Colonial Group Subordinated Notes

The Issuer is the holding company for the wealth management and insurance subsidiaries of the Commonwealth Bank of Australia, referred to in the Prospectus as the "Colonial Group". The Colonial Group is a diversified wealth management and insurance group with significant positions in the funds management, platforms, advice and insurance markets.

Colonial Notes will pay cumulative, quarterly, floating rate Interest until the Maturity Date or any earlier Redemption Date. Interest will be paid at rate equal to the 90 day bank bill rate plus a margin of 3.25% - 3.75% p.a.. For the first Interest Period, the rate will be the higher of 7.50% p.a. and the rate as calculated above.