The Executive Superannuation Fund · investments are considered high risk and cash or fixed...

The Executive Superannuation Fund

PERSONAL DIVISION

PRODUCT DISCLOSURE STATEMENT

The issuer and Trustee of The Executive Superannuation Fund, RSE Registration No: R1001419, is Trust Company Superannuation Services Limited, RSE Licence No. L0000635, ABN: 49 006 421 638, Australian Financial Services Licence (“AFSL”) No: 235153, Address: PO Box 361 Collins Street West VIC 8007 Ph (03) 9665 0200 Fax (03) 9620 5821.

The Administrator of The Executive Superannuation Fund is KPMG Superannuation Services Pty Limited, ABN: 90 094 584 755, AFSL: 241366, Address: PO Box H67, Australia Square NSW 1213. Ph (02) 9335 7852.

Issued: 10 September 2007

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IInnttrroodduuccttiioonnImportant Information

This Product Disclosure Statement ("PDS") relates to members of the Personal Division of the Executive Superannuation Fund ("Fund") [Registrable Superannuation Entity (“RSE”) No. R1001419]. The Personal Division is referred to as the “Plan” in the remainder of this PDS. The Fund was established under a trust deed dated 14 June 1976, as amended from time to time.

The Plan is designed to provide financial security for you in retirement and protection for both you and your family, in the event of your premature death or permanent disablement.

The Plan is governed by the trust deed and relevant law and is operated by an independent trustee company, Trust Company Superannuation Services Limited ("Trustee") [RSE Licence No. L0000635]. The Trustee is legally obliged to act in strict accordance with the provisions of the trust deed and the relevant law. A copy of the trust deed is available for inspection by members at all reasonable times upon request, by contacting the Plan (contact details on the back page).

This Product Disclosure Statement ("PDS") provides important information about the Plan, benefits provided by the Plan, its terms and conditions and other information. You should read it carefully. If you have any queries regarding your own personal circumstances and the Plan, you can contact the Plan (contact details on the back page).

This PDS should be read in conjunction with the Plan’s ‘Annual Report’ to members, available on the Plan web-site or by contacting the Plan directly (contact details on the back page).

The information provided in this PDS is a summary of the benefits and terms and conditions of the Plan, however, the terms of the trust deed governing the Plan have precedence over anything in this PDS.

This PDS provides general information only and does not take into account your individual financial situation, circumstances or needs. You should take these into account when making decisions about your benefit in the Plan, for example, decisions regarding investment options, and consult a financial adviser where required.

All parties named in this PDS have consented to being named in the form and context in which they have been named and have not withdrawn their consent prior to printing of this PDS.

Neither Trust Company Limited (the Trustee’s parent company), nor any of its subsidiaries, nor their respective officers, guarantees the capital invested by investors, the performance of specific investments or your account generally. Neither Trust Company Limited, nor any of its subsidiaries, nor their respective officers, guarantees or has any liability in connection with the performance by the Trustee of its obligations under this PDS.

Changes to this PDS

If a material alteration occurs that would make any statement in this PDS misleading, deceptive or materially adverse, or if there has been any material omission in this PDS, then the PDS will either be withdrawn immediately, or a Supplementary PDS will be issued correcting the statement or omission.

Information contained in this PDS is up to date at the time of preparation. Information that is not materially adverse may, if it changes, be updated on the Plan web-site. In addition, we will provide this information to you in hardcopy free of charge upon your request.

Further information

Further information regarding the Plan can be obtained from the Plan web-site, or by contacting the Plan (contact details on the back page). Where required, we will also provide you with other information regarding the Plan (including a copy of the trust deed or information previously made publicly available) upon request. We will tell you whether there is a charge for providing this information.

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AAbboouutt tthhee PPllaannSuperannuation is a means of saving for retirement on a regular basis. In addition to the savings element, the Plan also provides access to insured benefits in the event of death or permanent disablement.

The Plan has been established on the “accumulation” principle and operates similarly to a bank account, in that contributions are allocated to specific accounts established for each member. However, your investment is not guaranteed. Members’ accounts continue to accumulate with both contributions and any investment earnings (net of relevant expenses and taxation), until a benefit payment becomes due.

In the Plan, members can choose from a range of investment options for their accounts. This allows members to select an option to suit their individual financial situation, objectives and needs.

Membership categories

The Fund has a number of plans and divisions, as follows:

• The Plan – for spouses and family members of KPMG staff, Partners or Executive Directors. In addition, unless they advise otherwise, KPMG staff, Partners or Executive Directors are automatically transferred to the Plan upon leaving KPMG.

• KPMG Staff Superannuation Plan – for current staff of KPMG (excluding Partners and Executive Directors);

• KPMG Executive Superannuation Plan – for current Partners and Executive Directors of KPMG.

• Pension Division – If you wish to take out a Superannuation Pension from the Fund you will become a member of the Pension Division of the Fund.

Each division of the Fund has its own relevant PDS. This PDS relates to members of the Personal Division (referred to as the “Plan” in this PDS).

Benefits of the Plan

The Plan provides a number of benefits to both you and your dependants. These benefits include:

• Superannuation benefits payable upon retirement (or earlier in certain special circumstances) based on contributions and other amounts paid into your account after taking into account investment returns (which may be positive or negative) and relevant fees, costs and taxes; and

• For some members, insurance cover to provide protection for you and your family in the event of your death or permanent disablement. For further information, see page 27.

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Market risk

Various economic, technological, political, legal and social factors have an effect on the value of investment markets and may affect the value of your investment in your chosen investment option within the Plan. The Trustee and the Plan’s investment managers seek to reduce and manage this market risk through the specific investment strategies adopted for each investment option, as described on pages 15-19.

Investment risk

Investment risk can be described as the variability of returns or the chance of negative returns. An investment that has a high chance of fluctuations or negative returns is considered high risk and an investment with a low chance of negative returns is considered low risk. Generally, share investments are considered high risk and cash or fixed interest investments are considered low risk.

Investment risk is also affected by the length of time that an investment is held because the chance of a negative return may decrease (and the potential for higher returns may increase) the longer that an investment is held. For example, a share investment held over a period of only one year might be considered very high risk compared to a share investment held over a much longer period (say 10 years). Over the long term, high risk investments may, therefore, lead to greater returns than low risk investments.

Risks associated with various investment options may change depending on the economic environment and other external factors. This means that different asset classes perform differently at different times. For example, returns in relation to shares may increase over a period, whereas, the returns in relation to fixed interest investments may decrease over the same period of time.

The investment managers seek to minimise these risks by assessing and analysing information relating to these investments from a number of sources and by diversifying investments across a range of assets and asset classes. All of the investment options offered by the Plan involve, to varying degrees, diversification across a range of assets or asset classes.

However, should you leave the Plan or withdraw monies within a few years of joining the Plan, fluctuations in investment returns (in addition to taxation, fees and costs) may result in you getting back less than you have contributed.

Superannuation fund risk

Risks specific to the Plan, as with any other superannuation fund, include the possibility of changes to the Plan or its internal operations such as changes to key staff involved in the management of the Plan or a disruption of its systems. The Trustee seeks to minimise this risk by taking into account the best interests of members at all times when making decisions about the Plan and maintaining a risk management and compliance framework in accordance with legislative requirements.

Risk of changes in the legal environment

Superannuation laws, the Corporations Act, Australian taxation laws and other laws affect the Plan and the Plan’s investments. Changes in superannuation laws may affect your ability to access your benefit in the Plan. Changes in taxation laws may also affect the value of your benefit.

There are a number of significant risks associated with investments in superannuation funds and associated with particular investment options within superannuation funds. These include:

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JJooiinniinngg tthhee PPllaannCommencement of membership

Former staff, Partners or Executive Directors of KPMG

If you were an employee or Partner of KPMG participating in another division of the Fund, you will be transferred to the Plan upon your termination of employment or retirement from the Partnership. This will occur automatically and does not depend on whether you complete the ‘Personal Division Application Form’ attached to the back of this PDS.

Upon transfer, your investment option will remain unchanged, and the fees and costs applicable to your investment will be the same.

Your death and Total and Permanent Disablement (“TPD”) insurance benefits will also be continued at the same level as at the date you terminated employment or retired from the Partnership (provided you continue to meet relevant eligibility criteria). The premiums in relation to this insurance will be deducted from your account in accordance with the premium rates applicable to voluntary insurance cover (see page 30 for further details). Insurance benefits will not continue for insurance only members, or casual staff who do not have insurance through the Fund.

If you do not wish to continue your insurance cover, you must complete the ‘Personal Division Application Form’, attached to the back of this PDS, indicating that you do not wish your cover to continue.

If you wish to make contributions to the Plan in the future, you must also complete the ‘Personal Division Application Form’, attached to the back of this PDS, or the Plan will be unable to accept future contributions from you – either personal contributions or contributions from an employer.

Other members

Individuals such as spouses and family members of KPMG staff, Partners or Executive Directors are eligible to join the Plan.

To join, you must complete the ‘Personal Division Application Form’, attached to the back of this PDS.

On the Application Form you can provide the following details:

• Your personal details – name, address, date of birth etc.;

• Your Tax File Number (“TFN”);

• Your preferred beneficiaries (whom you nominate to receive your benefit in the event of your death); and

• Your chosen investment option.

Upon commencement of your membership, you will receive a letter from the Plan, welcoming you as a member of the Plan and providing you with information about the Plan.

Proof of age

It is not necessary to provide proof of age upon joining the Plan, however, this may be required should an insurance claim be made, at the time of submitting a claim. Such proof may include your birth certificate, passport, naturalisation certificate, etc.

Note: From 12 December 2007, as a result of Government reforms designed to counteract money laundering and terrorism, you may be required to provide proof of identity or meet other requirements, as determined by the Trustee from time to time, prior to being able to access your benefits in cash (called “customer identification” requirements). You will be notified of any requirements when applicable.

Cooling off period – for non KPMG staff, Partners or Executive Directors

If you join the Plan as a spouse or family member of a KPMG staff member, Partner or Executive Director, once your account in the Plan is established, you have 14 days (the ‘cooling off period’) in which to decide if the Plan will meet your needs. The period commences from the earlier of the date the Plan confirms that your application has been accepted, or five days after the application has been accepted. During this time, you may terminate your membership in the

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Plan by providing notice to the Trustee in writing of your wish to cease your membership unless you have exercised a right or power that you may have in relation to the product. Any contributions that have been made to the Plan during that time will be rolled over to a superannuation fund of your choice (unless they are able to be paid in cash under superannuation legislation). You will not have any fees in relation to your membership or the termination of your membership with the Plan deducted directly from your account. However, any benefits you have with the Plan may be adjusted to take into account any variation in the value of your investment during your period of membership (after taking into account relevant fees, costs and taxes in calculating investment returns) or any insurance premiums deducted.

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MMeemmbbeerr oonn--lliinnee aacccceessss aanndd tthhee PPllaann wweebb--ssiitteeYou can access your account details on-line through the Plan web-site at www.execsuper.com.au.

Logging on to the web-site

To log on to the web-site, you need to provide your member number in the Plan and your password. You will be provided with your member number and initial password details upon joining the Plan.

You can personalise your password when you log-onto the web-site for the first time.

Individual member account details

You can view the following details regarding your account on-line:

• Your membership details such as your name, date of birth, the date you joined the Fund etc.;

• Your up to date account balance and benefit quotes;

• The transaction history of your account;

• Your nominated beneficiaries;

• Your insurance details; and

• Details regarding your chosen investment option.

You can also update/provide certain details regarding your account such as:

• Your address details;

• Your nominated beneficiaries; and

• Your TFN.

You can also access general information about the Plan on the web-site, such as investment updates, as well as all Plan booklets and forms.

The web-site is provided by the Administrator to the Plan, KPMG Superannuation Services Pty Limited (AFSL No. 241366). With the exception of the Plan documentation issued by the Trustee, which can be accessed via the web-site (such as this PDS), the Trustee is not responsible for the information provided on the web-site. More information in relation to the web-site, including how to obtain access to the web-site, can be obtained from the Plan (contact details on the back page).

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CCoonnttrriibbuuttiioonnss aanndd rroolllloovveerrssConcessional contributions

Concessional contributions include self employed contributions for which you claim a deduction, any Superannuation Guarantee (SG) contributions made by your employer(s) on your behalf, and any additional contributions you choose to make from your pre-tax salary (salary sacrifice contributions).

Contribution types

Contributions as a self employed person

You can make contributions directly to the Plan as a self-employed person, provided that any salary and wages (and reportable fringe benefits) earned as an employee or director are not more than 10% of the your total assessable income (including reportable fringe benefits).

Only self employed contributions for which a deduction is claimed are treated as concessional contributions.

Note: from 1 July 2007, a deduction can be claimed for 100% of self employed contributions made. While there is no limit on the amount of deduction that can be claimed, a limit on the amount of concessional contributions that can be made to superannuation applies.

Superannuation Guarantee contributions

You can request that your employer pay your superannuation contributions into the Plan. Employers that are subject to “Choice of Fund” legislation are generally required to implement your request. Not all employers are subject to “Choice of Fund” legislation. You should contact your employer to find out whether “Choice of Fund” legislation applies to them.

To assist you with making your request to your employer, you can obtain a “Standard Choice Form” with the details regarding the Plan already filled in for you from the Plan web-site, or by contacting the Plan (contact details on the back page). If you give this information to your employer, they will be able to contribute to the Plan on your behalf. Whether you decide to request your employer to contribute to this Plan should be considered having regard to your personal situation. If you would like advice about

this, we recommend you consult an appropriately qualified adviser.

In most instances, your employer will contribute 9% of your salary to the Plan, up to the prescribed maximum in superannuation guarantee legislation (the maximum contribution for the 2007/2008 financial year is $13,129 per annum).

All contributions net of relevant taxes and expenses, are immediately fully vested and must be preserved (the concept of preservation is discussed on page 36).

Employers are required to pay the 9% SG contributions on a quarterly basis, by certain prescribed dates as follows:

Quarter Required payment date

July – September 28 October

October – December 28 January

January – March 28 April

April - June 28 July

Salary sacrifice contributions

Your employer may agree with you to make additional voluntary superannuation contributions to the Plan on your behalf in lieu of pre-tax remuneration (called ‘salary sacrifice contributions’).

This should be arranged with your employer.

Limits on concessional contributions

Concessional contributions are limited to $50,000 per annum per individual for each financial year. The limit applies across all superannuation funds to which concessional contributions are made. For people aged 50 or more, this limit is $100,000 per annum up until 1 July 2012.

The $50,000 limit will be periodically increased in line with AWOTE in $5,000 increments.

Concessional contributions made up to the $50,000 (or $100,000) limit will be taxed by the Plan at the rate of 15%.

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Any concessional contributions made in excess of the $50,000 (or $100,000) limit will be taxed at the top marginal rate of 45%, plus the Medicare levy. The liability for the excess tax (at 30%, plus the Medicare levy) will be levied on you personally by the ATO, i.e. you will receive a notice from the ATO requesting payment of the excess tax. However, on receipt of the notice, you can nominate a superannuation fund to release monies to pay the liability.

In addition, any excess contributions you make above the limit will be counted towards your non-concessional contribution limit (see below).

Additional tax where you have not provided your TFN

Where you joined the Plan or another division of the Fund prior to 1 July 2007, if you have not provided your TFN to the Plan, any concessional contributions that you or your employer make above $1,000 in any year will be taxed at the top marginal rate of 45%, plus the Medicare levy.

You can provide your TFN via the Plan web-site or by contacting the Plan (contact details on the back page). If you join the Plan after 30 June 2007, your employer will automatically provide your TFN to the Plan.

Amounts excluded from the concessional contributions cap

Some amounts that can be contributed or transferred to superannuation do not count towards your concessional contribution cap as follows:

• Rollovers (including those from an overseas superannuation fund) subject to some special rules for any untaxed amounts;

• Government co-contributions; and

• Employment termination payments up to $1m, received up until 1 July 2012, if contracted for prior to 9 May 2006.

See page 11 for details regarding how contributions can be made to the Plan.

Non-concessional contributions

Non-concessional contributions are contributions you make to superannuation from your after tax salary (also known as undeducted contributions).

You can make up to $150,000 of non-concessional contributions to superannuation each financial year. This limit will be periodically

increased in line with AWOTE, so that it is three times the cap on concessional contributions (see above).

If you are under age 65, you can average this limit over three years, i.e. you can make contributions of $450,000 in one year, provided you do not make any additional non-concessional contributions for the following two years.

Contributions made up to the $150,000 (or $450,000) limit will not be taxed by the Plan. Any contributions in excess of the limit will be taxed at the top marginal rate of 45%, plus the Medicare levy. The liability for this tax will be levied on you personally by the ATO. You must then nominate a superannuation fund to release monies to pay the liability. Any excess contributions you make above the limit will remain in the Plan.

Inability to make non-concessional contributions where you have not provided your TFN

You will be unable to make non-concessional contributions to the Plan if you have not provided your TFN. Any non-concessional contributions that you attempt to make to the Plan will be returned where required by law, after taking into account any allowable adjustments for investment fluctuations and reasonable costs.

Other amounts measured against the non-concessional contributions cap

The following amounts also count towards your non-concessional contributions cap:

• Any excess concessional contributions you make (see pages 9 - 10);

• The non-taxable portion of any benefit transferred from an overseas superannuation fund; and

• Contributions made to your account by your spouse, ‘eligible spouse contributions’ (see below for further details).

Amounts excluded from the non-concessional contributions cap

Some amounts that can be contributed or transferred to superannuation are not counted towards your non-concessional contribution cap. They are as follows:

• Rollovers from within the superannuation system;

• The taxable portion of a benefit transferred from an overseas superannuation fund.

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Note, the untaxed portion will count towards your non-concessional limit;

• Government co-contributions;

• Proceeds from the sale of qualifying small business assets which have been held for 15 years (subject to a lifetime limit of $1 million); and

• Settlements for injuries resulting in permanent disablement made to the Plan within 90 days of receiving the payment.

See page 11 for details regarding how contributions can be made to the Plan.

Contributions for your spouse or other family members

As a member of the Plan, you can make non-concessional (undeducted contributions) to the Fund on behalf of your spouse or other family member if they are also a member of the Fund. An ‘eligible spouse contribution’ may attract a tax rebate of up to $540 per year for the contributing spouse (see page 35 for details).

These contributions will count towards the recipient’s non-concessional contribution limit.

All contributions must be fully preserved (see page 36 for further details).

Eligibility to contribute to superannuation

Any person under age 65 may contribute to superannuation, regardless of whether or not they are employed.

From the ages of 65 to 69, you must have worked at least 40 hours during a continuous 30-day period during the financial year (‘work test’) in order to be able to make a contribution to superannuation.

From the age of 70 to 74, only mandated employer contributions can be accepted and personal contributions can be accepted only if you have worked at least 40 hours during a continuous 30 day period during the financial year (‘work test’). From 1 July 2007, non-mandated employer contributions can be made if you satisfy the work test. You cannot make personal contributions to superannuation past the age of 74.

Generally, from age 75, no contributions other than award contributions can be made to superannuation.

From 1 July 2007, contributions made to the Plan in contravention of these eligibility rules must be refunded by the Trustee in certain circumstances. A refund may be adjusted for any allowable investment fluctuations and reasonable costs.

Government co-contributions

Some members of the Plan may be eligible to receive the Government co-contribution.

The Government co-contribution applies to non-concessional (undeducted contributions) made by low and middle income earners.

The Government co-contribution will match eligible personal non-concessional contributions made by qualifying low and middle income earners by $1.50 for each $1.00 you contribute, up to $1,500. The Government co-contribution will be paid annually to qualifying low and middle income earners’ superannuation funds.

The maximum co-contribution for a financial year is $1,500 and is available to people earning an assessable income plus reportable fringe benefits of $28,980* or less. The maximum co-contribution amount phases out by 5 cents per dollar of income up to an income of $58,980*, when it phases out completely.

The Government co-contribution (the amount contributed by the Government) does not count towards either your concessional or non-concessional contribution caps.

*These thresholds are subject to indexation and may increase in future years. For up to date information about the Government co-contribution, go to www.ato.gov.au.

How to contribute to the Plan

Contributions to the Plan must be made by cheque, payable to “Trust Company Superannuation Services Limited ATF The Executive Superannuation Fund”. Cheques should be accompanied by a ‘Contribution Form’ (available on the Plan web-site or by contacting the Plan), detailing your membership number and name (or your spouse’s if the contribution is for them), and the type of contribution - employer SG, member after-tax, spouse contribution etc. Contributions cannot be made to the Plan electronically.

Rolling over into the Plan

If you have benefits in another superannuation fund, Retirement Savings Account or Approved Deposit Fund, you may choose to transfer these

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into the Plan. Such amounts will accrue earnings as per your other benefits in the Plan.

Advantages of rolling over benefits into the Plan may include:

• The Plan may have lower administration fees than the current superannuation fund, Retirement Savings Account or Approved Deposit Fund where your benefit is currently located; and

• You only pay administration fees to one fund as a consequence of consolidating your benefits.

All employment termination payments rolled over into a superannuation fund must be fully preserved. From 1 July 2007, the payment of employment termination payments to superannuation funds can only be made in limited circumstances. This will apply to people with entitlements upon termination of employment, specified in existing employment contracts as at 9 May 2006, provided that payments are made prior to 1 July 2012.

To roll over other superannuation benefits that you may have to the Plan, refer to the Instruction Guide, available on the Plan web-site or by contacting the Plan (contact details on the back page). You may incur fees or lose benefits if you withdraw benefits from your other fund (contact your other fund for more information). The guide contains instructions on how to roll over your superannuation benefits to the Plan.

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MMeemmbbeerr iinnvveessttmmeenntt cchhooiicceeYou can choose how your account in the Plan is invested. The Plan allows you to choose from a range of investment options for your superannuation.

The Plan offers four investment options to members of the Plan:

• The Aggressive option;

• The Balanced option;

• The Conservative option; and

• The Enhanced Cash option.

Long term investment strategies

The Aggressive, Balanced and Conservative options are the Plan’s long term investment options. The options are designed to suit different time horizons and levels of risk. You need to choose the one that best suits your circumstances. You can select one of these into which your account balance (or a portion of it) and any contributions will be invested.

Short term investment option

The Enhanced Cash option is intended to be used as a short term investment option. You can invest a specified dollar amount of your account balance (up to 100%) into the Enhanced Cash option however, any ongoing contributions you make will be invested in your underlying long term investment strategy.

You can elect to move any amount into or out of the Enhanced Cash option on a monthly basis.

The investment options that the Plan offers are described in more detail on the following pages.

How often can I change my investment choice?

You can alter your long term investment option or move an amount into or out of the Enhanced Cash option once per month. The table below shows the switching dates for 2007/08 and the due date by which you need to return your "Investment Choice Form" to effect a switch.

While there is no fee charged by the Plan for switching investment options, you should however be aware that a ‘buy/sell spread’ (a fee charged by the Plan’s investment managers for the redemption and acquisition of assets) may apply. Further details regarding buy/sell spreads are contained at pages 22 and 24.

How do I change my investment choice?

You can change your investment choice by completing an Investment Choice Form, available on the Plan web-site or by contacting the Plan (contact details on the back page).

What if I don’t choose an option?

If you don’t choose an investment option when you first join the Plan (either in this division or another division of the Plan), your account balance and future contributions will be invested in the Balanced option (the Plan’s default option).

Trustee considerations

The Trustee of the Plan does not take into account labour standards, environmental, social or ethical considerations in making investment decisions or selecting investment managers.

Due date of request

Switch effective date

2007 17 September 2007 28 September 2007

15 October 2007 26 October 2007

19 November 2007 30 November 2007

10 December 2007 21 December 2007

2008

14 January 2008 25 January 2008

18 February 2008 29 February 2008

17 March 2008 28 March 2008

14 April 2008 24 April 2008

19 May 2008 30 May 2008

16 June 2008 27 June 2008

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Choosing an investment option

The information contained in the PDS is of a general nature only. It does not take into account your individual objectives, financial situation or needs.

As such, you should consider your investment goals and the time your superannuation will be invested, as part of your investment choice decision.

When making an investment choice, the performance of the investment options may also be considered, however, past performance is not necessarily an indicator of future performance.

If required, contact a licensed or authorised financial planner before making an investment decision, to ensure that your investment choice fits in with your overall financial plan and goals.

Allocation of investment returns to your account

The Trustee has adopted a policy of fully allocating the Plan’s investment earnings (net of relevant taxes, fees and costs) to members’ accounts. As such, it does not hold any ‘investment fluctuation’ reserves.

The net earnings of your chosen investment option are based on the option’s actual investment earnings, less relevant taxes, fees and costs, and are equal to the net investment return. (For details regarding fees and costs deducted from earnings see pages 20-26).

Net earnings are allocated to your account on a pro-rata daily basis and are compounded annually each 30 June or when you elect to change investment options.

The net earnings of the Plan’s investment options are subject to normal investment market movements and future investment performance cannot be guaranteed. As a result, the crediting rate of any investment option may be positive or negative.

If you leave the Plan or withdraw monies from your chosen investment option within a few years of joining the Plan or making an investment choice, you may get back less than the amount of contributions paid into the Plan because of the level of investment returns earned by the investment option in which your account is invested and the deduction of relevant taxes, fees and costs.

Past investment performance is not necessarily an indicator of future investment performance. The Trustee does not guarantee that you will earn any specific rate of return on your investment or that your investment will gain or retain its value.

How do I know the value of my account and benefits in the Plan?

You will be provided with an ‘Annual Member Statement’ showing your account and benefit entitlements in the Plan as at the Plan’s annual review date of 30 June each year.

This information is also available on the Plan web-site or by contacting the Plan (contact details on the back page).

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TThhee PPllaann’’ss iinnvveessttmmeenntt ooppttiioonnss AAggggrreessssiivvee ooppttiioonn

Investment objectives

Returns (net of fees) exceeding:

• CPI + 4.5% p.a. over rolling 5 year periods

• The simulated (net of fees) return of a portfolio invested in market indices in line with the option’s benchmark asset mix, over rolling 5 year periods

Potential long term return Likely variability of return Potential for negative returns Risk profile

High High 1 in 4 years on average

Benchmark Investment strategy – asset mix

Aust Shares 58%

Int Shares 30.5%

Property 6%

Private Equity 0.5%

Aust Fixed Int 2%

Internat Fixed Int 1.5%

Cash 1.5%

Fund manager Benchmark Allocation Barclays International Alpha Equity Fund 15.0% MFS Global Equity Trust 14.0% MIR Australian Equities Fund 13.0% BT Wholesale Core Australian Share Fund 11.0% State Street Global Advisors Active Aust Equity Fund 10.0% Suncorp Investment Management Aust Equity Trust 8.0% WestLB Mellon Australian Equity Trust 8.0% Maple Brown Abbott Australian Equity Trust 6.0% National Corporate Investments MLC Moderate Trust 6.0% Credit Suisse Property Fund 6.0%

BT Institutional Enhanced Cash and Trust Cash 1.5%

Investment strategy – allocation of assets to fund managers

Schroder Fixed Income Fund – Standard Class 1.5% Fund manager 2006 2005 2004 Barclays International Alpha Equity Fund 19.7% 1.4% 17.6% MFS Global Equity Trust 21.5% -0.1% 18.8% MIR Australian Equities Fund 25.1% 33.7% 26.6% BT Wholesale Core Australian Share Fund 25.1% 26.0% 23.9% State Street Global Advisors Active Aust Equity Fund 24.4% 28.4% 18.2% National Corporate Investment MLC Moderate Trust Trust 14.4% 13.1% 13.3% Suncorp Investment Management Aust Equity Trust 26.5% 26.6% 19.3% WestLB Mellon Australian Equity Trust 19.4% 25.5% 18.2% Maple Brown Abbott Australian Equity Trust 16.4% 21.5% 23.7% Credit Suisse Property Fund 13.2% 17.2% 14.5% BT Institutional Enhanced Cash 4.9% 4.9% 4.7%

Trust Cash Management Fund 4.1% 4.0% 3.8%

Fund manager returns – year ending 30 June

Schroder Fixed Income Fund – Standard Class 3.3% 6.9% 3.2%

2006 2005 2004 2003 2002 Historical net earning rates – year ending 30 June

18.00% 12.44% 20.95% -10.13% -5.60%

Past performance is not a reliable indicator of future performance. The fund managers utilised by the Fund may be changed at the discretion of the Trustee.

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BBaallaanncceedd ooppttiioonn




• The median return of the Morningstar Australian Wholesale Investment Trusts Multisector Growth Index over rolling 5 year periods

Potential long term return Likely variability of return Potential for negative returns Risk Profile

Moderate – High Moderate – High 1 in 5 years on average

Benchmark Investment strategy – asset mix

Aust Shares 40%

Int Shares 23%

Property 7%

Aust Fixed Int 17%

Internat Fixed Int 8%

Cash 5%

Fund manager Benchmark Allocation

National Corporate Investments MLC Moderate Trust 23.0% Schroder Fixed Income Fund – Standard Class 18.0% Barclays International Alpha Equity Fund 8.0% BT Wholesale Core Australian Share Fund 7.5% MFS Global Equity Trust 7.5% State Street Global Advisors Active Aust Equity Fund 7.0%

Suncorp Investment Management Aust Equity Trust 7.0% WestLB Mellon Australian Equity Trust 7.0% Credit Suisse Property Fund 6.0%

BT Institutional Enhanced Cash and Trust Cash 5.0%


Maple Brown Abbott Australian Equity Trust 4.0%

Fund manager 2006 2005 2004 National Corporate Investments MLC Moderate Trust 14.4% 13.1% 13.3% Schroder Fixed Income Fund – Standard Class 3.3% 6.9% 2.2% Barclays International Alpha Equity Fund 19.7% 1.4% 17.6% BT Wholesale Core Australian Share Fund 25.1% 26.0% 23.9% MFS Global Equity Trust 21.5% -0.1% 18.8% State Street Global Advisors Active Aust Equity Fund 24.4% 28.4% 18.2% Suncorp Investment Management Aust Equity Trust 26.5% 26.6% 19.3% WestLB Mellon Australian Equity Trust 19.4% 25.5% 18.2% Credit Suisse Property Fund 13.2% 17.2% 14.5% BT Institutional Enhanced Cash 4.9% 4.9% 4.7% Trust Cash Management Fund 4.1% 4.0% 3.8%


Maple Brown Abbott Australian Equity Trust 16.4% 21.5% 23.7%


13.94% 11.48% 14.45% -5.33% -5.19%


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CCoonnsseerrvvaattiivvee ooppttiioonn




• The median return of the Morningstar Australian Wholesale Investment Trust Multisector Moderate Index over rolling 5 year periods


Moderate – Low Moderate – Low 1 in 10 years on average

Benchmark investment strategy – asset mix

Aust Shares 16%

Int Shares 9%

Property 5%

Aust Fixed Int 30.5%

Internat Fixed Int 11.5%

Cash 28%

Fund manager Benchmark Allocation

Schroder Fixed Income Fund – Standard Class 37.5% BT Institutional Enhanced Cash and Trust Cash 28.0% National Corporate Investments MLC Moderate Trust 15.0% Credit Suisse Property Fund 4.5% BT Wholesale Core Australian Share Fund 2.5% State Street Global Advisors Active Aust Equity Fund 2.5% Suncorp Investment Management Aust Equity Trust 2.0% WestLB Mellon Australian Equity Trust 2.0% Barclays International Alpha Equity Fund 2.0%

Maple Brown Abbott Australian Equity Trust 2.0%


MFS Global Equity Trust 2.0%

Fund manager 2006 2005 2004 Schroder Fixed Income Fund – Standard Class 3.3% 6.9% 3.2% BT Institutional Enhanced Cash 4.9% 4.9% 4.7% Trust Cash Management Fund 4.1% 4.0% 3.8% National Corporate Investments MLC Moderate Trust 14.4% 13.1% 13.3% Credit Suisse Property Fund 13.2% 17.2% 14.5% BT Wholesale Core Australian Share Fund 25.1% 26.0% 23.9% State Street Global Advisors Active Aust Equity Fund 24.4% 28.4% 18.2% Suncorp Investment Management Aust Equity Trust 26.5% 26.6% 19.3% WestLB Mellon Australian Equity Trust 19.4% 25.5% 18.2% Barclays International Alpha Equity Fund 19.7% 1.4% 17.6% Maple Brown Abbott Australian Equity Trust 16.4% 21.5% 23.7%


MFS Global Equity Trust 21.5% -0.1% 18.8%


6.10% 8.96% 8.45% 2.07% 1.88%


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EEnnhhaanncceedd CCaasshh ooppttiioonn


Returns (net of fees) meeting or exceeding:

• Return of the UBS Bank Bill Index in all years

• The median return of the Morningstar Australian Wholesale Investment Trusts Bonds Australian Cash Index over rolling 5 year periods


Low Low Rarely if ever

Benchmark investment strategy – asset mix

Cash 100%

Fund manager Benchmark Allocation Investment strategy – allocation of assets to fund managers

BT Institutional Enhanced Cash Fund

100.0%

Fund manager 2006 2005 2004 Fund manager returns – year ending 30 June

BT Institutional Enhanced Cash Fund 4.9% 4.9% 4.7%

Historical net earning rates – year ending 30 June

Historical net earnings rates are not available as this option was only introduced in 2006.


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Notes to the summaries of investment options


The investment objectives are the investment returns that an investment option aims to achieve over a certain time frame. The investment objective is a benchmark that the Trustee uses to measure the performance of the Plan and should not be taken to be a promise or forecast of future returns. Neither the Trustee nor any of its associated entities guarantees the investment performance of the Plan. References to the ‘Morningstar Australia Wholesale Investment Trusts Multisector Indices’ are to groups of managers included in fund manager surveys conducted by Morningstar.

Risk profile

The risk profile shows the assessed level of risk (measured as variability of return) and return for the investment option based on the nature of the underlying investments. For more information about risks, see the “Risks of the Plan” section of this PDS.

Benchmark asset allocation

The benchmark asset mix is the investment option’s target allocation to the different asset classes. The actual allocation to the different asset classes will be close to the benchmark asset mix but will be determined by the allocations to the underlying investment managers and the asset allocations made by the option’s underlying investment managers and may fluctuate from time to time.

Investment manager asset allocations

The option’s benchmark allocation to each of the managers describes the target allocation to each manager and may vary from time to time.

You have no individual influence over how much of your money is invested directly with a particular investment manager or investment fund. This information is shown for illustrative purposes only. The Trustee can alter underlying investment managers or investment funds from time to time without prior notification to you.

Investment manager returns

The investment manager returns show the annual return (net of applicable taxes and investment management fees) achieved by each of the investment managers utilised by the option over recent financial years. As the investment vehicles utilised by the Fund do not deduct taxes on behalf of the Plan, returns have been shown after making an adjustment for tax to the gross returns reported by the managers. Past returns are not a reliable indicator of future returns.

Net earning rates

The net earning rates indicate the annual rate of net earnings achieved by the investment option over 5 financial years (or lesser period, where the investment option has not been in existence for 5 years) after taking into account any relevant taxes, fees and costs. For more information about how net earning rates are determined, see page 14.

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FFeeeess aanndd ootthheerr ccoossttss The below statement is information required to be provided in this PDS under Government Regulations. Complete information regarding the fees charged by the Plan can be found on pages 21-26.

Please note that the Plan does not charge contribution fees. The Plan’s fees and costs are not negotiable.

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Plan assets as a whole.

Taxes and insurance costs are set out in another part of this document. You should read all the information about fees and costs because it is important to understand their impact on your investment.

DID YOU KNOW?

Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns.

For example, total annual fees and costs of 2% of your Plan balance 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).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the Plan or your financial adviser.

TO FIND OUT MORE

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 fee calculator to help you check out different fee options.

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Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the Plan (Note: none of the fees of the Plan are negotiable)

Establishment Fee

The fee to open your investment.

Nil Not applicable

Contribution Fee

The fee on each amount contributed to your investment – either by you or your employer.

Nil Not applicable

Withdrawal Fee

The fee on each amount you take out of your investment.

$30.75 Deducted from members' accounts at the time a benefit payment is processed.

Termination Fee

The fee to close your investment.

Nil Not applicable

Aggressive option 1.12%* of Plan assets + $63.96 p.a. comprising:

• Administration fee $63.96

• Investment management fee 0.63%*

• Operational & compliance fee 0.35%

• Trustee fee 0.075%

• Consulting and other fees 0.065*

Balanced option 1.04%*of Plan assets + $63.96 p.a. comprising:





Conservative option 0.90%* of Plan assets + $63.96 p.a. comprising:






Management Costs

The fees and costs for managing your investment.

Enhanced Cash option 0.74%* of Plan assets + $63.96 p.a. comprising:






$63.96 fee deducted from members’ accounts annually at 30 June or on a pro-rata basis upon a benefit being paid from the Plan. Percentage of assets fee is deducted from earnings prior to the allocation of earnings to members’ accounts.

Service Fees**

Investment Switching Fee

The fee for changing investment options

Nil Not applicable (See the section on buy/sell spreads on pages 22 & 24)

* The above fee is an estimate only and includes estimated investment management fees based on the investment managers underlying the investment option (as shown on pages 15 to 18) and the fee levels reported by the managers as at the time of preparation of this PDS. In relation to the Enhanced Cash Option, the estimated investment management fee represents the fees charged to other funds by the managers underlying this option, even though this option was not introduced to the Plan until 2006. The actual fees deducted from net earnings may vary from year to year. Please refer to page 23 of the PDS for additional information. ** Additional service fees apply. See "Service fees" section in the "Additional explanation of fees and costs" section on pages 22 and 24.

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AAddddiittiioonnaall eexxppllaannaattiioonn ooff ffeeeess aanndd ccoossttss Below is a summary of some of the additional fees and costs that may apply in the Plan. Further information in relation to all the fees and costs that may apply in the Plan is provided in this additional explanation of fees and costs section.

Type of fee or cost Amount How and when paid

Premiums for insurance

The cost of any insurance cover applicable to you or that you elect to take out.

Premiums are charged on an age based scale per $1,000 sum insured. See the table on page 30.

The premiums charged include a 5% insurance administration fee, paid to the Administrator of the Plan for administering the insurance benefits.

Premiums deducted from accounts annually or upon exit from the Plan.

Investment option change Maximum % of members’ accounts

Balanced > Aggressive 0.22%

Conservative > Aggressive 0.39%

Enhanced Cash > Aggressive 0.51%

Aggressive > Balanced 0.06%

Conservative > Balanced 0.19%

Enhanced Cash > Balanced 0.35%

Aggressive > Conservative 0.05%

Balanced > Conservative 0.01%

Enhanced Cash > Conservative 0.17%

Aggressive > Enhanced Cash 0.00%

Balanced > Enhanced Cash 0.00%

Buy/Sell spreads

The fees charged by the underlying investment managers of the Plan for the selling and redemption of assets.

Conservative > Enhanced Cash 0.00%

Deducted from members’ accounts at the time a switch is processed (for further details, see page 24).

Splitting and flagging fees

These fees are charged at the time that requests for information or splitting and flagging requests are made.

Processing an application for information $50

Processing payment splits $100

Placing a payment flag on a benefit $100

Lifting a payment flag on a benefit $50

The fee for information requests is charged to the individual making the request and payable via cheque. Fees relating to splitting or flagging are deducted from the benefit at the time of processing the request. (For further detail see the additional explanation on page 24).

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Withdrawal Fee

A fee of $30.75 is charged for each withdrawal from the Plan, whether paid to you, your beneficiaries or another superannuation fund, Retirement Savings Account or Approved Deposit Fund. This fee is deducted from your benefit prior to its payment from the Plan.

Members are not charged a withdrawal fee upon transfer to the Personal Division of the Fund, following termination of employment with KPMG or retirement from the Partnership.

Management Costs

The management costs of the Plan are made up of the following fees:

Administration fee

All members of the Plan are charged a fee of $63.96 p.a. to meet the cost of the administration of the Plan. The administration fee is paid to KPMG Superannuation Services Pty Limited, as the Administrator of the Plan.

This fee is deducted from your account annually, or upon you receiving a benefit payment from the Plan, on a pro rata basis.

Investment Management Fee

The investment management fees for each of the Plan’s investment options are estimated as follows, based on the investment managers underlying each investment option (as shown on pages 15-18) and the fee levels reported by the managers as at the time of preparation of this PDS:

Investment option Fee

Aggressive 0.63%

Balanced 0.55%

Conservative 0.41%

Enhanced Cash 0.25%

The investment management fee is the fee charged by the investment managers to the Plan. Each of the managers utilised by the Plan charges an asset based fee. The combination of each of these fees, for the managers utilised in each investment option, gives the total estimated investment management fee for each investment option, as outlined above.

The fees charged by the investment managers are deducted from the earnings of the Plan prior to these being allocated to your account as net earnings.

Example: For a member with an account balance of $10,000 for a full year, who has chosen the Balanced option, the estimated investment management fee per annum would be:

$10,000 x 0.55% = $55.00

Operational and compliance fee

The operational and compliance fee is an asset based fee of 0.35% of assets per annum, which is deducted from the earnings of the Plan prior to these being allocated to your account as net earnings.

The operational and compliance fee covers the costs of the day to day operation of the Plan and the regular fees charged by the Administrator, asset consultant and auditor etc. It also covers compliance costs such as fees payable to the Australian Prudential Regulation Authority (“APRA”) etc.

Trustee fee

This fee is paid to the Trustee for managing the operations of the Plan. The annual amount of this fee is 0.075% of the assets of the Plan. It is paid to the Trustee on a quarterly basis and deducted from the earnings of the Plan prior to these being allocated to your account as net earnings.

Consulting fee

This fee is approximately 0.065% of assets per annum and covers the cost of any additional legal, consulting or other work that is required from time to time, such as additional work required in response to legislative changes etc.

24

This fee amount is an estimate only based on historical expenses data in the year ending 30 June 2006 and may vary from year to year, in accordance with the actual expenses of the Plan. This fee is deducted from the earnings of the Plan prior to these being allocated to your account as net earnings.

Insurance premiums

The premiums for any insurance cover you may have are deducted from your account on an annual basis, or on a pro-rata basis upon exit from the Plan, and paid to the Plan’s insurer, ING.

The premium amount, as detailed on page 30, includes an ‘insurance administration fee’ of 5% of the premium amount, which is paid to the Administrator for arranging and administering this insurance.

Buy /sell spreads

The Trustee does not apply a switching fee to change investment options. However, the underlying investment managers utilised in the investment options may apply a buy/sell spread upon switching. This is an additional cost to a member and is deducted from the member’s account. The entirety of the buy/sell spread applied is paid to the investment managers of the Plan.

Due to some overlap between investment managers used in the Plan’s investment options, the overall buy/sell spread applied to your account when you switch investment options will depend on which two options you are moving between and may vary up to the maximum buy/sell spreads outlined in the summary table on page 22.

Example

The maximum fee charged upon switching $50,000 from the Aggressive to Balanced option would be as follows:

0.06% x $50,000 = $30

Service fees

Fees relating to splitting or flagging a benefit upon marriage breakdown

The following fees will be charged in relation to processing requests for information under the Family Law Act and splitting and flagging of benefits in the event of marriage breakdown:

Request Fee* Processing an application for information $50

Processing payment splits $100

Placing a payment flag on a benefit $100

Lifting a payment flag on a benefit $50

* Note, these fees may increase on 1 July each year in accordance with the increase in the CPI.

With the exception of the fee for processing an application for information (which will be requested to be paid by cheque), the parties to the marriage breakdown will be able to pay these fees either by cheque or by deduction from their benefit.

For further information regarding splitting of superannuation benefits upon marriage breakdown see page 39, or contact the Plan (contact details on the back page).

Protection of small account balances

Government regulations require that the benefits of members with small account balances in the Plan be protected from erosion by administration costs. This applies if your account balance is less than $1,000 at the annual review date or the date you exit the Fund.

Example: For a member with an account balance of $10,000 for a full year, who has chosen the Balanced option, the total percentage of assets fee per annum (which includes the estimated investment management fee) would be:

$10,000 x [0.55% + 0.35% + 0.075% + 0.065%] = $104.00

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The member protection rules do not protect a member's benefit in the Plan from erosion against all fees and charges, but only against administration costs that are deducted from members’ accounts. This protection does not extend to fees and costs levied against the assets of the Plan as a whole or against taxation.

This means that, in the Plan, your account must be protected by ensuring that the administration fee (which is deducted directly from your account) does not exceed investment returns credited to your account (as net earnings).

Generally, $63.96 per member per annum is currently deducted from your account balance as an administration fee. If your account balance is less than $1,000 at the annual review date or the date you leave the Plan, this means that you may not be required to pay the full administration fee. In this instance, the maximum administration fee that may be deducted is the amount of earnings allocated to your account balance over that period up to the standard $63.96 p.a. charge.

Example

Your account balance totalled $900 at the annual review date, earnings credited to your account totalled $15 and you had been a member of the Plan for 20 weeks. The actual deduction for administration may not exceed $15 as illustrated below:

Standard $

With protection

$

Total account balance

900 900

Credited earnings 15 15

Administration fee (25) (15)

Closing account balance

$890 $900

Changes to fees and costs

The Trustee may change the fees charged to members’ accounts, for example to reflect changes in the underlying costs of operating the Plan.

The Trustee will advise you of any material increases to the fees charged to your account, at least 30 days prior to the effective date of the change.

Estimated management costs may vary from year to year depending on the actual experience of the Plan.

Taxation

The contributions tax deducted from your account takes into account a 15% rebate applicable to any insurance premiums and administration fees (deducted from your account) for which the Plan is entitled to a tax deduction. In this way, the benefit of any tax deduction is passed on to members.

All fees shown in the PDS and applied to your account are, where applicable, inclusive of GST (less reduced input tax credits), and stamp duty.

Please refer to pages 32 - 35 for information regarding the applicable taxation of benefits.

26

EExxaammppllee ooff aannnnuuaall ffeeeess aanndd ccoossttss ffoorr tthhee BBaallaanncceedd iinnvveessttmmeenntt ooppttiioonn This table gives an example of how the fees and costs in the Balanced investment option for this product can affect your superannuation investment over a 1-year period. You should use this table to compare this product with other superannuation products.

Example – the Balanced investment option Balance of $50,000 with total

contributions of $5,000 during year

Contribution fees Nil For every $5,000 you put in, you will be charged nil.

Management costs And, for every $50,000 you have in the Plan you will be charged $520* each year plus $63.96 in administration fees (regardless of your balance).

Equals cost of Plan

$63.96 + 1.04% of your account balance

If you put in $5,000 during a year and your balance was $50,000, then for that year you will be charged fees of $583.96*

What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.

*Additional fees may apply:

Establishment fee – Nil

And, if you leave the Plan, you may also be charged withdrawal fees of $30.75.

The fee shown is an estimate only calculated in accordance with the estimated management costs shown in the fee table on page 21 which include estimated investment management fees based on fee levels reported by investment managers underlying the Balanced investment option as at the time of preparation of this PDS. The actual fee charged may vary depending on movements in your account during the year. Fees and costs are not negotiable.

27

IInnssuurraannccee bbeenneeffiittssFormer KPMG Staff, Partners or Executive Directors

Death and TPD insurance

Death and TPD insurance benefits of members (excluding ‘insurance only’ members and casuals) will be automatically continued within the Personal Division of the Fund, upon your termination of employment with KPMG or retirement from the Partnership.

Your coverage will be continued at the same level as that whilst you were employed by KPMG without having to undergo additional underwriting.

You are able to maintain your death and/or TPD coverage for the same or a lesser sum insured amount. You can also terminate your cover if you wish. As such, if you would like to continue your cover for a lesser amount, or cancel it all together, you should indicate this on the ‘Personal Division Application Form’ attached.

If you wish to take out additional voluntary cover, above that you held when you left KPMG, you can apply for extra cover. However, your request for additional cover will be subject to underwrirting (as outlined below).

Note: If you are re-employed by KPMG, any insurance cover you held within the Personal Division of the Fund may cease upon your re-employment with KPMG.

In relation to former insurance only members of the Fund and casual staff, insurance benefits do not continue in the Personal Division.

Salary continuance insurance

Salary continuance insurance cover is not available from the Plan.

If you wish to continue your salary continuance insurance cover (made available to you by KPMG outside the Fund) upon your termination of employment with KPMG or retirement from the Partnership, you can take out a ‘continuation option’.

To continue your salary continuance insurance cover, contact the Administrator on (02) 9335 7852.

A continuation option allows you to be covered for any amount up to and including the level of cover you had on your date of leaving service, without undergoing full medical underwriting.

The continuation option must be exercised within 60 days of you leaving service.

If you take out a continuation option, you will effectively be taking out a new insurance policy with ING. The insurance premiums will be based on retail premium rates, and will be payable by you personally, rather than by KPMG. Note: the insurance premiums cannot be paid from your superannuation, even if you remain in the Personal Division of the Fund (the Plan).

Insurance benefits cover under a continuation option will commence from the date your application for cover is approved and confirmed by ING. As such, there may be a period after you have ceased employment or retired from the Partnership when you are not insured for salary continuance benefits.

Other members

Spouses of KPMG staff, Partners or Executive Directors who become members of the Plan are eligible to apply for insurance cover.

Family members of KPMG staff, Partners or Executive Directors, other than spouses, who become members of the Plan are not eligible to apply for insurance cover.

If you are eligible, you can apply for any amount of additional insurance that you like. The full amount of your additional cover however, will be underwritten by the insurer.

You can take out death cover only, or death and TPD cover. TPD cover is not available without death cover.

Applying for cover - underwriting

To apply for insurance cover, you must complete an “ING Group Risk Personal Statement”, available on the Plan web-site or by contacting the Plan (contact details on the back page). The statement asks for details of the insurance cover sought, as well as information regarding your health.

28

Completed statements should be returned to the Plan, which will pass your request for insurance on to the insurer.

The granting of insurance coverage is at the absolute discretion of the Plan’s insurer, ING. The Trustee has no influence over this issue.

Insurance cover may be issued to members on a restricted or altered basis. This means:

• You may not be granted the full amount of cover sought;

• The cover may have certain exclusions e.g. no coverage in relation to back injuries etc. if you have had a previous back injury; and

• The rates charged for your insurance may have an additional ‘loading’ on them. This means that the premium charged will be higher than that shown in the table below. The loading is added because the insurer considers you a higher risk for some reason.

If, for whatever reason, the level of insurance benefits provided by the Plan’s insurer is reduced or limited, then your benefit may also be affected. You will be advised if this occurs.

Insurance premiums

Death or death and TPD cover is available on a ‘rate for age scale’. This means that the premium you will be charged will be based on your age. The table on page 30 outlines the applicable rates.

The insurance premiums charged include an insurance administration fee of 5% of the premium amount, which is paid to the Administrator for administering the insurance cover on behalf of Plan members.

Premiums will be deducted from your account in the Plan on an annual basis, or on a pro-rata basis upon exit from the Plan, and paid to the insurer.

Due to the fact that the premiums for your insurance cover are deducted from your account, you must ensure that your account has enough money in it to cover the cost of the insurance premiums at all times. If there is not enough money in your account to pay your insurance premiums, your insurance cover will cease.

Death and Total and Permanent Disablement insurance benefits

If you have insurance cover, in the event of your death or declaration of TPD, you in the case of a TPD benefit or your nominated beneficiaries (or such other party as the Trustee deems appropriate) in the case of a death benefit, will receive a lump sum benefit equal to your:

ACCOUNT BALANCE + INSURED BENEFIT

Death and TPD insurance benefits cease upon the member reaching the age of 65, leaving the Plan, upon request, or if you have insufficient money in your account to meet the premium cost.

Total and Permanent Disablement – what does this mean?

The definition of TPD applicable to members at the time of their disability is dependent upon the numbers of hours worked.

If you are working 15 hours or more per week, you would be considered Totally and Permanently Disabled as a result of:

‘the loss of 2 limbs or the sight of both eyes, or the loss of one limb and the sight of 1 eye (where limb is defined as the whole hand or the whole foot)’; or

‘as a result of either injury or sickness, you have been absent from work continuously for six months and, in the opinion of the insurer, it is unlikely that you will ever resume any paid work in any occupation for which you may be suited by reason of education, training or experience’;

If you are working less than 15 hours per week, you would be considered Totally and Permanently Disabled if:

‘as a result of injury or illness, you are totally unable, or unlikely ever again to be able to perform at least two of the following five activities of daily living:

Bathing and showering;

Dressing and undressing;

Eating and drinking;

Using a toilet to maintain personal hygiene;

29

Moving from place to place by walking, wheelchair or with the assistance of a walking aid.

It should be stressed, however, that a member must also satisfy the definition of "permanent incapacity" in the superannuation legislation to permit the Trustee to pay a TPD benefit to a member (see pages 28 and 36 for further details).

30

Insurance scale

The below scale outlines the dollar cost of insurance cover. The rates are per each $1,000 of death or death and TPD cover held.

Note the below rates include a 5% insurance administration fee, paid to the Administrator of the Plan for administration of the insurance benefits.

The Plan's insurer

The insurance benefits provided through the Plan are insured with ING Life Ltd (“ING”).

Your nominated beneficiaries

You can nominate those persons whom you would prefer to receive your benefit in the event of your death. You should notify the Trustee whenever you decide to alter your beneficiary nomination.

You can update your nominated beneficiaries at any time on the Plan web-site or by contacting the Plan and requesting a ‘Nomination of Beneficiary Form’ (contact details on the back page).

Whilst full consideration is given to your wishes in relation to your nominated beneficiaries, it is important to realise that for both legal and practical reasons the Trustee has absolute discretion as to whom a death benefit is paid. In

this regard, the Trustee takes into account your personal circumstances at the time of your death.

Generally the Trustee will attempt to pay the benefit to your dependants or your estate. However, in the situation where there are no dependants or estate, the Trustee may pay the benefit to a third party who is a non-dependant.

Note that different tax treatment applies to death benefits paid to a non-dependant of the deceased (see page 34 for more details). For these purposes, a non-dependant includes a child aged 18 or more (unless the child is otherwise financially dependent or interdependent).

It is always advisable to make a will. If you would like to do so, you should consult a solicitor or the office of the Public Trustee.

Age Next

Male Death only

Female Death only

Male Death &

TPD

Female Death &

TPD

Age Next

Male Death only

Female Death only

Male Death &

TPD

Female Death &

TPD 16 0.53 0.21 0.62 0.26 41 0.42 0.30 0.89 0.78 17 0.53 0.21 0.62 0.26 42 0.46 0.33 0.99 0.88 18 0.53 0.21 0.62 0.26 43 0.50 0.35 1.12 0.97 19 0.53 0.21 0.62 0.26 44 0.55 0.36 1.26 1.07 20 0.53 0.21 0.62 0.26 45 0.60 0.38 1.43 1.16 21 0.50 0.20 0.60 0.25 46 0.65 0.39 1.59 1.26 22 0.47 0.19 0.58 0.25 47 0.70 0.41 1.77 1.38 23 0.44 0.18 0.56 0.24 48 0.76 0.44 1.98 1.53 24 0.41 0.17 0.54 0.23 49 0.82 0.47 2.21 1.72 25 0.39 0.16 0.52 0.22 50 0.89 0.50 2.47 1.95 26 0.36 0.15 0.50 0.21 51 0.97 0.55 2.76 2.20 27 0.34 0.14 0.48 0.20 52 1.04 0.61 3.08 2.49 28 0.33 0.14 0.47 0.21 53 1.12 0.67 3.42 2.78 29 0.32 0.13 0.48 0.22 54 1.21 0.73 3.81 3.08 30 0.31 0.14 0.48 0.23 55 1.30 0.79 4.19 3.38 31 0.31 0.14 0.49 0.24 56 1.40 0.86 4.58 3.68 32 0.31 0.15 0.50 0.27 57 1.51 0.93 5.03 3.99 33 0.31 0.16 0.52 0.30 58 1.63 1.01 5.56 4.30 34 0.32 0.17 0.55 0.33 59 1.78 1.08 6.17 4.64 35 0.32 0.18 0.58 0.37 60 1.94 1.16 6.84 4.99 36 0.33 0.20 0.60 0.42 61 2.11 1.26 7.59 5.38 37 0.34 0.21 0.63 0.47 62 2.29 1.37 8.41 5.86 38 0.35 0.23 0.68 0.53 63 2.47 1.51 9.28 6.45 39 0.37 0.25 0.73 0.60 64 2.66 1.67 10.21 7.17 40 0.39 0.27 0.80 0.68 65 2.86 1.86 11.23 7.98

31

Unpaid leave and working overseas

In general, you will be covered for insurance benefits during periods of leave, however if you are going to work overseas, going overseas whilst on unpaid leave or taking unpaid leave for more than 3 months, the insurer will make an independent assessment as to whether or not you will be eligible for cover whilst on leave or overseas.

If you are going to work overseas or are taking unpaid leave, you must complete an ‘Overseas Secondment / Leave Notification Form’ which can be obtained from the Plan web-site or by contacting the Plan (contact details on the back page).

You will be advised if your insurance cover is affected while you are overseas or on unpaid leave.

Exclusions

Should you join the armed forces of any country, your death and TPD cover will cease on the day you begin active duty in the armed forces of any country.

Free cover period for death and TPD cover when leaving the Plan

In the event of you leaving the Plan and ceasing your insurance benefits (other than as a result of TPD), you will continue to be covered for death and TPD insurance benefits, for 30 days from the date of termination of your cover.

32

TTaaxxaattiioonn

Tax on contributions

Concessional contributions made to the Plan will be taxed upon receipt by the Plan at 15%.

Non-concessional contributions will not be taxed upon receipt by the Plan.

However, as described on pages 9-10, additional tax will be levied on you personally by the ATO where either the cap on either concessional or non-concessional contributions is exceeded. More information in relation to the caps on contributions and the taxation of excessive contributions is provided in the section on contributions on pages 9 - 11.

Where your total concessional contributions exceed the concessional contributions cap, the ATO will levy tax on you at the rate of 30%, plus the Medicare levy, on the excessive contributions.

Where your total non-concessional contributions exceed the non-concessional contributions cap, the ATO will levy tax on you at the rate of 45%, plus the Medicare levy, on the excessive contributions.

In the case of a tax liability for excessive concessional contributions, you can choose to nominate a superannuation fund to release monies to pay the additional tax, or meet this additional tax yourself. In the case of a tax liability for excessive non-concessional contributions, you must nominate a superannuation fund to release monies to pay the additional tax.

Tax rates and the provision of your TFN

If you became a member of the Plan or another division of the Fund prior to 1 July 2007, and you have not provided your TFN to the Fund, any concessional contributions made to the Plan in excess of $1,000 will be taxed at the top marginal rate. The Trustee reserves the right to take whatever steps it considers necessary or appropriate to manage any tax liability arising from not holding your TFN, including rejecting concessional contributions or deducting any additional tax as concessional contributions are received. To provide your TFN to the Plan, go to the Plan web-site where you can provide your TFN on-line, or contact the Plan (contact details on the back page).

Taxes upon exit from superannuation

The tax payable upon exit from superannuation will depend largely on your age. In general, benefits paid from superannuation to persons aged 60 or over are tax free (if paid from a taxed source). Some tax may apply to benefits paid to persons under age 60.

The following table outlines the tax rates that apply in relation to lump sum and pension benefits from 1 July 2007, assuming the Plan holds your TFN.

Certain taxes apply to superannuation benefits, when monies enter and exit a superannuation fund. How these taxes are applied depends upon certain factors such as your age. This section of the PDS contains a summary of the main taxation implications relevant to your benefits, based on legislation as at the date of preparation of this PDS. It assumes benefits do not contain an untaxed element (higher tax applies to untaxed elements). It does not take into account your personal circumstances. You should seek professional taxation advice regarding your own circumstances.

33

Age / status Lump sum Pension

Age 60 or more Tax free Benefit does not have to be included in income tax return.

Tax free Pension payments do not have to be included in income tax return.

Between preservation age (see page 36) and age 60

Exempt component tax free.

First $140,000* of taxable component tax free.

Taxable component above $140,000 taxed at 15% plus Medicare levy.


Taxable component taxed at marginal tax rate plus Medicare levy less 15% tax rebate.

This tax also applies to pensions payable in relation to disability.

Less than preservation age (see page 37)


Taxable component taxed at 20% plus Medicare levy.


Taxable component taxed at marginal tax rate plus Medicare levy (no rebate applies).

* The $140,000 threshold will be indexed in line with AWOTE in $5,000 increments.

Explanation of terms:

Exempt component Comprises the following components:

• Pre 1 July 1983 component*

• Undeducted contributions*

• Any non-concessional contributions from 1 July 2007

• CGT exempt component*

• Post June 1994 invalidity component*

• Concessional component*

* these components will be fixed (“crystallised”) as a dollar amount as at 30 June 2007.

Taxable component The remainder of the benefit above the exempt component.

34

Reasonable Benefit Limits

Note, Reasonable Benefit Limits (RBLs), which were limits on the amount of superannuation and other employment termination payments that were subject to concessional tax on payment, have been abolished from 1 July 2007.

Taxation in relation to death benefits

Death benefits paid to a dependant are able to be paid as a lump sum or pension. Death benefits paid to a non-dependant may be paid as a lump sum only. For this purpose, a dependant does not include a child aged 18 or more (unless financially dependent or an interdependent).

Where a death benefit is paid to a dependant as a lump sum (regardless of age) or as a pension where the deceased and / or recipient is over age 60, the benefit will be tax free. Where a pension is paid where the deceased is less than 60 and the recipient is also less than 60, the taxable component of the pension will be taxed at the marginal rate, plus the Medicare levy, with a 15% tax offset.

Where a death benefit is paid to a non-dependant, it must be paid as a lump sum. The taxable component is generally taxable at 15%, plus the Medicare levy (higher tax may apply if the death benefit contains an untaxed element).

Where a death benefit is received by the legal personal representative of a deceased estate, tax is determined according to who is intended to benefit from the estate.

Departing Australia Superannuation Payments

The only tax applicable to Departing Australia Superannuation Payments is withholding tax. The withholding tax rates are as follows (assuming the Plan holds your TFN):

• Tax free component - Nil.

• Taxable component - 30%.

Spouse contribution rebate

A contributing spouse can claim an 18% tax rebate on eligible spouse contributions of up to $3,000, made on behalf of a low-income or non-working spouse. That is, a rebate of up to $540 per annum can be claimed.

The full rebate can be claimed where the recipient spouse’s assessable income is less than $10,800. The rebate reduces to zero where the recipient spouse’s assessable income is $13,800 or more. Spouse contributions will count towards the recipient’s non-concessional contributions cap.

Amounts rolled over into the Plan

If you rollover an amount from another superannuation fund, generally no tax is applied (unless the rollover amount contains an untaxed element).

Investment earnings

Earnings of the Plan are taxed at a maximum rate of 15%. Tax payable on the earnings of the Plan is deducted prior to net earnings being allocated to your account.

Tax rebate in relation to insurance premiums and administration fees

The contributions tax deducted from your account takes into account a 15% rebate applicable to any insurance premiums and administration fees (deducted from your account) for which the Plan is entitled to a tax deduction.

GST

All fees shown in this PDS and applied to your account are, where applicable, inclusive of GST (less reduced input tax credits) and stamp duty.

35

Tax File Number (“TFN”) notification

Under the Superannuation Industry (Supervision) Act 1993 (SIS), the Plan is authorised to collect your TFN, which will only be used for lawful purposes.

These purposes may change in the future as a result of legislative change. The Trustee of the Plan may disclose your TFN to another superannuation provider, when your benefits are being transferred, unless you request the Trustee in writing that your TFN not be disclosed to any other superannuation provider.

It is not an offence not to quote your TFN. However giving your TFN to the Plan will have the following advantages (which may not otherwise apply):

• The Plan will be able to accept all types of contributions to your account;

• The tax on contributions to your account will not increase;

• Other than the tax that may ordinarily apply, no additional tax will be deducted when you start drawing down your superannuation benefits; and

• It will make it much easier to trace different superannuation accounts in your name so that you receive all your superannuation benefits when you retire.

36

AAcccceessssiinngg yyoouurr bbeenneeffiitt iinn tthhee PPllaann Withdrawing benefits from superannuation

The preserved component of your superannuation benefit must remain within the Australian superannuation system, generally until your permanent retirement from the workforce after you reach your preservation age.

Your preservation age is determined in accordance with the following:

Date of birth Preservation age Before 1 July 1960 55

1 July 1960 – 30 June 1961 56

1 July 1961 – 30 June 1962 57

1 July 1962 – 30 June 1963 58

1 July 1963 – 30 June 1964 59

After 30 June 1964 60

From 1 July 1999, all superannuation contributions (including member contributions) and earnings are preserved. Any component of your benefit that was ‘non-preserved’ at 1 July 1999 will continue to be non-preserved and can be taken in cash at any time.

Your ability to claim preserved benefits other than at retirement (as described above) is restricted, however, the law does allow for the release of benefits where you otherwise satisfy a condition of release, including as follows:

• When you reach age 60 and cease an employment arrangement;

• When you reach age 65;

• When you die;

• When you have ceased gainful employment with your employer and your account balance is less than $200;

• If in the Trustee's opinion you are "permanently incapacitated" in accordance with Superannuation law (similar to being declared TPD);

• If the Trustee approves the early release of preserved benefits on the grounds of severe financial hardship. Should you wish to apply for a benefit on these grounds, the application form is available on the Plan web-site, or by contacting the Plan (contact details on the back page);

• The Trustee may release preserved benefits if the Australian Prudential Regulation Authority determines they should be released on pre-defined specified grounds, such as to cover palliative care or funeral costs;

• The Trustee may release preserved benefits as a ‘Departing Australia Superannuation Payment’ (“DASP”) where the member was in Australia on a temporary resident’s visa and has since permanently departed the country. More details are provided in the ‘Departing Australia Superannuation Payments Information Booklet’ available on the Plan web-site or by contacting the Plan (contact details on the back page); and

• Where the law otherwise permits (for example, to satisfy an ATO Release Authority).

The Trustee may also allow the payment of your benefit in the form of a ‘Transition to Retirement Pension’, once a member has reached their preservation age, but chooses to continue employment. See the Pension PDS for more information, available from the Plan web-site or by contacting the Plan (contact details on the back page).

Withdrawing benefits from the Plan

You can withdraw part or all of your benefits from the Plan at any time.

A standard form and standard proof of identity requirements apply when transferring benefits between superannuation funds. Upon receipt of all necessary information, superannuation funds have a maximum of 30 days to transfer benefits, however, a longer period may apply in the case of illiquid investments. Additional information may be required in the case of a request to transfer benefits to a self managed superannuation fund.

From 1 July 2007, any partial payment of superannuation benefits from the Plan must be withdrawn from the exempt (tax-free) and taxable components in proportion (see page 33 for more information about these components).

Note: From 12 December 2007, the Trustee will be required to carry out proof of identity procedures before paying a benefit. The requirements arise under the Government’s Anti Money Laundering and Counter Terrorism

37

Financing legislation. If any further information is required from you to enable a benefit to be made, you will be notified.

How long can you leave benefits in superannuation

You can now leave your benefits in the superannuation system, and the Fund, indefinitely. There is no longer a requirement to remove benefits from superannuation once you reach a certain age or retire.

Your contact details with the Plan

It is important that you keep the contact details that the Plan has for you up to date. If the Plan loses contact with you, your benefit in the Plan may be transferred to an Eligible Rollover Fund (“ERF”) (see below for further details). You will be considered ‘lost’ and your benefit transferred from the Plan to the ERF if two items of correspondence are returned to the Plan, due to an incorrect address being held for you on the Plan’s systems.

To stop this happening, you simply need to keep the Trustee informed if you change address or other contact details. You can update your contact details on the Plan web-site or by contacting the Plan directly (contact details on back page).

Eligible Rollover Fund

The Trustee has selected the SuperTrace Eligible Rollover Fund, which is operated by Colonial Mutual Superannuation Pty Ltd, as the Fund’s Eligible Rollover Fund (ERF).

An ERF is a fund designated by the Australian Prudential Regulation Authority ("APRA") to receive and invest the entitlements of superannuation members in certain circumstances.

Your benefit may be transferred to the ERF if:

• Your benefit in the Fund falls below $2,000, or

• You become a "lost member", where two pieces of mail are ‘returned to sender’ and the Plan no longer has updated contact details for you and is otherwise unable to contact you.

Note if your benefit is transferred to the ERF, any insurance cover that you may have will cease as at the date of transfer.

Once your benefit has been transferred to the ERF, you will have no entitlement to benefits from the Plan. Instead, you will become a member of the SuperTrace ERF and be subject to its governing rules. If the Trustee holds your current address or contact details, you will be provided with a PDS from the SuperTrace ERF upon transfer of your benefit to SuperTrace. This PDS will outline the operational and membership details of SuperTrace. Please contact the Plan for further information (contact details on the back page).

The investments, fees and costs in relation to the SuperTrace ERF will be different from those of the Plan. In addition SuperTrace does not offer insurance benefits in the event of death or disablement. As such, apart from the 30 free cover period for death cover described on page 31, any insurance benefits you may have will cease at the time your benefit is rolled-over to SuperTrace.

Members wishing to locate their benefit after it has been transferred from the Plan, or members who have any enquiries on the nominated ERF, should contact SuperTrace at the following address:

Postal address

SuperTrace Eligible Rollover Fund

Locked Bag 5429

PARRAMATTA NSW 2124

1300 788 750

(02) 9947 4184

www.supertrace.com.au

38

OOtthheerr iinnffoorrmmaattiioonn aabboouutt tthhee PPllaannPensions

The Fund offers members the ability to take out a Superannuation Pension upon retirement.

A Superannuation Pension allows you to receive your superannuation benefits as an income stream, as opposed to one lump sum payment.

Superannuation Pensions are highly flexible. You can select the frequency of your pension payments, as well as the size of the pension payments you wish to receive, provided government limits are met. You can also commute (end your pension and take the remaining assets as a lump sum) or take a portion of your account balance as a lump sum, at any time (subject to tax rules).

Your Superannuation Pension will last until the assets supporting the pension are exhausted. The amount of assets you begin the pension with, the size of the pension payments you select, whether or not you withdraw any lump sums and the investment returns your account balance earns will all effect how long your pension lasts.

You can invest the assets supporting your pension in one of the Fund’s 4 investment options available to pensioners.

Upon your death, pension payments can be continued to a dependant (subject to government restrictions applicable to the payment of pensions to children), or can be paid out as a lump sum to a dependant or non-dependant.

If you have passed your preservation age but have not yet fully retired, you can take out a ‘Transition to Retirement Pension’, which is similar to a Superannuation Pension, but is subject to additional limits, including that it is unable to be commuted until you retire.

For further information regarding the pensions available from the Fund, see the Plan web-site or contact the Fund for a copy of the Pension Product Disclosure Statement (contact details for the Fund on the back page). You should consider this Product Disclosure Statement, issued by the Trustee, before making a decision about whether to acquire a pension. We also recommend you obtain appropriately qualified advice.

Key service providers to the Plan

The Trustee has appointed a number of service providers to assist in the operation of the Plan. Some of the key providers of services to the Plan are:

• KPMG Superannuation Services Pty Ltd – providing administration and general consulting services (AFSL No: 241366);

• Eclipse Asset Management Pty Limited – providing asset consulting services (AFSL No: 235362);

• Greenfields Financial Services Lawyers – providing legal services; and

• UHY Haines Norton – providing audit services (AFSL No. 269158).

Enquiries and complaints procedure

The Superannuation Industry (Supervision) Act, 1993 (‘SIS’) requires the Trustee to take all reasonable steps to ensure that there are arrangements in place under which:

• Members or their beneficiaries have the right to enquire into, or complain about, the operation or management of the Plan; and

• Those enquiries or complaints will be properly considered and dealt with within 90 days.

It is important to distinguish between enquiries and complaints. Enquiries are requests for information about the Plan or your benefits. Complaints are expressions of dissatisfaction.

Enquiries

If you have an enquiry regarding the Plan, you should contact the Plan (contact details on the back page). Enquiries can be made by email, phone or in writing. If you do not receive a satisfactory response within 28 days, you should immediately contact the Trustee (see back page for contact details).

39

Complaints

Complaints should be made in writing to the Trustee, which has a dispute resolution committee to ensure that all complaints are answered within 90 days.

The contact details for complaints to the Trustee are:

Complaints Officer

Trust Company Superannuation Services Limited

PO Box 361

Collins Street West VIC 8007

(03) 9665 0200

(03) 9620 5821

Superannuation Complaints Tribunal

If you are not satisfied with the Trustee’s handling of your complaint or their decision, you may contact the Superannuation Complaints Tribunal. The tribunal is an independant body set up by the Federal Government to assist members or beneficiaries to resolve certain types of complaints with fund trustees.

The tribunal may be able to assist you to resolve your complaint, but only if you are not satisfied with the response received from the Trustee’s handling of your complaint. If the tribunal accepts your complaint, it may attempt to resolve the matter through conciliation, which involves assisting you and the Plan to come to a mutual agreement. If conciliation is unsuccessful, the complaint is referred to the tribunal for a determination which is binding. You should be aware, however, that a party may appeal a decision of the tribunal to the Federal Court.

If you wish to find out whether the tribunal can handle your complaint and the type of information you would need to provide, phone the following number for the cost of a local call anywhere in Australia:

Postal address

Superannuation Complaints Tribunal

Locked Bag 3060

GPO Melbourne VIC 3001

1300 780 808

Changes to the Plan

Whilst it is the Trustee’s intention that the Plan will continue indefinitely, circumstances may arise that would necessitate amendment or even termination of the Plan. Any amendment or termination cannot adversely affect the benefits accrued for each member up to the date of amendment/termination, without the consent of members.

The Trustee reserves the right to amend the terms and conditions of the Plan, in accordance with the provisions of the trust deed and superannuation law. Insurance benefits, premiums, insurers and investment options may change. If an investment option is withdrawn you will be advised that the investment option is no longer available and to select an alternative.

The Trustee may also withdraw this PDS and, with the agreement of the Appointor of the Fund, KPMG Superannuation Services Pty Limited, close the Plan.

Splitting superannuation upon marriage breakdown

Superannuation benefits are treated as property when deciding a financial settlement in the event of marriage breakdown.

You can enquire about your benefit in the Plan for the purposes of considering a financial settlement in the event of marriage breakdown.

Provided certain requirements are met, your spouse can also enquire about your superannuation. Your spouse may request information from the Plan regarding your benefits in the Plan, without your knowledge or consent. The Trustee is restricted by legislation from informing you about such an enquiry from your spouse.

As part of a financial settlement in the event of marriage breakdown, your benefit in the Plan can be split between you and your spouse. This must be by instruction to the Trustee via a ‘Superannuation Agreement’ between you and your spouse or by a court order.

Borrowing against your benefit in the Plan

It is not possible to borrow from the Plan or to apply your benefit in the Plan as security for a loan.

40

Privacy

This privacy statement relates to the collection, use, storage and disclosure of personal information about you in all communications with the Trustee.

The Trustee collects personal information about you to:

• Process your enrolment in the Plan (in accordance with the Superannuation Industry (Supervision) Act 1993);

• Administer and manage your participation in the Plan and communicate with you about the Plan;

• Provide you with information about other products or services that may be of assistance to you; and

• Facilitate our internal business operations, including fulfilment of any legal requirements.

If you do not provide the personal information sought from time to time, it may mean that your enrolment in the Plan cannot be processed or that services cannot be provided to you.

The Trustee may disclose your personal information (as necessary):

• To its agents, contractors or third party service providers that provide financial, administrative or other services in connection with the operation of the Plan or its business, for example where a fund administrator is appointed;

• To your financial advisor, or sponsoring employer, if any, unless you tell us not to;

• To an insurer where insurance services are arranged in connection with your enrolment in the Plan;

• To any new Trustee as may be appointed from time to time;

• To any party which holds amounts on your behalf which will be transferred to the Plan; and

• Where the law requires or permits us to do so (e.g. to law enforcement agencies or other government agencies such as Austrac, the agency responsible for monitoring anti-money laundering and counter-terrorism financing), or if you consent.

By becoming a member of the Plan, you agree to the Trustee collecting, using, storing and disclosing personal information about you in accordance with this privacy statement.

For a further explanation of our privacy practices and how we comply with privacy laws, please contact the Plan for a copy of the privacy policy.

Access to information

Under privacy laws, you are entitled to request access to personal information held by the Trustee about you and to ask the Trustee to correct this information where you believe it is incorrect or out of date.

No fee will be charged for an access request. You may be charged the reasonable expenses incurred in giving you any information you have requested (e.g. searching and photocopying costs).

To access personal information about you or to obtain more information about your rights or our privacy policy, please contact the Plan (contact details on the back page).

APRA Licensing

The Plan is required to be registered by APRA and the Trustee is required to be licensed by APRA to operate the Plan. The Trustee is required to, amongst other things:

• Comply with superannuation laws, the RSE licence conditions and risk management requirements;

• Perform its duties as trustee properly and prudently;

• Satisfy ongoing fitness and propriety standards;

• Provide regular reports to APRA; and

• Comply with certain financial and other resource requirements.

Choice of superannuation fund

Employees (with some exceptions) can choose the superannuation fund to which their employer makes contributions on their behalf. The fund chosen must meet certain requirements and be an ‘eligible choice fund’.

41

Upon choosing a fund which is different from the ‘default fund’ nominated by the employer, employees are required to provide written details of their chosen fund to their employer and proof that the fund will accept their contributions. If an employee does not select a fund or the chosen fund will not accept the employer’s contributions, the employee’s contributions will be paid to the employer’s chosen default fund.

Portability of superannuation

Under superannuation legislation, members are able to rollover or transfer most superannuation accounts into another fund of their choice (some exceptions apply). If a member chooses to utilise this feature, the trustee must be satisfied that you have received or know you have access to all the information you need about your entitlements.

You can transfer part or all of your benefit from the Plan at any time, so long as any remaining benefit in the Plan is in excess of $2,000.

You should be aware that the transfer of your benefit to another fund may have consequences such as the loss of insurance cover under the Plan.

42

GGlloossssaarryy ooff tteerrmmss Administrator KPMG Superannuation Services Pty Limited ("KPMG") (ABN: 90 094 584 755, AFSL

No. 241366) PO Box H67 Australia Square NSW 1213

(02) 9335 7852

(02) 9335 7001

Annual review date The Annual Review Date is 1 July each year. At this time, you will receive a detailed personalised statement, setting out all your benefits and entitlements and a report on the operation of the Plan during the previous review period.

Approved Deposit Fund An indefinitely continuing fund, approved by APRA to receive the rollover of superannuation benefits after a condition of release has been satisfied.

Asset consultant Eclipse Asset Management Pty Limited (ABN 69 089 623 352, AFSL No: 235362).

CPI Means the consumer price index.

Dependants In relation to a member, includes the spouse of the member, any children of the member, any person financially dependent on the member and any person with whom the member has an ‘interdependency relationship’. Two people have an interdependency relationship if:

• They have a close personal relationship; and

• They live together; and

• One or each of them provides the other with financial support; and

• One or each of them provides the other with domestic support and personal care.

If two people have a close personal relationship but the other criteria above are not satisfied due to the fact that one person suffers from a physical, intellectual or psychiatric disability, they may still have an interdependency relationship. Note: for taxation purposes, a child aged 18 or more is not a dependant (unless financially dependent on the member or interdependent).

Eligible Rollover Fund (ERF) The ERF is a regulated superannuation fund that can accept benefits from the Plan for members who have not advised the Trustee of the manner in which their benefit is to be paid or have fallen below minimum balance requirement. (See page 37 for further information.) The ERF nominated by the Trustee is the SuperTrace Eligible Rollover Fund, operated by Colonial Mutual Superannuation Pty Ltd.

Employment Termination Payment

A payment received from an employer upon termination of employment.

The Fund The Executive Superannuation Fund [RSE No. R1001419]

Insured benefit That portion of your death or Total and Permanent Disablement benefit which is insured under a group life insurance policy issued by the insurer, ING.

Insurer ING Life Limited (ABN: 33 009 657 176) (AFSL No 238341)

Members Those persons accepted as members of the Plan by the Trustee.

Net earnings The calculated return of your investment option, determined by the Trustee, following the deduction of applicable fees and taxes, allocated to your account at 30 June each year or when you elect to change investment options.

Nominated beneficiaries Those persons whom you would prefer to receive the benefit payable in the event of your death. Your nomination is not binding on the Trustee.

Permanent incapacity In relation to a member who has ceased to be gainfully employed, means ill health

43

(whether physical or mental), where the Trustee is reasonably satisfied that the member is unlikely, because of the ill health, ever again to engage in gainful employment for which the member is reasonably qualified by education, training or experience.

Personal Division The sub-plan of the Fund to which members are transferred upon their termination of employment from KPMG. Other people, including spouses of KPMG staff, Partners or Executive Directors are also able to join the Personal Division of the Fund.

Plan The Personal Division.

Preserved benefit The portion of your superannuation benefit that must remain within the superannuation system until you reach your preservation age or another condition of release.

Retirement Savings Account A superannuation account, usually offered by a bank or credit union, that must have capital guaranteed investments. RSAs do not operate under a trust structure like standard superannuation funds.

Salary sacrifice contributions Superannuation contributions made by your employer on your behalf in lieu of pre-tax remuneration, by agreement between you and your employer.

Spouse A spouse includes a person to whom you are legally married or a person who, although not legally married to you, lives with you on a bona fide domestic basis as your husband or wife.

Superannuation Pension A pension payable from the Fund.

Total and Permanent Disablement

If you are working 15 hours or more per week ‘the loss of 2 limbs or the sight of both eyes, or the loss of one limb and the sight of 1 eye (where limb is defined as the whole hand or the whole foot)’ or ‘as a result of either injury or sickness, you have been absent from work continuously for six months and, in the opinion of the insurer, it is unlikely that you will ever resume any paid work in any occupation for which you may be suited by reason of education, training or experience’; or

If you are working less than 15 hours per week, ‘as a result of injury or illness, you are totally unable, or unlikely ever again to be able to perform at least two of the following five activities of daily living:

• Bathing and showering; • Dressing and undressing; • Eating and drinking; • Using a toilet to maintain personal hygiene; • Moving from place to place by walking, wheelchair or with the assistance of a

walking aid.

Trustee Trust Company Superannuation Services Limited (RSE Licence No. L0000635, ABN 49 006 421 638, AFSL No. 235153) Trust Company Superannuation Services Limited PO Box 361 Collins Street West VIC 8007

(03) 9665 0200 (03) 9620 5821

Undeducted contributions Contributions remitted by you from your after tax remuneration. The level of these contributions is determined by you.

Us or we Trustee

You or your Members or prospective members of the Plan.

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Personal Division PDS – September 2007

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The Executive Superannuation Fund AApppplliiccaattiioonn ffoorr mmeemmbbeerrsshhiipp –– PPeerrssoonnaall DDiivviissiioonn

1. Applicant Details

Title Mr Mrs Miss Ms

Surname

Given name (s)

Postal Address State Postcode

Phone (business) Phone (home)

Date of Birth Email 2. Type of membership – select A B or C

A Former KPMG staff, Partners or Executive Directors I wish to continue my death and TPD insurance within the Personal Division of the Fund at the current level

I wish to change my cover to : Death ___________________________, TPD _______________________

I do not wish to continue my death and TPD insurance within the Personal Division of the Fund

B Spouses of a KPMG staff member, Partner or Executive Director I wish to take out death and TPD insurance within the Personal Division of the Fund at the following levels*:

Death ___________________________, TPD______________________________

I do not wish to take out death and TPD insurance within the Personal Division of the Fund C Other individuals I wish to join the Personal Division but understand I am not eligible for insurance cover through the Plan

*Subject to underwriting. Cover does not commence until acceptance of your application by the insurer.

4. Tax File Number

You are not obliged to provide your TFN, but if you do not, you may pay additional tax on your benefit or there may be other consequences for you.

4. Investment option (select one option) Aggressive option _____%

Balanced option _____%

Conservative option _____%

Total 100%

And: I wish to invest $_______________ of my account balance in the Enhanced Cash Option. I acknowledge that this is a short term investment option and that ongoing contributions to my account will be invested in accordance with the long term strategy nominated above. See the “Member investment choice” section in the PDS for details about making an investment option selection.

Personal Division PDS – September 2007

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3. Nomination of beneficiaries

Name of person Address Relationship to member Proportion of Total Benefit (%)

Total 100%

You should note that death benefits paid to non-dependants (as defined for taxation purposes) must be paid as a lump sum and will be subject to tax (including when the benefit comes via your estate). See the PDS for details.

6. Declaration

I declare that:

I will be bound by the Trust Deed governing the Fund as amended from time to time;

I have received, read and understood the Product Disclosure Statement which accompanies this Application form;

I understand that the payment to a beneficiary of any death benefit under the Fund is at the absolute discretion of the Trustee and that any nomination made by me is not binding on the Trustee. I undertake to advise the Trustee of changes relating to my beneficiaries.

I understand that if I do not choose an investment option, my account balance will be invested in Balanced Option or in the option I was invested in if I have transferred into the Plan from another division of the Fund;

I understand the information about the importance of providing my tax file number (outlined in the Product Disclosure Statement);

If I am joining as a Spouse Member of the Fund, I declare that I am legally married to an Employer Sponsored Member of the Fund, or currently live with an Employer Sponsored Member of the Fund on a genuine domestic basis as the husband or wife of that Member;

I understand that the Trustee makes no specific recommendation concerning choice between the investment options of the Fund, and I understand and acknowledge that the value of the investments underlying the options may rise and fall and the Trustee does not guarantee their performance or any particular rate of return;

I acknowledge that the Trustee cannot provide me with advice about my benefits, investments, insurance and any taxation implications that takes into account my personal circumstances and that I should speak to an appropriately qualified adviser if I require such advice;

I acknowledge that the Trustee may be required under taxation and superannuation legislation to deduct additional tax from my benefits and refuse or refund contributions made by or on my behalf and, in doing so, may make any adjustments to my account it considers necessary or appropriate; and

I acknowledge having read and understood the privacy statements in the PDS and consent to my personal information being collected and used in accordance with these statements or as otherwise permitted or required by law.

Signed: _________________________ Date ________________________________

Trust Company Superannuation Services Limited (ACN 006 421 638; AFSL 235153; RSE Licence No: L000635) as Trustee for The Executive

Superannuation Fund (ABN:60 998 717 367; RSE Registration No: R1001419). Please return forms to the Fund Administrator, KPMG Superannuation Services Pty Limited, Level 4, 10 Shelley Street, Sydney NSW 2000; PO Box H67 Australia Square NSW 1213

Email: [email protected] Telephone: (02) 9335 7852, Fax: (02) 9335 7001

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FFuurrtthheerr iinnffoorrmmaattiioonn aanndd hhooww ttoo ccoonnttaacctt uuss Should you require any further information in respect of the Plan, information is available as follows:

Plan web-site

www.execsuper.com.au

Plan Administrator

KPMG Superannuation Services Level 4, 10 Shelley Street

SYDNEY NSW 2000 Email: [email protected]

(02) 9335 7852 (02) 9335 7001

Trustee

Trust Company Superannuation Services Limited PO Box 361

Collins Street West VIC 8007

(03) 9665 0200 (03) 9620 5821

Trust Company Superannuation Services Limited (RSE Licence No. L0000635, ABN 49 006 421 638, AFSL No. 235153) as Trustee for

The Executive Superannuation Fund PO Box 361 Collins Street West VIC 8007 (03) 9665 0200 (03) 9620 5821

The Executive Superannuation Fund · investments are considered high risk and cash or fixed...

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