ASX Announcement - TrUEPrS Amended Tax Assessments Received - 19 April 2004

As foreshadowed on February 26 this year, the National has received amended assessments from the Australian Taxation Office (ATO) in relation to interest deductions claimed by the National in respect of the TrUEPrSsm capital raising for the years 1999 to 2002.

The amended assessments are for primary tax of $85 million and penalties and interest of $65 million (after tax), a total of $150 million (after tax).

The National expects that the ATO will also issue an amended assessment for 2003 after the National lodges its 2003 income tax return.  The amount of primary tax which relates to interest deductions for the 2003 year is $15 million.  Any amended assessment for 2003 may also include penalties and interest.

The National has previously said it is confident of its position and intends to pursue all necessary avenues of objection and appeal.  As previously advised, no provision will be created for the potential tax liabilities which will be disclosed as a contingent liability in the accounts.

The TrUEPrS were redeemed in January this year.

TrUEPrSsm is a service mark of Merrill Lynch & Co., Inc.

For further information:

Brandon Phillips     
Group Manager   
Group Corporate Relations     
03 8641 3857 work   
0419 369 058 mobile