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									2006 MMG Tax Statement Guide:
Essential information to help you complete
your 2006 Australian income tax return




 MACQUARIE MEDIA GROUP™1




                                 1. Trademark of Macquarie Bank Limited
                                          2006 MMG Tax Statement Guide 1
     Disclaimer

     The information in this annual report is given in good faith and derived from sources believed to be
     accurate at this date but no warranty of accuracy or reliability is given and no responsibility arising in
     any other way including by reason of negligence for errors or omissions is accepted by Macquarie
     Media Holdings Limited, Macquarie Media International Limited or Macquarie Media Management
     Limited or their respective officers, or any part of the Macquarie Bank Group.

     This Guide is not intended to be tax advice and investors should consult a professional tax adviser, if
     necessary, for tax advice required in connection with completion of tax returns.

     Macquarie Media Holdings Limited, Macquarie Media International Limited and members of the
     Macquarie Bank Group, including Macquarie Media Management Limited (the responsible entity of
     Macquarie Media Trust and manager of Macquarie Media Holdings Limited and Macquarie Media
     International Limited), do not guarantee any particular rate of return or the performance of MMG, nor
     do they guarantee the repayment of capital or the payment of income from MMG.
2   2006 MMG Tax Statement Guide
August 2006




Dear MMG Investor,
We are pleased to enclose your MMG Annual Tax Statement which should be read in
conjunction with this Tax Statement Guide. These contain information that will help you
complete your 2006 Australian income tax return.
Taxation information relevant to your investment in Macquarie Media Group (“MMG”) is
as follows

 SUMMARY
 1. An amount (shown on your MMG Annual Tax Statement) needs to be included
    as an assessable distribution in your 2006 Australian income tax return in relation
    to MMG. If tax was deducted from your distribution, you may be entitled to claim
    a credit or refund for that tax in your tax return. Part A of this Guide will assist
    you in relation to these matters.
 2. You may need to answer a question in your 2006 tax return asking whether you
    held an interest in a foreign investment fund (“FIF”). Please refer to Part B of this
    Guide in relation to this question.
 3. A distribution of shares in Macquarie Media International Limited (“MMIL”) was
    made on 8 March 2006. If you received that distribution, no capital gain should
    have arisen to you in respect of it for the reasons set out in Part C of this Guide.
    If you disposed of some or all of your investment in MMG on or prior to 30
    June 2006, Part C will assist you to reflect that disposal in your 2006 Australian
    income tax return in the appropriate way.

MMG is comprised of three entities listed on the Australian Stock Exchange:
Macquarie Media Holdings Limited (“MMHL”), Macquarie Media Trust (“MMT”) and
MMIL. Securities in the three entities are stapled together. A summarised structure of
MMG and its investments is illustrated below.

                                         Investors



               units                          shares                 shares
     Macquarie Media                Macquarie Media                  Macquarie Media
       Trust (MMT)               Holdings Limited (MMHL)       International Limited (MMIL)



                                       Investments




                                                                              2006 MMG Tax Statement Guide   1
                   The units in MMT and the shares in MMHL and MMIL cannot be traded separately and
                   can only be traded as stapled securities. MMT, MMHL and MMIL have a 30 June year
                   end.
                   Your MMG Tax Statement Guide has been prepared on the assumption that you are
                   an individual. If you are NOT an individual, the information in your MMG Tax Statement
                   Guide will still give you the information you need.
                   If you were not a resident of Australia at all times during 2005/2006, you will need to
                   decide whether you should lodge an Australian income tax return. If you do so, the
                   information in your MMG Tax Statement Guide will still assist you.
                   If you need further factual information please contact Liam Buckley (61 2 8232 9440
                   or, within Australia, 1800 811 745) of Macquarie Media Management Limited. This Tax
                   Statement Guide contains general taxation information and does not constitute tax
                   advice. Accordingly, it is recommended that all Security Holders should seek and rely
                   upon their own taxation advice in regard to their individual circumstances.
                   Yours sincerely,




                   Alex Harvey
                   Managing Director
                   Macquarie Media Group




2   2006 MMG Tax Statement Guide
Part A: Tax Assessable Income


Non-primary production income – item 12U on your MMG
Annual Tax Statement
TFN amounts withheld from MMG distributions – item 12R on
your MMG Annual Tax Statement
The amount at item 12U on your MMG Annual Tax Statement is a distribution of Non-
primary production income. It comprises Australian-sourced income, including interest
income, and it needs to be included in your 2006 Australian income tax return as
shown below.
If there is an amount at item 12R on your MMG Annual Tax Statement, it represents
TFN tax withheld from your MMT distributions (because you did not supply your TFN
or claim an exemption or, in certain circumstances, supply an ABN). If this amount has
not previously been refunded to you, you may claim a credit or refund for it by including
it in your 2006 Australian income tax return as shown below.

    Period Ended     Date Paid           Cents per      Gross          Tax         Tax        Tax-           Net
                                           Unit      Distribution   Assessable   Deducted   Deferred     Distribution
                                                                     Income                 Amount

                                                          $             $           $          $              $

    31 Dec 2005      16 Feb 2006           3.00        $AA.AA        $AA.AA       $AA.AA    $AA.AA         $AA.AA

    In-specie1       8 March 2006         52.00        $AA.AA                               $AA.AA         $AA.AA

    30 Jun 2006      21 Aug 2006          11.50        $AA.AA        $AA.AA       $AA.AA    $AA.AA         $AA.AA

    Total                                                            $AA.AA       $AA.AA

    Tax Return (Supplementary Section)                                 12U         12R

    Tax Statement Guide Page                                            X           X

1       The distribution on 8 March 2006 was not paid in money, but rather in the form of shares in MMIL. At that
        time your investment in MMG changed from being an investment in a double-stapled structure to being an
        investment in a triple-stapled structure.




                                                                                                   2006 MMG Tax Statement Guide   3
Part B: Foreign Investment Funds (FIF)


                   Reflecting your investment in your 2006 Australian Income Tax
                   Return
                   MMIL, being a company that is not a resident of Australia for Australian tax purposes,
                   is a foreign investment fund, or “FIF”. If you held any MMG stapled securities at 30
                   June 2006, you are regarded as holding an interest in a FIF (i.e. MMIL) for Australian
                   tax purposes.
                   Shares in MMIL were listed on the Australian Stock Exchange (“ASX”) at 30 June
                   2006 in a class of entities designated as “Media”. On that basis, it is considered that a
                   shareholder in MMIL was entitled to an exemption from FIF taxation under section 497
                   of the Income Tax Assessment Act 1936 for the year ended 30 June 2006.
                   If you are an Australian resident individual using TaxPack 2006 and the TaxPack 2006
                   supplement to do your 2006 income tax return, you:
                      will need to answer ‘Yes’ to the part of question 18 (supplementary section) that
                      asks if you had an interest in a FIF;
                      are not required to include any amount at label C of question 18 (FIF and FLP
                      income) in respect of MMIL.




                    IMPORTANT NOTE
                    Any investor in MMG that either individually or with associates had a 10% or greater interest
                    in MMG at any time should seek further assistance from MMG’s manager, Macquarie Media
                    Management Limited. If you are unsure whether you held such an interest, you should consult
                    your tax adviser.




4   2006 MMG Tax Statement Guide
Part C: Australian Capital Gains Tax on
disposals of MMG stapled securities

Do I have a capital gain or loss?
If you disposed of any or all of your MMG stapled securities in the year ended 30 June
2006, you need to address the tax consequences of that disposal. If you are using
TaxPack 2006, you will need to record any capital gain or loss on that disposal as you
work through question 17 of your 2006 income tax return (supplementary section).

Is my investment treated on revenue or capital account?
Many investors will hold their MMG stapled securities on capital account. This means
that gains or losses on disposals of those investments are dealt with solely under the
capital gains tax (“CGT”) provisions. The remainder of this Part C will assist you to
compute your CGT result on such a disposal.
In other circumstances, including where MMG stapled securities were held as part of
the assets of a business, the investment may have been held on revenue account.
If so, gains or losses on disposal would be dealt with under the general income or
deduction provisions of the tax law (under which no CGT discount is available). The
CGT provisions are still required to be considered. However, in the usual case no
further capital gain or loss would arise.
If you disposed of MMG stapled securities which you had held on revenue account,
you will have a revenue gain or loss which you will need to compute.
If you are not sure on what basis you held your MMG stapled securities (that is,
whether on revenue or capital account), you may wish to consult your tax adviser.

When do I recognise a capital gain or loss?
You will need to reflect in your Australian income tax return the CGT result of any
disposal of part or all of your MMG stapled securities.
The time of disposal for CGT purposes is the time of the contract to make the
disposal. If you entered into such a contract at any time in the year ended 30 June
2006 and you are an individual, and/or a taxpayer with a 30 June tax year end, who
was a resident of Australia for income tax purposes during the year ended 30 June
2006, you need to reflect the result in your 2006 Australian income tax return.

How do I calculate a capital gain or loss?
The remaining generalised statements, while not a complete description, may assist
you in computing the CGT result of any disposal of your MMG stapled securities. An
example calculation is provided on page 8. However, you should consult your tax
adviser for further information, if necessary.




                                                                           2006 MMG Tax Statement Guide   5
                   General comments
                   If you are an individual and in the year ended 30 June 2006 you sold, or entered into
                   a contract to sell, your MMG investment, then your CGT result in respect of that sale
                   should generally be as follows in respect of each of your units in MMT, your shares in
                   MMHL and (if relevant) your shares in MMIL:
                      if your sales proceeds exceeded your cost base (after reduction for any tax-deferred
                      amounts): the excess is your CGT gain. The CGT discount is not available to you
                      since you did not hold your investment for at least a year;
                      if your sales proceeds were less than your reduced cost base (after reduction
                      for any tax-deferred amounts): your CGT loss is the difference between the two
                      amounts.

                   One MMG stapled security constitutes a number of separate
                   assets
                   Up to 8 March 2006, an MMG stapled security consisted of one unit in MMT stapled
                   to one share in MMHL. For CGT purposes, a unit in MMT was a separate asset from a
                   share in MMHL.
                   From 7.00pm (Australian Eastern Standard Time) on 8 March 2006, a MMG stapled
                   security has comprised one unit in MMT, stapled to one share in MMHL and to one
                   share in MMIL. For CGT purposes, a unit in MMT, a share in MMHL, and a share in
                   MMIL are three separate assets.
                   If you disposed of your MMG stapled securities on or prior to 8 March 2006, you will
                   need to do two separate CGT calculations, one for your investments in each of MMT
                   and MMHL.
                   If you disposed of your MMG stapled securities between 9 March 2006 and 30 June
                   2006, you will need to do three separate CGT calculations, one for your investments in
                   each of MMT, MMHL and MMIL.
                   This means that you will need to split your acquisition cost and your sales proceeds
                   between units in MMT, shares in MMHL and (if relevant to you) shares in MMIL.

                   Splitting your acquisition cost and sales proceeds
                   a) Splitting your acquisition costs
                      If you acquired a MMG stapled security on 17 November 2005 by subscription of
                      $2.75, the allocation was $0.00001 to a share in MMHL and $2.74999 to a unit in
                      MMT.
                      If you acquired a MMG stapled security on 16 February 2006 under the DRP at an
                      issue price of $2.900742, the allocation was $0.126762 to a share in MMHL and
                      $2.773980 to a unit in MMT.
                      If you received a share in MMIL on 8 March 2006 as a distribution on a unit in MMT,
                      $0.52 of the cost base and reduced cost base of your unit in MMT was transferred
                      at that time to the share in MMIL (see “Tax-deferred distributions”).


6   2006 MMG Tax Statement Guide
   If you acquired your MMG stapled securities by purchase on the ASX, you will need
   to decide how much of your purchase price for each stapled security related to a
   unit in MMT, a share in MMHL and (if relevant) a share in MMIL. You may decide to
   use Appendix 1 as a guide in performing this allocation. If you received a distribution
   from MMT of shares in MMIL on 8 March 2006, an amount of $0.52 was transferred
   on that day out of the cost base and reduced cost base of each of your units in
   MMT and became the cost base and reduced cost base of each of your shares in
   MMIL (see “Tax-deferred distributions”).
b) Splitting your sales proceeds
   Regardless of how you acquired your MMG stapled securities, you will also need to
   split the sales proceeds into the part referable to the units in MMT, the part referable
   to the shares in MMHL and (if relevant to you) the part referable to the shares in
   MMIL. When you are deciding what a fair split is, you might choose to use the
   allocation shown in Appendix 1.

Tax-deferred distributions
Tax-deferred distributions received in respect of a unit (e.g. a unit in MMT) are generally
not assessable to tax when received. However, tax-deferred distributions reduce the
cost base and reduced cost base of the unit. If tax-deferred distributions are received
of such magnitude that the cost base of a unit is reduced to zero, further such receipts
would themselves constitute capital gains.
Parts of the half-yearly distributions made by MMG on 16 February 2006 and 21
August 2006 were tax-deferred.
In addition, on 8 March 2006 a tax-deferred distribution was made by MMT in the form
of an in-specie distribution of shares in MMIL. One share in MMIL was distributed in
respect of each unit in MMT.
The market value of the shares in MMIL when they were distributed was considered
by MMG’s manager, Macquarie Media Management Limited (MMML), to be $0.52 per
share. This means that there was a reduction at that time of $0.52 in the cost base
and the reduced cost base of each of your units in MMT.
If a tax-deferred distribution is received by an investor on a unit and it exceeds the cost
base of the unit, the investor is taken to have a capital gain. Assuming you acquired
your MMG stapled securities by subscription or by purchase on the ASX, MMG’s
manager, MMML, considers that no capital gain could have arisen in your case on the
receipt of a tax-deferred distribution up to 30 June 2006.
The operation of the CGT provisions is complex. You should consider reading the
Australian Taxation Office’s publications Personal investors guide to capital gains tax
2006 (relevant if you have invested only in shares, units, or managed funds) or Guide
to capital gains tax 2006 (relevant if you also have other types of CGT gains or losses)
and/or consider obtaining professional tax advice.




                                                                            2006 MMG Tax Statement Guide   7
     Inclusions in cost base
     Remember that incidental costs of acquisition and disposal (such as broker fees
     and stamp duty) should be included in the cost base and the reduced cost base of
     your units and shares. The allocation among the units and shares should be on a
     reasonable basis. Allocation in line with the allocation of the underlying acquisition cost
     or sales proceeds would normally be reasonable.

     Example
     Bree acquired 10,000 MMG stapled securities by subscription at $2.75 each on 17
     November 2005. Bree later received 10,000 shares in MMIL on 8 March 2006 when
     MMT distributed those shares. Bree did not participate in the DRP.
     Bree sold her 10,000 MMG stapled securities at $3.15 each on 22 June 2006. Bree
     did not incur any incidental costs of acquisition or sale. Bree held her MMG stapled
     securities on capital account. Bree follows Appendix 1 in allocating her sales proceeds
     among the elements of the MMG stapled securities.
     Bree’s CGT result is as follows:

                                                                                       MMT                MMHL                MMIL
                                                                                      units $            shares $            shares $
                                                     1
         Cost base at 17 November 2005                                              27,499.90                   0.10
         Cost base reduction in respect of 16 February 2006                            (88.07)
                                  2
         tax-deferred distribution
                                                               3
         Cost base reallocation on 8 March 2006                                      (5,200.00)                              5,200.00
                                                         4
         Cost base at sale on 22 June 2006                                          22,211.83                   0.10         5,200.00
         Sale proceeds5                                                             24,510.15             2,976.75           4,013.10
         Capital gain/(loss)6                                                        2,298.32             2,976.65           (1,186.90)

     Bree’s CGT result is a capital gain of $2,298.32 on the disposal of the MMT units and a
     capital gain of $2,976.65 on the disposal of the MMHL shares, against which Bree can
     offset a capital loss of $1,186.90 on the MMIL shares. In this case Bree is not entitled
     to the 50% CGT discount on the two capital gains because she had not held her MMG
     stapled securities for a year or more.
     1    Bree works this out from Appendix 2. For the MMT units it is 10,000 units at $2.74999 each and for the MMHL shares it is 10,000 at
          $0.00001 each.
     2    Bree gets the number of $88.07 from her 2006 MMG Annual Tax Statement. Alternatively, she could work it out using the information
          in Appendix 3, i.e. 0.880787 cents multiplied by her 10,000 units.
     3    Bree works out the amount of $5,200 from Appendix 3; it is 52 cents multiplied by her 10,000 units.
     4    These are the totals of the amounts in the preceding rows.
     5    Bree sold her 10,000 MMG stapled securities at $3.15 each, giving total proceeds of $31,500. Bree uses the information in Appendix
          1 to allocate this among the MMT units, the MMHL shares, and the MMIL shares. Bree goes to the row in that appendix which covers
          her sale date of 22 June 2006 (that row being for the period from 5 May 2006 to 29 June 2006) and allocates 77.81% of the $31,500
          to the MMT units, 9.45% of that amount to the MMHL shares, and 12.74% of that amount to the MMIL shares.
     6    For the MMHL shares and the MMT units, the capital gain is the excess of the sale proceeds over the cost base on sale on 22 June
          2006. For the MMIL shares, the capital loss should be the excess of the reduced cost base (for CGT purposes) over the sale proceeds.
          In the normal case, including that of Bree, the reduced cost base would be the same number as the cost base. Hence in this case the
          capital loss is the excess of the amount of $5,200 over the sale proceeds of $4,013.10.




8   2006 MMG Tax Statement Guide
Appendix 1


Breakdown of the value of a MMG stapled security into:
• the value of a unit in MMT;
• the value of a share in MMHL;
• from 8 March 2006, the value of a share in MMIL
                                               MMT          MMHL          MMIL
 17 November 2005 – 15 December 2005           95.61%        4.39%           -
 16 December 2005 – 30 December 2005           96.38%        3.62%           -
 31 December 2005 – 8 March 2006               95.63%        4.37%           -
 9 March 2006 – 30 March 2006                  76.94%        4.48%       18.58%
 31 March 2006 – 4 May 2006                    77.65%        3.60%       18.75%
 5 May 2006 – 29 June 2006                     77.81%        9.45%       12.74%
 30 June 2006                                  78.43%        8.56%       13.01%

This breakdown reflects MMML‘s estimate of the split of value among the elements of
a MMG stapled security.




                                                                      2006 MMG Tax Statement Guide   9
Appendix 2


             MMG Issue Prices
             Split of MMG issue prices (to 30 June 2006) between MMT, MMHL and MMIL.

              Date of Issue           Type of Issue           Issue Price per          Issue Price of Unit         Issue Price of Share          Issue Price of
                                                             Stapled Security               in MMT                      in MMHL                  Share in MMIL

                                                               $            %            $             %              $             %            $          %

              17 November 2005        Initial Allotment *   2.750000     100.00      2.749990      99.999996      0.000004      0.000004        N/A

              16 February 2006        DRP                   2.900742     100.00      2.773980      95.630000      0.126762      4.370000        N/A

             * These securities were issued on an instalment basis. The initial instalment was $2.75 per stapled security, with $0.00001 allocated to a
               share in MMHL and $2.74999 allocated to a unit in MMT. The second and final instalment will be due and payable in November 2006
               and will be $2 per stapled security, which will all be allocated to the unit in MMT.




10   2006 MMG Tax Statement Guide
Appendix 3


Tax-deferred distributions made by MMG
Tax-deferred distributions made by MMT
(up to 30 June 2006)

         Date              Tax-deferred distribution made per unit
  16 February 2006                         0.880787 cents
  8 March 2006                           52.000000 cents *
* Non-cash distribution, i.e. in specie distribution of shares in MMIL.



Tax-deferred distributions made by MMHL
(up to 30 June 2006)
MMHL did not make any tax-deferred distributions up to 30 June 2006.


Tax-deferred distributions made by MMIL
(up to 30 June 2006)
MMIL did not make any tax-deferred distributions up to 30 June 2006.




                                                                          2006 MMG Tax Statement Guide   11
Appendix 4


                    History of MMG distributions to date per stapled security
                        16 February 2006                     3.000000 cents                      per stapled security1
                                                             Australian sourced income
                                                             (other than dividends)                 2.119213 cents
                                                             Tax-deferred                           0.880787 cents
                                                                                                    3.000000 cents
                        21 August 2006                       11.500000 cents                     per stapled security1
                                                             Australian sourced income
                                                             (other than dividends)                 4.125244 cents
                                                             Tax-deferred                           7.374756 cents
                                                                                                   11.500000 cents

                    The 8 March 2006 distribution by MMT of shares in MMIL is not shown above.
                    1    All of this distribution was paid by MMT.




12   2006 MMG Tax Statement Guide
2006 MMG Tax Statement Guide   13
Corporate Directory


                    Macquarie Media Group
                    Level 7, 1 Martin Place
                    SYDNEY NSW 2000
                    Australia

                    Telephone (Australia):       1800 815 745
                    Telephone (International):   +61 2 8232 9440
                    Email:                       mmg@macquarie.com.au
                    Website:                     www.macquarie.com.au/mmg



                    Registry
                    Computershare Investor Services Pty Ltd
                    GPO Box 7045
                    SYDNEY NSW 2001
                    Australia

                    Telephone (Australia):     1300 855 080
                    Telephone (International): +61 3 9415 4000
                    Facsimile:                 +61 2 8235 8150




14   2006 MMG Tax Statement Guide

								
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