses - Repairs & Maintenance $500 per year (500)
Entertainment $250 per week (12,000)
Groceries $50 per week (2,400)
Insurance (Car) $609 per year (609)
Insurance (Health) $49 per fortnight (1,274)
Insurance (Contents) $566 per year x 79.87% (452)
Interest on Line of Credit $100,000 x 8% (8,000)
Rates $350 per quarter x 79.87% (1,118)
Skincare Ingredients $1,000 per year (1,000)
Superannuation Contributions $0 per year 0
Telephone (Incl Internet) $70 per month (840)
Transfer to Hongkong $500 per month (6,000)
(40,375)

Potential Cash Savings (Incl Line of Credit Repayments) 72,872

Monthly Fortnightly Weekly

8,833 4,077 2,038

528 244 122
76 35 18
9,437 4,356 2,178

(31) (14) (7)

(186) (86) (43)
(60) (28) (14)
(40) (18) (9)
(152) (70) (35)
(46) (21) (11)
(42) (19) (10)
(1,000) (500) (250)
(200) (100) (50)
(51) (23) (12)
(106) (49) (25)
(38) (17) (9)
(667) (308) (154)
(93) (43) (22)
(83) (38) (19)
0 0 0
(70) (32) (16)
(500) (231) (115)
(3,365) (1,599) (800)

6,073 2,757 1,378

Income
Annual
Package
Profit share - BDO Kendalls 160,000

Bonus - 2007/2008

Less: Allowable deductions

Super contributions ($1,000 per month)
Other deductions

Cash salary 160,000

Add back: Super deduction 0
Less: Income tax (51,600)
Less: Medicare Levy (2,400)
Net cash salary 106,000

Gross cash per fortnight 6,154

Less: Income tax per fortnight (2,077)
Net cash per fortnight 4,077

Notional income tax per fortnight 2,077

Notional superannuation contribution per fortnight
Minimum amount to be saved per fortnight 2,077
NEW THINGS
Eddie Sam Total
Ambrose delivery 38 38 75
Balcony pots 160 160
Bed sheet set 90 90
Bed & mattress 2,253 2,253
Bed quilt cover set 135 135
Bed end chest 1,795 1,795
Bedside lamps 189 189 378
Bedside tables 695 695 1,390
Bookcase 369 369
CD Tower 138 138
Chest of drawers 1,495 1,495
Coffee 56 49 105
Dining set 2,152 2,152
IKEA delivery 33 33 66
Mario Party 8 44 44
Office chairs 365 365 730
Rug 1,390 1,390
Toliet brushes 30 30 60
Wii 471 471
8,607 4,690 13,297

First Home Owners Grant

Grant amount 7,000
Less: Building inspection ($410 x 20.13%) (83)
Less: Insurance (contents) ($566 x 20.13%) (114)
Less: Legals ($935 x 20.13%) (188)
Less: New things (per above) (4,690)
Less: Settlement Adjustment ($78 x 20.13%) (16) (5,091)
Residual 1,909

Mortgage per week 159

Months funded by residual 3.00
NEW PROPERTY

Property value 468,000

Stamp duty 7,980
Legal fees 935
Total costs 476,915

Funded by:
Eddie's equity 245,800
Eddie's new debt 135,115 (balancing) Repayment per week = 226
Sam's debt 96,000 Repayment per week = 160
476,915 386

Ownership
Eddie 380,915 79.87%
Sam 96,000 20.13%
476,915 100.00%

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
 Fringe Benefits Tax - Motor Vehicles
Statutory Method
Client BDO Kendalls

Benefit Provided From 01-Apr-06

Car Held by Employer in FBT Year From 01-Apr-06

Motor Vehicle Peugeot 307

Registration Number 218 IVR
Employee/Associate Eddie Chung

Original Cost of Motor Vehicle $ 26,644

Did Employer Claim ITC? (Y/N) Y
Date Acquired 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% Statutory Fraction
15,000 Km - 24,999 Km 20%
25,000 Km - 40,000 Km 11%
> 40,000 Km 7% 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 30-Jun-06
To 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 Days D
91 Days C
15,041 Km
91 Days F

20% B

$ 799 (GST Inclusive) E

$ 530

Type 1 Type 2

530
-

2.1292 1.9417

$ 1,128 $ - X

$ 524 $ -

Date Initials
2-Nov-21 EC
Car Expenses

Insurance 121.95

Petrol
1/4/2006 57.96
15/4/2006 69.50
22/4/2006 20.32
25/4/2006 30.04
6/5/2006 39.95
21/5/2006 50.50
9/6/2006 39.99
9/6/2006 42.64
18/6/2006 50.49

401.39

Rego 137.50

R&M 138.00

798.84
Rental Performance

Value of property 430,000

Stamp duty 13,475
Rent per week 360
Body Corp/Year 2,360
Rates/Year 1,520
Interest Rate 9.50%
Loan 443,475 100.00%

Rent 18,000 (assumed 2 weeks vacant)

Body Corp (2,360)

Interest (42,130)
Rates (1,520)
R&M (500)
(28,510) (548) per week

Tax Payable/(Benefit) 13,257 255 per week

Net Cost (15,253) (293) per week

Annual % value increase to breakeven 6.82%

Investment Comparison
Geared Managed Fund Investment

Assumptions 97 98 99 00 01
Value of Units 20,000 22,448 25,954 30,281 31,002
Borrowings 10,000 7,521 3,760 - -
Interest Rate 8% 8% 8% 8% 8%
Interest 689 434 158
Income Return B/Tax 9.10% 8.53% 8.36% 7.61% 9.20%
Capital Gain B/Tax 12.24% 15.62% 16.67% 2.38% 7.85%
Imputation Credits % 10% 10% 10% 10% 10%
Imputation Credits 78 82 93 99 122

Return on Investment
Income from Units 1,820 1,915 2,170 2,304 2,852
Imputation Credits 78 82 93 99 122
Less: Interest (689) (434) (158) 0 0
Net 1,209 1,563 2,105 2,403 2,974
Capital Gain 2,448 3,506 4,327 721 2,434
3,657 5,069 6,431 3,124 5,408
Tax @48.5% (1,180) (1,608) (2,070) (1,340) (2,033)
Imputation Credits 78 82 93 99 122
2,555 3,543 4,454 1,882 3,498
Remove Imputation Credits (78) (82) (93) (99) (122)
Net Return A/Tax 2,477 3,461 4,361 1,784 3,375
A/Tax Return % 24.77% 23.19% 19.65% 5.89% 10.89%
H/Loan A/Tax Equivalent 14.00% 14.00% 14.00% 14.00% 14.00%
Net Advantage/(Disadvantage) 10.77% 9.19% 5.65% (8.11%) (3.11%)

Closing Capital Value 22,448 25,954 30,281 31,002 33,435

Increase/(Decrease) in Equity 2,448 3,506 4,327 721 2,434

Cash Flow
Income from Units 1,820 1,915 2,170 2,304 2,852
Less: Loan Repayment (3,760) (3,760) (3,760) (3,760) (3,760)
Less: Tax (508) (676) (928) (1,067) (1,320)
Cash Inflow/(Outflow) (2,449) (2,521) (2,518) (2,523) (2,229)

Per Week (47) (48) (48) (49) (43)

Per Month (204) (210) (210) (210) (186)
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)