What Are the Tax Changes In the Class Ruling and How Do They Impact Me? - The National Australia Bank Group

Share price

How the tax changes in the Class Ruling will impact you will depend upon your particular circumstances. You should refer to the relevant appendices identified in the table below for a more detailed explanation of how the tax changes in the Class Ruling impact you.

In summary, the tax change in the Class Ruling relates to when you will be treated as acquiring your "25 Shares at No Cost to You" and Loan Shares for capital gains tax purposes.

Previously, if you elected to be taxed upfront on your shares you would have been treated as acquiring your shares for capital gains tax purposes at the time the shares were purchased by the Trustee on your behalf.

The Class Ruling issued by the ATO confirms that, if you elected to be taxed upfront on your shares, you will now be taken to acquire your shares when you become "absolutely entitled" to your shares.

The appendices referred to in the table below explain in more detail when you will become "absolutely entitled" to your shares and therefore when you will be treated as acquiring your shares.

The appendices will also explain what impact this will have in your particular circumstances.

	You have already sold these shares but did so while you were still an employee of the National Group.	You have ceased to be an employee of the National Group but you still hold these shares	You have ceased to be an employee of the National Group and have sold these shares since the cessation of your employment with the Group.
"25 Shares at No Cost to You"	Appendix C	Appendix E	Appendix G
Loan Shares	Appendix D	Appendix F	Appendix H

If you are still an employee, Appendices A and B as well as Appendices C and D, explain in more detail the impact of the Class Ruling to your situation. These Appendices are available internally through the National's Human Resources Lotus Notes Bulletin Board.

QUERIES

The table below sets out who you should contact if you have a query. Who you should contact differs depending upon your particular query.

Type of query

Who you should contact

Taxation queries, including how the Class Ruling impacts you.

Your Tax Agent/Accountant or person who prepares your tax returns; or
Australian Taxation Office
Enquiry line - 13 28 61

The number of National shares you own; or
The cost base (i.e the weighted average share price) of your National shares on a particular date

Please note that the National is not able to provide you with any taxation advice.

Staff Share Plans Administrator
Computershare Plan Managers Pty Limited

Postal Address
GPO Box 658
Melbourne Vic 3001
Australia

Email: nabshareplans@computershare.com.au

Local Call: 1300 556 324
Fax: (03) 9473 2458

Outside Australia: +61 3 9415 4298
Fax: +61 3 9473 2458

The above comments and the comments in the relevant Appendices are of a general nature only and it is recommended that you provide a copy of this document to your tax agent or the person who prepares your tax return. You may need to discuss further with your tax agent or accountant the implications of the tax change in the Class Ruling for you.