Tax Information

As a Securityholder in RCL Group (ASX: RLG), you own shares in an Australian public company, RCL Group (RCLGL or ‘the Company’) and units in an Australian registered managed investment scheme, RCL Group Trust (RCLGT or ‘the Trust’). The share in RCLGL and the unit in RCLGT form a "stapled security", the components of which cannot be separately dealt with or traded. Each share in RCLGL and each unit in RCLGT remain separate assets for Australian capital gains tax purposes.

Relative Cost Bases of Stapled Securities

To calculate the cost base for each separate capital gains tax asset that comprises a RCL Group stapled security, split the acquisition cost of each stapled security between the two capital gains tax assets. This split needs to be done on a reasonable basis. While it is for Securityholders to decide how to split the acquisition cost of the stapled securities, Securityholders might decide to use the relative net assets of RCLGL and RCLGT at the date closest to the date of acquisition of the Securityholder’s stapled securities to do this.

The relative net assets of RCLGL (Company) and RCLGT (Trust) at relevant dates are set out below.

Proportion of Net Assets

Distribution Statement, Annual Tax Statement and Tax Guide

RLG Securityholders receive a Distribution Statement each time RLG pays a distribution.

Where RLG’s distributions for a financial year include any taxable components, RLG Securityholders will also receive an Annual Tax Statement at the same time they receive the Distribution Statement relating to the Final Distribution for that financial year. The purpose of the Annual Tax Statement is to provide Securityholders with the information that Securityholders require in order to prepare their Australian income tax return for the relevant financial year.

In addition, RLG provides all Securityholders with a Taxation Statement Guide once a year. The purpose of this Guide is to provide you, as a Securityholder in RLG, with general information regarding the tax implications arising from the receipt of the relevant year's distributions from RLG and the tax implications associated with any disposal of RLG stapled securities.

2006/07 Information

The 2006/07 interim and final distributions paid by RLG include the following components:

The information on your 2006/07 interim and final distribution statements will also be relevant if you dispose of any of your securities in RLG.

The 2006/07 Taxation Statement Guide is intended to assist Securityholders in meeting their Australian income tax compliance obligations and has been prepared on the basis of taxation laws prevailing as at August 2007. Securityholders are not entitled to rely on this information in relation to managing their specific tax affairs and should obtain their own tax advice in relation to the taxation implications associated with their investment in RLG.

Click here for a copy of the 2006/07 Taxation Statement Guide

2007/08 Information

The 2007/08 interim and final distributions paid by RLG include the following components:

The information on your 2007/08 interim and final distribution statements will also be relevant if you dispose of any of your securities in RLG.

The 2007/08 Taxation Statement Guide is intended to assist Securityholders in meeting their Australian income tax compliance obligations and has been prepared on the basis of taxation laws prevailing as at August 2008. Securityholders are not entitled to rely on this information in relation to managing their specific tax affairs and should obtain their own tax advice in relation to the taxation implications associated with their investment in RLG. 

Click here for a copy of the 2007/08 Taxation Statement Guide

Babcock & Brown Residential Land Partners Services Limited, the Responsible Entity of RCL Group Trust, considers that RCL Group Trust is a managed investment trust for the purposes of section 12-395 of Schedule 1 to the Taxation Administration Act 1953, in relation to its income year ending 30 June 2008, and gives the following notice to you as recipient of the payment outlined above.

Further Queries

Should you have any queries relating to your specific Securityholding or Distribution Statement you can contact our Security Registry, Link Market Services on:

Telephone: 1800 645 238 (within Australia) / +61 2 8280 7586 (outside Australia)

Email: registrars@linkmarketservices.com.au

Website: Link Market Services