1 00:00:12,880 --> 00:00:15,960 Speaker 1: Hello and welcome to The Australian's Money Puzzle podcast. I'm 2 00:00:16,040 --> 00:00:19,400 Speaker 1: James Kirby. Welcome aboard everybody. If you're trying to figure 3 00:00:19,440 --> 00:00:23,320 Speaker 1: out if or when the new supertax may affect you, well, 4 00:00:23,360 --> 00:00:27,080 Speaker 1: the first thing to tell you is this, this completely 5 00:00:27,160 --> 00:00:30,960 Speaker 1: daft new tax. Most likely it's going to be delayed. 6 00:00:31,480 --> 00:00:34,400 Speaker 1: More than that, it's unlikely to work as the government planned, 7 00:00:34,440 --> 00:00:37,479 Speaker 1: and we'll tell you how that is in a moment. 8 00:00:37,720 --> 00:00:42,720 Speaker 1: We also need to warn you about three super reviews. 9 00:00:42,760 --> 00:00:44,479 Speaker 1: You may not have heard of them, but you may 10 00:00:44,520 --> 00:00:47,239 Speaker 1: have heard of the first Guardian scandal, which is breaking 11 00:00:47,280 --> 00:00:50,640 Speaker 1: literally and unfolding as we speak. I also have an 12 00:00:50,680 --> 00:00:53,760 Speaker 1: exceptionally good batch of questions from listeners this week, and 13 00:00:53,840 --> 00:00:56,360 Speaker 1: to help me with all this is an exceptionally good 14 00:00:56,560 --> 00:01:02,440 Speaker 1: financial advisor. It's Liam Short of the Saunas Wealth Group. 15 00:01:02,480 --> 00:01:03,200 Speaker 1: How are you Liam? 16 00:01:03,480 --> 00:01:05,440 Speaker 2: Fine? Thank you, James. Great to be richer again. 17 00:01:05,800 --> 00:01:08,240 Speaker 1: Our listeners are familiar with the basics. Here right, there's 18 00:01:08,240 --> 00:01:10,600 Speaker 1: a new super tax. It's supposed to be coming in. 19 00:01:10,840 --> 00:01:12,679 Speaker 1: Here's the thing. Here's the first thing to tell you, folks. 20 00:01:12,680 --> 00:01:15,200 Speaker 1: It's supposed to come in and be started basically, be 21 00:01:15,280 --> 00:01:19,160 Speaker 1: effective from July one this year. Here we are, it's 22 00:01:19,280 --> 00:01:22,080 Speaker 1: mid August. No sign of it, by the way, no 23 00:01:22,120 --> 00:01:25,320 Speaker 1: sign of it even on the lists in Parliament. There 24 00:01:25,360 --> 00:01:27,800 Speaker 1: is no deal done on this yet. There is no 25 00:01:27,920 --> 00:01:30,959 Speaker 1: detail on this yet. So there's a lot basically to 26 00:01:30,959 --> 00:01:33,280 Speaker 1: get a handle on. But I think Liam, there's a 27 00:01:33,319 --> 00:01:35,920 Speaker 1: couple of things that you wanted to clarify with people. 28 00:01:36,319 --> 00:01:41,240 Speaker 1: I'll explain to listeners why legislative Lee it's delayed, and 29 00:01:41,280 --> 00:01:44,319 Speaker 1: you might tell us the realities of being an advisor, 30 00:01:44,360 --> 00:01:46,600 Speaker 1: of being an investor in this area. So, folks, in 31 00:01:46,680 --> 00:01:49,200 Speaker 1: terms of Parliament, there's no sign of it yet. It's 32 00:01:49,240 --> 00:01:51,720 Speaker 1: not listed. As you know, the Economic Summit is on 33 00:01:52,080 --> 00:01:55,760 Speaker 1: next week on the nineteenth of August, so it's unlikely 34 00:01:55,840 --> 00:01:58,320 Speaker 1: to be dropped, you know, through that or before that. 35 00:01:58,800 --> 00:02:01,040 Speaker 1: So it's a question of when they actually get the 36 00:02:01,240 --> 00:02:03,720 Speaker 1: legislation through. If they do, there's going to be a 37 00:02:03,760 --> 00:02:06,800 Speaker 1: fair bit of backdating about it. But we have to 38 00:02:06,880 --> 00:02:08,679 Speaker 1: work on the basis that it is going to happen 39 00:02:08,720 --> 00:02:12,680 Speaker 1: because they've got they've got the election mandate to do so. 40 00:02:12,680 --> 00:02:15,720 Speaker 1: So Lim is just going to explain now, assuming it's 41 00:02:16,040 --> 00:02:18,280 Speaker 1: coming in later than we think. There's also some aspects 42 00:02:18,280 --> 00:02:20,800 Speaker 1: Lim you were telling me during the week, which is 43 00:02:21,520 --> 00:02:25,160 Speaker 1: that SMSFS, which is the main target of this new tax, 44 00:02:25,360 --> 00:02:29,359 Speaker 1: they don't file returns in the day on file. It's 45 00:02:29,360 --> 00:02:32,040 Speaker 1: not like Australian super comes out in August and says 46 00:02:32,160 --> 00:02:34,760 Speaker 1: here's our results to the year end of July, a 47 00:02:34,760 --> 00:02:39,639 Speaker 1: week or two afterwards. I mean roughly when do SMSF 48 00:02:39,720 --> 00:02:42,640 Speaker 1: results come in? How many months after the close of 49 00:02:42,680 --> 00:02:43,959 Speaker 1: financial year do they come in? 50 00:02:45,040 --> 00:02:48,240 Speaker 2: Usually nine to eleven months. Eleven months is a maximum. 51 00:02:48,240 --> 00:02:51,119 Speaker 2: They must be in by May of the following tax year. 52 00:02:51,560 --> 00:02:55,239 Speaker 2: But because with SMSFS and like your personal taxes, a 53 00:02:55,240 --> 00:02:58,440 Speaker 2: lot of deductions, there's a lot of rental statements, you've 54 00:02:58,440 --> 00:03:01,000 Speaker 2: got to get valuations on proper and things like that, 55 00:03:01,280 --> 00:03:04,360 Speaker 2: it's often, you know, March April May of the next 56 00:03:04,440 --> 00:03:07,400 Speaker 2: year that the financials are available. You know. So, for example, 57 00:03:07,400 --> 00:03:09,880 Speaker 2: if we're trying to plan for this division two ninety six, 58 00:03:10,400 --> 00:03:12,520 Speaker 2: if it's coming in on first of July twenty five, 59 00:03:12,880 --> 00:03:14,440 Speaker 2: in a lot of cases we may not have the 60 00:03:14,480 --> 00:03:17,240 Speaker 2: figures we need to work with until March or April 61 00:03:17,280 --> 00:03:20,040 Speaker 2: next year, and that leaves us two months to the 62 00:03:20,120 --> 00:03:22,400 Speaker 2: end of the year. Because thirty June twenty twenty six 63 00:03:22,560 --> 00:03:25,560 Speaker 2: is the crucial date on when that three million cap. 64 00:03:26,639 --> 00:03:30,040 Speaker 1: They're going to start collecting. Basically from July one, twenty 65 00:03:30,080 --> 00:03:33,360 Speaker 1: twenty six, they're going to start collecting the revenue from 66 00:03:33,440 --> 00:03:35,640 Speaker 1: this tax for the previous twelve months, being the twelve 67 00:03:35,680 --> 00:03:38,080 Speaker 1: months we're in. Here's the problem, six weeks of it 68 00:03:38,240 --> 00:03:42,600 Speaker 1: or have already passed as the legislative delay problem. And 69 00:03:42,640 --> 00:03:45,960 Speaker 1: then on top of that is liam Is saying SMSF 70 00:03:46,120 --> 00:03:50,320 Speaker 1: don't file their returns generally for a long time after 71 00:03:50,360 --> 00:03:53,080 Speaker 1: the end of the financial year. Look, you're looking roughly 72 00:03:53,480 --> 00:03:55,960 Speaker 1: at next May when they're coming in. I got to 73 00:03:56,000 --> 00:03:59,200 Speaker 1: tell you there I see no chance on earth that 74 00:03:59,280 --> 00:04:04,800 Speaker 1: this news will operate as planned by the government knowing 75 00:04:04,840 --> 00:04:07,680 Speaker 1: what we know just now. That's a logjam. Is that 76 00:04:07,720 --> 00:04:10,080 Speaker 1: a fair description of what's coming down on this one? 77 00:04:10,480 --> 00:04:12,800 Speaker 2: Look, it will be a logjam. But my fear is 78 00:04:12,800 --> 00:04:15,760 Speaker 2: that they they want to put it in on first 79 00:04:15,800 --> 00:04:18,520 Speaker 2: of July twenty twenty five. That keep saying we told 80 00:04:18,560 --> 00:04:21,200 Speaker 2: you about this in twenty twenty three, But you can't 81 00:04:21,240 --> 00:04:24,560 Speaker 2: expect people to make decisions about their finances until they 82 00:04:24,560 --> 00:04:26,919 Speaker 2: see the legislation. As you said that they've not agreed 83 00:04:26,920 --> 00:04:29,919 Speaker 2: it totally yet, but if they need to change it 84 00:04:29,960 --> 00:04:32,680 Speaker 2: from one twenty five to one twenty six, that may 85 00:04:32,720 --> 00:04:36,760 Speaker 2: require them to go back and redo the legislation, which 86 00:04:36,760 --> 00:04:38,200 Speaker 2: they don't want to do. So I think they're going 87 00:04:38,240 --> 00:04:40,599 Speaker 2: to be really stubborn and try and push it through 88 00:04:40,600 --> 00:04:43,680 Speaker 2: on one July twenty five, and it's looking that that 89 00:04:43,760 --> 00:04:48,080 Speaker 2: won't be until the October sitting of Parliament, so you're 90 00:04:48,160 --> 00:04:50,120 Speaker 2: talking five months into the text here. 91 00:04:50,680 --> 00:04:53,640 Speaker 1: Wow, we really are looking at trouble here. But for 92 00:04:53,880 --> 00:04:57,520 Speaker 1: most listeners, Liam, I think the important thing is not 93 00:04:57,600 --> 00:05:01,000 Speaker 1: everyone's gonna be in this catchment, right, So fair enough, 94 00:05:01,160 --> 00:05:03,000 Speaker 1: not everyone has three million super. In fact, only a 95 00:05:03,040 --> 00:05:05,680 Speaker 1: minority of people have three million super. But I think 96 00:05:05,680 --> 00:05:07,440 Speaker 1: what's really interesting that needs to be understood that a 97 00:05:07,480 --> 00:05:09,479 Speaker 1: lot of people are worried about it, and they're worried 98 00:05:09,480 --> 00:05:11,359 Speaker 1: that they'll be affected by it, or they're worried that 99 00:05:11,360 --> 00:05:13,520 Speaker 1: in twenty years they'll be affected by it, et cetera, 100 00:05:13,560 --> 00:05:17,880 Speaker 1: and that they are entirely reasonable fears because it's not indexed, 101 00:05:17,960 --> 00:05:21,240 Speaker 1: because it's poorly understood, because it's poorly legislated, it is 102 00:05:21,320 --> 00:05:25,880 Speaker 1: poorly designed, and now it's poorly executed before it even 103 00:05:25,880 --> 00:05:29,240 Speaker 1: gets going but the point you've really been keen to 104 00:05:29,279 --> 00:05:33,440 Speaker 1: make to your own people and your clients who come 105 00:05:33,440 --> 00:05:36,880 Speaker 1: in because they are in that frustrated position like everyone 106 00:05:36,960 --> 00:05:40,800 Speaker 1: that's saying, how does it all work? Just reiterate, would 107 00:05:40,839 --> 00:05:43,760 Speaker 1: you for our listeners about this, that it's wrong to 108 00:05:43,760 --> 00:05:47,680 Speaker 1: say it's and it's a thirty percent that fifteen percent 109 00:05:47,760 --> 00:05:51,200 Speaker 1: tax suddenly doubles thirty percent. We've got all sorts of 110 00:05:51,200 --> 00:05:55,560 Speaker 1: misapprehensions about it. It's a completely new tax done in 111 00:05:55,560 --> 00:05:57,960 Speaker 1: a completely new way that sits on top of the 112 00:05:58,160 --> 00:06:01,600 Speaker 1: entire tax structure that exists. Have I got that part right? 113 00:06:02,520 --> 00:06:06,000 Speaker 2: Yeah? So basically, you have your normal income tax in 114 00:06:06,000 --> 00:06:08,960 Speaker 2: your SMSF, so in your accumulation you pay up to 115 00:06:09,000 --> 00:06:12,800 Speaker 2: fifteen percent. In pension phase you pay nil, and you 116 00:06:12,839 --> 00:06:15,400 Speaker 2: actually get a refund of franking credits. So it's really nice. 117 00:06:15,560 --> 00:06:19,120 Speaker 2: So somebody could have three million in their superfund. They 118 00:06:19,120 --> 00:06:21,360 Speaker 2: can have up to two million at the moment in 119 00:06:21,440 --> 00:06:24,880 Speaker 2: pension phase transferred to pension phase, and that can grow. 120 00:06:25,080 --> 00:06:27,720 Speaker 2: So you could have that portion two thirds of your 121 00:06:27,760 --> 00:06:31,600 Speaker 2: current balance paying no tax whatsoever if income tax, and 122 00:06:31,960 --> 00:06:34,960 Speaker 2: maybe you know, one third of it paying fifteen percent. 123 00:06:35,240 --> 00:06:37,719 Speaker 2: So that's the income tax in the superfund, the new 124 00:06:37,760 --> 00:06:40,600 Speaker 2: division two ninety six. It's a personal tax. It's not 125 00:06:40,680 --> 00:06:43,320 Speaker 2: a tax on the superfund. It's a tax on your 126 00:06:43,360 --> 00:06:46,960 Speaker 2: personal balance in the superfund, and it applies to the 127 00:06:47,080 --> 00:06:50,800 Speaker 2: growth in earnings on the balance over three million. So 128 00:06:51,200 --> 00:06:54,200 Speaker 2: and the portion of that growth that applies of the 129 00:06:54,240 --> 00:06:56,559 Speaker 2: earnings that apply to the amount that's over the three million. 130 00:06:56,600 --> 00:06:58,960 Speaker 2: So if you've got three million in year account at 131 00:06:59,040 --> 00:07:01,840 Speaker 2: started a year, four million, at the end of the year, 132 00:07:02,200 --> 00:07:06,440 Speaker 2: you've had one million, using simply say one million growth. 133 00:07:06,880 --> 00:07:10,880 Speaker 2: So then your tax to fifteen percent on twenty five 134 00:07:10,920 --> 00:07:12,120 Speaker 2: percent of that one million. 135 00:07:12,480 --> 00:07:14,040 Speaker 1: Let me see, I assume I'm a listener, right, and 136 00:07:14,040 --> 00:07:16,240 Speaker 1: I've been hanging on there really trying to understand it. 137 00:07:17,360 --> 00:07:21,720 Speaker 1: In super once you retire, et cetera, you don't pay 138 00:07:21,840 --> 00:07:24,920 Speaker 1: tax on your earnings until you get to two million. 139 00:07:25,840 --> 00:07:28,840 Speaker 1: Once it's over two million, you pay fifteen percent on 140 00:07:28,920 --> 00:07:29,880 Speaker 1: those earnings. 141 00:07:30,240 --> 00:07:33,680 Speaker 2: No, you can move two million to pension phase and 142 00:07:33,720 --> 00:07:37,040 Speaker 2: your pension can grow, so it's you only pay You 143 00:07:37,040 --> 00:07:40,520 Speaker 2: pay no tax on the two million plus any growth 144 00:07:40,520 --> 00:07:41,760 Speaker 2: in that portion of it. 145 00:07:43,000 --> 00:07:46,320 Speaker 1: Okay, so once you up to two million, you don't 146 00:07:46,360 --> 00:07:49,480 Speaker 1: pay tax. By the way, once the two million is in. 147 00:07:49,520 --> 00:07:51,640 Speaker 1: It can keep growing. This is just trying to keep 148 00:07:51,640 --> 00:07:54,000 Speaker 1: it simple. Now the government have come in and said, 149 00:07:54,040 --> 00:07:55,520 Speaker 1: hang on a second, we're going to we're going to 150 00:07:55,920 --> 00:07:59,720 Speaker 1: raft up the tax higher on super and up to 151 00:07:59,760 --> 00:08:02,600 Speaker 1: two million that is the transfer balance, that is the 152 00:08:02,640 --> 00:08:04,920 Speaker 1: amount you start to pension on. And it can keep growing, right, 153 00:08:04,920 --> 00:08:07,360 Speaker 1: But just for to keep some sense of logic here, 154 00:08:07,880 --> 00:08:12,640 Speaker 1: up to two million, it's tax free. Over two million, 155 00:08:12,720 --> 00:08:16,760 Speaker 1: the earnings become fifteen percent and new rule is coming in, 156 00:08:16,760 --> 00:08:20,080 Speaker 1: which is once it's over three million, another fifty to 157 00:08:20,080 --> 00:08:25,000 Speaker 1: fifteen percent tax has arrived. But it's a bit more 158 00:08:25,040 --> 00:08:28,800 Speaker 1: than two Fifteen's make thirty because the new tax division 159 00:08:28,840 --> 00:08:31,440 Speaker 1: two nine six is a completely new tax. It's also 160 00:08:31,480 --> 00:08:35,280 Speaker 1: based on on realized gains, which is the movement in 161 00:08:35,320 --> 00:08:39,240 Speaker 1: your balance over the year. But the tax as such 162 00:08:39,559 --> 00:08:44,920 Speaker 1: only applies to the earnings of the little bits that 163 00:08:45,040 --> 00:08:48,960 Speaker 1: are over three the earnings on the amounts over three. My, 164 00:08:49,120 --> 00:08:50,960 Speaker 1: oh my, how do they come up with this? I mean, 165 00:08:50,960 --> 00:08:54,240 Speaker 1: it's already a very complicated system. It must be marvelous 166 00:08:54,240 --> 00:08:56,319 Speaker 1: for people like you. You've got work for the rest 167 00:08:56,320 --> 00:08:58,120 Speaker 1: of your life. You could get harder fifty people. 168 00:08:58,120 --> 00:09:02,319 Speaker 2: Tomorrow's looking like that. At the moment, it is very complicated, 169 00:09:02,320 --> 00:09:04,840 Speaker 2: but look, we are coming out with calculators there are 170 00:09:05,400 --> 00:09:07,440 Speaker 2: We are trying to show people what the effects are. 171 00:09:07,720 --> 00:09:12,000 Speaker 2: And my main thing to people to say, plan, but 172 00:09:12,120 --> 00:09:15,600 Speaker 2: don't move at the moment. Don't do any rush movements. 173 00:09:15,679 --> 00:09:18,280 Speaker 2: Let's get the legislation in place. We can show you 174 00:09:18,400 --> 00:09:21,079 Speaker 2: roughly at the moment some of the outcomes in different scenarios. 175 00:09:21,080 --> 00:09:24,160 Speaker 2: If you're funded really well and had major growth or 176 00:09:24,280 --> 00:09:26,600 Speaker 2: had you're just small bro, we can give you an 177 00:09:26,600 --> 00:09:28,440 Speaker 2: idea of what the tax is going to be so 178 00:09:28,480 --> 00:09:29,679 Speaker 2: that you don't need to panic. 179 00:09:30,080 --> 00:09:31,839 Speaker 1: I understand what you say, don't panic, and you should 180 00:09:31,840 --> 00:09:35,600 Speaker 1: never panic anyway as an investor. But why do you 181 00:09:35,720 --> 00:09:38,320 Speaker 1: say don't do anything because it's going to happen, right 182 00:09:38,360 --> 00:09:41,080 Speaker 1: They've been re elected. It's in front of parliament. It's 183 00:09:41,120 --> 00:09:42,600 Speaker 1: only a question of the details. 184 00:09:42,800 --> 00:09:45,360 Speaker 2: The main thing to understand is that it's the thirty 185 00:09:45,480 --> 00:09:48,960 Speaker 2: to June twenty twenty six balance that desides whether you're 186 00:09:49,480 --> 00:09:52,480 Speaker 2: going to be affected by this tax. If you can 187 00:09:52,520 --> 00:09:55,520 Speaker 2: do something before thirty of June twenty twenty six to 188 00:09:55,600 --> 00:09:58,720 Speaker 2: get your balance below three million on that date, you 189 00:09:58,760 --> 00:10:00,000 Speaker 2: forget about the tax completely. 190 00:10:01,280 --> 00:10:04,040 Speaker 1: Yeah, okay, and justice only on one other thing, Leon, 191 00:10:04,040 --> 00:10:06,600 Speaker 1: which is so important. As you pointed out, this is 192 00:10:06,600 --> 00:10:10,440 Speaker 1: a new tax. It's based on on realized gains, and 193 00:10:10,480 --> 00:10:12,720 Speaker 1: it's a personal tax. The way to understand it, I 194 00:10:12,720 --> 00:10:15,960 Speaker 1: think if anyone is already paying Division two ninety three, 195 00:10:16,600 --> 00:10:21,400 Speaker 1: where you get basically penalized for a high income if 196 00:10:21,440 --> 00:10:24,360 Speaker 1: you contribute to super. The way those bills come in 197 00:10:24,440 --> 00:10:26,800 Speaker 1: is you get a bill as a person and you 198 00:10:26,840 --> 00:10:28,520 Speaker 1: can pay it as a person, or you can pay 199 00:10:28,520 --> 00:10:31,240 Speaker 1: it out of your super fund. And this new one, 200 00:10:31,360 --> 00:10:34,160 Speaker 1: this three million tax, will be the same. You can 201 00:10:34,200 --> 00:10:36,680 Speaker 1: pay it as a person or you can pay it 202 00:10:36,679 --> 00:10:38,720 Speaker 1: out of your super fund. But you got to pay 203 00:10:38,720 --> 00:10:42,040 Speaker 1: it as first thing, and you can carry it forward, 204 00:10:42,520 --> 00:10:44,840 Speaker 1: for instance, if you have losses, you can carry the 205 00:10:44,920 --> 00:10:49,160 Speaker 1: losses forward like just like CGT for instance. So that's 206 00:10:49,200 --> 00:10:52,760 Speaker 1: another parallel. I think that's there's some logical elements to this, 207 00:10:52,960 --> 00:10:56,839 Speaker 1: but it is as I say, it's staffed. There was 208 00:10:56,920 --> 00:10:58,800 Speaker 1: easier ways to bring in a new tax for people 209 00:10:58,840 --> 00:11:00,679 Speaker 1: who have a lot of money and super Why they 210 00:11:00,720 --> 00:11:04,240 Speaker 1: went to such extraordinary lengths to make it complicated, I 211 00:11:04,240 --> 00:11:07,960 Speaker 1: don't know, Liam, and I think we understand it. We 212 00:11:08,040 --> 00:11:09,640 Speaker 1: did our best in that segment. I hope it was 213 00:11:09,720 --> 00:11:12,520 Speaker 1: useful to you. Something much easier to understand coming up 214 00:11:12,520 --> 00:11:16,080 Speaker 1: in our second segment, which is free reviews of Super? 215 00:11:16,440 --> 00:11:18,640 Speaker 1: Have you been offered a free review of Super? Have 216 00:11:18,720 --> 00:11:21,120 Speaker 1: you seen adverts? Have you seen promotions on the internet? 217 00:11:21,200 --> 00:11:24,080 Speaker 1: What are they? Should you go near them? Back in 218 00:11:24,080 --> 00:11:35,480 Speaker 1: a moment, Hello and welcome back to the Australians Money 219 00:11:35,480 --> 00:11:38,640 Speaker 1: Puzzle podcast. Only someone like Liam Short could even have 220 00:11:38,800 --> 00:11:42,840 Speaker 1: walked the title we just walked explaining the new supertext 221 00:11:42,840 --> 00:11:46,720 Speaker 1: there in segment one. Much easier to understand the dangers 222 00:11:46,720 --> 00:11:51,200 Speaker 1: of the second segment theme, which is free Super reviews. 223 00:11:51,920 --> 00:11:54,160 Speaker 1: Nothing in life is free, Liam, tell us about these 224 00:11:54,440 --> 00:11:56,240 Speaker 1: free Super reviews? What have you got to say? 225 00:11:56,840 --> 00:11:59,680 Speaker 2: Yeah? Look, Super innuation is a big honeypop. There's a 226 00:11:59,679 --> 00:12:02,199 Speaker 2: lot of people looking to make some money out of it. Okay, 227 00:12:02,240 --> 00:12:04,880 Speaker 2: so what's But what's happening now is the drive of 228 00:12:04,960 --> 00:12:08,920 Speaker 2: social media and call calls. There are now marketing firms 229 00:12:09,000 --> 00:12:12,199 Speaker 2: running these systems. Okay, what they do is they're offering 230 00:12:12,200 --> 00:12:14,760 Speaker 2: you a free review. They're offering you know, telling you 231 00:12:14,800 --> 00:12:16,679 Speaker 2: that you know you should compare your Super. It's a 232 00:12:16,920 --> 00:12:19,600 Speaker 2: responsible thing to do. But what they do then is 233 00:12:19,640 --> 00:12:23,120 Speaker 2: they funnel you They sell you to another advisor, to 234 00:12:23,200 --> 00:12:26,840 Speaker 2: an advisor, okay. In often in these cases it's actually 235 00:12:26,840 --> 00:12:30,640 Speaker 2: a marketing firm that's actually connected specifically to an advice group, 236 00:12:30,880 --> 00:12:34,600 Speaker 2: and that's what happened with First Guardian. So basically they 237 00:12:34,760 --> 00:12:37,319 Speaker 2: pre sell you that you must do the review, and 238 00:12:37,559 --> 00:12:39,440 Speaker 2: they tell you that they've done the review and you 239 00:12:39,440 --> 00:12:41,680 Speaker 2: can do much better. Let us put you in touch 240 00:12:41,720 --> 00:12:44,319 Speaker 2: with an advisor. And then suddenly put in touch with 241 00:12:44,360 --> 00:12:46,720 Speaker 2: an advisor, and they will be charging you a fee 242 00:12:46,920 --> 00:12:51,079 Speaker 2: for what for to actually move you to a better fund. Now, 243 00:12:51,120 --> 00:12:53,280 Speaker 2: in a lot of cases when they're connected like these, 244 00:12:54,000 --> 00:12:57,280 Speaker 2: they're recommending you're going to funder a platform where they're 245 00:12:57,320 --> 00:13:00,400 Speaker 2: managing the investments, and they're saying that they can do 246 00:13:00,440 --> 00:13:02,440 Speaker 2: better than you've done in your industry fund or your 247 00:13:02,480 --> 00:13:05,840 Speaker 2: retail fund. What they're doing is they're basically, you know, 248 00:13:05,960 --> 00:13:08,720 Speaker 2: they're clipping the ticket along the way on everything. Okay, 249 00:13:08,800 --> 00:13:12,840 Speaker 2: And then often with the investments that they're recommending, they 250 00:13:12,840 --> 00:13:15,360 Speaker 2: don't have a major track record. So I'm saying that 251 00:13:15,400 --> 00:13:17,760 Speaker 2: people look at the five, seven, and ten year track 252 00:13:17,800 --> 00:13:20,880 Speaker 2: record of your superfund before you start considering going to 253 00:13:20,920 --> 00:13:24,680 Speaker 2: anybody who's promising you anything, because in truth, we're advisors, 254 00:13:24,679 --> 00:13:28,160 Speaker 2: we're you know, we can't determine how the market's going 255 00:13:28,240 --> 00:13:31,480 Speaker 2: to perform. But if you've been in an industry fund 256 00:13:31,520 --> 00:13:33,480 Speaker 2: or a retail fund that's delivered more than seven and 257 00:13:33,520 --> 00:13:35,160 Speaker 2: a half r eight and a half percent per year 258 00:13:35,800 --> 00:13:38,800 Speaker 2: for the last five or seven years, yeah, your first 259 00:13:38,840 --> 00:13:41,640 Speaker 2: question is why why should I move? Why would I move? 260 00:13:42,280 --> 00:13:44,480 Speaker 2: And the problem is we've seen a lot of these 261 00:13:44,559 --> 00:13:46,640 Speaker 2: have moved to scams. 262 00:13:47,160 --> 00:13:49,199 Speaker 1: It's terrible, isn't it. I mean, you've got to say that. 263 00:13:49,360 --> 00:13:52,439 Speaker 1: The first thing is there's nothing free, right, So if 264 00:13:52,480 --> 00:13:55,920 Speaker 1: someone approaches you, or more typically a promotion is put 265 00:13:56,000 --> 00:13:58,720 Speaker 1: in front of you, possibly on social media, on the 266 00:13:58,720 --> 00:14:04,160 Speaker 1: internet and a free superview, you first question, why am 267 00:14:04,200 --> 00:14:07,760 Speaker 1: I being offered something for free? Nothing's free in financial services. 268 00:14:07,960 --> 00:14:11,080 Speaker 1: Number two, let's even assume that they review, and let's 269 00:14:11,120 --> 00:14:17,000 Speaker 1: even assume that the fund is below average, Well where 270 00:14:17,000 --> 00:14:19,480 Speaker 1: are they going to send you? Are you making the 271 00:14:19,560 --> 00:14:22,840 Speaker 1: decision or are they making the decision? Why did they 272 00:14:22,840 --> 00:14:24,840 Speaker 1: do it in the first place. There's no way they're 273 00:14:24,880 --> 00:14:26,320 Speaker 1: doing it out the goodness of their hearts. 274 00:14:26,360 --> 00:14:30,160 Speaker 2: Liam not what the amount of compliance that we have 275 00:14:30,200 --> 00:14:31,800 Speaker 2: to do nowadays, the amount of work we have to 276 00:14:31,800 --> 00:14:34,040 Speaker 2: do to on board a client. Nothing's for free. 277 00:14:34,880 --> 00:14:36,480 Speaker 1: They're doing it because they want to send you to 278 00:14:36,520 --> 00:14:39,320 Speaker 1: something else. This is as soft as we can be 279 00:14:39,440 --> 00:14:41,680 Speaker 1: on this because we don't want to be sued by anyone. 280 00:14:42,080 --> 00:14:44,240 Speaker 1: But they are doing it to get you to change 281 00:14:44,280 --> 00:14:46,720 Speaker 1: your ways. They're not asking you to review your super. 282 00:14:46,760 --> 00:14:49,080 Speaker 1: They're asking you to move your super and find justification 283 00:14:49,200 --> 00:14:51,680 Speaker 1: for it. And the big question is where are they 284 00:14:51,720 --> 00:14:54,640 Speaker 1: asking you to move to? And we have evidence of 285 00:14:54,760 --> 00:14:56,960 Speaker 1: late in the first guard in super collapse, which is 286 00:14:57,000 --> 00:15:01,920 Speaker 1: the worst collapse we've seen this century in Australian financial services, 287 00:15:01,920 --> 00:15:04,680 Speaker 1: still unfolding, and this was going on in the middle 288 00:15:04,720 --> 00:15:06,680 Speaker 1: of that collapse, was it Yep? 289 00:15:06,800 --> 00:15:10,520 Speaker 2: And so they were not just targeting people in retail 290 00:15:10,520 --> 00:15:14,040 Speaker 2: funds or they were targeting everybody. They had a solution 291 00:15:14,120 --> 00:15:17,960 Speaker 2: for everybody, and that solution was funneling it into their funds. 292 00:15:18,240 --> 00:15:20,320 Speaker 1: I bet they never said we've reviewed your super and 293 00:15:20,480 --> 00:15:23,600 Speaker 1: everything's fine. That's it, say where you are. 294 00:15:24,440 --> 00:15:26,520 Speaker 2: So one of the tips I would say to people is, 295 00:15:27,120 --> 00:15:30,240 Speaker 2: if you go with one of these people, give somebody 296 00:15:30,320 --> 00:15:32,120 Speaker 2: else a third party you call, even if it's just 297 00:15:32,240 --> 00:15:35,120 Speaker 2: your super fund or go to chant West and run 298 00:15:35,160 --> 00:15:38,320 Speaker 2: a comparison of your superfund with some other ones, just 299 00:15:38,360 --> 00:15:40,840 Speaker 2: to see how it's been performing over the years. You 300 00:15:40,840 --> 00:15:42,280 Speaker 2: can do these for free. 301 00:15:42,400 --> 00:15:45,520 Speaker 1: Yes, for free. Oh look, folks, even easier. I mean 302 00:15:45,640 --> 00:15:48,640 Speaker 1: just go on to your pet AI, sit or Google 303 00:15:48,720 --> 00:15:52,200 Speaker 1: and say what was the median return of the average 304 00:15:52,200 --> 00:15:55,960 Speaker 1: Australian super fund last year? And if your number is 305 00:15:55,960 --> 00:15:59,480 Speaker 1: anywhere near that then I'd be really slow to move. 306 00:16:00,160 --> 00:16:02,760 Speaker 1: That's not hard, it doesn't cost anything, it's free. We'll 307 00:16:02,800 --> 00:16:04,440 Speaker 1: take a break. We've got some great questions back in 308 00:16:04,440 --> 00:16:18,800 Speaker 1: a moment. Hello, Welcome back to the Australians Money Puzzle Podcast. 309 00:16:18,920 --> 00:16:23,040 Speaker 1: James Kirby here with Liam short sho Orte of the 310 00:16:23,240 --> 00:16:26,800 Speaker 1: Sounas Wealth Group. Now, in the first segment we were 311 00:16:26,840 --> 00:16:29,760 Speaker 1: talking about the new supertax. The main point I wanted 312 00:16:29,760 --> 00:16:31,720 Speaker 1: to make to you there, folks, I want to make 313 00:16:31,720 --> 00:16:33,240 Speaker 1: to you is that this is going to be delayed. 314 00:16:33,720 --> 00:16:37,320 Speaker 1: It's going to run much later than people realized. We're 315 00:16:37,360 --> 00:16:39,600 Speaker 1: already well into the first year in which it's supposed 316 00:16:39,640 --> 00:16:42,640 Speaker 1: to be effectively operating, and that the legislation hasn't even 317 00:16:42,640 --> 00:16:45,440 Speaker 1: been put through parliament. Part one, Part two was that 318 00:16:45,480 --> 00:16:49,120 Speaker 1: Liam makes the point which probably hasn't been med enough. 319 00:16:49,800 --> 00:16:52,800 Speaker 1: It isn't that the high wealth end of super the 320 00:16:52,880 --> 00:16:56,320 Speaker 1: taxes go from fifteen to thirty percent. That's not the 321 00:16:56,360 --> 00:16:58,600 Speaker 1: way to think about it. The way to think about 322 00:16:58,600 --> 00:17:01,160 Speaker 1: it is, there is an existing tax of fifteen percent 323 00:17:01,320 --> 00:17:04,000 Speaker 1: up to two million. They are introducing a new one 324 00:17:04,880 --> 00:17:09,200 Speaker 1: where over three there's an existing tax of fifteen percent. 325 00:17:09,280 --> 00:17:11,840 Speaker 1: Over two million, they're introducing a new one where over 326 00:17:11,960 --> 00:17:15,399 Speaker 1: three million, a whole new tax comes in. It happens 327 00:17:15,400 --> 00:17:19,040 Speaker 1: to be at fifteen percent, but it's based on unrealized gains. 328 00:17:19,560 --> 00:17:22,399 Speaker 1: It comes in a different way. You literally get a statement. 329 00:17:22,440 --> 00:17:24,159 Speaker 1: You're going to get a statement in the post or 330 00:17:24,240 --> 00:17:28,360 Speaker 1: through the email which says you've got a Division two 331 00:17:28,440 --> 00:17:31,159 Speaker 1: nine six tax bill. This is what it is because 332 00:17:31,160 --> 00:17:33,960 Speaker 1: you had these earnings on these amounts of over three million, 333 00:17:34,200 --> 00:17:37,200 Speaker 1: and we want it now. It's a personal tax paid 334 00:17:37,240 --> 00:17:40,480 Speaker 1: by you. If you can't get it from your cassion, 335 00:17:40,560 --> 00:17:41,879 Speaker 1: the bank, you've got to take it out of your 336 00:17:41,920 --> 00:17:44,439 Speaker 1: super fund. That's how it's going to work. This is 337 00:17:44,440 --> 00:17:47,280 Speaker 1: why people are so upset about this fund. This is 338 00:17:47,560 --> 00:17:52,200 Speaker 1: super change to super funds because it's in a whole 339 00:17:52,240 --> 00:17:56,840 Speaker 1: new tax methodology basically being applied to super which was 340 00:17:56,960 --> 00:18:00,480 Speaker 1: never seen before, unrealized gains. That's what you want from 341 00:18:00,560 --> 00:18:03,680 Speaker 1: Jeff Wilson across to Liam, who's with me today is 342 00:18:03,680 --> 00:18:07,680 Speaker 1: annoyed about all right? Questions, Evan, can you explain the 343 00:18:07,760 --> 00:18:11,240 Speaker 1: types of trust briefly and what they're used for, Unit trust, 344 00:18:11,320 --> 00:18:16,359 Speaker 1: investment trust, and discretionary trust in particular, could you briefly 345 00:18:16,480 --> 00:18:19,679 Speaker 1: explain the difference between those key trusts, because people do 346 00:18:19,800 --> 00:18:22,760 Speaker 1: talk about trusts loosely, Liam. 347 00:18:22,880 --> 00:18:25,719 Speaker 2: So a unit trust probably a good example of that 348 00:18:25,840 --> 00:18:29,640 Speaker 2: is a managed fund like a Platinum or a Magellan, 349 00:18:29,680 --> 00:18:32,240 Speaker 2: where you buy units in the trust and you get 350 00:18:32,240 --> 00:18:35,080 Speaker 2: a share of profits for that year based on your 351 00:18:35,160 --> 00:18:37,719 Speaker 2: units in the trust. On a smaller scale, it might 352 00:18:37,760 --> 00:18:41,040 Speaker 2: be something like three business partners open a trust to 353 00:18:41,080 --> 00:18:43,679 Speaker 2: own their business and each owned thirty three percent. So 354 00:18:43,720 --> 00:18:46,960 Speaker 2: it's a fixed demand and profits are divided that way, 355 00:18:47,280 --> 00:18:49,880 Speaker 2: so it's fixed. If they want to bring a new capital, 356 00:18:50,040 --> 00:18:52,080 Speaker 2: new units are issued to the person that brings in 357 00:18:52,080 --> 00:18:55,280 Speaker 2: the new capital. Okay, So that's the basic fixed trust. 358 00:18:55,560 --> 00:18:59,480 Speaker 2: What we see more often used nowadays is called discretionary 359 00:18:59,480 --> 00:19:04,120 Speaker 2: trusts or family trusts, and that's where the trustee each 360 00:19:04,200 --> 00:19:06,919 Speaker 2: year chooses who the beneficiaries will be to receive the 361 00:19:06,920 --> 00:19:09,800 Speaker 2: trust income and any capital distributions, and they do that 362 00:19:09,840 --> 00:19:13,760 Speaker 2: on an annual basis, so it's at the full discretion 363 00:19:13,840 --> 00:19:15,919 Speaker 2: of the trustee to decide who to do it. So 364 00:19:16,000 --> 00:19:18,760 Speaker 2: if there's mom and dad and say an eighteen year 365 00:19:18,800 --> 00:19:21,359 Speaker 2: old in university and a thirty year old who's a 366 00:19:21,400 --> 00:19:24,920 Speaker 2: lawyer on big income, the parents might go, okay, well, 367 00:19:24,920 --> 00:19:27,919 Speaker 2: we'll allocate a certain amount to mom and dad up 368 00:19:27,960 --> 00:19:30,800 Speaker 2: to say the limit of the thirty thirty percent tax 369 00:19:30,840 --> 00:19:33,080 Speaker 2: bracket at one hundred and thirty five. Then they will 370 00:19:33,080 --> 00:19:36,600 Speaker 2: allocate to the eighteen year old because they've they're earning 371 00:19:36,880 --> 00:19:39,560 Speaker 2: very little or you know, and they allocates of money 372 00:19:39,600 --> 00:19:42,879 Speaker 2: to them, and they'll decide not to allocate anything to 373 00:19:42,920 --> 00:19:44,800 Speaker 2: the thirty year old because they're already on a big 374 00:19:44,880 --> 00:19:48,040 Speaker 2: taxable income. So the idea is you've got that discretion 375 00:19:48,200 --> 00:19:51,359 Speaker 2: to be able to push the income where you want to. 376 00:19:51,520 --> 00:19:54,080 Speaker 1: And most family trusts are run like that. I think 377 00:19:54,119 --> 00:19:55,840 Speaker 1: is that basically the. 378 00:19:56,560 --> 00:19:59,119 Speaker 2: ATO again has been clamping down on them. So if 379 00:19:59,160 --> 00:20:01,840 Speaker 2: you are going to allo cape money to an eighteen 380 00:20:01,880 --> 00:20:04,080 Speaker 2: year old or a nineteen year old, you want to 381 00:20:04,080 --> 00:20:06,720 Speaker 2: make sure that you're saying, what that you've spent money 382 00:20:06,720 --> 00:20:09,320 Speaker 2: on you that money's gone to those people. So I 383 00:20:09,359 --> 00:20:12,080 Speaker 2: get clients to keep a track record of paying for 384 00:20:12,119 --> 00:20:14,880 Speaker 2: their car insurance, paying for the car, paying for their 385 00:20:14,880 --> 00:20:18,080 Speaker 2: phone bills, things like that, showing that the money actually 386 00:20:18,480 --> 00:20:19,400 Speaker 2: has been used for that. 387 00:20:19,400 --> 00:20:22,520 Speaker 1: Person's This will as the new supertax comes in, or 388 00:20:22,520 --> 00:20:24,560 Speaker 1: whatever final details it comes in, it will sure as 389 00:20:24,600 --> 00:20:28,040 Speaker 1: hell come in. We'll find that trust become more popular 390 00:20:28,080 --> 00:20:30,040 Speaker 1: and we'll probably come back to them a retty soon. 391 00:20:30,160 --> 00:20:32,200 Speaker 1: All right, there's one other question I wanted to just 392 00:20:32,320 --> 00:20:36,080 Speaker 1: zone in on. Liam was from Mark. He says financial 393 00:20:36,119 --> 00:20:39,800 Speaker 1: advisor Doug Turek, or at least advisor Doug Churek mentioned 394 00:20:39,800 --> 00:20:44,320 Speaker 1: in last week's podcast you can earn up the twenty 395 00:20:44,320 --> 00:20:49,120 Speaker 1: five thousand before paying tax. But he then, Mark, reasonably 396 00:20:49,200 --> 00:20:53,000 Speaker 1: enough says, I looked at the ATO tax scales and 397 00:20:53,119 --> 00:20:57,160 Speaker 1: the first eighteen thousand, two hundred is all you can 398 00:20:57,240 --> 00:21:01,920 Speaker 1: earn as an individual in Australia at any age tax free. 399 00:21:02,440 --> 00:21:05,320 Speaker 1: How what's the explanation of the gap between the eighteen 400 00:21:05,359 --> 00:21:09,320 Speaker 1: and the twenty five? Liam's It's true, I imagine, first 401 00:21:09,320 --> 00:21:11,800 Speaker 1: of all, but could you explain yep. 402 00:21:11,600 --> 00:21:15,280 Speaker 2: So the eighteen thousand, two hundred. That's everybody's tax free threshold. 403 00:21:16,080 --> 00:21:18,440 Speaker 2: But on top of that, the government have some other benefits. 404 00:21:18,800 --> 00:21:21,360 Speaker 2: One's called the Low Income Tax Officets for people who 405 00:21:21,400 --> 00:21:24,520 Speaker 2: are on the low income. When you combine that with 406 00:21:24,800 --> 00:21:27,520 Speaker 2: the eighteen thousand, two hundred, you can earn up to 407 00:21:27,560 --> 00:21:30,239 Speaker 2: go twenty two eight hundred and sixty six each year 408 00:21:30,280 --> 00:21:33,400 Speaker 2: without paying any tax. Okay, that's if you're under six. 409 00:21:33,720 --> 00:21:36,520 Speaker 2: That's for everybody. Okay, So if somebody was earning twenty 410 00:21:36,520 --> 00:21:39,760 Speaker 2: five thousand, they would the first twenty two eight hundred 411 00:21:39,760 --> 00:21:41,320 Speaker 2: and eighty six would pay no tax on it. 412 00:21:41,440 --> 00:21:43,480 Speaker 1: So if I've got three million in Super, just to 413 00:21:43,560 --> 00:21:48,240 Speaker 1: make it really just make it really juicy. If I've 414 00:21:48,240 --> 00:21:50,919 Speaker 1: got the three million in Super, I've got some but 415 00:21:51,000 --> 00:21:53,760 Speaker 1: outside I've money outside Super, nothing to do with my 416 00:21:53,760 --> 00:21:56,879 Speaker 1: super funds, just sitting there in my bank. Can I 417 00:21:56,920 --> 00:22:00,800 Speaker 1: earn twenty two thousand a year tax free? 418 00:22:01,440 --> 00:22:02,080 Speaker 2: Yes you can? 419 00:22:02,240 --> 00:22:04,959 Speaker 1: Can I be classified as low income offset though I've 420 00:22:05,000 --> 00:22:06,080 Speaker 1: got three million Super? 421 00:22:06,600 --> 00:22:09,480 Speaker 2: And even better than that, James, if you're over sixty seven, 422 00:22:09,680 --> 00:22:11,520 Speaker 2: you get also on top of the low income tax 423 00:22:11,560 --> 00:22:14,399 Speaker 2: off set, there's also the Senior Australian Pensions and tax 424 00:22:14,440 --> 00:22:18,080 Speaker 2: off set, which if you for a couple, you can 425 00:22:18,119 --> 00:22:21,359 Speaker 2: basically earn about thirty eight hundred and eighty eight without 426 00:22:21,359 --> 00:22:24,720 Speaker 2: paying any tax. So imagine somebody who's got You've got 427 00:22:24,760 --> 00:22:27,400 Speaker 2: a couple, they've got two million in SUPER each, they 428 00:22:27,400 --> 00:22:29,639 Speaker 2: have to take five percent pension, there's one hundred thousand 429 00:22:29,640 --> 00:22:32,439 Speaker 2: tax free out each during the year, and they might 430 00:22:32,480 --> 00:22:35,800 Speaker 2: have an investment property outside that's bringing in sixty thousand 431 00:22:35,800 --> 00:22:39,920 Speaker 2: of rental income. All of that can be completely tax free. 432 00:22:39,960 --> 00:22:42,280 Speaker 2: So you're talking two hundred and sixty thousand dollars a 433 00:22:42,359 --> 00:22:46,200 Speaker 2: year tax free because of that system. 434 00:22:46,640 --> 00:22:50,000 Speaker 1: So just to clarify, my money in Super is a 435 00:22:50,000 --> 00:22:53,800 Speaker 1: separate issue. Outside of Super, as an individual, up to 436 00:22:53,880 --> 00:22:57,120 Speaker 1: sixty seven, I can have twenty two thousand a year 437 00:22:57,160 --> 00:23:00,560 Speaker 1: tax free, and over sixty seven, as an individual I 438 00:23:00,600 --> 00:23:03,240 Speaker 1: can have I can earn thirty five thousand a year 439 00:23:03,480 --> 00:23:05,920 Speaker 1: tax free, even if I had to say three million 440 00:23:05,960 --> 00:23:10,080 Speaker 1: in Super. Well, you do wonder whether money is going 441 00:23:10,119 --> 00:23:14,720 Speaker 1: to slide out of Super. You do wonder whether people 442 00:23:14,720 --> 00:23:17,440 Speaker 1: are going to let money slide out of Super and 443 00:23:17,760 --> 00:23:23,120 Speaker 1: optimize these perhaps under used tax scales that were never 444 00:23:23,160 --> 00:23:25,120 Speaker 1: intended of course for multi millionaires. 445 00:23:25,200 --> 00:23:28,520 Speaker 2: But hey, but More importantly, it's important that people understand 446 00:23:29,200 --> 00:23:31,040 Speaker 2: that they should try and get as much into Super 447 00:23:31,119 --> 00:23:34,480 Speaker 2: as possible to basically have that in tax free, so 448 00:23:34,480 --> 00:23:37,200 Speaker 2: they pay as little as possible outside on what they 449 00:23:37,200 --> 00:23:41,520 Speaker 2: have outside. Because being Australians, most people, you know, they 450 00:23:41,560 --> 00:23:43,920 Speaker 2: try to have an investment property or they have assets 451 00:23:43,960 --> 00:23:46,399 Speaker 2: outside of Super as well. They don't totally trust the 452 00:23:46,440 --> 00:23:49,800 Speaker 2: government for bringing in taxes like this. So the whole 453 00:23:49,960 --> 00:23:52,719 Speaker 2: important thing is to try as an individual to have 454 00:23:52,760 --> 00:23:56,080 Speaker 2: two pots of money your Super pension plus your money outside. 455 00:23:56,160 --> 00:23:58,480 Speaker 2: As a couple to have four pots and to be 456 00:23:58,520 --> 00:24:01,200 Speaker 2: delivering as much of your income tax free as possible 457 00:24:01,600 --> 00:24:02,280 Speaker 2: over the years. 458 00:24:03,040 --> 00:24:07,280 Speaker 1: So you wonder, really it's interesting about that. Of course 459 00:24:07,280 --> 00:24:09,960 Speaker 1: the money and Super can't get back out until your tire, 460 00:24:10,000 --> 00:24:13,080 Speaker 1: but it's really worth knowing that you can earn as 461 00:24:13,119 --> 00:24:15,920 Speaker 1: a single person. I'll just repeat the numbers because they're 462 00:24:15,960 --> 00:24:18,040 Speaker 1: just extraordinary. You can earn twenty two thousand to year 463 00:24:18,040 --> 00:24:20,880 Speaker 1: tax free as an individual outside Super, and thirty five 464 00:24:20,920 --> 00:24:25,280 Speaker 1: thousand once you're over sixty seven. That's the earnings tax free. Okay, 465 00:24:26,040 --> 00:24:28,040 Speaker 1: keep that in mind, folks. I think that's one of 466 00:24:28,080 --> 00:24:31,040 Speaker 1: the most interesting things that have popped up all year, okay, Liam, 467 00:24:31,200 --> 00:24:35,159 Speaker 1: short of Sonaus. What does it mean again? Knowledge? Wealth? 468 00:24:35,720 --> 00:24:39,040 Speaker 2: It's the Irish for good, prosperity, wealth and happiness. 469 00:24:39,440 --> 00:24:42,000 Speaker 1: There you go, prosperity, wealth and happiness. This is what 470 00:24:42,040 --> 00:24:44,280 Speaker 1: the show's all about. Thank you very much, Liam, great 471 00:24:44,320 --> 00:24:46,600 Speaker 1: to talk to you. We'll talk again soon. Thank you, James, 472 00:24:46,840 --> 00:24:49,719 Speaker 1: and thank you folks. Let's have some more emails and 473 00:24:49,800 --> 00:24:52,760 Speaker 1: do keep the I love the idea of putting several 474 00:24:52,840 --> 00:24:54,919 Speaker 1: questions into an email. I noticed it's happening all the 475 00:24:54,920 --> 00:24:56,840 Speaker 1: time now regularly keep that up. If you're going to 476 00:24:56,880 --> 00:24:58,520 Speaker 1: send in a question, send in a few. Why not. 477 00:24:58,600 --> 00:25:01,119 Speaker 1: You've taken the effort. The email mail is the money 478 00:25:01,240 --> 00:25:04,400 Speaker 1: puzzle at the Australian dot com dot au. Talk you soon.