APA GROUP — Fund Information / Factsheet 2012

Sep 13, 2012

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ASX RELEASE

14 September 2012

The Manager

ASX Market Announcements Australian Securities Exchange 4[th] Floor, 20 Bridge Street Sydney NSW 2000

Electronic Lodgement

Dear Sir or Madam

Company Announcement

I attach the following announcement for release to the market:

• 2012 Tax Return Guide

Yours sincerely

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Mark Knapman

Company Secretary

APA Group

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APA GROUP 2012 TAX RETURN GUIDE

ThIS GUIDE hAS BEEN PREPARED TO ASSIST YOU IN COmPLETING YOUR INCOmE TAX RETURN fOR ThE YEAR ENDED 30 JUNE 2012 USING YOUR APA GROUP ANNUAL TAX STATEmENT.

ThIS GUIDE IS NOT INTENDED TO BE, AND ShOULD NOT BE RELIED UPON AS, PERSONAL TAXATION OR fINANCIAL ADvICE.

APA Annual Tax Statement	1
APT Unfranked Dividend	2
APT & APTIT Tax Deferred	2
APTIT Trust Distribution	3
Taxable Income	3
Disposal of Your Stapled Securities	4
Cost Base of Units Calculation of Capital Gain/Loss	4 4

Since every person’s circumstances are different we have made a number of general assumptions which may, or may not be applicable to you. Where you require help relating to your particular tax position you should refer to the Australian Taxation Office’s TaxPack 2012 or seek independent taxation advice.

The general assumptions made in preparing this Guide include that you are:

• an individual securityholder;

• a resident of Australia for income tax purposes;

• holding your APA Group stapled securities for investment purposes rather than for resale at a profit and the Capital Gains Tax ( CGT ) provisions apply to you;

• using the “Tax return for individuals 2012” to complete your income tax return.

APA Group is a “stapled security” listed on the ASX consisting of units in Australian Pipeline Trust ( APT ) and units in APT Investment Trust ( APTIT ). These units can only be traded together. For tax purposes APT is a Division 6C “public trading” trust, which is taxed as if it were a company while APTIT is a Division 6 “pass through” trust.

The APA Group Annual Tax Statement provides details of the dividends and trust distributions to which you are entitled and these amounts should be used in preparing your 2012 income tax return. For tax purposes the APT dividends and APTIT trust distributions must be separately disclosed in your income tax return.

Below is a table showing the components of the APA Group Annual Tax Statement on a cents per security basis.

APA Annual Tax Statement

APA Group Annual Tax Statement 2011/12 Distributions Cents per Unit (cpu)

Payment Date	Record Date	APT Unfranked Dividend	APT Tax Deferred	APTIT Trust Distribution	APTIT Tax Deferred	Total APA 2010/11 Tax Statement
		(cpu)	(cpu)	(cpu)	(cpu)	(cpu)
15/09/2011	30/06/2011	3.4258	8.4073	*	2.6597	14.4928
15/03/2012	31/12/2011	4.5413	6.5154	3.4482	2.4951	17.0
14/09/2012	30/06/2012	^	^	3.0241	^	3.0241

• *- component recognised in the 20010/11 Annual Tax Statement

• ^ - component recognised in the 2012/13 Annual Tax Statement

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APT Unfranked Dividend

For an individual Australian resident taxpayer, dividends from APT are recognised on a receipts basis (at payment date). Your APA Group Annual Tax Statement includes the APT dividends paid to you in September 2011 and March 2012. These dividends were unfranked for tax purposes.

Amounts shown as Unfranked Dividends from APT on the Annual Tax Statement 11S should be included at Item 11S on the Tax return for individuals 2012.

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Where you have not provided your Tax File Number, income tax has been withheld from all unfranked dividends paid to you by APT at 46.5%. 11v This should be claimed as a credit in your income tax return by including the amount disclosed on the Annual Tax Statement at Item 11V.

APT & APTIT Tax Deferred

Your APA Group Annual Tax Statement includes tax deferred amounts in respect of your gross cash distribution from both APT and APTIT. Tax deferred amounts are recognised on a receipts basis (at payment date). Your APA Group Annual Tax Statement includes tax deferred distributions paid to you in September 2011 and March 2012.

The APT tax deferred amount represents a return of capital by APT. The APTIT tax deferred amount has arisen because the gross cash distribution from APTIT exceeds the taxable income of APTIT.

The tax deferred amount is not immediately taxable but will reduce the CGT cost base of the units held by you. Once the tax deferred distributions reduce your CGT cost base to nil, any additional tax deferred distributions will give rise to an immediate capital gain. However this gain may be reduced on account of the CGT 50% discount where units have been held for more than 12 months.

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APTIT Trust Distribution

For tax purposes the cash distribution from APTIT comprises both taxable trust income and tax deferred amounts. For an individual Australian resident taxpayer, the taxable trust income from APTIT is recognised for tax purposes on a present entitlement (at record date) and not on a receipts basis. Tax deferred amounts are recognised on a receipts basis (at payment date).

Your APA Group Annual Tax Statement includes the APTIT taxable trust income distributions paid to you in March 2012 and September 2012.

Taxable Income

Under the tax legislation, as a unitholder of APTIT, you are subject to tax on your proportionate share of the “net income” of APTIT which includes interest and other income.

Amounts shown as Trust Distribution from APTIT on the Annual Tax Statement should be included at Item 13U on the Tax return for individuals (supplementary section) 2012 and represent your share of the “net income” of APTIT for 2012. 13U

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Where you have not provided your Tax File Number, income tax has been withheld from 13R all Trust Distributions paid to you by APTIT at 46.5%. This should be claimed as a credit in your income tax return by including the amount disclosed on the Annual Tax Statement at Item 13R.

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Disposal of Your Stapled Securities

The following summary will help you to determine whether you have any liability for CGT if you have sold your stapled securities. You should however obtain your own independent tax advice where you have sold stapled securities.

For tax purposes the sale of an APA Group stapled security is treated as a disposal of a unit in APT and a unit in APTIT. Upon disposal of an APA Group stapled security, you will realise a capital gain if the consideration you receive exceeds the CGT cost base of the APT and APTIT units.

Cost Base of Units

Generally the cost base of your units is the amount you paid for them including the incidental costs of acquisition and disposal. The cost base will be reduced by any tax deferred distributions or capital returns previously made in respect of the units. Details of tax deferred distributions and previous capital returns are available from the “Financial Information” section of the APA Group website at www.apa.com.au.

For capital gains tax purposes, the cost of each APA Group stapled security and the consideration received on disposal of each APA Group stapled security will need to be apportioned between the unit in APT and the unit in APTIT on a reasonable basis. One possible method of apportionment is on the basis of an estimate of the relative net assets of APT and APTIT at the time you acquired your units. Details of relative net assets for APT and APTIT are available from the “Investor Relations” section of the APA Group website at www.apa.com.au.

Calculation of Capital Gain/Loss

Your capital gain or capital loss from the disposal of your APA Group stapled securities may be ascertained as follows:

• Capital Gains – A taxable capital gain is calculated as the excess of the sale proceeds received over the cost base of the APA Group stapled securities.

• Discount Capital Gains – Where the APA Group stapled securities have been held for more than 12 months, you may choose to reduce your taxable capital gain by the CGT discount of 50% for individuals.

• Capital Loss – A capital loss will comprise the excess of the reduced cost base of the APA Group stapled securities over the sale proceeds received.

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