S A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D

Trustee:

SA Metropolitan Fire Service

Superannuation Pty Ltd

(ACN 068 821 750)

99 Wakefield Street,

Adelaide SA 5000

ABN 12 755 456 100

AFSL 284890

This Annual Report forms

part of and must be read

in conjunction with your

2005 Annual Statement

of Benefits.

Prepared October 2005

SA METROPOLITAN FIRE SERVICE

SUPERANNUATION FUND

ANNUAL REPORT TO MEMBERS

FOR THE PERIOD ENDING

30 JUNE 2005

report

As has been the case for the last fewyears there have been many issues forthe Trustee and Fund’s staff to deal with during the last 12 months.

Investment returns have again beenstrong with all asset classes producingpositive returns for the year. TheAustralian sharemarket was up 26%with overseas shares up nearly 10%*.This has resulted in the Fund being ableto produce a return of 13.3% for theyear, well ahead of inflation of 2.5% andabove the average manager in the Aoninvestment survey of balanced funds.* Source: Mercer Investment Constulting

As part of the ongoing monitoring ofthe Fund’s investment managers, theTrustee has reviewed the managers usedand made some changes. Investmentswith Wellington Management Company(overseas shares) have been terminatedand transferred to Zurich AustraliaLimited and investments with Warakirrihave been changed to another facilitymanaged by them. In addition, theinvestment the Fund had in the head-quarters building lease has been paidout on 1 July 2005 with proceeds beinginvested amongst other asset classes.

The Trustee also reviewed the Fund’screditing interest rate arrangements and determined to make a change to the 3 year average that applied.

With effect from 1 July 2004, the rateto be allocated to members’ accounts at each annual review (1 July) will bebased on the actual rate of return forthe year, after allowance for taxationand the cost of operating the Fund. In addition, the interim rate to be usedfor members leaving the Fund duringthe year will be based on the last knownquarter’s return plus a cash rate fromthe end of the last quarter to the dateof payment from the Fund.

The Trustee has also been reviewing the overall operation of the Fund given

changes to legislation effective from 1 July 2006 requiring all trustees to belicensed. We are currently consideringother alternative arrangements webelieve will provide greater flexibility tothe Trustee and benefits to members.

I would like to acknowledge the effortsof Alan Kent, the Fund’s Manager, sincehe joined us in November last year.Alan has been able to quicklyacclimatise to the requirements of theFund and has been very valuable giventhe issues that have arisen since hiscommencement.

The Government also announced the abolition of the superannuationsurcharge with effect from 1 July 2005. Whilst members may receiveassessments for prior years, there will be no surcharge assessments for the2005/6 financial year and beyond.

With effect from 1 July 2005 theFederal Government’s choice of fundlegislation commenced which has resultedin some employees now having theability to choose which fund they wouldlike their superannuation guaranteecontributions to be directed to.

Due to the nature of the defined benefitarrangements provided to permanentemployees, choice is not available forany permanent employee of the FireService. Retained fire-fighters do haveaccess to choice as they are providedwith accumulation benefits.

I would encourage any member tocarefully consider all the issues andobtain some appropriate advice on theirown personal circumstances beforemaking a nomination to have their SGcontributions directed to another fund.

Bob TidswellChairman

S A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 3

Chairman’s Report

4

The Trustee of the Fund is a company,SA Metropolitan Fire ServiceSuperannuation Pty Ltd (ACN 068 821 750).

The sole activity of the company is to act as Trustee of the Fund.

There are eight Directors of theCompany, four Employer representativesand four Member representatives.

The Corporation appoints the Directorswho are Employer representatives.

The Member Representative Directorsare elected from two separate electoralgroups. The United Fire Fighters UnionInc (UFU) nominates three Directors and Fund members who are not eligibleto join the UFU elect one Director. The period of office for each Director is up to three years (or longer if theTrustee determines there are specialcircumstances). Subject to their beingrenominated and being willing, MemberRepresentative Directors can be re-elected for a further term.

Directors who are either Employer orUFU nominated Member representatives,will cease to hold office if the nomin-ation by the relevant organisation iswithdrawn or they become ineligibleunder relevant legislation.

For the Director who is elected by theFund members who are not eligible to join the UFU, he or she will cease to hold office if written notice to that effect is given to the Trustee by a majority of the relevant Fundmembers, or becomes ineligible under relevant legislation.

A formal set of rules governing theappointment and removal of MemberDirectors has been established and isavailable on request from the Manager.

The Directors of SA Metropolitan FireService Superannuation Pty Ltd as at 30 June 2005 were:

Employer Representatives

> Grant Lupton> Mick Smith> Anthony Norman> Garry Powell

Member Representatives

Nominated by the UFU> Phil Harrison > William Jamieson> Gregory Northcott

Elected by Fund members who are not eligible to join the UFU> Robert Tidswell

Trustee Indemnity Insurance

The Trustee has an Indemnity InsurancePolicy in place as a prudent measure dueto legislative requirements and trusteeresponsibilities.

Support Staff

The Trustee employs 2 staff that assist theDirectors in the operation of the Fund.

Alan Kent is the Fund’s Manager andresponsible for the day to day operationof the Fund.

Alan has been assisted throughout theyear by Maria Michaels and VeronicaVarga. Maria will be going on maternityleave in late 2005 with Veronica to returnto again assist Alan and members.

Administration

Mercer Human Resource Consulting PtyLtd (Mercer) maintains member records,annually updates members’ benefits and produces benefit statements, receivescontributions, pays benefits and providesgeneral technical superannuation adviceto the Trustee and Manager whenrequired. Mercer developed and nowmaintains the Fund’s Internet site.

Report from the Trustee of the Fund

reportS A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 5

Advisers

In addition to administration services,the Trustee also uses the services of specialist consultants to ensure the efficient operation of the Fund and its continuing compliance withGovernment legislation.

These services include the following:

n Death and Disablement InsuranceAMP Life Limited33 Alfred Street, Sydney NSW 2000

n AccountingMercer HR ConsultingLevel 5, EDS Centre108 North Terrace, Adelaide SA 5000

n Auditing and Tax ServicesPricewaterhouseCoopers91 King William StreetAdelaide SA 5000

n ActuaryMr Laurie BrettBrett & Watson Pty Ltd157 Grenfell StreetAdelaide SA 5000

n LegalDMAW LawyersLevel 3, 80 King William StreetAdelaide SA 5000

Mercer Legal33 Exhibition StreetMelbourne VIC 3000

n Investment Adviser Aon Consulting Pty Ltd201 Kent Street, Sydney NSW 2000

Investment Managers

The Trustee uses professional managersto invest the Fund’s assets to maximisereturns.

The managers used by the Fund as at 30 June 2005 are:

n Barclays Global Investors Australia Ltd,Level 1, 111 Harrington StreetSydney NSW 2000

n Coastal Capital Limited, Level 4, 111 Harrington StreetSydney NSW2000

n Deutsche Asset Management, Level 21, 83 Clarence StreetSydney NSW 2000

n JF Capital Partners, Level 23, Bourke Place 600 Bourke Street, Melbourne VIC 3000

n Macquarie Investment Management Ltd,Level 15, 20 Bond StreetSydney NSW 2000

n Massachusetts Financial Services (MFS) Investment Management, through BNP Paribas Asset Management (as the Responsible Entity) 60 Castlereagh Street, Sydney NSW 2000

n Alpha Investment Management Pty Ltd,Level 13, 350 Collins StreetMelbourne VIC 3000

n Warakirri Asset Management Pty Ltd, Level 3, 53 Queen StreetMelbourne VIC 3000

n Zurich Funds Management, 505 Little Collins StreetMelbourne VIC 3000

During the year, the Trustee terminated itsinvestment with Wellington and transferredthese assets to Zurich Australia Limited.

Contributions

For the year ended 30 June 2005, all contributions due and payable to the Fund have been received.

f the Fund

co-6

Co-Contributions the Government matches your after-tax contributions to super

Eligibility for the Government co-contribution

The co-contribution is currently onlyavailable to people who earn at least10% of their income from employmentas an employee even if there is noentitlement to employer superannuationcontributions and will not be availableto any self-employed persons who areable to claim a tax deduction for theircontributions.

You must also be under age 71 at theend of the year. It is not available tomost temporary residents.

Claiming the co-contribution…you don’t need to do anything

The Trustee must give the Tax Officeinformation about your contributionsand those made by the Fire Service.Using this information and informationin your tax return, the Tax Office willwork out if you are entitled to receive a co-contribution. Any co-contributionpayable will then be sent directly to the Fund.

We recommend that you speak to a financial adviser to work out how this might apply to you.

Under $28,000 $1,500.00 $1,000.00$30,000 $1,400.00 $933.33

$35,000 $1,150.00 $766.67

$40,000 $900.00 $600.00

$45,000 $650.00 $433.33

$50,000 $400.00 $266.67

$55,000 $150.00 $100.00

$57,000 $50.00 $33.33

$58,000 $0.00 $0.00

Your total income*

Maximum co-contribution

available

Contribution required byyou to obtain maximum

co-contribution

* Income is your assessable income plus

your reportable fringe benefits.

The co-contribution is a contribution by theGovernment to matchpersonal after-taxcontributions you pay to a superannuation fund.

The amount of the co-contribution you will get depends on your income*and the personal after-tax contribution you have made during the financialyear. From 1 July 2004 onwards, theGovernment contributes up to $1.50 for each $1.00 of personal after-taxcontributions you make to super. The maximum amount of the co-contribution for a financial year is$1,500 and is available to people whose income is $28,000 or less.

This maximum or cap then phases down by 5 cents for each dollar ofadditional income and cuts outcompletely for incomes of $58,000 or more. You also need to meet otherconditions to be eligible for the co-contribution as detailed below.

The table below shows the totalcontribution required in order to gainthe maximum level of co-contributionavailable from the government.

o-contributionsS A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 7

Fees, Surcharge and Taxes

The Trustee pays the expenses ofoperating the Fund and any taxespayable from the Fund in the mannerallowed by the Trust Deed.

Taxes, as imposed by the Government,may be deducted from contributions,from investment income and from any benefit payable to a member. Tax on contributions is deducted fromemployer contributions (including salarysacrifice contributions) when receivedby the Fund and tax payable on benefitsis deducted from benefits at the timethey are paid.

For higher income earners there is anadditional tax, known as the surcharge,on all employer contributions andmember pre-tax contributions receivedprior to 1 July 2005. If you have not provided your tax file number, surcharge may also automatically apply irrespective of what you earn.

The surcharge still applies for the period to 30 June 2005 and phases in gradually once your adjusted taxableincome exceeds $99,710 and applies at the maximum rate if your adjustedtaxable income exceeds $121,075. Thesefigures are for the 2004/2005 tax year.

The maximum rate of surcharge is12.5% for 2004/2005 but has beenabolished with effect from 1 July 2005.

Adjusted taxable income includes yourtaxable income, reportable fringebenefits, most benefits paid by anemployer on leaving employment, any

employer contributions or member pre-tax (salary sacrifice) contributionspaid to a superannuation fund andcertain income in respect of family and other trusts.

If the Fund is required to pay surchargetax in respect of you, the tax payablewill be deducted from your surchargepayment account in the Fund. Thisaccount will be charged interest at the Fund’s crediting interest rate. If you rollover benefits into the Fundfrom another super fund or from your employer, any liability to pay thesurcharge tax for contributions to thatfund which has not been paid or inrespect of the employer payment, maybe transferred to the Fund. Your endbenefit will be reduced by the amountof your surcharge payment account.

If the Trustee receives a surchargeassessment in respect of yourmembership after you have left theFund we will return it to the Tax Office.

The Tax Office will either forward it to the fund to which your benefit waspaid, or to you if your benefit was paid directly to you.

t matches your after-tax contributions to super

fee8

The following table shows the Fund’s expenses or fees and charges that might apply to yoursuperannuation benefits. n All expenses are current and may be revised, increased or added to or adjusted by the

Trustee from time to time due to changes to, for example, the superannuation environment(eg Government regulations) or the trust deed. The Trustee may also introduce new fees.While it is not anticipated that fees and charges will change, if there is an increase in feesthe Trustee must notify you 30 days in advance of the change or as required by legislation.

n The Fund pays all insurance costs in relation to your death and disablement benefits fromthe Fund’s assets and does not reduce your benefit.

n No GST is payable by you on any of the fees and charges described below.n You should read this fee information carefully, as it’s important that you understand how

these fees can affect your benefits in the Fund.

Fees and Charges

DID YOU KNOW?n Small differences in

both investment

performance and fees

and costs can have a

substantial impact on

your long term returns.n For example, total

annual fees and costs

of 2% of your fund

benefit rather than 1%

could reduce your final

return by up to 20%

over a 30 year period

(for example, reduce

it from $100,000 to

$80,000).n You should consider

whether features such

as superior investment

performance or the

provision of better

member services justify

higher fees and costs.n You may be able to

negotiate to pay lower

contribution fees and

management costs

where applicable.

Ask the fund or your

financial adviser.

TO FIND OUT MOREn If you would like to

find out more, or see

the impact of the fees

based on your own

circumstances, the

Australian Securities

and Investments

Commission

(ASIC) website

(www.fido.asic.gov.au)

has a superannuation

calculator to help you

check out different

fee options.

Consumer AdvisoryWarning

Fees and Other Costs when your money moves in or out of the Fund

Type of fee or cost

Establishment feeThe fee to open your investment

Contribution feeThe fee on each amount contributed to your investment either by you or your employer

Withdrawal feeApplicable to Parked Benefits and transfers to other funds under portability rules. The fee on each amount you take out of your investment

Termination feeApplicable to Parked Benefitsonly. The fee to close yourinvestment

Management costsThe fees and costs formanaging your investment

Parked members only

* This amount may be indexed each 1 January in line with Average Weekly Ordinary Time Earnings (AWOTE). For more information see “Indexation of Fees” later in this report.

How and when paid

N/A

N/A

This fee is deductedfrom your account atthe time a payment is made.

This fee is deductedfrom your account atthe time your finalpayment is made.

This fee is deductedwhen determining the Fund’s creditinginterest rate.

This fee is deducted at each 1 July or on ceasing to be amember of the Fund

Amount

Nil

Nil

$60.00*per withdrawal(first withdrawal free)

$60.00*

An asset based fee of approximately1.20% pa of your Defined Benefitmember contribution account andAccumulation Benefit (estimateonly). This estimate is based on the management fee for the yearending 30 June 2005. This fee is calculated annually and may differ in subsequent years.

A weekly administration fee of$1.90* which is in addition to the asset based fee above.

s and chargesS A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 9

The table below contains an example of the fees payable for a member (other than Parked members)investing in the Fund over a one year period using certain assumptions about your contributions andaccount balance. You should use this table to compare the Fund with other superannuation products.

This section provides further information on fees and costs.

Family Law: fees for information and for splitting your super – charged to members and/ortheir former spouses for various services

Example of fees and costs for one year

An explanation of Fees and Costs

Example

Contribution Fees

PLUS Management Costs

EQUALS Cost of Fund

* Additional fees may apply: If you leave the Fund or withdraw amounts you may also be charged a withdrawal fee of $60.00 for eachwithdrawal. These fees may be indexed each year in line with AWOTE. For more information see “Indexation of Fees” on page 10 of thisAnnual Report.

Balance of $50,000 with totalcontributions of $5,000 during year

For every $5,000 you will incur no cost.

And, for every $50,000 you have in the Fundyou will be charged $600.00 each year.

If you put in $5,000 during a year and yourbalance was $50,000, then for that year you would be charged fees of $600.00*. This represents the estimated amount ofmanagement costs.

Amount

Nil

1.20% ofyour leavingservicebenefit

Where fees apply

Application for information – in the format specified underthe Family Law Act

n For Defined Benefit valuationn No valuation required

Splitting a benefit

Flagging a benefit

Who pays the fee

Payable by the person requesting the valuation.N/A

Shared equally by both parties and will be deducted from each super benefit at the time the benefit is split

N/A

Fee

$250Nil

$385

Nil

For more information about Family Law and how it may affect you, please call or write to the Manager.

10

Variation to fees

The fees outlined previously aredetermined by the Trustee from time to time based on the expenses incurredin running the Fund and may be revised,increased, added to or adjusted by theTrustee from time to time. You will benotified of any changes to the feesoutlined on the previous page.

Member protection

Superannuation legislation requires that administration charges formembers whose withdrawal benefits are less than $1,000 do not exceed theinvestment earnings credited in respectof the relevant reporting period exceptin limited circumstances. The intentionof the legislation is to protect memberswith small account balances against any erosion of this benefit due toadministration charges.

Because the administration andinvestment fees are adjusted against the Fund crediting interest rate,members pay in proportion to theirsuper account balances and the usualmember protection does not applywhere a member’s benefit is less than $1,000.00.

Insurance premiums

Insurance premiums are currently paidfrom the Fund and factored into thecontributions you make. If this arrange-ment were to change in the future youwill be appropriately advised. There is no insurance cover for Parked orDeferred members.

Fees and Charges

Fees for Parked Benefit Members

In addition to the withdrawal feedetailed on page 8, Parked benefitmembers are required to pay anadministration fee of $1.90 per weekwhich is deducted from their accountbalance at each review (1 July) or onexiting the Fund. This amount maychange from time to time.

Indexation of Fees

The fees for withdrawals, terminationsand administration fees for Parkedmembers (see the Fees and Other Coststable on page 8) are subject to annualindexation based on increases in theannual rate of Average Weekly OrdinaryTime Earnings (AWOTE).

investmentsS A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 11

Objectives

The Trustee seeks to provide a frame-work for setting investment objectivesthat are relevant to managing super-annuation fund assets today and in the future.

Various factors have been considered in framing the Fund’s objectives andthese include:n the nature of the Fund’s benefit

design;n some of the relevant characteristics

of the membership profile;n the financial state of the Fund;n the risk/return preferences of the

members.

The Trustee is required by law to setinvestment objectives for the Fund. The objectives outlined are not afinancial forecast or a guarantee of any future returns from the Fund.

In 2005, the Trustee reviewed the Fund’s investment objective andchanged it to aim to achieve a rate of return which is greater than theincrease in the Consumer Price Index(CPI) by 5% over rolling 5 year periods.

Investment -PerformanceMonitoring

The Trustee has employed the servicesof Aon Consulting to monitor theperformance of each investmentmanager and the Fund as a whole. In particular, the following is closelymonitored:n The overall performance of each

manager in comparison to agreedbenchmarks and a peer group ofsimilar managers.

n The efficiency with which eachmanager is managing the moniesallocated.

Investments

n That the manager’s styles arecomplementary to each other.

n That the managers collectively are delivering the investment strategy considered appropriate.

n The level of risk being taken by eachmanager relative to value added.

InvestmentPerformanceCompared toObjectives

This year has proven to be a positiveyear for investors as equities marketsrebounded and all major asset classesdelivered positive returns.

The International equities markets index(MSCI ex Aust) was up 9.8% (in localcurrency terms) for the year ending 30 June 2005 and the Australianequities index (S&P/ASX200) was also up by 26.4%.

As at 30 June 2005, the investmentperformance over the various periods is as follows.

The return objectives for each period areas follows:n *1 year – the average growth

manager from the Aon InvestmentConsulting survey.

n **5 years – increase in CPI + 5% pa.

Strategy

The aim of the investment strategy is to meet the expectation of satisfyingthe objectives identified by the Trusteeas detailed previously.

The Trustee, in consideration of advicefrom Aon Consulting and the Actuary,has maintained a strategic allocation ofgrowth assets (shares and property) at75% of the total assets of the Fund andmaintained the defensive assets (fixedinterest and cash) at 25%.

The current investment profile of theFund seeks to achieve the followinglong-term allocations:

There is also a Strategic Currency Hedgeoverlay facility in place at a 15% HedgeRatio with a target ratio of 25% in themedium term, subject to prevailingcurrency market conditions and theFund’s circumstances.

Full details of the Fund's investmentobjectives and strategy are set out inthe Fund's Investment Policy Statementwhich is available upon request.

Period of Fund ReturnPerformance Return Objective

*1-year 13.3% 13.2%

**5-year 5.2% pa 8.3% pa

Investment % of(Asset) Class Portfolio

Australian Equities 32.5

Overseas Equities 32.5

Alternative Assets 10.0

Fixed Interest 25.0

Total 100.0

Investments

markets is wrong or because of theirinvestment style or because theylose key investment personnel).

n Credit risk — the risk that a debtissuer will default on payment ofinterest and principal.

n Liquidity risk — the risk that you willbe unable to redeem your investmentat your chosen time.

n Currency risk — the risk that overseasinvestments gain or lose value as aresult of a falling or rising Australiandollar.

You should be aware that investmentreturns can fluctuate up and down andthe value of your investment in theFund may increase or decrease overtime and may include negative returnsfrom time to time. You should also notrely on past investment performance asan indicator of future performance.

12

Maintaining anAcceptable Level of Risk

External investment managers arerequired to take steps to ensure that risk is kept at an acceptable level.

The Trustee does not directly utilisederivative instruments. Externalinvestment managers may utilisederivatives in managing pooledinvestment vehicles in which the Trustee invests. Where this is the case, the Trustee considers theassociated risks and the controls in place by analysing the manager’s Risk Management Statements (RMSs).

About Risk

Most investments have some element of risk associated with them. Generally,investment risk is the chance that aninvestment will be different to what you expect. The Fund’s investmentscould rise or fall in value or produce areturn which is less than is anticipated.Rises and falls in value occur for avariety of reasons and sometimesquickly. The types of investment riskswhich may have an impact on theFund’s investments include:

n Individual asset risk — the riskattributable to individual assets within a particular asset class.

n Market risk — the risk of majormovements within a particular asset class.

n Political risk — current domestic andinternational political stability canimpact on your investment.

n Inflation risk — the risk that moneymay not maintain its purchasingpower due to increases in the price of goods and services (inflation).

n Timing risk — the risk that, at the dateof investment, your money is investedat higher market prices than thoseavailable soon thereafter.Alternatively, it can also mean the riskthat, at the date of redemption, yourinvestments are redeemed at lowermarket prices than those that wererecently available or that would havebeen available soon thereafter.

n Investment manager risk — the riskthat a particular investment managerwill under perform (this could be forexample because their view on

S A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 13

The Fund’s Investments

To achieve the Fund's investment objective, the Fund's investments ($171 million at 30June 2005), are invested with a number of investment managers. In addition, the Fundhad an internally managed investment comprising a Capital Indexed investment in theHeadquarters building. This investment was redeemed with effect from 1 July 2005 withthe monies invested in other asset classes.

Investment Sectors

The assets are invested in a welldiversified portfolio of shares, property and fixed interest securitieswith some exposure to other sectors.By maintaining a wide range of assets,the Fund is less affected by marketfluctuations in any one particular sector.

The following charts illustrate thepercentage of assets held in each of the major investment sectors at 30 June in each of the last two years.

$m

(val

ue o

f po

rtfo

lio)

200530 June

200430 June

A

11

15.6

15.5

12.5 14

.1

13.8

17

12.5

4.8

9.8

5.2

2.3

36.5

B C D E F G H I J K L M

40

30

20

10

0 35%Australian Equities

11%Alternative/Property

5%AustralianFixed Interest

2%Cash

15%InternationalFixed Interest

32%International Equities

4%IndexedSecurity

7%Alternative/Property

5%AustralianFixed Interest

16%InternationalFixed Interest

investments

A Alpha InvestmentManagement - an investment in anAustralian Equities unittrust.

B JF Capital Partners -an investment in anAustralian Equities unit trust.

C Deutsche AssetManagement - an investment in anAustralian Equities unit trust.

D Barclay GlobalInvestors - aninvestment in anAustralian Equities Long/Short unit trust.

E MassachusettsFinancial ServicesInvestmentManagement - an investment in anInternational Equitiesunit trust.

F Zurich - an investment in an InternationalEquities unit trust.

G Coastal CapitalLimited - an investment in anInternational EquitiesLong / Short unit trust.

H Macquarie InvestmentManagement Limited -Macquarie GlobalSmall CompaniesSolution - a unit trust investment inInternational SmallCompanies.

I Macquarie InvestmentManagement Limited -Macquarie AlternativeInvestment Trusts 1, 2and 3 - unit trustinvestments indevelopment capital.

J Warakirri AssetManagement Pty Ltd - unit trustinvestment in a fund of hedge funds.

K Macquarie InvestmentManagement Limited -Macquarie GlobalBond Solution - a unit trust investmentin International andAustralian FixedInterest.

L Headquarters building- an interest in a leaseover the Headquartersbuilding

M Cash at Bank - an interest bearingdeposit account.

32%International Equities

34%Australian Equities

2%Cash

Investments

14

Investment Returns

The investment returns, as calculated bythe Fund’s Actuary, are as follows:

The investment return achieved on theFund’s assets as an annual percentageover the five-year period ending 30.6.05 was 5.2% pa.

The investment returns are afterinvestment charges and tax on theinvestment earnings of the investmentfacilities used and an allowance forexpenses of operating the Fund.

During the course of the year, theTrustee identified an understatement in the return for the year ended 30 June2004. As a result, the earning rate ofthe Fund’s assets for 2004 increasedfrom 13.8% to 16.6%. This resulted in the crediting interest rate for 2004increasing from 2.0% to 2.8%.

To rectify this understatement, allmembers have been allocated anadditional interest amount in this year’s statement to compensate for theincorrect rate used in 2004. In addition,members that have left the Fund will be paid additional amounts to ensurethey are not disadvantaged.

Crediting Interest Rate

Annual Crediting Interest Rate

The Trustee determines the creditinginterest rate at each Annual Review Date (1 July) for the preceding year. The rate is determined as the actual net rate ofreturn of the assets after allowing for taxand the costs of investing the Fund’s assetsand an allowance for the expenses ofoperating the Fund. Prior to 1 July 2004the crediting rate was based on the moneyweighted return for the previous 3 years.

The crediting interest rate applies tocontributions in any year and assumesthat the contributions are paid evenly over that year.

The crediting interest rates for the last fiveAnnual Review Dates were as follows:

The average crediting rate over the 5 yearperiod ending 30 June 2005 was 4.7% pa.

Interim Crediting Interest Rate

For members ceasing employment before the next review date, an interimcrediting interest rate is used. The Trusteedetermines the interim crediting interestrate on a quarterly basis (1 July, 1 October,1 January and 1 April) and is calculated as the actual rate of return for the lastknown quarter plus the rate applicable to the Fund’s bank account for the periodfrom the end of the last quarter.

The Trustee also reserves the right to varythe interim rate or the method in which itis calculated should there be significantmarket movements that may have afinancial impact on the Fund.

Trust DeedAmendments

The Trustee made the following amend-ments to the trust deed during the year.

n Introduce an immediate benefit pay-able to members that have elected todefer their benefit in the Fund untilage 50 but subsequently wish towithdraw their benefit from the Fund.

n Introduction of spouse accounts toallow members to make contributionsto the Fund on behalf of their spouse.

n Allow the Fund to receive theGovernment co-contribution should a member be entitled to them.

Family Law Legislation

The Trustee has approval from theAttorney General to use a differentmethod to calculate the value of amember’s defined benefit entitlements in the Fund.

For the purposes of Family Law valuations,a retirement age of 60 applies whencalculating the value of any definedbenefit entitlement. This only applies for permanent employees and is notapplicable to Retained Fire-fighters.

SpouseSuperannuation

Members are able to make contributionsto a superannuation arrangement fortheir spouse and, depending on theirspouse’s income, possibly gain a tax off-set. Whilst there are maximum tax offsetsthat apply to contributions you elect tomake for your spouse, there is no maxi-mum on the amount you can contribute.

Under the spouse arrangements, you can claim a tax offset of up to 18% ofyour contributions when your spouseearns less than $13,800 per annum.

Period Return

1.7.00 - 30.6.01 5.0%

1.7.01 - 30.6.02 -9.0%

1.7.02 - 30.6.03 2.4%

1.7.03 - 30.6.04 16.6%

1.7.04 - 30.6.05 13.3%

Period Crediting Rate

1.7.00 - 30.6.01 7.1%

1.7.01 - 30.6.02 1.8%

1.7.02 - 30.6.03 -0.7%

1.7.03 - 30.6.04 2.8%

1.7.04 - 30.6.05 13.3%

S A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 15

Retained Fire-fighters– Death and TPDBenefits

Benefits payable on the death or totaland permanent disablement of aRetained Fire-fighter member will be the balance of:

1. Superannuation GuaranteeContributions with interest at theFund’s crediting interest rate.

2. Member contributions compoundedwith interest at the Fund’s creditinginterest rate (if applicable).

3. Rollovers, compounded with interestat the Fund’s crediting interest rate (if applicable).

4. Plus the insured component.

The insured component is calculatedaccording to the following table. Thevalue of the one unit as at 1 July 2005is $3,824.

investments

n An administration fee will be charged at $1.90 per week.

n The fees are reviewed effective each 1January and are based on the cost forthe service provided to the Fund by itsadministrator.

n Members can cancel their Parked Benefitat any time and the balance will be paidout or rolled over (normal PreservationRules apply) with no penalty. The with-drawal fee will be payable if applicable.

Full details of the Parked Benefits facilityare contained in the Fund’s ProductDisclosure Statement. You should readthis before parking your benefits in the Fund.

Any member requiring more informationcan contact the Fund’s Manager.

Preservation Rules

The Federal Government legislates pres-ervation rules. Preservation requires that acertain portion of a superannuation bene-fit must be maintained in superannuationor rolled-over until permanent retirementafter a specific preservation age.

All contributions made after 30 June 1999and benefit accruals (increases in benefits)after 30 June 1999 are preserved.

The preservation ages are shown in thefollowing table:

The maximum offset available is $540assuming your spouse earns less than$10,800 and you make a contribution of $3,000 for the year.

You can pay your spouse contributionsto the Fund by lump sum deposits atany time. Lump sum deposits must be a minimum of $500. All contributionsmust be made from after tax income to be eligible for the tax offset. You cannot allocate salary sacrificecontributions to your spouse account.

For more details on the benefits ofspouse superannuation, please contactthe Fund Manager for a copy of theFund’s Product Disclosure Statement.

You will also be able to accessinformation on spouse accounts via the Fund’s website.

Parked Benefits Facility

This is a facility whereby members whoare eligible to receive a retirement orpermanent disablement benefit from theFund, are able to retain or park theirbenefit in total or in part in the Fund.

The Parked Benefits facility is not anallocated pension or an annuity.

Parked Benefit members cannot makecontributions to the Fund nor depositany rollovers or lump sum deposits.

Parked Benefits are not considered forany potential surplus allocations.

The features of the Parked Benefitsfacility are as follow:n Parked Benefits currently increase

with the Fund’s Crediting Interest Rate.n Unlimited number of withdrawals -

Parked Benefit members can accesstheir cash benefits at any time.(Normal Preservation rules apply)

n Minimum amount of withdrawal is $5,000.00 for each withdrawal.

n A withdrawal fee of $60 will becharged for each withdrawal exceptfor the first.

Date of Preservation Birth Age

Before 1 July 1960 55

1 July 1960 to 30 June 1961 56

1 July 1961 to 30 June 1962 57

1 July 1962 to 30 June 1963 58

1 July 1963 to 30 June 1964 59

After 30 June 1964 60

39 or less 3540 3441 3342 3243 3144 3045 2946 2847 2748 2649 2550 2451 2352 2253 2154 2055 1956 1857 1758 1659 to 64 15

Age attained in Yearsof Member at dateof Death or TPD

Numberof Units

16

Insurance Continuation Optionapplicable for all members – if you leave the Fund

While you are an employee of anyparticipating employer and a member of the Fund, you may receive death anddisablement insurance cover. However, if you leave your employer this coveronly continues for 30 days. You maywish to consider continuing thisinsurance by buying a personal policythrough the Fund’s insurer. The policycan be for the same amount of coveryou had while in your Fund. If you arebetween 55 and 60 the cover is fordeath only. Death and permanentdisablement cover is available if you areunder age 55. No continuation optionis available if you are over age 60. Other terms and conditions may apply.

The insurer may require some evidenceof good health, and you must take upthis insurance within 60 days of ceasingemployment. For more information,please contact the Fund’s Manager.

Enquiries and Complaints

A formal procedure has been establishedfor dealing with enquiries and com-plaints from members and beneficiariesabout the operation of the Fund.

In the first instance, all questions shouldbe directed to the Fund’s Manager.

If you are not satisfied with theresponse, you may then lodge a formalwritten complaint with the Trustee via the Fund’s Manager.

Formal written complaints will bereported to the Trustee, which mustissue a response to the individualmaking the complaint within 45 days.

Any member or beneficiary who is stillnot satisfied may take the complaint to the Superannuation ComplaintsTribunal.

Superannuation ComplaintsTribunal (SCT)

This Tribunal, based in Melbourne, is an independent body established by the Federal Government to provide aneconomical and fair method of resolvingcomplaints about decisions of fundtrustees.

Members must have had their complaintsdealt with by the Fund’s internal disputeresolution mechanism before thecomplaint will be heard by the SCT.

The contact details of the Tribunal are:Location: Level 15

31 Queens StreetMelbourne VIC 3000

Postal: Locked Bag 3060 GPOMelbourne VIC 3001

Email: info@sct.gov.auTelephone: 1300 780 808

The Tribunal will not deal with complaintsabout the management of the Fund as a whole.

There were no complaints made to theTribunal during the year.

Financial Advicen Require financial advice?

n Planning for yourretirement?

n Looking for financialindependence?

n Need to know how muchextra do you put intosuper to top-it-up ?

The Trustee has a preferred advisory firmthat can provide members with financialadvice on a range of issues includingwealth creation, insurance, taxation andestate planning.

The Trustee has chosen Industry FundFinancial Planning (IFFP) for this role.IFFP is the financial planning division ofIndustry Fund Services Pty Ltd whoseAustralian Financial Services Licence(AFSL No. 232514) authorises IFFP toprovide financial planning services.While the trustee has chosen IFFP this is not to be construed as a recommen-dation or endorsement by the trustee to use IFFP.

Important General Information

The Fund, through its administratorMercer, has a website that enables you to access information about yourbenefits at any time.

The address is: www.superfacts.comn To login you use your existing

membership number and PIN. n In addition, you must enter an

Employer Number.Employer Number is 700375.

If you have misplaced your PIN, or areexperiencing difficulties in connecting to the website, you should contact theSuperfacts Helpdesk on 1300 132 573.

Some of the features of the website are: n Summary and detailed views of your

current superannuation benefits.n Access to a library of over 130

financial well-being articles sortedinto 32 topics such as 'financialplanning', 'taxation' and 'wealthcreation'.

n View and update your address andbeneficiaries online.

n View the contributions that have goneinto your super.

n Download all Fund forms anddocuments.

Your super is a valuable employeebenefit and the Fund’s website helps youto make the most of it.

Internet Site

Have you accessed your super online lately?

informationS A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 17

You are free to select any financialadviser you wish to provide you withadvice on your superannuation.

Members wishing to seek advice fromIFFP can do so by calling IFFP andspeaking to any one of the financialadvisors available.

Industry Fund Financial PlanningLevel 2, 104 Frome StreetADELAIDE SA 5000Ph: 8125 2500

Most advice that can be given over the phone is provided at no cost tomembers.

Interviews and plans are charged to the member seeking the advice at verycompetitive rates. The first hour atinterview is free. Members seeking thisservice should always check with theadvisors on the cost of the service to be provided.

Please Note:n Although the trustee has an

arrangement with IFFP for theprovision of limited advice but thisshould not be seen as arecommendation or endorsement of IFFP by the Trustee. The Trusteestrongly recommends that anymember seeking advice should atleast obtain a second opinion fromanother licensed financial advisoryfirm before acting on any advicegiven by IFFP.

n Members seeking advice from IFFPmust consider the advice they aregiven in context to their own personalcircumstances and other opinionsthey have received.

n The Fire Service, Trustee and its staff,accept no responsibility for the advicegiven by IFFP.

n You are free to seek financial advicefrom any appropriately licensedadviser of your choice.

IF YOU DON’T GIVEINSTRUCTIONSRetained Fire-fighters

Following your termination of employmentwith a participating employer you generallyhave 90 days from when you receiveinformation from the Fund to makearrangements for your super. If you don’tadvise the Trustee of where your benefit is to be paid your benefit will be sent to anEligible Rollover Fund (ERF) on your behalf.This benefit will then cease to be payablefrom the Fund and can be claimed by youby contacting the ERF. An ERF is simply a holding account where your benefit willremain until you notify the ERF where youwould like your money to be transferred.

For this purpose, the Trustee has selectedthe Australian Eligible Rollover Fund (AERF).The AERF can be contacted as follows:Australian Eligible Rollover FundLocked Bag 5429PARRAMATTA NSW 2124Telephone: 1800 677 424Fax: 02 9947 4411

Where a member’s benefits are transferredto the AERF:n the person ceases to be a member of

the Fundn any insurance cover with the Fund ceasesn the benefit will be credited to an account

in the AERF, where it will earn interestand pay fees under the rules of the AERF.

About the Australian Eligible Rollover Fund (AERF)

Set out below is a summary of some of the more significant features of the AERF,current as at the date of this report. For detailed information please contact the AERF directly.

n The trustee of the AERF is Perpetual Trus-tee Company Limited ABN 42 000 001 007.

n All members of the AERF are protected,which means that administration fees(other than tax) charged against theminimum benefits component of a

member’s benefit cannot exceed theinvestment earnings of the minimumbenefits for a given reporting period.Member protection does not coverthose fees and charges which arededucted from gross returns of theAERF before income is allocated to member accounts, nor does it protect a benefit against a negativeearning rate.

n The assets of the AERF are invested in underlying investment productsoffered by ING Investment Manage-ment Limited ABN 23 003 731 959,Colonial First State Investments LimitedABN 98 002 348 352, Suncorp Life andSuperannuation Limited ABN 87 073979 530, MLC Investments Limited ABN 30 002 641 661, MLC Limited ABN 90 000 000 402, Zurich AustraliaLimited ABN 92 000 010 195, TowerAustralia Limited ABN 70 050 109 450,and Perpetual Investment ManagementLimited ABN 18 000 866 535(collectively the Investment Sponsors)in accordance with the proportionsspecified in the AERF trust deed.

n There is no choice of investmentavailable to members within the AERF.

n The investment objective of the AERF is to provide members with long termgrowth and moderate volatility throughinvestment in a diversified portfoliowith exposure to both growth assets(equities and property) and defensiveassets (fixed interest and cash) through managed funds offered by the Investment Sponsors.

n The AERF maintains an investmentfluctuation reserve to help smooth the earning rate credited to membersaccounts. However there is noguarantee that the investment returns will not be negative.

n The trustee declares (generally within 3 months of the end of a financialyear) an earning rate to credit to allmember accounts in respect of thatfinancial year. Members leaving theAERF prior to the declaration of theearnings rate for the previous financialyear, will be credited with the interimearning rate.

18

n Depending in which sub-plan of the AERF an account is held, weeklyadministration fees, paid to the AERF’s administrator and rangingfrom $0.32 to $0.37, are deductedfrom that account (although duringperiods of negative returns, theadministration fees are deducted from the gross returns of the AERF).Each of the trustee fee , the feescharged by the Investment Sponsorsand an allowance for expenserecovery are deducted from the AERF s gross returns before thetrustee declares the earning rate. The aggregate of these fees iscurrently 1.16% p.a. (although part of this is an estimate based on past expenses).

n The AERF is unable to acceptcontributions from members or their employers, however, rolloversfrom other superannuation funds are permitted.

n The AERF does not provide insurance cover.

Permanent Fire-fighters

Following your termination ofemployment with a participatingemployer you have 90 days from when you receive information from the Fund to make arrangements foryour super. If you don t advise theTrustee of where your benefit is to bepaid you will remain in the Fund as aParked Member as detailed on page 15.The amount of your benefit will bebased on the amount payable for theImmediate Benefit as detailed in theFund’s Product Disclosure Statement.

Important General Information

Protecting your privacy

In order to provide your superannuationbenefits and to properly manage the Fund, it’s necessary for the Fund to hold personalinformation about you. This informationidentifies you as a Fund member and typicallyincludes your name, address, date of birth,gender, occupation, salary, Tax File Number and any other information that is required.

The Fund generally collects this informationfrom either you or your employer. Yourpersonal information may be disclosed to theFund’s administrator and professional advisers,insurers, government bodies, your employerand other parties as required and permitted by law, including the trustee of any other fundyou may transfer to. By becoming a member ofthe Fund, it’s assumed that you consent to thishandling of your personal information. If youdo not provide the Trustee with your personalinformation, the Trustee may not be able toprovide all of your superannuation benefits.

You may request access to your personalinformation held by the Trustee. Should any of your personal information be incorrect, youhave the opportunity to correct it. There are,however, some circumstances where you may be denied access to your information. The Fund’s Privacy Officer will advise if any of these circumstances apply.

The Fund abides by the National PrivacyPrinciples under the Privacy Act 1988 (Cth) and has adopted a Privacy Policy which setsout in detail the way it handles members’personal information. If you would like a copyof the Fund’s Privacy Policy please contact the Fund’s Privacy Officer by writing to:

Privacy OfficerSA Metropolitan Fire Service Superannuation FundGPO Box 98, Adelaide SA 5001

Further Information

Most information that you will needabout the Fund is in the ProductDisclosure Statement, your AnnualStatement of Benefits and in thisReport.

You are entitled to inspect or obtaincopies of the following additionalinformation on request:n Trust Deedn Returns, Certificates or Notices

submitted to or received from theAustralian Prudential RegulationAuthority

n Audited accounts and Auditors'reports

n Extracts of information from thelatest Actuarial investigation

n The Rules governing theappointment and removal ofMember Directors.

The Fund’s financial statements willbe available once the audit of theFund has been completed. This isexpected to be finalised by 30November 2005.

If you have any question on anyaspect of the Fund please contact:

Telephone: (08) 8204 3826, or(08) 8204 3713

Fax: (08) 8204 3610

Postal Address: GPO Box 98Adelaide SA 5001

Visiting Address: Adelaide Station99 Wakefield St, Adelaide SA 5000

Photos provided by Scott Pearson

Disclaimer This annual report has been prepared by the Trustee to meet its legislative obligations under the Corporations Act. Any information contained in this annualreport does not take account of the specific needs, personal or financial circumstances of any persons. Readers should obtain specialist advice from a licensed financialadviser before making any changes to their own superannuation arrangements. The terms of your membership in the Fund are set out in the Fund’s trust deed, and shouldthere be any inconsistency between this annual report and the Fund’s trust deed, the terms of the Fund’s trust deed prevail. While all due care has been taken in thepreparation of this report, the Trustee reserves its right to correct any errors and omissions. This document contains general information about investments and investmentperformance. Please remember that past performance is not necessarily a guide to future performance. You should also consider the Fund’s Product Disclosure Statement.

S A M E T R O P O L I T A N F I R E S E R V I C E S U P E R A N N U A T I O N F U N D 19

Financial Statements

FUND ASSETS AT THE START OF THE YEARPLUS

Company contributionsMember contributionsInterest received/dividends/income Transfer from other FundsNet movement in market value of investmentsOther (e.g. insurance rebates)Total gross income

LESSBenefits paid outAdministration expensesLife insurance premiumsTaxation Total outgoings

FUND ASSETS AS AT END OF YEAR

FUND ASSETS Investment by facility

Pooled Superannuation TrustsInsurance PoliciesUnits in Unit TrustsDirect InvestmentsCash at bankTotal fund investmentsCurrent assets (receivable)Deferred Tax AssetsTotal Fund assets

LESSLiabilities

Benefits payableProvision for taxOther liabilitiesTotal liabilities

NET ASSETS AS AT 30 JUNE

2003/4$,000

$131,974

$5,099$2,557

$11,993$325

$11,650$393

$32,017

$4,548$530$873$883

$6,834

$157,157

2004$,000

$24,652$0

$122,176$5,469$2,025

$154,322$5,900

$143$160,365

$2,549$31

$628$3,208

$157,157

2004/5 $,000

$157,157

$5,165$2,524

$13,514$276

$8,851$486

$30,816

$6,722$685$847

$2,655$10,909

$177,064

2005$,000

$31,229$13,826

$118,444$5,226$2,347

$171,072$9,664

$29$180,765

$2,185$1,084

$432$3,701

$177,064

STATEMENT OF THE CHANGE IN NET ASSETSOF THE FUND AVAILABLE TO PAY BENEFITSIN THE 2004 AND 2005 YEAR OF INCOME.

STATEMENT OF NET ASSETS OF THE FUND

The above information is an abridged summary of the Fund’s accounts rounded to the nearest $,000.Full audited financial statements will be available by the end of November 2005.

Prepared by:

SA Metropolitan Fire Service

Superannuation Pty Ltd

(ACN 068 821 750)

as Trustee of the

SA Metropolitan Fire Service

Superannuation Fund

ABN 12 755 456 100

AFSL 284890

October 2005