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     Fia ca Pln ig In u ty
      n n il a nn d sr -
                                                                     n n i l a nn
                                                                   Fia ca Pln ig
01     g lto      p tt o
     Re ua in & Re u a in
                                                                     d sr - g lt
                                                                   In u ty Re ua in
03 Ec nomi Insght
     o   c i s
                                                                       p tt o
                                                                   & Re u a in
                                                                   The Australian financial services industry,despite
                                                                   he goig x mia i nd ec t ega i
                                                                   t on n e a n t a r en n t e               v
04 Ec nomi Insght c nt
     o   c i s o .                                                    i s e fh            l ea er .
                                                                   meda i on o t e word’sl d s
                                         egul or r            k
                                    The r at yfamewor we ha e does    v         1 Impr v i
                                                                                 .   o e ndusr pr c ies
                                                                                             ty a t c
       u t 2 nt e o
     Co n ’s1 mo i r d
05   iv sme t
     n e t ns                           y ough s andar on Fi
                                    appl t        t      ds      nancal
                                                                                    s     ns t  h      urenti
                                                                                Thi begi wi ourc r l ensng    c i
                                    Pl      s       v      an
                                      anner ,howe erI c under t     s and
                                                                                regime;(issuing operators a licence to
                                     t ng n our hoest y woul
                                    s andi i y s             hat ou        d
     Ch i n Re o t
       ar ’s p r:                                                                  e
                                                                                giv adv  ice,or promote a product) this
                                         t hi v he ol
                                    ques i t sgien t c l esand  aps
07 The Budgetwe had t hav ?
                    o    e                                                       es
                                                                                r ponsbit l wi t Aus r i
                                                                                         i ly i
                                                                                            i es t heh         tal an
                                     aiur hat v              n he
                                    f l est ha e been i t medi          a.
                                                                                     urti      v t
                                                                                Sec ies& In es mentCommison      si
                                            orunat s ue
                                    The unf t e is we ha e i t    v s hat
                                                                                (ASIC). The barriers to entry need
     Ge wie o le is r n e wi
       t s n i n ua c t     h       t whol Fi
                                     he      e nancal anni i
                                                     i Pl ng ndus r     ty
08 Li wie
    f s
     e                                                                           o     f            y
                                                                                       i ed, urent t s oo
                                                                                t be lt c r l ii t eas            y
                                       s agged down b whate er
                                    get dr                y        v y
                                                                                 o        i
                                                                                          c e           i hi ea s
                                                                                t geta l enc and unt t sar i
                                    i    ty       d v , hat s ome “
                                     ndus r woul ha e t i s             bad
                                                                                 ight       he obl
                                                                                t ened t pr emswe ha e s      v een
                                        es.      r    egul i
                                    appl ” Curentr at and t  on       he
                                                                                  an v eal     y     es v .
                                                                                c ne err l be r oled Onc a         e
                                    i    ty t f v ai o ndent y
                                              s             ed
                                     ndus r i el ha e f l t i           f
                                                                                 c e s s ued,ongoi s
                                                                                l enc i is              ng uper iivson
                                     hes bad appl ”and i t en a
                                    t e“            es        ’s
                                                             t ak
                                                                                          t ng s equied
                                                                                and moni i i r r . Count
                                    global financial crisis (GFC) to shut
                                                                                hasan i       ty eput i f bei
                                                                                        ndus r r        on
                                                                                                      at or ng
                                           hes       at s
                                    down t e oper or . The GFC has
                                                                                 er f t n   v
                                                                                v yefec ie i ourc          ianc ,
                                                                                                      ompl e and
                                    dampened consumer confidence and
                                                                                       wa s mpos mor s rngent
                                                                                hasal y i         ed     e ti
                                     he alout
                                    t f l hasnegat el i    v         t
                                                          i y mpac ed on
                                                                                    i es hen
                                                                                pol i t whati r r bs equied y
                                    the financial planning industry. In this
                                                                                 egil i on      our
                                                                                l sat on y CountAdvs .        ier
                                      t e
                                       c       i o v ou
                                    aril,I’d l e t gie y an i i    nsght
                                                                                    ss      aus
                                                                                Thi i bec e we ar c            t o
                                                                                                       e ommi ed t
                                     nt he i
                                    i o t vewsofCountand how we ar          e
                                                                                ens i when y c            e
                                                                                                 ou hoos a Count
                                        ioned .
OWNED NETWORK OF FINANCIAL                                                           ier he      ie ou ec v omes
                                                                                Advs ,t advc y r eie c
PLANNING ACCOUNTANTS AND ADVISERS       an y    n o mpr v he
                                    We c onl begi t i o e t                     fom a pr es i
                                                                                 r        of sonal ierng r
                                                                                                    del i eal
                                    ndus r ’sr
                                    i          at f
                                        ty eput i i we f uson t ee
                                                       oc     hr                value,ef ficiency and a broad range
WINTER 2 0 ISSUE NO. 96              e eas
                                    k yar .                                         er ies hat ui our
                                                                                ofs vc t s ty needs             .
    (Continued from page 1)

    Count has an independent research process, this             industry does need to better demonstrate the value
    means the solutions a Count Adviser can select for          of advice to Australians, current debates on this
    you must be approved. Our tough and conservative            issue always focus on investment performance and
    approach has resulted in products like Westpoint,           fees and do not address the two real issues facing
    Opes Prime and Basis Capital having never made              Australia.
    it to the list. We have been one of the very few
                                                                The first real issue is inadequate sav       i.e.
                                                                                                      ings ( as
    groups to have this track record. Further, we have
                                                                a nation we lik to spend more than we save) and
    conservative polices that have maximum levels for
                                                                                                 i.e.      e
                                                                secondly we are underinsured. ( we lik to insure
    gearing (borrowing) or alternative asset classes
                                                                material possessions but not our income or life).
    that are more “risky”. Count clients have not been
                                                                Your Count Adviser will address these with you
    immune from negative market performance – but
                                                                as they are important to help you achieve your
    that is all they have been subject to – not losing
                                                                goals, help you create wealth, give you the ability to
    their money on bad quality investments. Currently
                                                                make independent choices and importantly protect
    the industry is talking about moving to “back to
                                                                your wealth in the adverse event that something
    basics” strategies for clients – these strategies have
                                                                happens to you and you lose the ability to earn an
    been Count’s investment view for over 20 years.
    2. Enhance financial literacy standards
                                                                You may read a lot about debates on commissions.
    The role of the Adviser is to explain the strategy          Your Count Adviser has the ability to offer you a fee
    and discuss with you the risks associated so you            for service agreement. Under the Count service
    can make more informed decisions about any                  offering, the way you pay for your advice is your
    recommendations. Legislation to protect the client          choice. This could include commissions, a fee for
    enforces documents such as a Financial Services             service or a combination of both. Either way you
    Guide and Statement of Advice are provided. These           can rest assured that Count sets a maximum fee
    documents outline your strategy and fees that you                                                       t
                                                                that represents the value of your advice. I is our
    will be charged. These documents do need to                 view that the payment method is irrelevant, what
    improve as they are very long and cumbersome;               is important however is to ensure the payment
    Count is working to ensure these documents move             process is transparent and that you are fully
    to be more clear, concise and easy to understand.           informed.
    Financial services is complex, Count enforce
                                                                Australians need advice and the one stop Financial
    ongoing training requirements on our Advisers.
                                                                Planning service Count offers means your Count
    Education is a long term investment, but the
                                                                Adviser can assist you throughout your life stages.
    industry does need to enhance financial literacy
                                                                We embrace industry developments that drive
    to improve understanding. Ialways tell people the
                                                                the cost of investment down for clients and we
    basic life skill that applies to all areas and especially
                                                                support and stay ahead of government and industry
    Financial Planning, if you see/ are told something
                                                                initiatives aimed at simplifying the advice process.
    that is too good to be true then chances are, it
                                                                There is a lot of positive change that will come and
    usually is. Wealth Creation is a long term process
                                                                you should rest assured that your Count Adviser is
    that requires discipline. Count Advisers are not
                                                                the best person to service your needs. Each Count
    interested in making you an overnight success;
                                                                Adv              ed y          fice
                                                                     iser is back b head of who is work        ing
    they are interested in helping service your needs
                                                                with regulators and industry bodies to ensure
    over the long term. A big part of this is ongoing and
                                                                management of any change is in the right hands, so
    proactive communication through all periods of the
                                                                industry participants don’t repeat mistakes and the
    market cycle.
                                                                Financial Planning industry reputation as a whole
    3. Demonstrate the value of Financial                       is improved. Thank you for your trust in Count and
    Planning advice                                             your Count Adviser we never lose sight of ensuring
                                                                any decision we make is always made with your
    Financial Planning is more than just placing
                                                                best interests in mind.
    investments;it’s about an experienced and well
    qualified individual understanding your needs and
    goals and providing you with solutions to help you
    achieve them. This process also needs to take into
    account your changing needs and lifecycle. The

                                            Economic Insights -
                                            two leading economists
                                            share their views

The Au                       ely                     or     ch      ear
       stralian economyis lik to remain in recession f mu ofthis y with the
    al    mp et
glob slu y to reallyimp             al                      ely
                            act.Glob conditions are also lik to remain poor this
y                 al
 ear,with the glob economycontracting.

This should lead to falling inflation and further         plus view,given the likelihood ofbetter economic
monetaryeasing in most countries,including                               1
                                                         conditions in 20 0 and attractive valuations.
Australia,whic along with fi al stimulus,will
                h             sc                               ing             er          t v
                                                         Look further out ov the nex fi e to ten y      ears,
aid recoverylater this y and/ through 20 0.
                         ear      or            1        improved dividend y ields following the share slump
Shares have rallied in recent times with                           t
                                                         and profi growth around nominal GDP growth
increasing evidence that worldwide monetary              will see medium-term returns f  rom mainstream
and fi al easing is gaining trac
       sc                         tion and that          global shares ofaround 9% per annum on average.
the severityofthe pace ofdecline in global
ac ityis easing,whic maybe the fi
   tiv                  h               rst              In particular,listed propertysecurities have
step on the path to an eventual recovery                 probablyseen the worst.Although f    urther volatility
f                ear
 rom later this y and through 20 0.  1                   is ex                               t ew
                                                              pected to remain over the nex f months
                                                         due to worries about gearing levels,capital raisings
But with economic news lik to remain poor over
                           ely                                             ing                ,
                                                         and the underly propertyoutlook theyrepresent
the nex sixmonths,further profi downgrades are
        t                       t                        verygood value f    rom a long-term perspective.
   ely                            or
lik ,meaning it is too earlyto sayf sure that
we have seen the bottom f this bear mark
                          or             et.             Both locallyand worldwide,government bond
                                                         y            all urther in the short term on the back
                                                           ields mayf f
The Australian share mark is lik to remain
                            et      ely                  ofthe global downturn as it becomes apparent
volatile over the nex f months.However,shares
                      t ew                                                                             or
                                                         that short-term interest rates will staylow f a
should improve on a 1 -month view.Valuations are         lengthyperiod.Global ex     cess capacitycontinues
attractive and interest rates are low,and shares         to build,inflation falls further and c            s
                                                                                               entral bank are
are lik to anticipate better economic conditions
       ely                                                    ing
                                                         buy increasing amounts ofgovernment bonds,
in 20 0.Reflec
      1         ting a muc higher div
                           h            ided yield and                  f
                                                         all ofwhich ofset worries about an increase in the
reasonable growth prospects on the backofpolicy                                                       .
                                                         supplyofbonds and rising sovereign risk Longer
stimulus,medium-term returns ofaround 1 per  2%                          f
                                                         term,bonds ofer poor returns as y     ields are so low.
annum are now possible.
T urmoil maycontinue in the international share          Dr.Shane Oliver is the Head ofInvestment
mark over the nex sixto twelve months on
                    t                                                                  or
                                                         Strategyand ChiefEconomist f AMP Capital
uncertaintyregarding the depth and duration of           Investors.
the global recession.However,global shares are
   ely                                     2
lik to provide reasonable returns on a 1 -month

    Economic Insights
             l     rentl x iencing wha the
    The word is cu r ye per                t
    International Monetary Fund (IMF) calls the
     gr t ecession” with the gl a economy
    “ ea r          ,           ob l
     x               a          ,
    e pected to contr ct in 2009 the worst
        f ma          er
    peror nce in ov 60 y r   ea s.

    This is obviously a very difficult environment for        rates from 7.25% to 3.00%) and the government
      k           y
    mar ets as the deal                    f
                       with the combined efects of           (via increased spending, tax cuts and stabilising the
    a significant break-down in the world’s financial          banking system) have put in place a significant policy
    sy               e            cumstances.The
      stem and the dir economic cir                          esponse it seems cl that the Austr ian economy
                                                             r                 ear            al
    other defining feature of the economic environment        will also experience a recession this year (the first in
           v ,        ecedented natur ofthe pol
    is,howe er the unpr             e         icy            18 years).
    response. After the significant market failures in late
                    t       ds
    2008 and the shif downwar in economic activity              e               ies ound the word,in
                                                             Lik most othercountr ar            l
    that flowed from this, the leaders of the world’s major   Australia the recession and financial crisis have led to
                v                   e     us
    economies ha e engaged in massiv stimul and              a shar f l shar
                                                                  p alin      k     als              ices
                                                                           emar ets,f l in commoditypr
         isation pol
    stabil         icies.                                         oper v uations,an incr
                                                             and pr  ty al             ease in the cost of
                                                             borrowing for companies and a fall in official interest
        est ates ha e been sl
    Inter r        v               ound the word,
                            ashed ar           l             ates.
       e               ies  e     est ates ha e
    whil in those countr wher inter r        v
    reached zero (including the US, Japan and the UK),       The good news is, however, that a significant amount
         ities ar under ing what is cal “
    author      e     tak             l quantitativ
                                       ed          e                         r          iced into mar e
                                                             ofbad news has aleadybeen pr           k ts.
    easing” (lowering longer term interest rates and            e v so         ecent,v ytentativ ,signs of
                                                             Ther ha e al been r      er        e
     ov              ing stem with e tr cash to
    pr iding the bank sy            xa                                 isation in gl
                                                             some stabil           obaleconomic data and the
    lend to the economy). In addition, there has been          ong co- dinated pol stance fom the word’
                                                             str     or          icy      r          ls
    significant easing of fiscal policy, with tax cuts and     eader has seen some mar ets r
                                                             l   s                 k         er
                                                                                         ecov .
       er              eading to a shar incr
    gov nment spending l              p    ease in
    budget deficits around the globe.
                                                                 e          l y et          ear emains that
                                                             W hil it is earyda s y and the f r
                                                                e      e
                                                             ther is mor bad economic news ahead ofus,
         se    e      so      x aor   y
    Ofcour ,ther has al been e tr dinar                      especial with r
                                                                    ly     egar to the unempl ment r ,
                                                                              d             oy     ate
      f ts       ise    obal
    efor to stabil the gl       ing stem,
                            bank sy                          mar ets ar beginning to l f war to the r
                                                               k      e              ook or d       ecov y
                                                                                                        er .
      ough dir capital ections,national
    thr      ect      inj             isation                              l             k      e ik y
                                                             Caution is stilneeded and mar ets ar l el to
         ar       er       ices to pr ide the
    and v ious gov nment pol        ov                       r
                                                             emain v atil,but ther is now some e idence that
                                                                    ol e         e              v
        ing stem with althe mone the need
    bank sy            l        y y                          the unpr
                                                                    ecedented pol r         r          ls
                                                                                icy esponse fom the word’
    in an effort to rebuild confidence in the system.           or                  al      d       ing d
                                                             maj economies,and Austr ia,coul be tak hol.

            l            ar    ade l s to the
    As a smaleconomywith l ge tr   ink
                                                             Stephen Hal ick
    est        l       d v                 e or
    r ofthe word,it woul ha e been impossibl f
                                                             Head ofInv          k          ch
                                                                       estment Mar ets Resear
        al                   f           obal ecession.
    Austr ia to escape the efects ofthe gl   r
                                                               onial st State Gl
                                                             Col    Fir        obalAsset Management
    While both the Reserve Bank (by cutting interest

 Count’s 12 monitored investments–
 14 years on
     y                              10,
 Nearl 14 years ago,Count invested $ 000 into                         W e invested ac           ian   nternational
                                                                                     ross Austral and I
    h        f                     l
 eac of12 diferent investments to ilustrate how                       shares, property, fixed interest and cash, but how
    f                            orm at diferent
 diferent types ofinvestments perf         f                                  ared?
                                                                      have we f
                ialy        ong
 times and espec l over the l term.

                                           W hat did we predic in 1995?
       unds woul be the top perf
 Share f       d               ormers
 Div        unds woul be next
    ersified f       d
                    d        id   ormer,but over the l term,woul not overtak share f
 Listed property woul be a sol perf                  ong       d            e      unds
                                        d           ower end ofthe perf
 Cash and interest based investments woul be at the l                       e al
                                                                      ormanc sc e

              t’s             ..     or
             I been 14 years. and f the most part,our predic tions have been c     t! c
                                                                              orrec Ex ept the
        obal ession f 60 years has temporaril el
 worst gl   rec      or                       y evated the c ash based investments,but with
                                         ow        l
                     interest rates very l these wilagain under perform.

 How have our investments fared?                                                          ax
                                                                                         T advantaged

       s 2
  Count’ 1 monitored inv          l
                        estments-alinitial made 2 th J y 1
                                         ly                    al          1
                                                 4 ul 995 and v ued as at 3 December 2008*

 2008         7 nvestment
           200 I                                                   Val at
                                                                     ued     Valued at nvests in:
                                                                    11 2008* 3 / 2/ 7*
                                                                   3 /2/      1 1 200
 1         2          onial
                    Col    First State I
                                       mputation Fund $39, 51
                                                         159.                           269.
                                                                                     $57,  32              ian
                                                                                                     Austral shares
 2         1              ler
                    BT Smal Companies Fund                         $38,
                                                                         83             000.
                                                                                     $68,  31               ian
                                                                                                     Austral Shares
                                                                                                     Smal Publ Cos)
                                                                                                     (    ler   ic
 3         3                 I
                    Perpetual ndustrialShare Fund                  $34, 76
                                                                      577.              032.
                                                                                     $53, 48               ian
                                                                                                     Austral Shares
 4         4        NG ax f tive I ome T
                    I T -efec    nc     rust                       $28, 99
                                                                      703.              371.
                                                                                     $40, 42           anced div
                                                                                                     Bal        ersified
 5         8        CBA Team Deposit                               $20,
                                                                         26           19, 93
                                                                                     $ 422.          BankTerm deposits
 6         6                     s
                    BT Future Goal Fund                            $ 484.
                                                                    19, 37              241.
                                                                                     $26, 13         Growth diversified
 7         7           C  anc
                    M L Bal ed Fund                                $ 714.
                                                                    18, 80              093.
                                                                                     $25,  96          anced div
                                                                                                     Bal        ersified
 8         10       Macquarie CMT                                  $ 589.
                                                                    18, 81            17, 98
                                                                                     $ 941.          Cash
 9         9        nvesc Protec Growth Fund
                    I    o      ted                                $ 205.
                                                                    18, 27            17, 98
                                                                                     $ 941.          Conservative
 10        5          onial
                    Col      First State Property                  $ 758.
                                                                    15, 75              249.
                                                                                     $35, 34         Listed property trusts
                    Securities Fund
 11        11          nternational
                    BT I           Fund                            $ 177.
                                                                    13, 88            16, 36
                                                                                     $ 087.          nternational
                                                                                                     I           shares
 12        12          l
                    Chalenger Asian Share Fund                     $9,
                                                                        66            10, 64
                                                                                     $ 849.                       Ex. pn)
                                                                                                     Asian Shares ( J

                       AL      I
                    TOT PORTFOL O VALUE                            $275, 89 $387, 72.
                                                                       122.     0 03                  ncl
                                                                                                     *I uding distribution

Alincome has been reinv
* l                                  ormance is not indicativ off
                       ested.Past perf                       e  uture perf
                                                                         ormance.Asset cl
                                                                                        asses wilperf
                                                                                                l          f    y
                                                                                                    orm diferentl throughout the
            e.                      ity          shares)outperf
economic cycl History shows that qual businesses (                            ong
                                                              orm cash in the l term.Note:The investments chosen were not intended
                       ec                                   rom diferent f
to be the best,but a sel tion ofa broad range ofinvestments f      f     und managers.

    (        rom page 5)
        nued f

    Portfolio Performance in Difficult markets                the argument for portfolio diversification.
                                                             Overall portfolio performance
    Global sharemarkets rose to an all time high in
    late 2007. The onset of the global credit crisis         Despite going through one of the most difficult y ears
    caused 2008 to be a disaster year for equity and         faced by equity and property markets, the long-
    property markets and Count’s predictions for the 12      term performance of the 12 monitored investments
    monitored investments were really put to the test.       remains healthy. In almost 14 years, our initial
                                                             investment of $120,000 has increased by around
    2008 saw dramatic falls in the value of Count’s 12
                                                             129% to $275,122.89 This is an average yearly
    monitored investments. The worst performance
                                                             return of approximately 6.4%.
    was from the Australian property exposure, with
    the Colonial First State Property Securities Fund        W here should investors look in 2009 and beyond?
    falling 55.3% over the year. To highlight how quickly
                                                             2008 was a year that most investors would like to
    relative performance can change, this fund was the
                                                             forget. It did however, re-iterate some of the key
    5th best performer over the life of the investment
                                                             principles of investing described below. W hile the
    until the start of 2008, and the 10th best performer
                                                             property, Australian and International sharemarkets
                .                          ery
    at the end Australian shares had a v difficult
                                                             had a v difficult y            er
                                                                                   ear,ov a longer time frame
    year, with The Perpetual Industrial Share Fund
                                                             they are still expected to be be the strongest
     - . %)
    (34 8 ,and the Colonial First State I    mputation
                                                             performers. The performance of Australian shares
            - 1 6%)both recording large negativ returns.
    Fund (3 .                                    e
                                                             over the full period clearly demonstrates this. It is
    International shares ex  perienced similar difficulties   important to remember that markets can change
    but the falls in values were moderated in Australian     quickly. W hat performs well over one year can
    dollar terms due to the depreciation in the Australian                         er e
                                                             be quite different ov fiv or ten y    ears. Keeping
    dollar against the US dollar.                            in mind your investment time frame is crucial in
                                                             determining which asset classes should be included
    The diversified funds in the portfolio also posted
                                                             in your portfolio.
    large negative returns with the exception of the
    conserv e div
            ativ     ersified fund The I T -
                                  .     NG ax effective      Our own portfolio demonstrates two key principles
    Income T  rust (28. ,the BT Future Goals Fund
                   - 9%)                                     of successful long term investing:
     - 7%)           C                  - 4
    (25. and M L Balanced Fund (25. %)were all
                                                             Minimising risk through diversification
                                                             By investing across sectors, assets and markets,
    The portfolio’s cash based investments were
                                                             we hav div   ersified our portfolio and ensured that
    the best performers with the CBA Term Deposit
                                                             our risk is minimised. Over the years, the positive
    and Macquarie CMT returning 6.4% and 6.2%
                                                             returns from the strong performers of the group
                                                             have smoothed out negative returns from the poorer
     Performance vs. Predictions                             performers. If we had invested solely in one area,
                                                             such as Asian shares, our overall portfolio return
    In 1995 when the portfolio was established, we
                                                             would have been much lower, and overall, a very
    predicted that the share funds would be the top
                                                             high- strategy – despite the positive returns this
    performers,with div   ersified funds following.W e
                                                             sector has produced in recent years.
    also predicted that listed property would be a solid
    performer, with cash and interest based investments      Ride out volatile markets and stick to your long-
    at the lower end of the scale.                           term plan

    2008 highlighted how quickly investment markets          The performance of our investments has varied over
    can change. Taking a one year view, the initial          time. W hat performs well one year, can falter the
    predictions made for the portfolio appear completely         t                     ery
                                                             nex – showing that it is v difficult to be able to
    off. Cash has been the best performer, followed by       predict when and where to invest.
    div                                            .
        ersified funds,then equities then property But
                                                             Even the top performing fund has had its fair share
    interestingly, even after one of the most historically
                                                             of ups and downs over the years, but by sticking it
    volatile years on record, the performance of the
                                                             out over the long term, the investment has paid off.
    portfolio remains largely in line with expectations.
                                                             Rather than trying to pick the best investments from
    The CBA Term Deposit appears to go against the
                                                             year to year, the safer strategy is to ride out the bad
    predictions being the 5th best performer over the
                                                             times and adhere to your long-  term investment plan.
    life of these investments. This is not expected to
    continue over the long term and is consistent with

                       Chairman’s Report:
                       The Budget we had to have?

It never pays to get too political in articles as you immediately turn off 50% of the
readers,however,as a swinging voter without allegiance to any party,I trust you will
see my views as a-  political.

Fortunately Australia went in to the Global Financial      Budget changes that will impact readers
Crisis (GFC) in a very strong financial position. The       include:
                        es       e
Howard government lik to tak credit for that but
                                                           -Pensions up;
I have always believed that Paul Keating was the
architect of our good times,along with the Chinese -       - “Elections” tax cuts honoured from 1 July 2009;
resources boom.
                                                           -First Home Owners Grant extended then reduced;
                                                           -Annual carer supplement introduced.
W hen the GFC hit,the Rudd government tookearly
                                                           -Those on Superannuation pensions have had the
decisive action (“cash splashes”) to try and keep
                                                           minimum pension amount reduced for another year.
domestic consumption and j going.The wisdom of
this will be debated for years to come.It is interesting   -Small businesses investment allowance increased to
to note the relatively new New Zealand government                         1
                                                           50% until the 3 st of December 2009.
didn’ do this and has much lower unemployment!

                                                           These changes all increase the deficit and have to be
W e have had the handouts and no one can begrudge          paid for.The question is how and when.Unless the
the increased payments for pensioners,but how will                                                   es
                                                           economy,employment and business tax increase
these “cash splashes”impact you going forward?             rapidly,you can ex   pect a horror budget after the next
                                                           election.Or will it be increased GST?

Large budget deficits for the next few
years will mean the government has to                      Changes were also made to Superannuation,yet
borrow the funds to finance the deficits.                    again.If you have been or are intending to contribute
This means as soon as the economy does pick                more than the compulsory 9% you should speak
up interest rates will rise rapidly.The government         with your Count Adviser as to whether or not
has also predicted above average growth                    these changes will impact you.The good news on
when we come out of recession.If correct,this                                          tax
                                                           Superannuation is the non- deductible amount
is another reason why interest rates will rise.                                                  t
                                                           has not been changed,so if you don’ have enough
                                                           in super and you have the money,you can still
                                                           put relatively large amounts into taxadvantaged
In summary a price will be paid b all Australians for
                                 y                         Superannuation.
the “cash splashes” and the massive budget deficits.
Many will therefore askdid we really have to have this
budget? Lik the recession we had to have,that will
            e                                              They say you get the government you deserve.I
be debated for years to come.                                                      e
                                                           guess I will have to tak some responsibility for this
                                                           government and the nex one!

                                                           Barry Lambert
                                                           Executive Chairman and Founder
                                                           Count Financial Limited

  ve u o     a k u la
Ha yo g t a b c - p p n?
A maj                                                     n
     ority of Australians are significantly underinsured. I conj unction with
 fewie, n nia ve i             t    ou gng s lins
Li s a i titi amed a enc ra i Au tra a to pro t thems          tec       elves,
   nt ll       ble           tec       i
Cou wi ena you to pro t the thngsth t ma      a    tter to you mos t.

           s    ll                          re
A Count Advior wi be able to lookat your enti                                                                                        ve                 ns     e o
                                                                                                                                   ha adequate levelsof i uranc c ver.
financial situation, your family commitments                                                                                               an           e nformed decsons
                                                                                                                                   Count c help you mak i           ii
     fes                       ne
and li tyle and help you determi your                                                                                                          fe ns    e     ,    ervi
                                                                                                                                   about your li i uranc needs pres ng your
ac      fe ns    e     .
  tual li i uranc needs They wi als be
                              ll   o                                                                                               freedom to c    e     fe
                                                                                                                                               hoos the li you want for you and
           s                t       ate
able to advie you on the mos appropri                                                                                                      ly,        s          y
                                                                                                                                   your fami regardles of what ma happen.
ns     e      t             c
i uranc produc for your partiular needs.

     vi       k up    n     e
By ha ng a bac - plan i plac you
 ll                 t      ngs
wi be able to protec the thi that
              fes             ly’ ec ty
matter. Your li tyle, your fami ss uri
                       e hoies
and your freedom to mak c c .                                                                                                       akng ome ti to c i the rik and ha ng
                                                                                                                                   T i s      me    onsder  ss       vi
                                                                                                                                      onti  y     s k arryi an umbrella – i
                                                                                                                                   a c ngenc plan i lie c ng              t
Res    h onduc b the I
   earc c     ted y  nvestment                                                                                                     c t s the rai but c pro de muc needed
                                                                                                                                    an’ top    n      an  vi     h
     nancal ServiesAs ocati i 2005
and Fi   i      c    s i on n                                                                                                      financial protection during life’s storms. Speak
s               e                 sonal
 howed that thos that had a profes i                                                                                                                s            nformati
                                                                                                                                   to your Count Advier for more i      on.
financial planner were most likely to

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  Disclaimer: ‘Count’ and Count Wealth Accountants® are the trading names of Count Financial Limited ABN 19 001 974 625, Australian Financial Services
  Licence Holder Number 227232. Principal Member of the Financial Planning Association of Australia Limited. The contents of this newsletter have been
  prepared without taking into account your objectives, financial situation or needs. You should therefore consider whether the information provided is appropriate
  to your objectives, financial situation and needs before taking any action to acquire any of the financial products mentioned. You should obtain and consider
  the Product Disclosure Statements relating to the relevant financial products mentioned before making any decision about whether to acquire those financial
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  #173 106 45. WA Finance Brokers Licence #4292. Head Office: Level 19, 1 Alfred St, Sydney 2000.                                                                     Looking after your financial life

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