1 00:00:00,240 --> 00:00:02,400 Speaker 1: Why you might owe money to the ATO this year, 2 00:00:02,560 --> 00:00:16,200 Speaker 1: and how to avoid it in the future. Good morning everyone. 3 00:00:16,280 --> 00:00:19,040 Speaker 1: This is Canna Campbell here financial planner, and welcome back 4 00:00:19,079 --> 00:00:22,720 Speaker 1: to Sugar Mama's Fireplay, the podcast where Weird Night your 5 00:00:22,840 --> 00:00:27,440 Speaker 1: financial independence, fuel your early retirement goals and dreams, and 6 00:00:27,840 --> 00:00:33,760 Speaker 1: together I help you create sustainable financial independence for life. Today, 7 00:00:33,800 --> 00:00:36,000 Speaker 1: we're talking about something that's popping up all over social 8 00:00:36,040 --> 00:00:39,600 Speaker 1: media right now, especially from our younger generations. That is 9 00:00:39,720 --> 00:00:44,640 Speaker 1: gen Z and that is, instead of getting a nice, 10 00:00:44,720 --> 00:00:48,960 Speaker 1: juicy tax refund this year like they used to, thousands 11 00:00:49,080 --> 00:00:51,320 Speaker 1: of people are discovering that they actually owe money to 12 00:00:51,320 --> 00:00:54,280 Speaker 1: the ATO, and for some it's not just a couple 13 00:00:54,320 --> 00:00:58,640 Speaker 1: of hundred dollars, it's actually thousands of dollars. Now, I 14 00:00:58,720 --> 00:01:01,280 Speaker 1: want to be really clear, Yeah, this is not about 15 00:01:01,520 --> 00:01:08,080 Speaker 1: pointing fingers, shaming or belittling anyone whatsoever. In fact, I 16 00:01:08,120 --> 00:01:10,759 Speaker 1: actually really want to commend the people for speaking up 17 00:01:10,880 --> 00:01:16,080 Speaker 1: about this issue online because by them sharing their experiences 18 00:01:16,080 --> 00:01:20,120 Speaker 1: and even their frustrations, they're opening up a conversation that 19 00:01:20,160 --> 00:01:24,240 Speaker 1: can help everyone in every generation, and that is to 20 00:01:24,400 --> 00:01:28,840 Speaker 1: better understand how our tax system works, why this has 21 00:01:28,959 --> 00:01:33,200 Speaker 1: happened or might happen, and most importantly, how to actually 22 00:01:33,319 --> 00:01:37,959 Speaker 1: plan in a practical, strategic, even proactive manner so that 23 00:01:38,000 --> 00:01:43,360 Speaker 1: this never blindsides you or anyone else ever again. So 24 00:01:43,720 --> 00:01:46,679 Speaker 1: in this episode, we're going to cover why you might 25 00:01:46,720 --> 00:01:49,400 Speaker 1: suddenly owe money to the ATO instead of getting a refund, 26 00:01:50,280 --> 00:01:54,560 Speaker 1: the common traps, why this is actually happening, how to 27 00:01:54,720 --> 00:01:58,840 Speaker 1: pay back this debt, this tax debt, without wrecking your 28 00:01:58,920 --> 00:02:03,440 Speaker 1: financial journey, and most importantly, because I'm a proactive type 29 00:02:03,440 --> 00:02:07,440 Speaker 1: of person and solution based, the practical strategies that are 30 00:02:07,440 --> 00:02:10,200 Speaker 1: going to prevent this from ever happening again for you 31 00:02:10,919 --> 00:02:13,680 Speaker 1: year after year. So by the end of this episode, 32 00:02:13,840 --> 00:02:16,320 Speaker 1: I'm hoping that not only will you understand why this happens, 33 00:02:16,320 --> 00:02:19,640 Speaker 1: but you'll have a brilliant game plan in place to 34 00:02:19,760 --> 00:02:23,079 Speaker 1: stay in control and even to turn this into a 35 00:02:23,160 --> 00:02:28,800 Speaker 1: chance to improve your overall financial literacy and resilience. So 36 00:02:29,520 --> 00:02:32,400 Speaker 1: why is this happening? And if you just jump on TikTok, 37 00:02:32,400 --> 00:02:35,840 Speaker 1: you'll see it's going it's just blown up. Now you've 38 00:02:36,120 --> 00:02:39,280 Speaker 1: suddenly So what's happening is people have suddenly found themselves 39 00:02:39,280 --> 00:02:41,720 Speaker 1: with a tax bill instead of a tax refund. And 40 00:02:42,040 --> 00:02:44,880 Speaker 1: of course when this happens, it's natural to panic. But 41 00:02:44,960 --> 00:02:48,720 Speaker 1: before we get into fixing it, can we understand first 42 00:02:48,960 --> 00:02:51,920 Speaker 1: why it's happening in the first place. So from what 43 00:02:52,080 --> 00:02:57,079 Speaker 1: I've seen and what many accountants are saying, the biggest 44 00:02:57,160 --> 00:03:02,560 Speaker 1: culprits are HEX and help DEA and the indexation and 45 00:03:02,639 --> 00:03:06,160 Speaker 1: of course under withholding. So if you have HEX or 46 00:03:06,200 --> 00:03:10,560 Speaker 1: HELP debt, the ATO requires repayments once your income hits 47 00:03:10,600 --> 00:03:13,560 Speaker 1: a certain threshold. Now this year, I think it was 48 00:03:13,600 --> 00:03:17,800 Speaker 1: around about fifty one thousand dollars. But your employer can 49 00:03:17,880 --> 00:03:20,920 Speaker 1: only take out those repayments if they actually know that 50 00:03:21,000 --> 00:03:24,040 Speaker 1: you have the HEX debt in the first place. So 51 00:03:24,160 --> 00:03:26,440 Speaker 1: if you didn't tell them, or you changed jobs and 52 00:03:26,480 --> 00:03:29,799 Speaker 1: you didn't update your declaration, you may have actually been 53 00:03:29,960 --> 00:03:34,240 Speaker 1: under taxed all financial year. Add this to the recent 54 00:03:34,400 --> 00:03:37,080 Speaker 1: indexation of seven point one percent, which has been the 55 00:03:37,120 --> 00:03:42,080 Speaker 1: highest in decades, and then suddenly your balance has jumped 56 00:03:42,280 --> 00:03:45,400 Speaker 1: and your payments simply weren't keeping up. Hence you get 57 00:03:45,400 --> 00:03:48,840 Speaker 1: a tax bill. So that's the biggest culprit. The second culprit, 58 00:03:49,240 --> 00:03:52,240 Speaker 1: which is shortly behind it, is the multiple jobs and 59 00:03:52,280 --> 00:03:56,760 Speaker 1: the whole tax free threshold trap. So if you work 60 00:03:57,120 --> 00:04:01,040 Speaker 1: two or maybe three or four or five jobs, only 61 00:04:01,200 --> 00:04:04,200 Speaker 1: one of them is allowed to have the tax free 62 00:04:04,240 --> 00:04:08,520 Speaker 1: threshold applied. If both jobs or all of your jobs 63 00:04:08,840 --> 00:04:12,080 Speaker 1: have this tax free threshold applied, you won't have enough 64 00:04:12,160 --> 00:04:17,279 Speaker 1: tax withheld overall. Now, it might feel great in your weekly, fortnight, 65 00:04:17,279 --> 00:04:19,599 Speaker 1: little monthly pay packet, but it's going to smack you 66 00:04:19,640 --> 00:04:21,080 Speaker 1: in the face at the end of the financial year 67 00:04:21,120 --> 00:04:24,240 Speaker 1: when you do your taxes, because the ATO haven't been 68 00:04:24,240 --> 00:04:26,440 Speaker 1: able to access and take the right amount of tax 69 00:04:26,480 --> 00:04:30,520 Speaker 1: through the financial year, hence a whopping, great big tax bill. Then, 70 00:04:30,560 --> 00:04:33,240 Speaker 1: of course there is a trap of the side hustle income. 71 00:04:33,760 --> 00:04:36,920 Speaker 1: You know, a lot of people have picked up freelancing work. 72 00:04:36,960 --> 00:04:40,800 Speaker 1: They're part of the gig economy. They've got like online businesses, 73 00:04:41,160 --> 00:04:42,800 Speaker 1: you know, doing lots of little things to help bring 74 00:04:42,800 --> 00:04:46,160 Speaker 1: in extra money. And that is honorable, that is brilliant, 75 00:04:46,200 --> 00:04:47,960 Speaker 1: that is great. That is how we are all keeping 76 00:04:47,960 --> 00:04:50,120 Speaker 1: our heads above water with such an expensive world right now. 77 00:04:50,200 --> 00:04:54,720 Speaker 1: But here's the catch. All that extra income is taxable, 78 00:04:55,360 --> 00:04:58,680 Speaker 1: and no one's taking tax out of it for you. 79 00:04:59,160 --> 00:05:01,960 Speaker 1: If you don't go in set the money aside yourself, 80 00:05:02,080 --> 00:05:04,960 Speaker 1: it's so easy to get caught. This is where I'm 81 00:05:04,960 --> 00:05:07,200 Speaker 1: trying to explain to you, it is the onus. The 82 00:05:07,240 --> 00:05:11,480 Speaker 1: responsibility comes on you to set aside and take away 83 00:05:11,480 --> 00:05:14,160 Speaker 1: that tax money and also make sure it's the right amount. 84 00:05:14,480 --> 00:05:16,400 Speaker 1: The ATO can't do this for you when it's a 85 00:05:16,440 --> 00:05:19,880 Speaker 1: side hustle income. And then the final reason why this 86 00:05:20,040 --> 00:05:23,560 Speaker 1: people are getting stuck is they haven't made any changes 87 00:05:23,600 --> 00:05:26,720 Speaker 1: after a pay rise. So if you've had a salary 88 00:05:26,760 --> 00:05:30,279 Speaker 1: increase and you didn't review your tax with holding form 89 00:05:30,880 --> 00:05:34,839 Speaker 1: or your details weren't updated, you may have not had 90 00:05:34,920 --> 00:05:37,120 Speaker 1: again the right amount of tax taken out for your 91 00:05:37,160 --> 00:05:40,600 Speaker 1: new tax income level. Now the important thing is to 92 00:05:40,880 --> 00:05:44,280 Speaker 1: remember here is it isn't about you know you've done 93 00:05:44,360 --> 00:05:47,839 Speaker 1: something wrong. Nothing has been done wrong at all, and 94 00:05:47,880 --> 00:05:51,040 Speaker 1: you certain haven't been naughty. But it's just about I guess, 95 00:05:51,160 --> 00:05:54,360 Speaker 1: not being aware of how all these little small like 96 00:05:54,520 --> 00:05:57,240 Speaker 1: life admin over sights or changes in your work situation 97 00:05:57,680 --> 00:06:01,920 Speaker 1: can actually snowball into to a tax bill, a big 98 00:06:01,960 --> 00:06:07,280 Speaker 1: tax bill over time throughout the financial year. So why 99 00:06:07,440 --> 00:06:10,520 Speaker 1: does this matter when it comes to financial literacy? You see, 100 00:06:10,760 --> 00:06:15,560 Speaker 1: when something like this happens, it's so tempting to be embarrassed, 101 00:06:15,920 --> 00:06:21,120 Speaker 1: be ashamed, upset, frustrated, even angry, but here's the truth. 102 00:06:21,839 --> 00:06:26,440 Speaker 1: These are the beautiful moments that actually are opportunities for growth, 103 00:06:27,120 --> 00:06:31,560 Speaker 1: for reflection and to step up, step right up, and 104 00:06:31,600 --> 00:06:36,960 Speaker 1: take responsibility and ownership and make sure that you never 105 00:06:37,040 --> 00:06:39,840 Speaker 1: repeat history ever again. You learn from your mistakes. That's 106 00:06:39,880 --> 00:06:44,120 Speaker 1: how we become smarter, more resilient people. And this opportunity 107 00:06:44,440 --> 00:06:47,159 Speaker 1: what's happening here for people getting these tax bills is 108 00:06:47,720 --> 00:06:50,279 Speaker 1: they will force us, if we're willing to do the 109 00:06:50,320 --> 00:06:53,240 Speaker 1: work to understand how the tax system actually does work 110 00:06:53,320 --> 00:06:55,719 Speaker 1: us and how to work around it in a legal manner. 111 00:06:56,000 --> 00:06:59,760 Speaker 1: It also shows us the importance of actually forward planning 112 00:07:00,680 --> 00:07:04,920 Speaker 1: our cash flow and our financial responsibilities. And it's also 113 00:07:05,080 --> 00:07:08,120 Speaker 1: a reminder that your pay slip it isn't actually always 114 00:07:08,120 --> 00:07:10,400 Speaker 1: telling us the full story. We can't rely on that 115 00:07:10,640 --> 00:07:14,800 Speaker 1: as fact as truth. You know, that is a guide, 116 00:07:14,880 --> 00:07:18,760 Speaker 1: it's not set in stone. So the fact that gen 117 00:07:18,880 --> 00:07:22,640 Speaker 1: Z are talking about this openly online is really powerful. 118 00:07:22,640 --> 00:07:26,880 Speaker 1: And because financial literacy grows when we share stories, mistakes 119 00:07:27,280 --> 00:07:31,000 Speaker 1: and lessons learned, this is really important. I hope this 120 00:07:31,080 --> 00:07:35,720 Speaker 1: trend of sharing over sharing even continues. So how do 121 00:07:35,800 --> 00:07:39,640 Speaker 1: we pay back tax when we have a tax debt? Now, 122 00:07:39,840 --> 00:07:41,680 Speaker 1: if you do have a bill. You're one of those 123 00:07:41,680 --> 00:07:43,680 Speaker 1: people going yep, that was me. I got angry when 124 00:07:43,720 --> 00:07:45,840 Speaker 1: I thought I was getting a tax refund and then 125 00:07:45,880 --> 00:07:47,840 Speaker 1: I realized I owed two and a half thousand dollars. 126 00:07:48,360 --> 00:07:50,120 Speaker 1: I need to do something about it. What to do right? 127 00:07:50,200 --> 00:07:52,520 Speaker 1: This is where we're going to get practical. The most 128 00:07:52,560 --> 00:07:55,800 Speaker 1: important thing to do is do not ignore it. I 129 00:07:55,840 --> 00:07:58,760 Speaker 1: know you want to. You know probably just crushed a 130 00:07:58,760 --> 00:08:00,720 Speaker 1: few of your goals for this year thinking you want 131 00:08:00,760 --> 00:08:02,200 Speaker 1: to pay this. I can't go on holiday, or I 132 00:08:02,200 --> 00:08:04,280 Speaker 1: can't buy myself this or that until I've paid this off. 133 00:08:05,160 --> 00:08:07,040 Speaker 1: That's the truth. That's the lesson we need to learn. 134 00:08:07,040 --> 00:08:10,440 Speaker 1: So just you don't ignore it. The first thing I 135 00:08:10,480 --> 00:08:14,800 Speaker 1: recommend you do is call the ATO, be upfront and 136 00:08:15,040 --> 00:08:20,480 Speaker 1: explain your situation human to human. Now, the ATO will 137 00:08:20,600 --> 00:08:24,400 Speaker 1: work with you on this. They want their tax money 138 00:08:24,440 --> 00:08:27,080 Speaker 1: repaid and they would much prefer to put you on 139 00:08:27,120 --> 00:08:30,600 Speaker 1: a plan than having to chase you for months. It's 140 00:08:30,680 --> 00:08:34,840 Speaker 1: in their interests to have something that's practical and affordable 141 00:08:35,000 --> 00:08:37,240 Speaker 1: and eventually get the monkey off your back and get 142 00:08:37,240 --> 00:08:40,600 Speaker 1: that money back. So you need to go on a 143 00:08:40,720 --> 00:08:45,640 Speaker 1: payment plan. Now, this is where your repayments are spread 144 00:08:45,679 --> 00:08:48,360 Speaker 1: over time. They can be weekly, fortnightly, or monthly, but 145 00:08:48,679 --> 00:08:50,920 Speaker 1: you can actually start to budget for this, and you're 146 00:08:51,080 --> 00:08:55,280 Speaker 1: essentially budgeting to pay off your debt, which can really 147 00:08:55,320 --> 00:09:00,800 Speaker 1: take I guess the frustration, the pain, the disappointment of 148 00:09:00,840 --> 00:09:02,800 Speaker 1: this because you can then say, okay, well, I'll stick 149 00:09:02,840 --> 00:09:04,360 Speaker 1: to this payment plan and then you know, I can 150 00:09:04,400 --> 00:09:05,760 Speaker 1: see light at the end of the tunnel, I'll be 151 00:09:05,800 --> 00:09:08,120 Speaker 1: back on my on my way again. And of course 152 00:09:08,120 --> 00:09:11,120 Speaker 1: you can also make ad hoc lumps some payments. If 153 00:09:11,160 --> 00:09:15,200 Speaker 1: you get some extra income a bonus, or you know, 154 00:09:15,240 --> 00:09:19,120 Speaker 1: you sell something, or you know you get given some money, 155 00:09:19,160 --> 00:09:21,400 Speaker 1: even throw it at the debt, throw it out of 156 00:09:21,440 --> 00:09:24,120 Speaker 1: the debt as a priority. You don't want to be 157 00:09:24,200 --> 00:09:26,920 Speaker 1: chasing your tail and enjoy that that light at the 158 00:09:26,960 --> 00:09:29,600 Speaker 1: end of the tunnel comes so much sooner and faster. 159 00:09:29,720 --> 00:09:32,240 Speaker 1: By doing that, you know it will feel good, it 160 00:09:32,280 --> 00:09:36,360 Speaker 1: will feel responsible, and you'll be able to look beyond 161 00:09:36,400 --> 00:09:37,720 Speaker 1: this and think, hey, what am I going to do 162 00:09:37,840 --> 00:09:40,640 Speaker 1: going forward? And of course, as I said on that 163 00:09:40,720 --> 00:09:43,000 Speaker 1: topic of chasing your tail, you've got to make sure 164 00:09:43,040 --> 00:09:46,120 Speaker 1: at the same time you stay on top of your 165 00:09:46,200 --> 00:09:50,160 Speaker 1: current or even new tax obligations. The last thing you 166 00:09:50,200 --> 00:09:52,480 Speaker 1: wanted to do is fall into the trap of paying 167 00:09:52,679 --> 00:09:57,320 Speaker 1: last year's tax bill while underpaying this year's tax You know, 168 00:09:57,400 --> 00:09:59,920 Speaker 1: that is how so many people get stuck in this 169 00:10:00,280 --> 00:10:04,040 Speaker 1: never ending loop of owing money for the last financial 170 00:10:04,080 --> 00:10:07,319 Speaker 1: year but also owing money this financial year. You want 171 00:10:07,360 --> 00:10:09,400 Speaker 1: to be ahead of the game, and I'll share with 172 00:10:09,440 --> 00:10:13,560 Speaker 1: you some tips and ideas, and of course go once 173 00:10:13,600 --> 00:10:16,560 Speaker 1: you've gone and spoken to the ATO, go back and 174 00:10:16,640 --> 00:10:21,640 Speaker 1: check for any missed deductions. Compare last year's return and 175 00:10:21,720 --> 00:10:25,400 Speaker 1: a year before that, because there is a possibility that 176 00:10:25,480 --> 00:10:29,400 Speaker 1: you may have missed claiming something legitimate, like a work 177 00:10:29,440 --> 00:10:33,199 Speaker 1: related expense that actually could actually reduce how much money 178 00:10:33,240 --> 00:10:36,320 Speaker 1: you owe to the ATO. You might actually be pleasantly 179 00:10:36,360 --> 00:10:38,840 Speaker 1: surprised and well, god, I forgot about my income protection 180 00:10:38,920 --> 00:10:41,160 Speaker 1: I can claim, or gosh, I forgot I have a 181 00:10:41,200 --> 00:10:43,600 Speaker 1: marginal line. I forgot that interest, or yes, I've got 182 00:10:43,600 --> 00:10:45,840 Speaker 1: that receipt for where I donated some money to charity. 183 00:10:45,840 --> 00:10:48,920 Speaker 1: Why is that not showing? You know, it is quite 184 00:10:49,000 --> 00:10:52,720 Speaker 1: possible that with our busy, hectic, easily destructible lives, that 185 00:10:52,720 --> 00:10:55,880 Speaker 1: we've forgotten some of those deductions, and by cross referencing 186 00:10:55,880 --> 00:10:58,640 Speaker 1: against your last year's return, or even you know, going back, 187 00:10:58,679 --> 00:11:02,480 Speaker 1: say three or four years, you'll find something that you 188 00:11:02,679 --> 00:11:06,200 Speaker 1: can actually claim and reduce that money that you owe 189 00:11:06,280 --> 00:11:10,000 Speaker 1: the ATO. So how do we avoid this in the future. 190 00:11:10,000 --> 00:11:11,760 Speaker 1: And this is what I'm really excited about sharing with you, 191 00:11:12,240 --> 00:11:16,680 Speaker 1: so we can turn this frustrating situation into a permanent win. 192 00:11:16,920 --> 00:11:21,640 Speaker 1: I genuinely believe this. So what I recommend you do, 193 00:11:21,679 --> 00:11:23,800 Speaker 1: and these are the things that I follow myself as 194 00:11:23,800 --> 00:11:26,800 Speaker 1: someone who has multiple sources of income. I'm self employed 195 00:11:26,800 --> 00:11:29,640 Speaker 1: and my income can really be very volatile. I've got 196 00:11:29,679 --> 00:11:30,920 Speaker 1: to be really ahead of the game when it comes 197 00:11:30,960 --> 00:11:33,480 Speaker 1: to managing my tax So these are the things that 198 00:11:33,559 --> 00:11:37,480 Speaker 1: I do and highly recommend. Number one, keep your details 199 00:11:37,600 --> 00:11:40,280 Speaker 1: up to date. Always make sure that obviously your tax 200 00:11:40,280 --> 00:11:43,680 Speaker 1: file number is correct and that declaration has been completed, 201 00:11:44,040 --> 00:11:48,240 Speaker 1: particularly when you start a new job or you change jobs. 202 00:11:48,360 --> 00:11:50,480 Speaker 1: Even things like getting a promotion and a pay rise, 203 00:11:50,559 --> 00:11:53,400 Speaker 1: make sure everything is up to date. Second thing I 204 00:11:53,440 --> 00:11:56,800 Speaker 1: recommend is making sure you declare any hex or help 205 00:11:56,840 --> 00:11:59,640 Speaker 1: debt that you may have. Now. This will ensure that 206 00:11:59,679 --> 00:12:03,840 Speaker 1: you're in employer withholds the right repayments from your tax 207 00:12:04,559 --> 00:12:07,600 Speaker 1: so that you can see that debt coming down regardless 208 00:12:07,600 --> 00:12:10,440 Speaker 1: of your tax debt. Then I recommend that you set 209 00:12:10,559 --> 00:12:15,480 Speaker 1: the tax free threshold correctly, which means only your main 210 00:12:15,600 --> 00:12:19,280 Speaker 1: job you'd have this applied. That's it, just the one. 211 00:12:19,320 --> 00:12:23,080 Speaker 1: You can't use it anywhere else. A great hack that 212 00:12:23,120 --> 00:12:27,199 Speaker 1: I also recommend is having a separate savings account for 213 00:12:27,280 --> 00:12:31,560 Speaker 1: your tax money. This is particularly valuable if you're someone 214 00:12:31,600 --> 00:12:34,600 Speaker 1: like me that has multiple jobs or site hustles, because 215 00:12:34,640 --> 00:12:37,600 Speaker 1: you can move a certain percentage of each payment every 216 00:12:37,600 --> 00:12:41,000 Speaker 1: time you get paid into this account. At the moment 217 00:12:41,080 --> 00:12:44,040 Speaker 1: you are paid, you are removing the temptation to spend 218 00:12:44,040 --> 00:12:46,599 Speaker 1: that and it means, yes, you may not accounted for 219 00:12:46,679 --> 00:12:49,679 Speaker 1: the exact dollar amount, but at least you'll have you know, 220 00:12:50,000 --> 00:12:52,600 Speaker 1: ninety percent of that tax money set aside ready to go. 221 00:12:52,760 --> 00:12:55,360 Speaker 1: But of course, always overestimate how much tax if you 222 00:12:55,400 --> 00:12:57,280 Speaker 1: want to play it safe, which is what I personally do. 223 00:12:58,080 --> 00:13:02,679 Speaker 1: Another great strategy is to consider a pay as you 224 00:13:02,760 --> 00:13:06,480 Speaker 1: go tax installments. So this is where you can actually 225 00:13:06,520 --> 00:13:09,559 Speaker 1: opt to pay your tax monthly instead of having to 226 00:13:09,600 --> 00:13:12,600 Speaker 1: pay it, say quarterly, or even like at the end 227 00:13:12,679 --> 00:13:15,679 Speaker 1: of the financial year, which can be you know, a 228 00:13:15,760 --> 00:13:19,280 Speaker 1: large tablet to swallow. One thing I actually do as 229 00:13:19,280 --> 00:13:22,120 Speaker 1: well is I pre pay my tax, which I know 230 00:13:22,320 --> 00:13:24,040 Speaker 1: I sound like a bit of a goody goody twoshoes, 231 00:13:24,080 --> 00:13:26,960 Speaker 1: but it's something I actually really enjoy doing. So when 232 00:13:27,000 --> 00:13:30,640 Speaker 1: I get paid, I will actually you know, get the 233 00:13:30,679 --> 00:13:33,280 Speaker 1: money comes into my business account. I pay myself a 234 00:13:33,320 --> 00:13:36,559 Speaker 1: salary through my drip feeds technique, but then I will also, 235 00:13:36,720 --> 00:13:39,600 Speaker 1: using the biller codes, pre pay that money to the AHO, 236 00:13:39,679 --> 00:13:42,480 Speaker 1: so not even using a separate savings account always sometimes 237 00:13:42,480 --> 00:13:44,280 Speaker 1: I'm actually paying it directly to the ATO, so it 238 00:13:44,360 --> 00:13:47,760 Speaker 1: sits as a credit in the tax portal. So when 239 00:13:47,760 --> 00:13:50,440 Speaker 1: my accountant emails me to say, okay, this is what 240 00:13:50,480 --> 00:13:54,640 Speaker 1: your own in BASS and your activity statements, it's nine 241 00:13:54,640 --> 00:13:56,640 Speaker 1: times out of ten it's actually already been paid, which 242 00:13:56,679 --> 00:14:00,800 Speaker 1: is just feels really nice, and this is something anyone 243 00:14:00,840 --> 00:14:02,760 Speaker 1: can do. Just use the biller codes. But of course 244 00:14:03,160 --> 00:14:05,760 Speaker 1: keep in mind, once you use those biller codes and 245 00:14:05,760 --> 00:14:07,959 Speaker 1: you pay to the ATO, you can't get refunded back 246 00:14:08,000 --> 00:14:10,920 Speaker 1: to you. It just sits there in credit. So that 247 00:14:10,920 --> 00:14:13,640 Speaker 1: will then force you to check what your responsibilities are 248 00:14:13,760 --> 00:14:16,560 Speaker 1: per month or you know, per quarter, or however you 249 00:14:16,640 --> 00:14:20,240 Speaker 1: choose to do it. Also invest time learning about what 250 00:14:20,360 --> 00:14:26,400 Speaker 1: is legitimately tax deductible, you know, understand what you can claim, 251 00:14:26,680 --> 00:14:29,640 Speaker 1: what you could even claim even without a receipt. You know, 252 00:14:29,680 --> 00:14:33,080 Speaker 1: the ATO recently changed, you know the amount of deductions 253 00:14:33,080 --> 00:14:35,040 Speaker 1: you can claim without actually showing a receipt because they 254 00:14:35,120 --> 00:14:38,280 Speaker 1: understand that people stilltimes do lose receipts. And initially I 255 00:14:38,320 --> 00:14:40,360 Speaker 1: think it was around about three to three hundred dollars 256 00:14:40,360 --> 00:14:43,080 Speaker 1: a year in work related expenses that you can claim 257 00:14:43,080 --> 00:14:46,160 Speaker 1: without showing a receipt. There are now another option where 258 00:14:46,160 --> 00:14:48,360 Speaker 1: you can claim up to one thousand dollars without receipts. 259 00:14:48,840 --> 00:14:50,840 Speaker 1: So learn about these things, and also look at your 260 00:14:50,840 --> 00:14:53,320 Speaker 1: income and look at what are legitimate claims, things that 261 00:14:53,360 --> 00:14:56,440 Speaker 1: you may not even thought about claiming, and even things 262 00:14:56,440 --> 00:14:58,840 Speaker 1: like you know, travel from your office, say to a meeting, 263 00:14:59,000 --> 00:15:00,840 Speaker 1: you can claim that. Now might be thinking, well, why 264 00:15:00,840 --> 00:15:04,000 Speaker 1: would I bother claiming an eighteen dollar uber tree or 265 00:15:04,240 --> 00:15:08,360 Speaker 1: cab ride. Yes, it might be a small deduction, but 266 00:15:08,520 --> 00:15:11,400 Speaker 1: that deduction is money that's potentially owed to you, And 267 00:15:11,560 --> 00:15:14,120 Speaker 1: if there's four or five of these, that's money that 268 00:15:14,440 --> 00:15:16,520 Speaker 1: is actually could be back in your pocket or help 269 00:15:16,560 --> 00:15:19,520 Speaker 1: pay that ATO taxed it off a lot sooner. So 270 00:15:20,040 --> 00:15:24,000 Speaker 1: really know what you can legally claim as a deduction. 271 00:15:24,160 --> 00:15:25,640 Speaker 1: I think you'd be surprised that there's a lot more 272 00:15:25,640 --> 00:15:28,440 Speaker 1: you can actually claim than you probably realized. And of 273 00:15:28,480 --> 00:15:32,240 Speaker 1: course learning about like what's taxable. You know your site 274 00:15:32,320 --> 00:15:38,360 Speaker 1: hustle is taxable. Selling trading crypto that's taxable. If you 275 00:15:38,520 --> 00:15:41,440 Speaker 1: are making money from it, is a good chance it's 276 00:15:41,480 --> 00:15:43,960 Speaker 1: going to be taxable. So don't think I've got this 277 00:15:44,000 --> 00:15:45,920 Speaker 1: great side hustle that makes me you know three hundred 278 00:15:45,920 --> 00:15:48,200 Speaker 1: dollars a week cash that three hundred dolls a week 279 00:15:48,320 --> 00:15:52,080 Speaker 1: is taxable. And of course when in doubt or when 280 00:15:52,120 --> 00:15:56,280 Speaker 1: overwhelmed or confused, get some advice from a tax agent. 281 00:15:57,080 --> 00:15:59,400 Speaker 1: They will help make sure that you're set up correctly, 282 00:15:59,800 --> 00:16:03,440 Speaker 1: you're not underpaying the tax or you're and you're not 283 00:16:03,520 --> 00:16:07,360 Speaker 1: missing out on important valuable tax deductions. Yes, it's going 284 00:16:07,400 --> 00:16:10,320 Speaker 1: to cost you some money, but that investment will save 285 00:16:10,400 --> 00:16:14,840 Speaker 1: you so much money long term, but also save you 286 00:16:14,920 --> 00:16:17,480 Speaker 1: so much stress and anxiety when it comes to the 287 00:16:17,600 --> 00:16:19,720 Speaker 1: end of each financial year and discovering whether you owe 288 00:16:19,760 --> 00:16:22,560 Speaker 1: money or with you're actually getting a nice return again, 289 00:16:23,000 --> 00:16:25,880 Speaker 1: So it's something I would strongly recommend, even if it 290 00:16:25,960 --> 00:16:28,800 Speaker 1: means just having a once off session and doing a 291 00:16:28,800 --> 00:16:31,680 Speaker 1: bit of an educational session so that you're more informed 292 00:16:31,720 --> 00:16:35,520 Speaker 1: and you're more on top of your finances. So, for 293 00:16:35,600 --> 00:16:38,560 Speaker 1: everyone who's listening right now, if you are feeling stressed 294 00:16:38,560 --> 00:16:41,400 Speaker 1: about owing money to the ATO, I want you to 295 00:16:41,400 --> 00:16:45,000 Speaker 1: hear this. You're not alone. There are thousands and thousands 296 00:16:45,040 --> 00:16:47,480 Speaker 1: or tens of thousands of people out there who have 297 00:16:47,560 --> 00:16:49,320 Speaker 1: discovered that they owe money to the ATO and not 298 00:16:49,360 --> 00:16:53,760 Speaker 1: getting a tax refund. And you are definitely not failing 299 00:16:53,840 --> 00:16:55,200 Speaker 1: when it comes to your money. If you're one of 300 00:16:55,240 --> 00:16:58,000 Speaker 1: these people, this is something that you can definitely fix 301 00:16:58,200 --> 00:17:01,880 Speaker 1: and you can make sure doesn't ever happen again. Tax 302 00:17:01,920 --> 00:17:04,520 Speaker 1: bills actually happen to the best of us. They happen 303 00:17:04,560 --> 00:17:06,840 Speaker 1: to all of us their normal part of life. The 304 00:17:06,920 --> 00:17:10,320 Speaker 1: problem here is this generation probably you've never had this before, 305 00:17:10,359 --> 00:17:13,360 Speaker 1: and so they're shocked, they're horrified, and they're going through 306 00:17:13,400 --> 00:17:16,240 Speaker 1: a wave of emotions, which is pretty normal and natural. 307 00:17:16,680 --> 00:17:20,080 Speaker 1: But right now what really does matter is actually how 308 00:17:20,160 --> 00:17:23,639 Speaker 1: you respond to this, how you use this as a 309 00:17:23,720 --> 00:17:29,520 Speaker 1: lesson to actually build smarter habits going forward, and you 310 00:17:29,560 --> 00:17:31,960 Speaker 1: tell people about what you're doing and how you're managing 311 00:17:32,040 --> 00:17:35,080 Speaker 1: it so you help other people avoid this trap as well. 312 00:17:35,640 --> 00:17:37,520 Speaker 1: But even better, how to make sure that it never 313 00:17:37,680 --> 00:17:41,840 Speaker 1: happens again. If you take anything from this episode, let 314 00:17:41,920 --> 00:17:45,080 Speaker 1: it be this. Being proactive with your tax planning is 315 00:17:45,080 --> 00:17:48,000 Speaker 1: one of the simplest, but also the most powerful ways 316 00:17:48,040 --> 00:17:51,760 Speaker 1: to protect your financial future and feel a sense of 317 00:17:51,840 --> 00:17:56,280 Speaker 1: financial harmony and responsibility in your life. Now. If you 318 00:17:56,440 --> 00:18:00,520 Speaker 1: loved this topic, you loved hearing this advice, or you 319 00:18:00,560 --> 00:18:03,520 Speaker 1: want to hear more stories of a particular topic, please 320 00:18:03,640 --> 00:18:06,439 Speaker 1: make sure that you send me a DM on Instagram 321 00:18:06,880 --> 00:18:09,320 Speaker 1: and in the meantime, if you have been through this, 322 00:18:09,920 --> 00:18:12,120 Speaker 1: send me a DM so I can help share any 323 00:18:12,200 --> 00:18:15,800 Speaker 1: more advice or tips or strategies to make sure that 324 00:18:15,920 --> 00:18:18,720 Speaker 1: you pay this debt off as quickly as possible. Now, 325 00:18:18,840 --> 00:18:22,800 Speaker 1: as always, keep that financial fire burning bright within. This 326 00:18:23,080 --> 00:18:24,440 Speaker 1: is sugar Mamma's fire.