1 00:00:13,280 --> 00:00:15,800 Speaker 1: Hello, and welcome to today's episode of The Money Puzzle. 2 00:00:15,880 --> 00:00:18,360 Speaker 1: I'm your host James Gerard, standing in for James Kirby 3 00:00:18,400 --> 00:00:21,600 Speaker 1: this week for another special episode. Last week we covered 4 00:00:21,600 --> 00:00:24,279 Speaker 1: the world of private equity and heard some very insightful 5 00:00:24,320 --> 00:00:28,360 Speaker 1: tips from a season private equity investor, Rudy Engelbreck. If 6 00:00:28,360 --> 00:00:30,440 Speaker 1: you haven't listened to that episode, i'd really encourage you 7 00:00:30,440 --> 00:00:32,960 Speaker 1: to do so, it was well worth listening. It's called 8 00:00:33,159 --> 00:00:37,239 Speaker 1: Private Equity Playbook, Tips from an Insider. And today we're 9 00:00:37,240 --> 00:00:39,040 Speaker 1: going to cover tax. You know, the thing is that 10 00:00:39,120 --> 00:00:41,280 Speaker 1: tax probably isn't the most exciting thing in the world, 11 00:00:41,320 --> 00:00:43,479 Speaker 1: but it's important. So what we're going to do is 12 00:00:43,479 --> 00:00:45,240 Speaker 1: we're going to we're going to try and tackle it 13 00:00:45,240 --> 00:00:46,839 Speaker 1: in a structured way. We're going to break it up 14 00:00:46,840 --> 00:00:50,159 Speaker 1: into discussion by different age groups so that regardless of 15 00:00:50,159 --> 00:00:51,839 Speaker 1: how old you are and who you are, hopefully you 16 00:00:51,840 --> 00:00:55,240 Speaker 1: can take something away from today's episode. And we're going 17 00:00:55,240 --> 00:00:57,640 Speaker 1: to finish with the top tax deductions you didn't know 18 00:00:57,680 --> 00:00:59,720 Speaker 1: that you could claim. And to help us with this 19 00:00:59,840 --> 00:01:02,560 Speaker 1: very very special mission, we've got a very special guest. 20 00:01:02,800 --> 00:01:04,720 Speaker 1: He's been on the show before, so his name may 21 00:01:04,760 --> 00:01:07,880 Speaker 1: be familiar to a couple of you. Timothy Ricardo is 22 00:01:07,920 --> 00:01:12,880 Speaker 1: the principal at Central Coast based accounting practice Accounting Advisor Group. Now, 23 00:01:12,959 --> 00:01:14,520 Speaker 1: something you might not know about Tim is that he 24 00:01:14,560 --> 00:01:17,160 Speaker 1: doesn't mind the occasional round of golf. So in his 25 00:01:17,240 --> 00:01:19,520 Speaker 1: day job as an accountant, Tim's very good at writing 26 00:01:19,560 --> 00:01:21,640 Speaker 1: things off. But when it comes to golf, a lot 27 00:01:21,640 --> 00:01:23,480 Speaker 1: of people say that Tim's golf game is a bit 28 00:01:23,520 --> 00:01:26,240 Speaker 1: of a write off. So, without further delay, let's give 29 00:01:26,319 --> 00:01:31,120 Speaker 1: Tim from Accounting Advisor a very big money puzzle. Welcome, Welcome, Tim. 30 00:01:31,160 --> 00:01:34,280 Speaker 2: Thanks James. I think a bit of creative accounting in 31 00:01:34,360 --> 00:01:36,880 Speaker 2: golfing is always helpful though. That's the way. 32 00:01:37,760 --> 00:01:40,880 Speaker 1: We've had many rounds of golf together and we have 33 00:01:40,959 --> 00:01:44,679 Speaker 1: been occasionally creative. But we'll stop talking about that because 34 00:01:44,800 --> 00:01:46,840 Speaker 1: other people were on the same golf day maybe at 35 00:01:46,840 --> 00:01:48,800 Speaker 1: listening to this. So before we get started, I just 36 00:01:48,840 --> 00:01:50,840 Speaker 1: want everyone to know that what Tim and I discuss 37 00:01:50,960 --> 00:01:54,440 Speaker 1: is general advice and it's not seen to be personal advice. So, 38 00:01:54,640 --> 00:01:56,720 Speaker 1: as is always the case on the Money Puzzle, listeners 39 00:01:56,720 --> 00:01:59,720 Speaker 1: should seek professional advice before acting on anything they hear 40 00:01:59,800 --> 00:02:02,720 Speaker 1: on today's episode. So let's get started, Tim, and let's 41 00:02:02,720 --> 00:02:05,720 Speaker 1: have a chat about the younger age group. So what 42 00:02:05,760 --> 00:02:07,480 Speaker 1: we'll do is we'll break it up into three different 43 00:02:07,520 --> 00:02:09,919 Speaker 1: age groups. We'll talk about people who were between eighteen 44 00:02:10,000 --> 00:02:12,440 Speaker 1: years old and forty and some of the tax issues 45 00:02:12,440 --> 00:02:14,960 Speaker 1: that they face and how they can potentially optimize things 46 00:02:15,000 --> 00:02:17,160 Speaker 1: and think about things I may not have thought about before. 47 00:02:17,480 --> 00:02:20,400 Speaker 1: We'll then jump into people between forty and sixty years 48 00:02:20,400 --> 00:02:23,000 Speaker 1: of age, and then we'll jump through to the retirees. 49 00:02:23,200 --> 00:02:26,160 Speaker 1: So starting with the age bracket of eighteen to forty, 50 00:02:26,639 --> 00:02:31,040 Speaker 1: let's have a chat about the private health insurance Medicare, 51 00:02:31,120 --> 00:02:33,840 Speaker 1: levy surcharge. Talk us through why is that important for 52 00:02:33,840 --> 00:02:35,560 Speaker 1: people in that age bracket? Tim? 53 00:02:35,760 --> 00:02:39,280 Speaker 2: Okay, So yeah, the younger generation. I don't think we 54 00:02:39,320 --> 00:02:41,280 Speaker 2: fit into that one anymore, James. 55 00:02:41,360 --> 00:02:44,079 Speaker 1: Unfortunately, we're on the other side of the Big four 56 00:02:44,200 --> 00:02:47,560 Speaker 1: zero now, Tim. 57 00:02:46,560 --> 00:02:48,959 Speaker 2: So yes, what can we what wisdom can we give 58 00:02:48,960 --> 00:02:52,320 Speaker 2: to these young people? Okay? So private health insurance is 59 00:02:52,360 --> 00:02:54,880 Speaker 2: one of those topics that I think the young people 60 00:02:54,919 --> 00:02:56,840 Speaker 2: think that they're all fit and healthy and they don't 61 00:02:56,880 --> 00:02:59,440 Speaker 2: need it. So what the government does is they make 62 00:02:59,480 --> 00:03:01,600 Speaker 2: it more, you know, more of an incentive for you 63 00:03:01,680 --> 00:03:04,880 Speaker 2: to get it when you're younger. So basically, after the 64 00:03:04,919 --> 00:03:08,560 Speaker 2: age of thirty, a loading of two percent adds to 65 00:03:08,560 --> 00:03:12,640 Speaker 2: your premiums every year. So if you're starting to you know, 66 00:03:12,680 --> 00:03:14,200 Speaker 2: if you feel like if you're fit and healthy and 67 00:03:14,240 --> 00:03:17,959 Speaker 2: you don't need private health insurance, the older you get 68 00:03:18,600 --> 00:03:22,480 Speaker 2: you might actually require that insurance. And without giving any 69 00:03:22,520 --> 00:03:26,360 Speaker 2: advice on that, from a tax perspective, you can also 70 00:03:26,440 --> 00:03:28,600 Speaker 2: save a little bit of money. If you're starting to 71 00:03:28,639 --> 00:03:32,960 Speaker 2: earn more income, you also pay more tax if you 72 00:03:32,960 --> 00:03:35,680 Speaker 2: don't have private health insurance. So there's an incentive there 73 00:03:36,000 --> 00:03:38,840 Speaker 2: that you know, to get that insurance when you're younger, 74 00:03:39,400 --> 00:03:42,600 Speaker 2: you know, thirty or below, so that you can think 75 00:03:42,600 --> 00:03:43,960 Speaker 2: about the future. I suppose. 76 00:03:44,280 --> 00:03:48,280 Speaker 1: Yeah, So what's a maximum surcharge that can be charged? 77 00:03:48,720 --> 00:03:50,720 Speaker 1: Assume it goes up the more you earn, the higher 78 00:03:50,760 --> 00:03:52,360 Speaker 1: the search charge that you get charged. 79 00:03:52,680 --> 00:03:56,360 Speaker 2: I think it's a maximum of forty percent, but I'd 80 00:03:56,360 --> 00:03:58,760 Speaker 2: have to double check that one. James, thanks for throwing 81 00:03:58,800 --> 00:04:00,000 Speaker 2: a wild card question at me. 82 00:04:02,200 --> 00:04:04,760 Speaker 1: That's what I mean about what gets added to your tax, 83 00:04:04,840 --> 00:04:07,320 Speaker 1: like that Medicare surch charge levee. 84 00:04:07,400 --> 00:04:10,400 Speaker 2: Okay on the levee side here, Well, so basically, the 85 00:04:10,400 --> 00:04:12,960 Speaker 2: more you earn, the more tax you pay. But if 86 00:04:12,960 --> 00:04:16,279 Speaker 2: you're over as an individual ninety seven thousand in income, 87 00:04:16,400 --> 00:04:18,359 Speaker 2: or as a family they double it, so one hundred 88 00:04:18,360 --> 00:04:21,680 Speaker 2: and ninety four thousand. Then you pay one percent surcharge 89 00:04:21,680 --> 00:04:24,440 Speaker 2: on your income. So if you're earning you know, two 90 00:04:24,480 --> 00:04:27,320 Speaker 2: hundred thousand dollars between the two of you, you pay 91 00:04:27,440 --> 00:04:30,520 Speaker 2: two thousand dollars extra in tax. And then if you're 92 00:04:30,560 --> 00:04:32,960 Speaker 2: going up to more than you know, three hundred and 93 00:04:33,000 --> 00:04:35,320 Speaker 2: two thousand, then you can actually pay one and a 94 00:04:35,360 --> 00:04:38,480 Speaker 2: half percent as a loading on your tax. So yeah, 95 00:04:38,680 --> 00:04:41,520 Speaker 2: not a great sort of tax to be paying. It's 96 00:04:41,720 --> 00:04:44,120 Speaker 2: a penalty. So good idea to have insurance when you 97 00:04:44,240 --> 00:04:45,320 Speaker 2: start earning more money. 98 00:04:45,720 --> 00:04:47,320 Speaker 1: All right, well there there we go. So the more 99 00:04:47,320 --> 00:04:49,880 Speaker 1: you earn, the more you could should consider private health 100 00:04:49,880 --> 00:04:53,159 Speaker 1: insurance and maybe not even so much for the core 101 00:04:53,200 --> 00:04:55,920 Speaker 1: benefits of it, but getting hospital cover, because I've seen 102 00:04:55,960 --> 00:05:00,359 Speaker 1: situations where people pay less premiums for hospital cover than 103 00:05:00,360 --> 00:05:03,599 Speaker 1: they would in the Medicare levy surcharge. So financially it 104 00:05:03,600 --> 00:05:05,400 Speaker 1: could be better just to get that private health insurance. 105 00:05:05,440 --> 00:05:07,279 Speaker 1: Plus you get to the free cover if you you 106 00:05:07,360 --> 00:05:09,720 Speaker 1: need it now, even onto another one for our younger 107 00:05:09,760 --> 00:05:11,680 Speaker 1: age bracket, Why do you think it might be important 108 00:05:11,760 --> 00:05:14,080 Speaker 1: to get an accountant earlier in life. 109 00:05:14,520 --> 00:05:17,760 Speaker 2: Okay, So look, I think it's for these kind of points, 110 00:05:17,800 --> 00:05:20,440 Speaker 2: because if you get over a certain age, you start 111 00:05:20,480 --> 00:05:24,240 Speaker 2: losing some benefits, and it's more about the things you know, 112 00:05:24,320 --> 00:05:27,640 Speaker 2: miss out on when you're that that young you might 113 00:05:27,680 --> 00:05:31,240 Speaker 2: think the digital you know, this digital generation, everything's at 114 00:05:31,240 --> 00:05:34,240 Speaker 2: your fingertips, and the ATO make it really easy to 115 00:05:34,240 --> 00:05:37,120 Speaker 2: lodge your own return. And I looked up some stats here, 116 00:05:37,120 --> 00:05:40,240 Speaker 2: but at the end of August six point five million 117 00:05:40,279 --> 00:05:43,599 Speaker 2: individual returns were lodged, three and a half million were 118 00:05:43,640 --> 00:05:47,200 Speaker 2: by self preparers and two point only two point nine 119 00:05:47,360 --> 00:05:50,919 Speaker 2: so they've sort of eclipsed the agent prepared returns. But 120 00:05:51,200 --> 00:05:54,560 Speaker 2: there's these new returns called push returns, which basically the 121 00:05:54,600 --> 00:05:58,159 Speaker 2: ATO prepares your return for you and says, you know, 122 00:05:58,520 --> 00:06:01,240 Speaker 2: do you want to go ahead with this return? It's 123 00:06:01,279 --> 00:06:04,520 Speaker 2: for those simple taxpayers. So it is the dy trend 124 00:06:04,560 --> 00:06:08,040 Speaker 2: of returns is going to be sort of increasing, I think. 125 00:06:08,400 --> 00:06:12,640 Speaker 2: But essentially, if you are looking for tax advice, it 126 00:06:12,800 --> 00:06:15,640 Speaker 2: is easy to get things wrong on your tax return. 127 00:06:15,920 --> 00:06:18,120 Speaker 2: And a lot of the returns I see that come 128 00:06:18,160 --> 00:06:20,640 Speaker 2: to me after they've prepared it themselves. I can usually 129 00:06:20,680 --> 00:06:22,680 Speaker 2: pick up quite a few things they've gotten wrong. So 130 00:06:23,000 --> 00:06:26,440 Speaker 2: it's good to get an accountant to start providing some 131 00:06:26,480 --> 00:06:29,919 Speaker 2: of those specialized advice pieces, especially when you start getting 132 00:06:29,960 --> 00:06:34,000 Speaker 2: into some areas that are outside those very simple salary 133 00:06:34,120 --> 00:06:35,320 Speaker 2: wage returns. 134 00:06:36,600 --> 00:06:39,600 Speaker 1: What about paining HEX? People often ask me, should I 135 00:06:39,640 --> 00:06:43,520 Speaker 1: focus on repaying my HEX debt or should I put 136 00:06:43,520 --> 00:06:47,000 Speaker 1: it onto my mortgage or onto my investment property loans? 137 00:06:47,000 --> 00:06:49,840 Speaker 1: So these people who've gone through university, they're in their 138 00:06:49,839 --> 00:06:52,840 Speaker 1: twenties thirties, still have a residual HEX debt. What are 139 00:06:52,839 --> 00:06:54,320 Speaker 1: your thoughts there from a tax perspective. 140 00:06:55,080 --> 00:06:57,760 Speaker 2: Okay, well, on the hex stets, this is something in 141 00:06:57,800 --> 00:07:01,039 Speaker 2: this age bracket, they've usually got quite large HEX debts. 142 00:07:01,080 --> 00:07:04,000 Speaker 2: And every year you get a compulsory payment that comes 143 00:07:04,080 --> 00:07:07,880 Speaker 2: on when you complete your tax return. So one of 144 00:07:07,920 --> 00:07:11,680 Speaker 2: the things that is a mis conception, I suppose, is 145 00:07:11,720 --> 00:07:14,400 Speaker 2: that I can you know, sort of make a voluntary 146 00:07:14,400 --> 00:07:17,240 Speaker 2: repayment and then you know that'll save me on my 147 00:07:17,400 --> 00:07:20,880 Speaker 2: compulsory repayment. But you don't actually get any reduction on 148 00:07:20,920 --> 00:07:24,840 Speaker 2: your compulsory repayment for any voluntary repayments, So it sort 149 00:07:24,880 --> 00:07:27,280 Speaker 2: of it becomes that a bit of a black hole there, 150 00:07:27,680 --> 00:07:31,680 Speaker 2: and the fact that it's only increasing by CPI means 151 00:07:31,720 --> 00:07:33,520 Speaker 2: that you'd be able to give the advice on that 152 00:07:33,600 --> 00:07:37,880 Speaker 2: as to whether CPI is better than a getting a 153 00:07:37,960 --> 00:07:40,920 Speaker 2: loan outside or putting it on your mortgage. But yeah, 154 00:07:40,960 --> 00:07:42,160 Speaker 2: it's something to consider. 155 00:07:42,280 --> 00:07:46,000 Speaker 1: Yeah. So in the past, it was generally advisable to 156 00:07:46,520 --> 00:07:49,920 Speaker 1: not prioritize hex repayments because the indexation rate was quite 157 00:07:50,040 --> 00:07:53,600 Speaker 1: low and people's mortgages, investment loans, car loans, personal loans 158 00:07:53,600 --> 00:07:55,800 Speaker 1: would be of a higher interest rate. But had a 159 00:07:55,840 --> 00:07:57,800 Speaker 1: bit of surprise for the last twelve months it was 160 00:07:57,840 --> 00:08:00,960 Speaker 1: seven point one percent indexation, so that's been higher than 161 00:08:00,960 --> 00:08:03,360 Speaker 1: it has been for quite a long time. So every 162 00:08:03,440 --> 00:08:06,240 Speaker 1: year people just need to think about and be conscious 163 00:08:06,240 --> 00:08:08,160 Speaker 1: that they have a heck's debts if they do, and 164 00:08:08,200 --> 00:08:11,640 Speaker 1: then just work out in the order of priority should 165 00:08:11,640 --> 00:08:13,880 Speaker 1: they make an extra payment or focus their cash flow 166 00:08:13,920 --> 00:08:18,360 Speaker 1: in other areas tim What about first Home supersaver scheme? 167 00:08:18,920 --> 00:08:21,800 Speaker 1: What should we understand for people in that eighteen to 168 00:08:21,840 --> 00:08:24,120 Speaker 1: forty year old age bracket with regards to this. 169 00:08:24,520 --> 00:08:27,760 Speaker 2: Yeah, So this was brought in back in the Turnbull 170 00:08:27,800 --> 00:08:31,000 Speaker 2: government days of twenty seventeen and it was a little 171 00:08:31,000 --> 00:08:33,640 Speaker 2: bit more popular than co investing. With the government on 172 00:08:33,720 --> 00:08:36,960 Speaker 2: your first house for some reason. And basically this one 173 00:08:37,120 --> 00:08:41,000 Speaker 2: is it allows you to pull out of SUPER any 174 00:08:41,240 --> 00:08:45,040 Speaker 2: sort of contributions that you've made voluntary contributions into SUPER. 175 00:08:45,360 --> 00:08:47,520 Speaker 2: So it can be a real help for these young 176 00:08:47,800 --> 00:08:50,360 Speaker 2: taxpayers that are trying to get into a house that 177 00:08:50,440 --> 00:08:52,760 Speaker 2: allows them to save and put some money into SUPER, 178 00:08:53,240 --> 00:08:56,680 Speaker 2: and then they can withdraw up to fifty thousand dollars 179 00:08:56,760 --> 00:09:00,800 Speaker 2: of their voluntary contributions up to fifteen thousand a year 180 00:09:01,720 --> 00:09:04,320 Speaker 2: of their voluntary contributions that they make, so they can 181 00:09:04,360 --> 00:09:06,160 Speaker 2: get a bit of a tax deduction on the way in, 182 00:09:06,720 --> 00:09:09,200 Speaker 2: and then when they pull it out, you do get 183 00:09:09,600 --> 00:09:13,319 Speaker 2: a tax offset of I think it's thirty percent that 184 00:09:13,559 --> 00:09:15,560 Speaker 2: you can get when you pull that out of SUPER. 185 00:09:16,040 --> 00:09:18,720 Speaker 2: And the best thing about this is that it's actually 186 00:09:18,760 --> 00:09:21,800 Speaker 2: per person, So if there's two of you, you can 187 00:09:21,840 --> 00:09:24,920 Speaker 2: pull out one hundred thousand out of your SUPER if 188 00:09:24,920 --> 00:09:28,320 Speaker 2: you've been putting it in as voluntary contributions. So it's 189 00:09:28,360 --> 00:09:30,920 Speaker 2: something that you can get a bit of a tax 190 00:09:30,960 --> 00:09:34,280 Speaker 2: benefit to help you save. And then when you're pull 191 00:09:34,559 --> 00:09:37,040 Speaker 2: if you're wanting to get into that first home, you 192 00:09:37,080 --> 00:09:39,920 Speaker 2: can go in with someone else and obviously pull out 193 00:09:39,960 --> 00:09:41,840 Speaker 2: and get a bit of a deposit together. 194 00:09:42,520 --> 00:09:45,680 Speaker 1: Perfect, so on the way in, fifteen percent tax on 195 00:09:45,760 --> 00:09:48,400 Speaker 1: the way out. Some people may not realize that it's 196 00:09:48,440 --> 00:09:50,720 Speaker 1: not fully tax free. That depending on your level of 197 00:09:50,760 --> 00:09:53,079 Speaker 1: tax build income, there is a thirty percent tax offset there. 198 00:09:53,120 --> 00:09:54,880 Speaker 1: But if you're on the highest marginal tax rate, there 199 00:09:54,880 --> 00:09:57,280 Speaker 1: still might be a bit of top up tax payable 200 00:09:57,440 --> 00:10:01,839 Speaker 1: on that super money coming out and you deposit. All right, Well, 201 00:10:01,920 --> 00:10:03,720 Speaker 1: I think we're done with the younger age back unless 202 00:10:03,720 --> 00:10:05,319 Speaker 1: theres anything else you wanted to run through with them 203 00:10:05,360 --> 00:10:06,360 Speaker 1: that comes to mind. 204 00:10:06,600 --> 00:10:08,200 Speaker 2: No, not off the top of my head. I think 205 00:10:08,280 --> 00:10:11,120 Speaker 2: that's a good snapshot of a few issues to consider. 206 00:10:11,600 --> 00:10:14,520 Speaker 1: All right, good, let's move on to the middle aged 207 00:10:14,559 --> 00:10:17,000 Speaker 1: tax payer, and maybe a little bit older than that 208 00:10:17,040 --> 00:10:21,000 Speaker 1: as well, so between forty and sixty. So let's kick 209 00:10:21,040 --> 00:10:24,000 Speaker 1: it off with negative gear in now. The thing is 210 00:10:24,000 --> 00:10:27,240 Speaker 1: that negative gearing is pretty rare globally, Tim, Do you 211 00:10:27,280 --> 00:10:30,719 Speaker 1: know much about negative gear in regards to how we 212 00:10:30,760 --> 00:10:32,120 Speaker 1: do it versus other countries? 213 00:10:32,800 --> 00:10:35,440 Speaker 2: Look, I don't know a whole lot because we mostly 214 00:10:35,480 --> 00:10:38,319 Speaker 2: focus on the Australian tax seem to be bogged down 215 00:10:38,360 --> 00:10:40,920 Speaker 2: in that. But interestingly, just to look at a couple 216 00:10:41,000 --> 00:10:43,800 Speaker 2: of other countries. You know, New Zealand has sort of 217 00:10:43,800 --> 00:10:47,600 Speaker 2: phased out their negative gearing for a few years now, 218 00:10:47,840 --> 00:10:51,560 Speaker 2: so they're moving away from it, and then Canada they 219 00:10:51,720 --> 00:10:56,040 Speaker 2: have you know, more like an offset, a future offset 220 00:10:56,080 --> 00:10:59,560 Speaker 2: where you can't offset the negative gearing against your other income, 221 00:10:59,600 --> 00:11:02,560 Speaker 2: but you can against future sort of rental earning, so 222 00:11:02,600 --> 00:11:06,000 Speaker 2: they sort of isolate that as a deduction, which yeah, 223 00:11:06,120 --> 00:11:08,920 Speaker 2: is I'm sure the government's been considering all of these 224 00:11:09,200 --> 00:11:11,520 Speaker 2: different options and it's a bit of a hot topic 225 00:11:11,559 --> 00:11:14,920 Speaker 2: with them, but yeah, So more focusing on the Australian 226 00:11:14,960 --> 00:11:17,520 Speaker 2: side of things, though, I think it is here. Is 227 00:11:17,520 --> 00:11:20,480 Speaker 2: it here to stay? I don't know the answer to 228 00:11:20,480 --> 00:11:24,000 Speaker 2: that question, but it is certainly something that is pretty common. 229 00:11:24,040 --> 00:11:26,360 Speaker 2: At about one in ten were the stats that I 230 00:11:26,400 --> 00:11:30,760 Speaker 2: saw of Australians that use negative gearing, which yeah, I 231 00:11:30,760 --> 00:11:33,640 Speaker 2: don't know where that comes from, but that's pretty high. 232 00:11:33,880 --> 00:11:36,920 Speaker 1: All right, Well, negative gearing, maybe jumping back a step 233 00:11:36,920 --> 00:11:39,880 Speaker 1: to the basics of it, Explain to our listeners why 234 00:11:40,040 --> 00:11:43,840 Speaker 1: someone would want to buy an investment asset that costs 235 00:11:43,840 --> 00:11:46,880 Speaker 1: them more money to maintain each year than the income 236 00:11:46,920 --> 00:11:50,319 Speaker 1: they're getting from it. Why would that make financial sense 237 00:11:50,400 --> 00:11:54,079 Speaker 1: or taxation sense to have a loss making investment. 238 00:11:54,720 --> 00:11:58,359 Speaker 2: Yeah, so when you're talking about negative gearing, it's basically 239 00:11:58,760 --> 00:12:01,120 Speaker 2: an asset that's got a loan on it and it's 240 00:12:01,200 --> 00:12:04,600 Speaker 2: creating a loss that is then tax deductible in our 241 00:12:04,679 --> 00:12:07,559 Speaker 2: tax system. So from that point of view, it can 242 00:12:07,600 --> 00:12:11,240 Speaker 2: look at the whole idea he James, is that you're 243 00:12:11,240 --> 00:12:14,280 Speaker 2: doing it for investment obviously, and that's your area. You're 244 00:12:14,280 --> 00:12:17,160 Speaker 2: picking an investment, you're hoping it's going to go up 245 00:12:17,160 --> 00:12:19,400 Speaker 2: in price, but you can save a bit of tax 246 00:12:19,760 --> 00:12:23,480 Speaker 2: in the meantime on the costs associated with holding on 247 00:12:23,520 --> 00:12:26,440 Speaker 2: to that property. But as far as things to consider, 248 00:12:26,480 --> 00:12:30,520 Speaker 2: I think appreciation and sort of those non cash deductions 249 00:12:30,600 --> 00:12:34,040 Speaker 2: are things that do help in this regard. So there 250 00:12:34,080 --> 00:12:38,000 Speaker 2: are a few different types of non cash deductions that 251 00:12:38,080 --> 00:12:40,679 Speaker 2: you can get when you've got a rental property, so 252 00:12:40,720 --> 00:12:42,679 Speaker 2: they're not actually things that you're having to pay for, 253 00:12:43,080 --> 00:12:45,400 Speaker 2: but you can claim them in your return. 254 00:12:46,679 --> 00:12:50,120 Speaker 1: Ye. And what about the decision as to who owns 255 00:12:50,240 --> 00:12:54,520 Speaker 1: the property the negatively geared property, Should it be in 256 00:12:54,840 --> 00:12:57,800 Speaker 1: joint names, if it's to partners who are married, should 257 00:12:57,800 --> 00:13:00,760 Speaker 1: it be in the higher income the lower income? Doesn't 258 00:13:00,760 --> 00:13:03,280 Speaker 1: depend on whether the property is making a loss or 259 00:13:03,480 --> 00:13:06,000 Speaker 1: cash flow positive? How do people start to and again 260 00:13:06,040 --> 00:13:09,199 Speaker 1: not advice, but generally how should people be thinking about. 261 00:13:09,559 --> 00:13:11,040 Speaker 1: Is there any rule of thumbs when it comes to 262 00:13:11,160 --> 00:13:16,200 Speaker 1: ownership of geared leveraged investment property or geared share portfolios. 263 00:13:16,679 --> 00:13:20,880 Speaker 2: Yeah, so as far as gearing is concerned, if you 264 00:13:20,960 --> 00:13:23,199 Speaker 2: need to look at it on a property by property 265 00:13:23,320 --> 00:13:27,760 Speaker 2: or case by case basis. Obviously some assets grow a 266 00:13:27,800 --> 00:13:30,360 Speaker 2: lot more from a capital point of view, but have 267 00:13:30,480 --> 00:13:33,160 Speaker 2: a sort of are in a cash sort of negative 268 00:13:33,200 --> 00:13:36,200 Speaker 2: position on a gear to gear basis. You know, obviously 269 00:13:36,240 --> 00:13:39,439 Speaker 2: in the short term having that in the name of 270 00:13:39,640 --> 00:13:43,640 Speaker 2: the higher tax payer would be there would be a 271 00:13:43,679 --> 00:13:47,439 Speaker 2: good idea just generally speaking, But then you need to 272 00:13:47,480 --> 00:13:50,880 Speaker 2: consider that CGT at the end because if you have 273 00:13:51,160 --> 00:13:53,040 Speaker 2: if you have a capital gain that's all in one 274 00:13:53,080 --> 00:13:56,240 Speaker 2: person's name, you could be paying a lot more than 275 00:13:56,280 --> 00:13:58,640 Speaker 2: if it's divided by the two of you at lower 276 00:13:58,800 --> 00:14:01,440 Speaker 2: marginal rates, say when you retire, you're going to sell 277 00:14:01,480 --> 00:14:05,280 Speaker 2: that later on. So it's really a case by case 278 00:14:05,400 --> 00:14:08,640 Speaker 2: situation there, James, But certainly something that you get advice 279 00:14:08,720 --> 00:14:12,320 Speaker 2: on for each asset that you're purchasing, and just to 280 00:14:12,360 --> 00:14:14,480 Speaker 2: look at the mix of what sort of a lost 281 00:14:14,480 --> 00:14:17,760 Speaker 2: position that would begin, and you know what you're planning 282 00:14:17,840 --> 00:14:19,880 Speaker 2: on doing with that I set, and how long you're 283 00:14:19,880 --> 00:14:21,040 Speaker 2: going to hold on to it. 284 00:14:21,480 --> 00:14:25,480 Speaker 1: People between forty and sixty often ask me about family 285 00:14:25,520 --> 00:14:28,040 Speaker 1: trust They say, look, should I have a family trust 286 00:14:28,040 --> 00:14:31,680 Speaker 1: to buy this investment? And I usually recommend they seek 287 00:14:31,760 --> 00:14:35,360 Speaker 1: professional accounting advice. I suspect that you probably get the 288 00:14:35,400 --> 00:14:38,000 Speaker 1: same question. How do you approach that with regards to 289 00:14:38,040 --> 00:14:41,480 Speaker 1: what are the considerations for people to walk through as 290 00:14:41,520 --> 00:14:44,400 Speaker 1: they decide whether they should have a family trust or 291 00:14:44,440 --> 00:14:46,400 Speaker 1: whether they should just invest in their personal names. 292 00:14:47,320 --> 00:14:52,880 Speaker 2: Yeah, so family trusts are pretty common among the higher 293 00:14:52,920 --> 00:14:57,400 Speaker 2: wealth sort of individuals, ones that are trying to separate 294 00:14:57,480 --> 00:15:02,560 Speaker 2: assets for asset protection purposes or just flexibility if their 295 00:15:02,600 --> 00:15:05,720 Speaker 2: discretionary trusts to be able to split the income on 296 00:15:05,800 --> 00:15:10,920 Speaker 2: assets between you know, more favorable you know tax rates 297 00:15:10,960 --> 00:15:13,080 Speaker 2: in the future, you know, giving it to either the 298 00:15:13,160 --> 00:15:16,880 Speaker 2: mum or the data or whoever the higher tax earner is. 299 00:15:17,080 --> 00:15:20,120 Speaker 2: They don't have to you know, have that income coming 300 00:15:20,160 --> 00:15:24,800 Speaker 2: into their tax return when those gains come through. So 301 00:15:25,400 --> 00:15:28,960 Speaker 2: we consider that also, it depends on the asset and 302 00:15:28,960 --> 00:15:31,520 Speaker 2: what you're wanting to buy, because ultimately a family trust. 303 00:15:31,520 --> 00:15:34,760 Speaker 2: You're getting that so that you can invest in assets 304 00:15:35,240 --> 00:15:38,360 Speaker 2: and if it's property, you know, we need to consider 305 00:15:38,920 --> 00:15:43,400 Speaker 2: all sorts of other taxes like state taxes and yeah, 306 00:15:43,440 --> 00:15:47,320 Speaker 2: and looking at at their capital gains positions on those 307 00:15:47,440 --> 00:15:50,920 Speaker 2: assets in the future. So it's yeah, it's more for 308 00:15:50,960 --> 00:15:54,720 Speaker 2: your higher wealth individuals and something that's a very specialized 309 00:15:54,720 --> 00:15:57,200 Speaker 2: area that we do a lot of advice in. 310 00:15:58,600 --> 00:16:00,120 Speaker 1: Good All right, Well, there's a few other things I 311 00:16:00,200 --> 00:16:02,400 Speaker 1: want to chat through for this forty to sixty year 312 00:16:02,440 --> 00:16:04,400 Speaker 1: old age group, but before we do that, let's take 313 00:16:04,520 --> 00:16:14,480 Speaker 1: a quick break. Hello and welcome back to the Money Puzzle. 314 00:16:14,520 --> 00:16:16,960 Speaker 1: I'm James Gerard, writer, a contributor to the Wealth section 315 00:16:17,000 --> 00:16:20,120 Speaker 1: of The Australian and also financial advisor with Financial Advisor 316 00:16:20,160 --> 00:16:22,720 Speaker 1: dot com dot Au. And this week on the show 317 00:16:22,720 --> 00:16:26,920 Speaker 1: we have Timothy Ricardo from Accounting Advisor Group. So Tim, 318 00:16:27,080 --> 00:16:32,040 Speaker 1: salary sacrifice and carry forward super contributions. This one's quite 319 00:16:32,240 --> 00:16:35,000 Speaker 1: a popular thing for people in that forty to sixty 320 00:16:35,040 --> 00:16:38,239 Speaker 1: age bracket, So I'll tee up what the salary sacrifice 321 00:16:38,280 --> 00:16:42,000 Speaker 1: side is. The contribution caps have increased from twenty seven thousand, 322 00:16:42,080 --> 00:16:44,880 Speaker 1: five hundred to thirty thousand dollars per year, So people 323 00:16:44,920 --> 00:16:48,920 Speaker 1: can salary sacrifice into super, but it must take into 324 00:16:49,000 --> 00:16:52,440 Speaker 1: account both employer contributions which are mandated at eleven point 325 00:16:52,520 --> 00:16:56,040 Speaker 1: five percent of income, plus any voluntary contributions. You can't 326 00:16:56,080 --> 00:16:59,080 Speaker 1: just put in thirty thousand in salary sacrifice because your 327 00:16:59,120 --> 00:17:01,640 Speaker 1: employer contributions will push you over the cap, which won't 328 00:17:01,680 --> 00:17:04,840 Speaker 1: be great because you'll pay extra tax. So that's what 329 00:17:05,000 --> 00:17:09,159 Speaker 1: can happen from a pre tax salary sacrifice perspective. But 330 00:17:09,160 --> 00:17:13,000 Speaker 1: there's also these other rules around carry forward contributions where 331 00:17:13,359 --> 00:17:15,320 Speaker 1: you can make more than the thirty thousand dollars in 332 00:17:15,320 --> 00:17:18,640 Speaker 1: a pre tax super contribution in a given financial year. 333 00:17:18,680 --> 00:17:20,000 Speaker 1: So tim, do you want to run us through that? 334 00:17:20,160 --> 00:17:24,040 Speaker 1: But also what is this two nine three tax as well? 335 00:17:24,080 --> 00:17:25,600 Speaker 1: And who does that impact? 336 00:17:26,440 --> 00:17:31,600 Speaker 2: Okay, So basically just to cover the carry forward contributions, 337 00:17:31,840 --> 00:17:35,040 Speaker 2: if you've got a superbalance of less than five hundred k, 338 00:17:36,119 --> 00:17:40,840 Speaker 2: the government allows you to catch up on that cap 339 00:17:41,359 --> 00:17:44,200 Speaker 2: that it's been unused for the last five years, so 340 00:17:44,680 --> 00:17:46,720 Speaker 2: it's now thirty It used to be twenty seven and 341 00:17:46,760 --> 00:17:50,080 Speaker 2: a half, as you mentioned, So if you'd only contributed 342 00:17:50,160 --> 00:17:54,280 Speaker 2: say seventeen and a half last financial year, you've got 343 00:17:54,280 --> 00:17:57,919 Speaker 2: ten thousand dollars there that you haven't made use of, 344 00:17:58,480 --> 00:18:02,040 Speaker 2: you're allowed to utilize that in the current financial gear. 345 00:18:02,040 --> 00:18:06,040 Speaker 2: And this has become quite a good strategy for people 346 00:18:06,080 --> 00:18:09,680 Speaker 2: that say, have a higher income gear and they want 347 00:18:09,720 --> 00:18:13,520 Speaker 2: to try to smooth out their income in that financial gear. 348 00:18:13,800 --> 00:18:17,040 Speaker 2: They can utilize the super threshold in the current year, 349 00:18:17,119 --> 00:18:19,880 Speaker 2: so it's up to thirty thousand this year, and then 350 00:18:19,920 --> 00:18:22,840 Speaker 2: they can cash in on I suppose you'd say that 351 00:18:23,080 --> 00:18:26,560 Speaker 2: the lost threshold of deductions in the previous year that 352 00:18:26,600 --> 00:18:30,439 Speaker 2: haven't been used. So we use sort of this for 353 00:18:31,640 --> 00:18:35,639 Speaker 2: capital gains, tax management and for other sort of income 354 00:18:35,680 --> 00:18:39,440 Speaker 2: smoothing to help people invest and prepare for the future 355 00:18:39,840 --> 00:18:42,240 Speaker 2: and manage their tax in that regard. 356 00:18:42,359 --> 00:18:43,960 Speaker 1: All right, So what you're saying is that if someone 357 00:18:44,040 --> 00:18:46,560 Speaker 1: sells an investment property, for example, and there's a big 358 00:18:46,560 --> 00:18:49,040 Speaker 1: capital gain attached to it, it might push them up 359 00:18:49,040 --> 00:18:51,440 Speaker 1: into the forty seven percent tax bracket. But if they've 360 00:18:51,440 --> 00:18:55,359 Speaker 1: got this unused super contribution that they can carry forward 361 00:18:55,359 --> 00:18:57,000 Speaker 1: from the last five years, let's just say they've got 362 00:18:57,040 --> 00:19:00,320 Speaker 1: fifty thousand dollars in extra super contributions, they can make 363 00:19:00,400 --> 00:19:04,280 Speaker 1: that super contribution pay. In most cases, fifteen percent tax 364 00:19:04,600 --> 00:19:08,320 Speaker 1: on that super contribution, but save forty seven percent tax 365 00:19:08,480 --> 00:19:10,520 Speaker 1: which would be from the capital gains tax. Is that 366 00:19:10,560 --> 00:19:13,480 Speaker 1: more or less what we're saying with this CGT management 367 00:19:13,480 --> 00:19:15,480 Speaker 1: with the carry forward contributions. 368 00:19:15,160 --> 00:19:19,440 Speaker 2: That's right, Yeah, so it's quite significant. However, the as 369 00:19:19,480 --> 00:19:23,120 Speaker 2: you mentioned before, there is something called they give two 370 00:19:23,200 --> 00:19:29,479 Speaker 2: nine three tax the government has introduced for the people 371 00:19:29,480 --> 00:19:33,919 Speaker 2: that earn over two hundred and fifty thousand including super contributions. 372 00:19:34,680 --> 00:19:38,560 Speaker 2: They do your contributions into super go up from fifteen 373 00:19:38,880 --> 00:19:41,439 Speaker 2: to thirty percent. So there's still a benefit there, but 374 00:19:41,720 --> 00:19:45,600 Speaker 2: it's just not quite as good as the fifteen percent 375 00:19:45,680 --> 00:19:49,360 Speaker 2: tax in super. So so whilst there's benefits for the 376 00:19:49,480 --> 00:19:53,200 Speaker 2: higher income earner, the government has sort of reduced the 377 00:19:53,720 --> 00:19:56,880 Speaker 2: benefit there when you're earning over two hundred and fifty 378 00:19:56,960 --> 00:19:59,480 Speaker 2: thousand including super contributions. 379 00:20:00,320 --> 00:20:02,000 Speaker 1: The last thing I want to chat about with this 380 00:20:02,520 --> 00:20:06,119 Speaker 1: middle age bracket is motor vehicle deductions. There's also a 381 00:20:06,160 --> 00:20:09,200 Speaker 1: common area that I discuss with people that they ask, 382 00:20:09,640 --> 00:20:12,720 Speaker 1: how do I fund my next motor vehicle? Should I 383 00:20:12,840 --> 00:20:17,359 Speaker 1: use cash redraw from my mortgage borrow against my mortgage 384 00:20:17,680 --> 00:20:22,360 Speaker 1: ovated least car loan personal loan? What are your thoughts there, 385 00:20:22,480 --> 00:20:24,359 Speaker 1: team from a tax perspective. 386 00:20:24,359 --> 00:20:28,200 Speaker 2: Yeah, so, look, I think that the family car upgrade 387 00:20:28,240 --> 00:20:32,920 Speaker 2: happens between forty and sixty, or maybe the midlife crisis car. James, 388 00:20:33,200 --> 00:20:36,160 Speaker 2: I think you've had a few of those. Speak for yourself, 389 00:20:37,400 --> 00:20:42,000 Speaker 2: Mitsubishima EVO, that's the aid en to forty year old car. 390 00:20:42,960 --> 00:20:45,400 Speaker 1: You were under forty and to be fair, I did 391 00:20:45,440 --> 00:20:48,160 Speaker 1: have an equivalent sort of super rue bright orange car 392 00:20:48,440 --> 00:20:50,840 Speaker 1: in that age bracket too, so I can't talk. 393 00:20:51,640 --> 00:20:57,600 Speaker 2: Yeah, So essentially salary sacrificing. Look, really, when it comes 394 00:20:57,600 --> 00:21:00,760 Speaker 2: to that, there's the traditional you know, looking at how 395 00:21:00,800 --> 00:21:03,960 Speaker 2: you claim that car with using a log book, and 396 00:21:04,080 --> 00:21:07,200 Speaker 2: what use is it for work, and how much tax 397 00:21:07,240 --> 00:21:10,360 Speaker 2: you're going to be paying if you're salary sacrificing versus 398 00:21:10,480 --> 00:21:13,159 Speaker 2: buying it privately. And there is a little bit of 399 00:21:13,160 --> 00:21:16,280 Speaker 2: a benefit sometimes if you can if it is just 400 00:21:16,320 --> 00:21:19,280 Speaker 2: a private car and you can salary sacrifice it, especially 401 00:21:19,520 --> 00:21:23,400 Speaker 2: when you're on those higher tax brackets. However, the main 402 00:21:23,800 --> 00:21:26,040 Speaker 2: benefit that's come out in the last couple of years 403 00:21:26,119 --> 00:21:32,359 Speaker 2: has been the ev car exemption for FBT, So that's 404 00:21:32,400 --> 00:21:35,200 Speaker 2: one that if you're looking at upgrading a car and 405 00:21:35,320 --> 00:21:39,360 Speaker 2: utilizing salary sacrifice the like a novate, a lease, an 406 00:21:39,359 --> 00:21:41,600 Speaker 2: EV's tax effective way to go. 407 00:21:43,160 --> 00:21:46,399 Speaker 1: Nice one. All right, well let's move on to the retirees. 408 00:21:46,440 --> 00:21:50,240 Speaker 1: So we're talking in sixty plus. Now, first thing we'll 409 00:21:50,280 --> 00:21:55,520 Speaker 1: have a chat about is super putting money into super 410 00:21:55,680 --> 00:21:59,000 Speaker 1: tax free thresholds. Do you want to run it through that, Tim? 411 00:22:00,840 --> 00:22:05,240 Speaker 2: Yeah, So essentially when we're looking at how much money 412 00:22:05,280 --> 00:22:07,920 Speaker 2: you've got into Super, so you're talking about total superbalance, 413 00:22:08,280 --> 00:22:09,160 Speaker 2: James there. 414 00:22:09,480 --> 00:22:11,840 Speaker 1: Yeah, we should probably Well I'll tee it up so 415 00:22:12,160 --> 00:22:14,320 Speaker 1: you can have up to one point nine million dollars 416 00:22:14,359 --> 00:22:18,280 Speaker 1: in push it to the pension phase and conditions of 417 00:22:18,320 --> 00:22:22,720 Speaker 1: releases sixty and retired or sixty five and still working. 418 00:22:23,320 --> 00:22:26,600 Speaker 1: So if you stop working at sixty, for example, you 419 00:22:26,640 --> 00:22:28,359 Speaker 1: can move up to one point nine million dollars if 420 00:22:28,359 --> 00:22:30,639 Speaker 1: your super into a tax free pension. And when I 421 00:22:30,640 --> 00:22:33,359 Speaker 1: say tax free, I mean that the income the gains 422 00:22:33,359 --> 00:22:36,280 Speaker 1: inside of the account of tax free. The drawing from 423 00:22:36,320 --> 00:22:38,399 Speaker 1: the super fund to your personal bank account is non 424 00:22:38,400 --> 00:22:41,840 Speaker 1: accessible tax free income as well. It's the most tax 425 00:22:41,880 --> 00:22:45,800 Speaker 1: effective structure for people in retirement. But is there any 426 00:22:45,840 --> 00:22:48,520 Speaker 1: little tips and tricks and things relating to a super 427 00:22:48,560 --> 00:22:51,240 Speaker 1: that people should be aware of or think about in 428 00:22:51,280 --> 00:22:53,320 Speaker 1: this sixty plus age bracket. So what about people who 429 00:22:53,320 --> 00:22:57,119 Speaker 1: are sixty five, for example, that they're still working that 430 00:22:57,480 --> 00:23:00,320 Speaker 1: triggers a condition of a release. So what's the you'll 431 00:23:00,320 --> 00:23:01,439 Speaker 1: play there for those people. 432 00:23:02,000 --> 00:23:06,240 Speaker 2: Yeah, that's right. So over sixty five, you can still 433 00:23:06,280 --> 00:23:09,359 Speaker 2: be working and you've got full access to your super 434 00:23:09,720 --> 00:23:12,560 Speaker 2: and there's a lot of strategies that can come out 435 00:23:12,600 --> 00:23:18,239 Speaker 2: of that which allow you to redraw money from your 436 00:23:18,280 --> 00:23:23,760 Speaker 2: super tax free, and then you can potentially recontribute to 437 00:23:24,720 --> 00:23:29,160 Speaker 2: max out the contributions the contribution caps from year to year, 438 00:23:29,359 --> 00:23:32,480 Speaker 2: so you can try to you sort of get the 439 00:23:32,520 --> 00:23:34,560 Speaker 2: best of both worlds. You get to pull it out 440 00:23:34,720 --> 00:23:37,840 Speaker 2: tax free. Earnings in the superfund are tax free as well, 441 00:23:38,240 --> 00:23:41,199 Speaker 2: and then you can recontribute and only pay fifteen percent 442 00:23:41,600 --> 00:23:46,800 Speaker 2: on what you are recontributing. Obviously, the government doesn't want 443 00:23:46,800 --> 00:23:50,439 Speaker 2: this to be abused, and so they put in a 444 00:23:50,480 --> 00:23:53,399 Speaker 2: bit of a cap here of one point nine million dollars. 445 00:23:53,400 --> 00:23:55,520 Speaker 2: Well at the time it was lower than that. It's 446 00:23:55,560 --> 00:23:58,919 Speaker 2: now at one point nine from first July, so so 447 00:23:59,040 --> 00:24:02,399 Speaker 2: one point nine mill is if you've got money over that, 448 00:24:02,800 --> 00:24:05,880 Speaker 2: it doesn't go into you can't put it into tax 449 00:24:05,920 --> 00:24:10,320 Speaker 2: free into an account based pension, but you still have 450 00:24:10,359 --> 00:24:13,480 Speaker 2: access to that over sixty five, so you can still 451 00:24:13,520 --> 00:24:16,160 Speaker 2: access that money. But there's a lot of strategies there 452 00:24:16,280 --> 00:24:18,280 Speaker 2: that we can look at, and you know, your financial 453 00:24:18,280 --> 00:24:22,040 Speaker 2: advisor can look at and like, for example, if you're 454 00:24:22,080 --> 00:24:26,680 Speaker 2: still working between the ages of sixty seven and seventy five, 455 00:24:27,200 --> 00:24:31,000 Speaker 2: there is still the ability to claim on personal contributions 456 00:24:31,240 --> 00:24:33,960 Speaker 2: if you're meeting that work test and things like that. 457 00:24:35,520 --> 00:24:39,920 Speaker 1: And what about people throughout their working lives they accumulating assets, 458 00:24:39,960 --> 00:24:44,080 Speaker 1: the buying investment property that have personal share portfolios. As 459 00:24:44,200 --> 00:24:48,760 Speaker 1: I've mentioned, superinnuation is the most tax effective environment in retirement, 460 00:24:49,240 --> 00:24:51,359 Speaker 1: so we probably want to try and transition some of 461 00:24:51,359 --> 00:24:55,000 Speaker 1: this wealth out of personal names into super. Is there 462 00:24:55,040 --> 00:24:57,480 Speaker 1: an ideal time to do that? Is it before people 463 00:24:57,520 --> 00:25:01,120 Speaker 1: stop working after they retire? What are your thoughts they're 464 00:25:01,600 --> 00:25:02,359 Speaker 1: thinking about. 465 00:25:02,119 --> 00:25:06,240 Speaker 2: Tax Well, I think the biggest thing that that people 466 00:25:06,320 --> 00:25:09,560 Speaker 2: have with SUPER is you know when can I access it? 467 00:25:09,680 --> 00:25:13,119 Speaker 2: So over sixty you can access your SUPER. If you 468 00:25:13,160 --> 00:25:16,919 Speaker 2: stop working. Once you get to sixty five, you know 469 00:25:17,000 --> 00:25:19,439 Speaker 2: there's no holes, but you can get access to that. 470 00:25:19,600 --> 00:25:25,840 Speaker 2: So essentially there's no restriction to if there's no restriction 471 00:25:25,920 --> 00:25:29,560 Speaker 2: on access and it's the most tax effective place to 472 00:25:29,680 --> 00:25:34,280 Speaker 2: have your money, then you should be utilizing those, you know, 473 00:25:34,359 --> 00:25:37,840 Speaker 2: sort of contribution thresholds to get to get money into super, 474 00:25:38,000 --> 00:25:41,360 Speaker 2: and currently they're sitting at one hundred and twenty thousand 475 00:25:41,440 --> 00:25:45,680 Speaker 2: dollars per year. Probably something that we could mention there, James, 476 00:25:45,760 --> 00:25:48,920 Speaker 2: is the you know bring forward contribution where you can 477 00:25:48,960 --> 00:25:53,520 Speaker 2: put in up to three times you know, the non 478 00:25:53,600 --> 00:25:57,320 Speaker 2: concessional contribution threshold, so you can put in you know, 479 00:25:57,320 --> 00:25:59,880 Speaker 2: what is it, three hundred and sixty thousand in one year, 480 00:26:00,240 --> 00:26:02,800 Speaker 2: which I'm sure you do a lot for your clients 481 00:26:02,840 --> 00:26:05,600 Speaker 2: with their estate planning and all that sort of thing. 482 00:26:06,440 --> 00:26:09,000 Speaker 1: We do, and sometimes if we're near the end of 483 00:26:09,000 --> 00:26:10,879 Speaker 1: a financial year, we might put in one hundred and 484 00:26:10,960 --> 00:26:14,640 Speaker 1: nineteen thousand dollars in June and not trigger that bring 485 00:26:14,720 --> 00:26:16,919 Speaker 1: forward rule, and then in July we've still got the 486 00:26:16,920 --> 00:26:19,359 Speaker 1: full three hundred and sixty thousand dollars to put it in, 487 00:26:19,400 --> 00:26:22,120 Speaker 1: so we've snuck in a little bit more in there. 488 00:26:22,240 --> 00:26:24,280 Speaker 1: And then also we have a chat about when to 489 00:26:24,320 --> 00:26:27,200 Speaker 1: sell the assets. So if somebody's working, say they're only 490 00:26:27,240 --> 00:26:30,840 Speaker 1: eighty thousand dollars a year, if it doesn't make a 491 00:26:30,840 --> 00:26:34,360 Speaker 1: difference with regards to the sell price of the shares 492 00:26:34,440 --> 00:26:37,160 Speaker 1: or the property, all things being equal, all other things 493 00:26:37,240 --> 00:26:39,679 Speaker 1: being equal, it can make better sense to sell it 494 00:26:39,840 --> 00:26:43,000 Speaker 1: when they're retired because they don't have their employment income anymore. 495 00:26:43,040 --> 00:26:46,119 Speaker 1: So their base marginal tax rate starts from zero and 496 00:26:46,160 --> 00:26:48,080 Speaker 1: the only thing that we'll build on that will be 497 00:26:48,160 --> 00:26:51,119 Speaker 1: the accessible gains that they have on the assets of 498 00:26:51,160 --> 00:26:52,240 Speaker 1: their disposing. 499 00:26:52,359 --> 00:26:55,880 Speaker 2: So is that a fair coll Yeah. Absolutely. Managing when 500 00:26:55,960 --> 00:26:59,639 Speaker 2: you sell your assets outside of SUPER is a massive 501 00:26:59,680 --> 00:27:02,880 Speaker 2: part of tax planning. If you've got that investment property 502 00:27:02,920 --> 00:27:05,960 Speaker 2: that you've been negative gearing for many years, you need 503 00:27:06,000 --> 00:27:10,360 Speaker 2: to plan to use that use those lower thresholds once 504 00:27:10,400 --> 00:27:14,119 Speaker 2: you've stopped working to minimize that CGT when you do 505 00:27:14,200 --> 00:27:18,080 Speaker 2: eventually sell that asset to fund your retirement. So yeah, absolutely. 506 00:27:19,600 --> 00:27:23,560 Speaker 1: We don't have def taxes in Australia, but non financial 507 00:27:23,600 --> 00:27:26,439 Speaker 1: dependents who receive our SUPER part of it that they 508 00:27:26,480 --> 00:27:29,800 Speaker 1: have to pay seventeen percent on the SUPER payout for 509 00:27:29,840 --> 00:27:32,800 Speaker 1: that taxable component. Is there any strategy there to reduce 510 00:27:32,880 --> 00:27:37,760 Speaker 1: the potential tax payable from SUPER to our non financial dependence. 511 00:27:38,600 --> 00:27:41,840 Speaker 2: Yeah, So that's that estate planning we were talking about 512 00:27:41,960 --> 00:27:45,720 Speaker 2: a minute ago. The ability to pull out money after 513 00:27:45,800 --> 00:27:49,720 Speaker 2: your sixty five and not working, or sixty sixty when 514 00:27:49,720 --> 00:27:51,760 Speaker 2: you're not working, or sixty five whether you're working or 515 00:27:51,800 --> 00:27:56,040 Speaker 2: not sorry, does allow you to look at that balance 516 00:27:56,040 --> 00:27:59,239 Speaker 2: you've got in Super. And there's two sides to that 517 00:27:59,280 --> 00:28:03,040 Speaker 2: balance is a two major ones as the taxable component, 518 00:28:03,080 --> 00:28:07,240 Speaker 2: which is made up of contributions that have been made 519 00:28:07,240 --> 00:28:10,720 Speaker 2: by your employer or earnings in the fund, and those 520 00:28:11,200 --> 00:28:15,399 Speaker 2: that side of your superbalance. If you pass away and 521 00:28:15,480 --> 00:28:18,480 Speaker 2: that goes to a non dependent which might be a 522 00:28:18,560 --> 00:28:21,000 Speaker 2: grown up child, you know, one of your one of 523 00:28:21,000 --> 00:28:25,359 Speaker 2: your children, then they pay that extra seventeen percent tax. 524 00:28:25,640 --> 00:28:29,760 Speaker 2: So in thinking about that balance early, in getting your 525 00:28:29,800 --> 00:28:33,399 Speaker 2: financial planner involved in looking at your SUPER balance, you know, 526 00:28:33,480 --> 00:28:37,480 Speaker 2: before you lose the ability to recontribute means that you can, 527 00:28:37,760 --> 00:28:40,280 Speaker 2: I suppose come up with a strategy that will allow 528 00:28:40,360 --> 00:28:43,640 Speaker 2: you to pull money out of the Super, recontribute it 529 00:28:43,680 --> 00:28:47,360 Speaker 2: as what they call tax free contributions, and manage that 530 00:28:47,960 --> 00:28:50,680 Speaker 2: potential tax in the future for your children. 531 00:28:51,080 --> 00:28:53,320 Speaker 1: Sounds good, well, Otherwise, if you know you're going to die, 532 00:28:53,400 --> 00:28:55,200 Speaker 1: just pull all your money out of Super tax free 533 00:28:55,280 --> 00:28:58,640 Speaker 1: and distribute it that way. That's right A bit morbid 534 00:28:58,720 --> 00:29:01,640 Speaker 1: that that's the reality of it. Now, the final thing 535 00:29:01,800 --> 00:29:04,120 Speaker 1: for our retirees I want to have a chat about 536 00:29:04,200 --> 00:29:06,760 Speaker 1: or ask you, is do they still need a self 537 00:29:06,760 --> 00:29:10,600 Speaker 1: managed superfund in retirement or should they close it down 538 00:29:10,600 --> 00:29:12,880 Speaker 1: and move to a simpler quote unquote arrangement. 539 00:29:13,920 --> 00:29:17,160 Speaker 2: So self managed super is one of those things that 540 00:29:17,280 --> 00:29:20,200 Speaker 2: it's one of those vehicles that you can use throughout 541 00:29:20,240 --> 00:29:24,120 Speaker 2: your retirement. And I think that it really depends on 542 00:29:24,600 --> 00:29:28,680 Speaker 2: whether you're utilizing the capabilities of the self managed superfund. 543 00:29:28,680 --> 00:29:31,360 Speaker 2: And what I mean by that is, I guess whether 544 00:29:31,400 --> 00:29:34,440 Speaker 2: you've got a proactive advisor, you know that likes to 545 00:29:34,480 --> 00:29:38,880 Speaker 2: look at various investments that maybe are outside the normal 546 00:29:39,720 --> 00:29:44,200 Speaker 2: you know, retail super offerings like shares or cash investments. 547 00:29:44,720 --> 00:29:47,560 Speaker 2: But also you know, we do a lot of small 548 00:29:47,600 --> 00:29:52,680 Speaker 2: business tax and small business owners often they've got a 549 00:29:52,720 --> 00:29:56,880 Speaker 2: specific exemption there that allows them to purchase business real 550 00:29:56,920 --> 00:30:00,440 Speaker 2: property in their super funds, which can be a large 551 00:30:00,560 --> 00:30:03,480 Speaker 2: benefit to them. And so it's just whether or not 552 00:30:03,520 --> 00:30:07,720 Speaker 2: you're using those capabilities in the self managed super but 553 00:30:07,840 --> 00:30:11,640 Speaker 2: also it can become quite cost effective the more and 554 00:30:11,720 --> 00:30:14,800 Speaker 2: more appropriate the more you have in super for that 555 00:30:14,840 --> 00:30:18,160 Speaker 2: retirement management. But what are your thoughts on it, James, Yes, 556 00:30:18,240 --> 00:30:18,920 Speaker 2: it's really corse. 557 00:30:18,920 --> 00:30:22,560 Speaker 1: It's for courses if you're using the flexibility given to 558 00:30:22,600 --> 00:30:25,040 Speaker 1: you for a self managed super fund in retirement. So 559 00:30:25,040 --> 00:30:28,360 Speaker 1: if you're buying a kilo of gold, if you're holding 560 00:30:29,120 --> 00:30:31,920 Speaker 1: spoke bond investments that you can't get inside of a 561 00:30:31,960 --> 00:30:35,800 Speaker 1: retail or industry super fund, then yes, absolutely, property assets 562 00:30:35,840 --> 00:30:39,080 Speaker 1: physical property assets have an SMSF. But if you have 563 00:30:39,120 --> 00:30:42,720 Speaker 1: an SMSF and you're just invested in managed funds and ETFs, 564 00:30:43,040 --> 00:30:45,360 Speaker 1: it doesn't really need an SMSF. You could do that 565 00:30:45,720 --> 00:30:49,520 Speaker 1: in most industry funds and retail funds these days. So 566 00:30:49,560 --> 00:30:51,560 Speaker 1: it really just comes down to are you using the 567 00:30:51,560 --> 00:30:53,600 Speaker 1: benefits of the self managed super fund and that probably 568 00:30:53,600 --> 00:30:56,240 Speaker 1: applies across all age spectrum as well, not just for 569 00:30:56,280 --> 00:30:59,960 Speaker 1: people in retirement. Now, Tim, I'm excited. The next thing 570 00:31:00,000 --> 00:31:02,560 Speaker 1: we're gonna have a chat about is tax deductions you 571 00:31:02,600 --> 00:31:04,600 Speaker 1: didn't realize you could claim. But before we do that, 572 00:31:04,680 --> 00:31:22,760 Speaker 1: let's just take a short break. Hello and welcome back 573 00:31:22,760 --> 00:31:25,280 Speaker 1: to the Money Puzzle. I'm James Gerard, writer contributor to 574 00:31:25,320 --> 00:31:28,040 Speaker 1: the Wealth section of The Australian and also financial advisor 575 00:31:28,080 --> 00:31:31,200 Speaker 1: with Financial advisor dot com, Dot au and on this 576 00:31:31,240 --> 00:31:34,920 Speaker 1: week's show, I have Timothy Ricardo from Accounting Advisor. Now, 577 00:31:34,920 --> 00:31:36,520 Speaker 1: before we get into this last section, I just want 578 00:31:36,520 --> 00:31:40,120 Speaker 1: to remind everybody that this is general advice, not personal advice, 579 00:31:40,160 --> 00:31:44,400 Speaker 1: so please seek out a qualified advisor before making any decision. Timothy, 580 00:31:45,360 --> 00:31:49,160 Speaker 1: Top five. Maybe we'll make it six tax deductions. You 581 00:31:49,160 --> 00:31:53,800 Speaker 1: didn't realize that you could claim, so number one. Tell 582 00:31:53,800 --> 00:31:55,440 Speaker 1: me about income protection. 583 00:31:56,400 --> 00:32:00,200 Speaker 2: Okay, So income protection is one of those things where 584 00:32:00,600 --> 00:32:03,080 Speaker 2: we put it in at label D fifteen on your 585 00:32:03,120 --> 00:32:06,400 Speaker 2: tax return. So it's something that you know. It's looking 586 00:32:06,480 --> 00:32:11,320 Speaker 2: after your you know in those situations when you unexpected 587 00:32:11,360 --> 00:32:14,040 Speaker 2: things crop up and you might hurt yourself or you 588 00:32:14,120 --> 00:32:17,640 Speaker 2: might not be able to work for some reason. And 589 00:32:17,880 --> 00:32:23,040 Speaker 2: income protection because the the earnings from that policy are 590 00:32:23,320 --> 00:32:27,880 Speaker 2: assessable income when they come in, the deduction is available 591 00:32:27,920 --> 00:32:31,800 Speaker 2: for the premiums you pay. Now, this is something that 592 00:32:31,880 --> 00:32:35,719 Speaker 2: probably applies. It's a good thing to think about in 593 00:32:35,720 --> 00:32:38,200 Speaker 2: that eighty to thirty year old range because if you 594 00:32:38,280 --> 00:32:42,240 Speaker 2: have had a financial advisor like me back in that age, 595 00:32:42,280 --> 00:32:47,080 Speaker 2: which James Gerard, my friendly neighborhood financial advisor, got me 596 00:32:47,160 --> 00:32:51,040 Speaker 2: into a policy back then, you know I am able 597 00:32:51,080 --> 00:32:53,880 Speaker 2: to just claim that every year. And yeah, you gave 598 00:32:53,880 --> 00:32:56,720 Speaker 2: me some good advice back then, James. 599 00:32:56,640 --> 00:32:59,840 Speaker 1: Thank you, Timothy. And I didn't even invoice you for it. 600 00:33:00,120 --> 00:33:03,120 Speaker 1: Oh wow, your friendship to me. Is that the payment 601 00:33:03,280 --> 00:33:05,920 Speaker 1: for that advice I gave you? Now? The next one 602 00:33:06,280 --> 00:33:11,480 Speaker 1: is handbags and luggage for work purposes. So can I 603 00:33:11,680 --> 00:33:16,080 Speaker 1: go off and buy a two thousand dollars luxury bag 604 00:33:16,120 --> 00:33:18,920 Speaker 1: that I will carry my laptop in, am I working 605 00:33:19,160 --> 00:33:20,840 Speaker 1: papers for work purposes? 606 00:33:21,280 --> 00:33:24,880 Speaker 2: Okay? So you can claim a work bag a bag 607 00:33:24,920 --> 00:33:28,160 Speaker 2: that you're using for work purposes, And that's the key thing. 608 00:33:28,560 --> 00:33:31,480 Speaker 2: The main thing here is removing any private use. You 609 00:33:31,560 --> 00:33:35,360 Speaker 2: can't just take your flashy three thousand dollars bag out 610 00:33:35,400 --> 00:33:38,360 Speaker 2: and utilize it on the weekend. If you're claiming it 611 00:33:38,400 --> 00:33:40,680 Speaker 2: for work, You've got to allow for the private use. 612 00:33:40,680 --> 00:33:43,960 Speaker 2: So allow for your private use. And if it's over 613 00:33:44,040 --> 00:33:47,280 Speaker 2: a certain level, then it might need to be depreciated 614 00:33:47,400 --> 00:33:50,560 Speaker 2: at certain cost. So they're the two main considerations. But yes, 615 00:33:50,560 --> 00:33:52,320 Speaker 2: it is deductible, all right. 616 00:33:52,360 --> 00:33:55,400 Speaker 1: What about claiming meals? What are the parameters there around 617 00:33:55,480 --> 00:33:57,360 Speaker 1: How can we claim a meal as a tax deduction? 618 00:33:58,120 --> 00:34:02,360 Speaker 2: Okay, so under a lot of awards and employee benefits. 619 00:34:02,800 --> 00:34:07,120 Speaker 2: You often get a meal allowance. Now that meal allowance 620 00:34:07,240 --> 00:34:10,759 Speaker 2: is deductible to the extent of what you're paying out 621 00:34:10,800 --> 00:34:13,279 Speaker 2: for the meal. The ATO publishes a raid every year, 622 00:34:13,320 --> 00:34:16,640 Speaker 2: which this is about thirty five thirty five sixty five. 623 00:34:16,840 --> 00:34:20,000 Speaker 2: So if you have meals up to that price, you 624 00:34:20,040 --> 00:34:23,720 Speaker 2: don't actually need to keep the receipts for those meals, 625 00:34:23,800 --> 00:34:27,480 Speaker 2: but you are able to claim for your meals when 626 00:34:27,520 --> 00:34:30,040 Speaker 2: you have overtime meal allowances. 627 00:34:31,600 --> 00:34:35,640 Speaker 1: What about claiming interest on things? So what are the 628 00:34:35,640 --> 00:34:37,560 Speaker 1: things that I can claim interest on? So, for example, 629 00:34:37,719 --> 00:34:41,200 Speaker 1: if I have a tax debt, can I borrow money 630 00:34:41,200 --> 00:34:43,560 Speaker 1: to pay the tax office and claim an interest on 631 00:34:43,600 --> 00:34:45,319 Speaker 1: that loan that I use to pay my tax bill. 632 00:34:46,120 --> 00:34:49,320 Speaker 2: Yes, and there's lots of strategies that people like to 633 00:34:49,719 --> 00:34:51,759 Speaker 2: come up with on this one. But yeah, interest on 634 00:34:52,080 --> 00:34:55,440 Speaker 2: any income earning asset is tax deductible. So if you 635 00:34:55,840 --> 00:34:59,120 Speaker 2: draw down on your mortgage to buy a share portfolio, 636 00:34:59,200 --> 00:35:02,200 Speaker 2: for example, you can claim the interest on that against 637 00:35:02,239 --> 00:35:05,680 Speaker 2: the dividend income. But yeah, like you said, on tax 638 00:35:05,920 --> 00:35:12,120 Speaker 2: expenses and tax management costs associated, the interest is deductible 639 00:35:12,160 --> 00:35:15,840 Speaker 2: on that. So that's something that a lot of people 640 00:35:16,040 --> 00:35:17,040 Speaker 2: might not have known. 641 00:35:17,760 --> 00:35:21,120 Speaker 1: All right, well, traveling to workplaces. I know that usually 642 00:35:21,160 --> 00:35:24,560 Speaker 1: from home to your normal place of work, if you drive, 643 00:35:24,920 --> 00:35:27,080 Speaker 1: catch a bars L train, you can't usually claim that 644 00:35:27,120 --> 00:35:30,759 Speaker 1: as a tax deduction. But is there some scope or 645 00:35:31,000 --> 00:35:33,760 Speaker 1: avenue to be able to claim travel to a workplace? 646 00:35:34,520 --> 00:35:37,520 Speaker 2: Yeah? Okay, so the common one that everyone knows about 647 00:35:37,600 --> 00:35:40,600 Speaker 2: is driving between workplaces. Or if you go to work 648 00:35:40,600 --> 00:35:42,920 Speaker 2: and then you have to go out to a client's place, 649 00:35:42,960 --> 00:35:45,000 Speaker 2: you can claim that trip. But what they might not 650 00:35:45,239 --> 00:35:49,520 Speaker 2: know is that to an alternative workplace, even from your home, 651 00:35:49,760 --> 00:35:53,080 Speaker 2: you can claim a deduction to go there. So it 652 00:35:53,160 --> 00:35:57,400 Speaker 2: has to be somewhere that's not your regular workplace, or 653 00:35:57,440 --> 00:36:01,920 Speaker 2: there's no regular pattern of attending that alternative location. But 654 00:36:02,000 --> 00:36:06,279 Speaker 2: if you're going to somewhere you know that isn't your 655 00:36:06,400 --> 00:36:10,120 Speaker 2: normal location, then yes, you can claim that between your 656 00:36:10,280 --> 00:36:11,640 Speaker 2: home and the workplace. 657 00:36:12,520 --> 00:36:15,920 Speaker 1: All right, And final one, let's just say you're an accountant, 658 00:36:16,239 --> 00:36:20,480 Speaker 1: and we won't name names, but let's just call them Tim, 659 00:36:20,520 --> 00:36:24,040 Speaker 1: this random accountant, and say Tim's terrible at golf, and 660 00:36:24,520 --> 00:36:27,399 Speaker 1: golf's an important part of his work because he meets 661 00:36:27,400 --> 00:36:30,680 Speaker 1: clients on the golf course, new clients, existing clients. But 662 00:36:30,719 --> 00:36:32,759 Speaker 1: he's just absolutely terrible at golf. Can we claim the 663 00:36:32,800 --> 00:36:35,400 Speaker 1: cost of golf lessons as a tax deduction? 664 00:36:36,080 --> 00:36:38,359 Speaker 2: Okay? Why would I be claiming these? 665 00:36:38,800 --> 00:36:41,600 Speaker 1: Not you? It was just an anonymous accountant called Timothy. 666 00:36:42,080 --> 00:36:45,200 Speaker 2: Okay, okay, So golf lessons, it's got to be attached to. 667 00:36:45,840 --> 00:36:50,680 Speaker 2: It falls into possibly like self education, James, or sort 668 00:36:50,719 --> 00:36:54,880 Speaker 2: of that kind of a category. I love your curveball questions, 669 00:36:55,080 --> 00:36:58,440 Speaker 2: and I will add here no preparation was given for 670 00:36:58,520 --> 00:37:02,480 Speaker 2: this one. Yeah, so if you have, you'd have to 671 00:37:02,520 --> 00:37:06,920 Speaker 2: have an income association to be claiming that you know 672 00:37:06,960 --> 00:37:11,080 Speaker 2: that lesson, James. So no, Unfortunately, I won't be claiming 673 00:37:11,120 --> 00:37:14,799 Speaker 2: any lessons anytime soon, so and neither will you, unfortunately, 674 00:37:14,840 --> 00:37:17,440 Speaker 2: because I think last time we played, we're still waiting 675 00:37:17,440 --> 00:37:19,600 Speaker 2: on that one hundred dollar bet. But you've never I 676 00:37:19,600 --> 00:37:22,560 Speaker 2: don't think you've ever beaten me whenever that BET's come up. 677 00:37:23,040 --> 00:37:25,280 Speaker 1: On that inside joke, tim and I have this run 678 00:37:25,280 --> 00:37:27,319 Speaker 1: in bet for about ten years that we're going to 679 00:37:27,320 --> 00:37:30,239 Speaker 1: play each other in golf and whoever wins will have 680 00:37:30,360 --> 00:37:33,040 Speaker 1: one hundred dollars as the prize and we play together. 681 00:37:33,120 --> 00:37:36,400 Speaker 1: But we've never called in that particular bet. So maybe 682 00:37:36,480 --> 00:37:37,280 Speaker 1: the next. 683 00:37:37,080 --> 00:37:40,399 Speaker 2: Time, well, I've added there that it's only not been 684 00:37:40,440 --> 00:37:43,680 Speaker 2: called in because you lose every time. James, Well, that's true. 685 00:37:43,719 --> 00:37:45,080 Speaker 1: Yeah, so I did say, all right, let's do it 686 00:37:45,120 --> 00:37:46,239 Speaker 1: this round, but then I go, oh, it's a bit 687 00:37:46,280 --> 00:37:49,120 Speaker 1: windy today, let's defer it to the next time. But 688 00:37:49,960 --> 00:37:51,839 Speaker 1: getting back to business. Thank you so much for joining 689 00:37:51,880 --> 00:37:53,680 Speaker 1: us today, Tim, I've covered a lot. I'm sure our 690 00:37:53,680 --> 00:37:56,440 Speaker 1: listeners now have some good ideas I can go explore 691 00:37:56,520 --> 00:37:59,399 Speaker 1: regarding taxes, regardless of how old they are. 692 00:37:59,600 --> 00:38:01,160 Speaker 2: Thanks for having me, James. 693 00:38:01,520 --> 00:38:03,680 Speaker 1: And to our listens, thanking you for turn tuning into 694 00:38:03,719 --> 00:38:06,120 Speaker 1: today's episode of The Money Puzzle. Send us a question. 695 00:38:06,280 --> 00:38:08,759 Speaker 1: James Kirby will answer it when he's back in two 696 00:38:08,880 --> 00:38:11,480 Speaker 1: weeks now. Coming up on our next episode, you'll get 697 00:38:11,520 --> 00:38:14,160 Speaker 1: me again, and we're going to interview a lawyer, which 698 00:38:14,160 --> 00:38:16,760 Speaker 1: I'm very excited to do. We've got lots of interesting 699 00:38:16,840 --> 00:38:19,680 Speaker 1: questions to go through because there's a very big intersection 700 00:38:19,760 --> 00:38:23,040 Speaker 1: between finances and legal so we're going to explore some 701 00:38:23,120 --> 00:38:26,719 Speaker 1: of the most interesting areas, such as not losing your 702 00:38:26,719 --> 00:38:30,400 Speaker 1: property deposit to scammers, what happens there, how does that happen, 703 00:38:30,760 --> 00:38:34,680 Speaker 1: handling finances for blended families, and lots of other issues 704 00:38:34,719 --> 00:38:36,960 Speaker 1: to cover, but for now you can tweetis your thoughts. 705 00:38:37,000 --> 00:38:39,360 Speaker 1: Just use the hashtag the Money Puzzle or one word 706 00:38:39,440 --> 00:38:42,279 Speaker 1: or email us on the Money Puzzle at the Australian 707 00:38:42,320 --> 00:38:45,120 Speaker 1: dot Com Today you Until next time, I'm James Gerard. 708 00:38:45,120 --> 00:38:45,719 Speaker 1: Talk to you soon.