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Speaker 1: Hello.

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Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the

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Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we

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Speaker 2: get started on She's on the Money podcast, I would

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Speaker 2: like to acknowledge the traditional custodians of the land of

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Speaker 2: which this podcast is recorded on a wondery country, acknowledging

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Speaker 2: the elders, the ancestors and the next generation coming through

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Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and

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Speaker 2: the storytelling of you to make a difference for today

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Speaker 2: and lasting impact for tomorrow.

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Speaker 1: Let's get into it.

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Speaker 3: She's on the Money. She's on the Money.

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Speaker 4: Hello, and welcome Money the podcast for millennials who want

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Speaker 4: financial freedom. My name is Georgia King, and joining me

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Speaker 4: as she always does, is Victoria Define. Actually, you weren't

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Speaker 4: here last week, so I can't say that you can't.

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Speaker 1: I was so sick last week. Laryng Idis really throws

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Speaker 1: you under a bus.

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Speaker 4: Are you feeling better?

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Speaker 1: I'm feeling so much better. Can you hear my voice?

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Speaker 1: I feel like there's like a slight pang of illness still. Okay,

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Speaker 1: you know that kind where you like, here is someone

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Speaker 1: and you just don't want to be in the same

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Speaker 1: room as them that you are.

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Speaker 4: They're locked in for the day already, guys. It is

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Speaker 4: officially reporting season. So today we're going to discuss how

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Speaker 4: to read a dividend statement, how to report any income

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Speaker 4: from shares, and what exactly you should be looking for

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Speaker 4: in a company's financials.

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Speaker 1: That's overwhelming, g it is overwhelming, straight into the hard stuff.

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Speaker 1: But before we get there, what the devil is reporting season?

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Speaker 1: Oh you don't know? Well, I feel like I get

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Speaker 1: the gist, But for anyone who's listening, it is like

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Speaker 1: g in Layman's terms, it's basically when companies let all

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Speaker 1: of their investors know how their business is going. Let's

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Speaker 1: comeanes who outperform do a little bit of a victory

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Speaker 1: lap around the office. Well, CEOs that miss expectations, they

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Speaker 1: have to face the music. So it's a time of

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Speaker 1: the year where everything kind of just like comes to

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Speaker 1: a peak. We're talking about it. It does coincide with

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Speaker 1: end of financial year because all of the finances have

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Speaker 1: come through, and it's basically a time when a lot

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Speaker 1: of financial advisors having a relook at people's portfolios to

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Speaker 1: see if we should be rebalancing or taking some stuff

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Speaker 1: out or putting some stuff in. It's just it's a

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Speaker 1: time where you just have a lot of fresh data.

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Speaker 1: Really obviously, you could do that at any point during

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Speaker 1: the year and go, oh, well, I'll read their annual report.

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Speaker 1: But it's basically when all the information is super fresh

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Speaker 1: and super new, and it's when a lot of people

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Speaker 1: are making a lot of decisions.

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Speaker 4: So is this when they put out their annual reports?

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Speaker 4: That is that what it is?

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Speaker 1: Yes, it is. Obviously companies can put out their annual

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Speaker 1: reports whenever they want to, but end of financial year

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Speaker 1: is pretty traditional when it comes to you know, reporting

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Speaker 1: on business financials kind of makes sense.

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Speaker 4: So when exactly is reporting season, V's like a week

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Speaker 4: at the end of the financial year? Is it a day?

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Speaker 1: Look like? So it's kind of like a whole season.

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Speaker 1: So almost every company that is on the ASX is

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Speaker 1: going to report they're half year financials. Keeping in mind

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Speaker 1: half year is in of half financial year, not in

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Speaker 1: a real year. So that's actually late January early February,

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Speaker 1: and then their full year results are going to come

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Speaker 1: out late August. And that's basically because in June thirty

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Speaker 1: they have all of July and August to do some

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Speaker 1: reporting and some analysis and then get it out to investors.

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Speaker 1: So I think a lot of people actually expect it

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Speaker 1: on June thirty. They're like, well, where's my income statement

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Speaker 1: or where's my dividend statement, or you know, when can

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Speaker 1: I download the tax report from my investor portal? And

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Speaker 1: they're offended that it's not available on July the first,

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Speaker 1: and it's like, well, actually, they need time to pull

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Speaker 1: this stuff together and actually have those end of financial

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Speaker 1: year numbers so that then they can run their report.

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Speaker 1: So it does take a little bit longer than you

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Speaker 1: would anticipate, which is why we're talking about it now,

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Speaker 1: because people's expectations might be, Hey, I want it, it's

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Speaker 1: going to be July really soon, and it's not actually

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Speaker 1: that common to get your financial report. What's on the

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Speaker 1: thirtieth of June, Okay if that makes sense, Yeah, yeah,

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Speaker 1: because that's when the numbers are finally cut, right, Like

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Speaker 1: that's the last day of reporting and they need to

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Speaker 1: analyze it. It's kind of like you're not able to

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Speaker 1: do the union assignment until you have all the information,

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Speaker 1: and you only get the information on the thirty of

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Speaker 1: the June.

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Speaker 4: G A perfect analogy. But now we have covered this before,

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Speaker 4: but we're gonna start with the basics today. Can you

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Speaker 4: please run us through once again what a dividend is.

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Speaker 1: A dividend g is sexy. It's sexy, it's a sexy thing.

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Speaker 1: It's essentially when a company gives you a small portion

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Speaker 1: of their profit. Like if you're a shareholder and you

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Speaker 1: own a share you are entitled to one that tiny

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Speaker 1: portion of that company, but also that tiny portion of

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Speaker 1: that company's profit. So that's when you get your little profit.

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Speaker 1: On the side, you get paid for being a little

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Speaker 1: share owner.

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Speaker 4: Stunning.

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Speaker 1: I think it's stunning. So common shareholders of dividend paying

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Speaker 1: companies are typically eligible as long as they own the

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Speaker 1: stock before the ex dividend date. So you could technically

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Speaker 1: go and purchase a dividend stock tomorrow G and have

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Speaker 1: it pay a dividend for the next day, which is

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Speaker 1: a bit of a money win. And why some people

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Speaker 1: really I won't call it timing the market, because we

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Speaker 1: all know we can't time the market, but some people

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Speaker 1: time their purchasers with when dividend payouts are going to be,

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Speaker 1: so you don't really want to go, oh, a dividend

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Speaker 1: payout is going to happen in July, and then you're

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Speaker 1: buying the share in August and have to wait nearly

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Speaker 1: a full twelve months to get another dividend payout like

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Speaker 1: that wouldn't make a lot of sense in the grand

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Speaker 1: scheme of things. We don't often time it that way,

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Speaker 1: but some people do want to take it into consideration.

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Speaker 1: And dividends can either be paid out in cash, so

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Speaker 1: it would be money that ends up back in your

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Speaker 1: trading account, or it could be paid out in extra stock.

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Speaker 1: So if you've got a dividend reinvestment plan ticked when

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Speaker 1: you signed up, it would automatically mean that you would

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Speaker 1: just be reissued a small amount of stock instead of

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Speaker 1: some cash.

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Speaker 4: And not all shares paid dividends, so right, no.

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Speaker 1: C gee, they are not all created equal. And that's

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Speaker 1: why when we are putting together an investing strategy, we

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Speaker 1: really need to think about whether we want dividends or

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Speaker 1: we're after capital growth. There are lots of different reasons

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Speaker 1: why we would pick a particular shit, and actually, you

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Speaker 1: know progress that into our portfolios. Some of us actually

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Speaker 1: really want dividend shares more often than not. If you're

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Speaker 1: a really conservative investor, that's probably what you're chasing, and

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Speaker 1: dividend shares are. They're kind of like the Holy Grail, right,

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Speaker 1: like you own something, it increases in value over time

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Speaker 1: and it pays you like what a money win. So

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Speaker 1: a lot of people want that. But you'll note that

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Speaker 1: those good, consistent, trusty dividend shares are usually relatively expensive.

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Speaker 1: So you're looking at a suite of shares that are

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Speaker 1: usually referred to as blue chip stocks. So you've probably

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Speaker 1: heard this before, and a blue chip stock is basically

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Speaker 1: just a very conservative stock. It is tried and true

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Speaker 1: in the market. It is a very large business that

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Speaker 1: is very unlikely to go under, and they are usually

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Speaker 1: commodities or banks or things like iron ore where you're

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Speaker 1: going to you know what doesn't matter when this isn't

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Speaker 1: an ethical argument. If you want to go and listen

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Speaker 1: to one of our ethical podcasts, absolutely do. But we

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Speaker 1: know Australia is going to continue to produce that because

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Speaker 1: it's a very big commodity that comes out of Australia,

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Speaker 1: and we know that that share is going to consistently

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Speaker 1: perform because we know that that resource is not limited

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Speaker 1: here in Australia. So for me, when I look at

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Speaker 1: the portfolio, or I look at what I'm doing with

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Speaker 1: a client's share portfolio and whether I want capital growth

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Speaker 1: or dividend yield. It actually goes back to risk profile.

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Speaker 1: And you know when we were talking ages ago on

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Speaker 1: another episode about risk profile, it's really like, gee, do

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Speaker 1: you want to take more risk or do you just

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Speaker 1: want the tried and true and steady steed that like

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Speaker 1: it's going to pay their dividend. Like if you look

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Speaker 1: at a NAB share, I'm not saying go and buy NAB.

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Speaker 1: This is not a recommendation. It's just an example because

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Speaker 1: I was writing another chapter of my book last week

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Speaker 1: and I was talking about dividend yield and I was

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Speaker 1: talking about how it works, and I was like, how

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Speaker 1: can I do this? I'm just going to pick NAB YEP.

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Speaker 1: It was the first one that came to mind. And

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Speaker 1: they have not not paid a dividend since like nineteen

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Speaker 1: sixty four or something.

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Speaker 4: That's ridiculous.

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Speaker 1: So every single quarter they are paying their investors a dividend,

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Speaker 1: whether it is big or small. They are just consistent.

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Speaker 1: And that's why a lot of people just want to

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Speaker 1: hold things like NAB and like Blue Scope Steel in

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Speaker 1: their portfolios. Because they're like, do you know what. It

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Speaker 1: might not rise in value significantly over time, but what

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Speaker 1: I will do is start to generate an income. And

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Speaker 1: a lot of people will really value income in a

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Speaker 1: portfolio because they're like, well, that is the thing that

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Speaker 1: I'm chasing anyway, Does that make sense?

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Speaker 4: It does make sense. But you said that in your

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Speaker 4: hypothetical that NAB might pay them quarterly their dividends. Is

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Speaker 4: that like the standard if you are getting no okay, So.

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Speaker 1: Everybody does it differently. NAB pays once every six months

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Speaker 1: or so. Sometimes they'll have a special dividend distribution, like

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Speaker 1: if they've had a really big profit or there's been

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Speaker 1: a really big event in the world and they want

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Speaker 1: to distribute money to some investors, they will do what's

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Speaker 1: called a special dividend run and they will then pay

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Speaker 1: that out. Not very common, but important to know it exists.

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Speaker 1: But usually it's either every six months or every year.

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Speaker 1: Some companies do pay quarterly. That's why it's important to

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Speaker 1: keep an eye on your share trading account and just

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Speaker 1: see what's coming in and what's coming out, and if

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Speaker 1: you are an individual share investor, knowing when that's going

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Speaker 1: to happen is important because in the long run, that's

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Speaker 1: actually going to become your income, like in the future.

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Speaker 1: That's the point of investing. It's not to save up

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Speaker 1: two million dollars George and go, oh my gosh, now

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Speaker 1: I have a portfolio worth two million dollars. I'm going

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Speaker 1: to start spending it and drawing it down, Like, that's

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Speaker 1: not the point. The point is to keep that money invested.

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Speaker 1: And if you have two million dollars invested and you

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Speaker 1: are going off a five percent yield, and you go,

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Speaker 1: I would hope to get five percent every year, you

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Speaker 1: actually have one hundred thousand dollars in dividends coming in

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Speaker 1: every single year. So like that sounds like the dream.

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Speaker 1: Obviously that's a very large example, and that's not achievable

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Speaker 1: for a lot of people. But if you created a

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Speaker 1: two million dollar investment portfolio, you'd have one hundred grand

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Speaker 1: a year coming in in dividends, and that would become

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Speaker 1: your income, so you didn't have to go to work anymore,

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Speaker 1: your passive income.

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Speaker 4: You're learning on a little bit here Via it's tax time.

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Speaker 4: I'm a new investor and I've just received my first

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Speaker 4: ever dividend statement.

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Speaker 1: Congratulations, Thank you so much.

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Speaker 4: Break it down for me though, what does it tell me?

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Speaker 4: What does it mean? Talk me through it.

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Speaker 1: So, if an Australian company pays or credits you with

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Speaker 1: a dividend or a non shared dividend, the company must

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Speaker 1: also send you a dividend statement or a distribution statement.

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Speaker 1: This is going to tell you a number of things.

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Speaker 1: So it could tell you the name of the entity

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Speaker 1: that is making the distribution, the date, the amount of

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Speaker 1: the distribution, any amount of franking credits. So franking credits

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Speaker 1: we can dive into a little bit later, but they

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Speaker 1: are a massive money win and one of my favorite

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Speaker 1: things about the super environment. We'll come back to that.

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Speaker 1: They will tell you where the distribution is unfranked and

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Speaker 1: a statement to that effect, and they will tell you

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Speaker 1: the amount of tax that was withheld if you didn't

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Speaker 1: give them your TFN. So it look there's a lot

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Speaker 1: of information on these statements and regardless of whether you

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Speaker 1: have been issued with a profit or not, you will

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Speaker 1: get one to let you know how your shares are performing.

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Speaker 1: I also think it's important to point out here because

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Speaker 1: I'm talking a lot about distribution of dividends that's not

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Speaker 1: a given. Like a lot of companies and As we

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Speaker 1: said before, NAB was a good example of a consistent

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Speaker 1: dividend yielding share that's expensive to buy. That doesn't mean

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Speaker 1: that every single other share that is classified as a

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Speaker 1: dividend share is always going to pay you a dividend.

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Speaker 1: Like if the company's not doing well, like you're not

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Speaker 1: going to get some of their profit g because there's

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Speaker 1: no profit to be shared. If they've just broken even,

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Speaker 1: they might go, well, we don't have, you know, enough

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Speaker 1: leftover to give to shareholders. Sometimes in smaller, like more

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Speaker 1: growing companies, So you think about shares like, you know

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Speaker 1: how last year our community were going wild for after paid.

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Speaker 1: They were like, oh my god, after pay shares are

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Speaker 1: so good. They've increased by xyz. Great, But they never

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Speaker 1: paid a dividend and they didn't pay a dividend because

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Speaker 1: that company is relatively new. And because they are relatively new,

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Speaker 1: every single dollar in profit that they were making they

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Speaker 1: were reinvesting back into the business to grow the business,

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Speaker 1: which is why they had such good capital growth, both

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Speaker 1: because they were able to reinvest in the business. So

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Speaker 1: you've got to know the underlying strategy of the business

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Speaker 1: that you're putting in your portfolio. Because a lot of

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Speaker 1: people made a mistake when they looked at it and said,

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Speaker 1: oh my god, but I'll put after paying my portfolio

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Speaker 1: because they're performing so much better than something else. But

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Speaker 1: they didn't take into consideration the dividend yield or the

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Speaker 1: amount of passive income they'd make from that share all

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Speaker 1: they got with an after pay share, not to throw

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Speaker 1: them under of us, like we're not talking about the

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Speaker 1: actual business here. No, no, no, we're not talking about

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Speaker 1: the actual business here. We're talking about the share they

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Speaker 1: would buy it. It would increase in value, but you

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Speaker 1: only actually get to crystallize that value if you sell

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Speaker 1: your share. And if we are you know, shees on

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Speaker 1: the money investors and we are long term investors, why

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Speaker 1: are you selling your share so quickly after buying it?

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Speaker 1: So I think it's about buy and hold strategies from

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Speaker 1: my perspective, because as you guys know, I don't ever

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Speaker 1: want you to invest for a short period of time

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Speaker 1: because it's just too risky and a lot of things

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Speaker 1: could happen. And do you know what did happen during

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Speaker 1: that period of time where people were going a bit

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Speaker 1: ham on after they were like, oh my god, I

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Speaker 1: bought it, and then I sold it for X they

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Speaker 1: didn't take into consideration capital gains tax, and you get

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Speaker 1: taxed at fifty percent. If you sell your share or

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Speaker 1: your asset within the first twelve months, you have to

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Speaker 1: hold it longer than twelve months to get your CGT discount.

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Speaker 1: And if you didn't do that and you bought it

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Speaker 1: and then you sold it and you thought you made

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Speaker 1: this big profit, come June thirty, when tax time comes,

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Speaker 1: the taxman comes knocking on your door and says, hey, gee,

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Speaker 1: you actually bought and sold an asset, didn't hold it

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Speaker 1: more than twelve months. You actually owe us some additional tax.

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Speaker 1: And you go, what that's not.

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Speaker 4: Thought you've been clever.

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Speaker 1: You thought you'd being clever, but we got you. Yeah.

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Speaker 1: And in the same thing happened with bitcoin because so

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Speaker 1: many people burned and churned through bitcoin that they were like,

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Speaker 1: oh my god, I made so much money and then

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Speaker 1: they had to like lose half of their profit to tax. Yeah,

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Speaker 1: so people forget about TAT sucks. That sucks. That's why

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Speaker 1: we're talking about it. That's why we're like, oh, let's

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Speaker 1: talk about reporting season.

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Speaker 4: That's why we're here.

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Speaker 1: Because Victoria thinks it's really sexy.

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Speaker 4: So on the tax theme. B I think I know

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Speaker 4: the answer to this. But when it comes to dividends,

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Speaker 4: they're technically a form of income. They are a form

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Speaker 4: of income, So I'm assuming we need to pay tax

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Speaker 4: on them. Yes, you do so, magical cotes.

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Speaker 1: So it depends on how you're holding your shares. Let's

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Speaker 1: just say you're a salary and way journing employee. You

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Speaker 1: have a few thousand dollars worth of shares. You are

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Speaker 1: going to pay tax on that income at your marginal

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Speaker 1: tax rate. So are they's thirty two and a half

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Speaker 1: cents on the dollar or not, It doesn't matter. It

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Speaker 1: will just be at your marginal tax rate. In saying that,

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Speaker 1: that's a good thing. Like a lot of people are like,

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Speaker 1: oh my god, I don't know if I want to

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Speaker 1: invest because I just don't want the tax implications. My friends,

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Speaker 1: if you are paying tax, you are making money. We

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Speaker 1: just need to plan for it. Yeah, we just need

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Speaker 1: to plan for it. And I get a bit frustrated

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Speaker 1: about tax And I've been having this conversation with a

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Speaker 1: few people in our community recently because they're so quote

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Speaker 1: frustrated or annoyed by the tax system and how much

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Speaker 1: money they lose like that money was never yours, Like

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Speaker 1: the entire time you have ever worked here in Australia,

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Speaker 1: if you are listening to this podcast, you have paid

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Speaker 1: some form of tax and we have note about it.

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Speaker 1: Like if you say, G, I earn eighty grand a year,

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Speaker 1: No you don't. That is your pre tax income. Let's

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Speaker 1: just look at post tax, because I think too many

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Speaker 1: times people get so caught up on oh but I

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Speaker 1: had to pay this, No, like that was a given.

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Speaker 1: We've always had to pay tax. It is a privilege

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Speaker 1: to live in a country where we pay tax and

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Speaker 1: have the support system and the infrastructure around us that

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Speaker 1: enables us to live in such a free country. I'm

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Speaker 1: a bit triggered by it this week, G because I

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Speaker 1: do genuinely want to change people's mindsets around paying tax

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Speaker 1: and see it as a privilege. We just need to

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Speaker 1: full plan for it. And that just means having a

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Speaker 1: good banking system in place. That just means putting money

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Speaker 1: aside when it comes in and not going, oh my gosh,

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Speaker 1: I got paid twenty dollars in dividends and then twenty

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Speaker 1: dollars go straight out, Like we do need to make

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Speaker 1: sure that we're putting some money aside for tax and

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Speaker 1: being smart about it, because I think we get the

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Speaker 1: most frustrated with tax when it pops up at tax

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Speaker 1: time and you just forgotten. It's really exaustrating, and we

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Speaker 1: can actually avoid that with some good planning.

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Speaker 4: Yeah, so when you have to pay that bulk sum,

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Speaker 4: it's much more intimidating. Yeah, plugging away as you go exactly.

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Speaker 4: But you mentioned before franked difends. They're the sexiest kind

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Speaker 4: of dividends. G tell me why, because every time it

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Speaker 4: comes up for some reason, I just I never remember.

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Speaker 4: All I can think of is like a frankfurt That's

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Speaker 4: literally what is in my brain is like a mini sausage.

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Speaker 1: That's all any sausage.

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Speaker 4: I never remember what they are.

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Speaker 1: Growing up, My mum used to call them little boys. Yeah, okay,

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Speaker 1: I just should we put that on the podcast? I

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Speaker 1: don't know. Now I think about that, and it's twenty

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Speaker 1: twenty two. I'm like, that's suspicious. That is not okay. Also,

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Speaker 1: what are they made of?

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Speaker 4: I don't think we want to know.

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Speaker 1: I don't think, like, how are they so read on

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Speaker 1: the outside? I don't at I don't know nothing like

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Speaker 1: a frank dividend, though, tell me about those. So, a

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Speaker 1: franked dividend is an arrangement that was introduced into Australia

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Speaker 1: to eliminate double tax. It means that you're not g

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Speaker 1: going to have to pay double tax. It means it's

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Speaker 1: kind of like you get given you a dividend and

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Speaker 1: it has a little flag on it that says, hey, ge,

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Speaker 1: I've already paid tax, Please don't tax me again. And

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Speaker 1: you get to put that on your tax return so

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Speaker 1: that you don't end up having to pay the tax

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Speaker 1: that was paid on that share. And that tax is

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Speaker 1: paid at thirty percent usually because that is business tax.

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Speaker 1: So you get a little bit of a refund, which

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Speaker 1: is a bit of a money in And as I

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Speaker 1: said before, I love it in Super. And do you

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Speaker 1: know why I love it in Super? Because Gee, stop

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Speaker 1: looking at me like you have no idea what I'm

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Speaker 1: talking about. I talk about Super all the time. What's

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Speaker 1: the tax rate in Super?

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Speaker 4: I don't know the exifteen. I'm going to say that

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Speaker 4: it's just comparis myself. But I should have back no no,

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Speaker 4: no self gift.

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Speaker 1: You have been listening to my rants for so long,

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Speaker 1: arguably longer than anybody else on the podcast. So the

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Speaker 1: tax rate inside superannuation is fifteen percent. But if a

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Speaker 1: company has paid tax on a particular share at thirty percent,

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Speaker 1: that's a different rate. You should have only been paid fifteen.

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Speaker 1: So what do you get. You get a fifteen percent

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Speaker 1: tax rebate, which means that share is already profiting more

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Speaker 1: and above and beyond what it would have been profiting

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Speaker 1: if it went into your back pocket at your marginal tax.

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Speaker 2: Right.

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Speaker 1: So that's why I think that the power of franked

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00:18:03,119 --> 00:18:07,000
Speaker 1: dividends is actually in superinuation because it kind of compounds

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Speaker 1: over time, and it's kind of like even if that

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Speaker 1: company only returned to like one or two percent, it

404
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Speaker 1: instantly goes even higher because you actually get franking credits

405
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Speaker 1: back and you end up making money that way as well.

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Speaker 1: So I think it's important to know those things. But

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Speaker 1: essentially it is a bit of a money win. It

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Speaker 1: is a really good system to make sure that you

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Speaker 1: don't pay tax on a share that's already had its

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Speaker 1: tax paid for it.

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Speaker 4: So what then, is an unfranked dividend fee? And how

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Speaker 4: do we handle that at tax time?

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Speaker 1: My friend, an unfranked dividend is a dividend that doesn't

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Speaker 1: have a tax credit attached to it, so it doesn't

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Speaker 1: come with its little flag, and unfranked dividends mean that

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Speaker 1: you are possibly going to have to pay some tax

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Speaker 1: on it and make sure you declare it on your

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Speaker 1: tax return. So it's not actually a bad thing. It's

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Speaker 1: just about doing the right thing and knowing whether you're

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Speaker 1: getting franked or unfranked dividends and how that actually plays

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Speaker 1: into your portfolio and how you do your tax And

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Speaker 1: it sounds very confusing, but when you have a good

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Speaker 1: investing platform, that'll all be on yours so it's really clear. Yeah,

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Speaker 1: it is really clear. It sounds not clear, and it

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Speaker 1: sounds like you're going to have to do some backflips

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Speaker 1: and work out what's franked and what's unfranked and how

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Speaker 1: that works. But essentially, when you're putting your portfolio together

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Speaker 1: and you're actually constructing it for the first time, that's

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Speaker 1: when i'd be like, oh, let's have a look, gee,

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Speaker 1: have you got a good amount of unfranked and frank dividends?

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Speaker 1: Like are we actually really comfy with this? Yes or no?

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Speaker 1: And then it'll all be on your reports. Like, honestly,

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Speaker 1: it's twenty twenty two. Everything is super easy. All we

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Speaker 1: have to do is make sure we know in the

435
00:19:32,440 --> 00:19:35,600
Speaker 1: background what our obligations are. And you don't have to

436
00:19:35,640 --> 00:19:38,760
Speaker 1: stress about your superannuation either, because it will all be

437
00:19:38,840 --> 00:19:42,040
Speaker 1: done inside super. Anyway, last question here v before we

438
00:19:42,080 --> 00:19:44,440
Speaker 1: head to a little break cute, I need a coffee.

439
00:19:44,640 --> 00:19:46,879
Speaker 1: What happens if I sell my shares?

440
00:19:46,920 --> 00:19:47,800
Speaker 4: Do I pay tax?

441
00:19:47,800 --> 00:19:47,919
Speaker 1: Then?

442
00:19:48,040 --> 00:19:48,200
Speaker 2: Yes?

443
00:19:48,600 --> 00:19:51,720
Speaker 1: Yes, yes, because if you own an asset, I mean

444
00:19:51,960 --> 00:19:54,600
Speaker 1: you'll only have to pay tax on something you made

445
00:19:54,640 --> 00:19:57,080
Speaker 1: money on. Let's remember that, like, there's not going to

446
00:19:57,080 --> 00:20:00,600
Speaker 1: be some kind of tax consequence if you are losing money. Well,

447
00:20:00,640 --> 00:20:03,120
Speaker 1: actually there will be. It'll mean that you probably get

448
00:20:03,119 --> 00:20:04,040
Speaker 1: a bit of a refund.

449
00:20:04,280 --> 00:20:04,600
Speaker 4: Nice.

450
00:20:04,680 --> 00:20:07,800
Speaker 1: But it's called capital gains tax, and that's the tax

451
00:20:07,840 --> 00:20:10,000
Speaker 1: you pay on profits from selling an asset. So it

452
00:20:10,000 --> 00:20:14,160
Speaker 1: could be property or shares, hot tip or not hot tip,

453
00:20:14,160 --> 00:20:19,080
Speaker 1: but interesting points complete tangent here. I was talking to

454
00:20:19,080 --> 00:20:21,560
Speaker 1: somebody the other day and we were talking about CGT

455
00:20:21,880 --> 00:20:24,439
Speaker 1: and what it means. So essentially, capital gains tax is

456
00:20:24,440 --> 00:20:26,679
Speaker 1: a tax you pay when you make money on an asset.

457
00:20:26,960 --> 00:20:29,040
Speaker 1: So you can't just go all right, well I just

458
00:20:29,080 --> 00:20:31,879
Speaker 1: bought this house. It increased in value by five hundred

459
00:20:31,920 --> 00:20:33,640
Speaker 1: thousand dollars. I'm going to sell it, and that five

460
00:20:33,720 --> 00:20:35,919
Speaker 1: hundred thousand dollars is clean mine. No, it is not,

461
00:20:36,000 --> 00:20:37,959
Speaker 1: because you earned money from that, so therefore you need

462
00:20:38,000 --> 00:20:40,080
Speaker 1: to pay tax because it was like your income. Right.

463
00:20:40,920 --> 00:20:42,920
Speaker 1: I got a new client the other day. Shout out

464
00:20:42,920 --> 00:20:44,359
Speaker 1: to my new client. Not going to call you by

465
00:20:44,480 --> 00:20:47,479
Speaker 1: name because that would be wildly inappropriate. But they collect

466
00:20:47,600 --> 00:20:50,159
Speaker 1: vintage and like, you know, quite expensive cars.

467
00:20:50,400 --> 00:20:50,760
Speaker 2: Do you know what?

468
00:20:50,760 --> 00:20:53,760
Speaker 1: You don't pay capital gains tax on cars?

469
00:20:53,840 --> 00:20:54,520
Speaker 4: Are you joking?

470
00:20:54,560 --> 00:20:57,200
Speaker 1: Yeah? So he is buying and selling cars and they

471
00:20:57,320 --> 00:21:00,160
Speaker 1: just don't have capital gains tax associated with them. It's

472
00:21:00,160 --> 00:21:02,119
Speaker 1: not me saying go and invest in cars, because you

473
00:21:02,119 --> 00:21:04,200
Speaker 1: do actually have to get to a level where you're

474
00:21:04,240 --> 00:21:09,920
Speaker 1: buying very expensive cars that then increase significantly in value.

475
00:21:10,080 --> 00:21:12,720
Speaker 1: And you know, he is like a professional at what

476
00:21:12,760 --> 00:21:15,720
Speaker 1: he does, because he actually is like in automtori engineering,

477
00:21:15,720 --> 00:21:17,560
Speaker 1: and like he buys these cars and flips them and

478
00:21:17,640 --> 00:21:20,880
Speaker 1: updates them and then sells them. But like CGT exempt

479
00:21:20,920 --> 00:21:24,360
Speaker 1: what because I actually don't know about that. No, so

480
00:21:24,480 --> 00:21:26,960
Speaker 1: I'm only talking about it because it's you know, just

481
00:21:27,119 --> 00:21:30,760
Speaker 1: interesting hot tip and something to take away. But cars

482
00:21:30,760 --> 00:21:33,520
Speaker 1: are exempt. And I was like, what I did know that,

483
00:21:33,560 --> 00:21:35,840
Speaker 1: but I'd never run into someone who, you know, was

484
00:21:36,040 --> 00:21:38,280
Speaker 1: at a wealth status where they were buying and selling

485
00:21:38,359 --> 00:21:41,120
Speaker 1: like half a million dollar cars and walking away clean

486
00:21:41,200 --> 00:21:41,879
Speaker 1: of the profits.

487
00:21:41,960 --> 00:21:42,560
Speaker 4: That's weird.

488
00:21:42,800 --> 00:21:45,080
Speaker 1: It's kind of weird, but it's also kind of interesting

489
00:21:45,119 --> 00:21:47,639
Speaker 1: how all of that works and how wealth seems to

490
00:21:47,720 --> 00:21:52,399
Speaker 1: start benefiting the wealthy to that level.

491
00:21:52,760 --> 00:21:56,679
Speaker 4: Yeah, like I'm mad about that. Look, females are flipping cars.

492
00:21:56,720 --> 00:21:59,040
Speaker 4: Not many, I bit, not many many for me.

493
00:21:59,119 --> 00:22:00,919
Speaker 1: Yeah, you're a bit salted. Let's move on from that,

494
00:22:00,960 --> 00:22:02,639
Speaker 1: because I just thought it was a hot tip. But essentially,

495
00:22:02,680 --> 00:22:04,800
Speaker 1: if you have a capital gain, it will increase the

496
00:22:04,840 --> 00:22:07,159
Speaker 1: tax that you need to pay. You'll also need to

497
00:22:07,160 --> 00:22:09,440
Speaker 1: pay it if you have, like I've got a laundry list,

498
00:22:09,480 --> 00:22:11,520
Speaker 1: they'll go through. Because like, I'm still caught on how

499
00:22:11,560 --> 00:22:14,040
Speaker 1: triggered I am by the car thing. But if you

500
00:22:14,119 --> 00:22:16,400
Speaker 1: redeem units in a managed fund by switching them from

501
00:22:16,440 --> 00:22:19,680
Speaker 1: one fund to another, if you make an n species transfer,

502
00:22:19,960 --> 00:22:22,960
Speaker 1: so if you transfer your shareholding from one holding to

503
00:22:23,040 --> 00:22:25,399
Speaker 1: another holding, it's kind of like a selldown, like you

504
00:22:25,440 --> 00:22:27,320
Speaker 1: sold it and then you reborught it. So you need

505
00:22:27,359 --> 00:22:30,840
Speaker 1: to be really careful around that. So that's where I

506
00:22:30,880 --> 00:22:33,720
Speaker 1: always suggest, you know, talking to your share trading platform

507
00:22:33,800 --> 00:22:36,040
Speaker 1: or talking to your financial advisor when you're going to

508
00:22:36,040 --> 00:22:39,760
Speaker 1: make any serious changes to your portfolio, especially if you've

509
00:22:39,800 --> 00:22:41,760
Speaker 1: owned it for a few years, because you don't want

510
00:22:41,760 --> 00:22:43,240
Speaker 1: to end up going, oh my gosh, this makes so

511
00:22:43,320 --> 00:22:45,040
Speaker 1: much sense. I'm going to transfer all my shares over

512
00:22:45,080 --> 00:22:47,399
Speaker 1: to this brand new platform. This sounds really fun, this

513
00:22:47,440 --> 00:22:49,439
Speaker 1: sounds really sexy, and then you end up with a

514
00:22:49,480 --> 00:22:51,680
Speaker 1: tax obligation because of it, and you just didn't know

515
00:22:51,800 --> 00:22:54,120
Speaker 1: that's what was going to happen. There are a number

516
00:22:54,119 --> 00:22:55,840
Speaker 1: of them, but essentially, if you sell your shares or

517
00:22:55,840 --> 00:22:58,480
Speaker 1: you have some kind of CGT event occur, you need

518
00:22:58,520 --> 00:23:01,159
Speaker 1: to calculate your CGT and they're on your tax return.

519
00:23:01,440 --> 00:23:04,320
Speaker 1: And then remember you might be able to reduce your

520
00:23:04,320 --> 00:23:07,160
Speaker 1: CGT by literally fifty percent if you hold your shares

521
00:23:07,160 --> 00:23:09,200
Speaker 1: more than twelve months. It's just why we always talk

522
00:23:09,240 --> 00:23:12,200
Speaker 1: about long term investing strategies. Well, it's not actually why

523
00:23:12,320 --> 00:23:15,600
Speaker 1: we talk about it. I obviously believe very vehemently in

524
00:23:15,800 --> 00:23:19,120
Speaker 1: long term investing, but it's just not smart to buy

525
00:23:19,119 --> 00:23:21,920
Speaker 1: and sell shares within twelve months, which is really important

526
00:23:21,920 --> 00:23:24,119
Speaker 1: to remember as well. G Because I think so many

527
00:23:24,160 --> 00:23:27,000
Speaker 1: of us have been buying and selling and you know,

528
00:23:27,520 --> 00:23:31,679
Speaker 1: playing on like micro investing platforms. In a twelve month period,

529
00:23:31,800 --> 00:23:33,439
Speaker 1: you're like, you know, go and raise or go on

530
00:23:33,440 --> 00:23:36,159
Speaker 1: Spaceship or go on Clover or whatever you're downloading. Go

531
00:23:36,200 --> 00:23:38,040
Speaker 1: oh my god, my money is not doing anything and

532
00:23:38,200 --> 00:23:40,320
Speaker 1: rip it straight out within three or four months because

533
00:23:40,359 --> 00:23:43,920
Speaker 1: a quote wasn't performing, Like, guys, don't do that. Yeah,

534
00:23:43,960 --> 00:23:44,879
Speaker 1: I just want to shake you.

535
00:23:45,119 --> 00:23:48,640
Speaker 4: Okay, interesting, let's pop a pin in it their VD.

536
00:23:48,760 --> 00:23:50,160
Speaker 4: But on the other side of the break, we're going

537
00:23:50,200 --> 00:23:53,160
Speaker 4: to be talking about how to actually read these documents,

538
00:23:53,200 --> 00:23:55,560
Speaker 4: which I think will hopefully we I help these And

539
00:23:55,600 --> 00:23:57,840
Speaker 4: we're also going to chat about what happens if you

540
00:23:57,920 --> 00:23:59,960
Speaker 4: muck up your tax return? Will you go to jail?

541
00:24:00,000 --> 00:24:01,520
Speaker 4: We find out on the other side of.

542
00:24:01,440 --> 00:24:04,360
Speaker 1: The probably don't know, you won't know, you won't.

543
00:24:07,280 --> 00:24:11,280
Speaker 4: Alright, ev we are back, as we mentioned before, As

544
00:24:11,400 --> 00:24:16,000
Speaker 4: a shareholder, I am entitled sure for information from the company.

545
00:24:16,160 --> 00:24:19,440
Speaker 1: I feel like the little shareholders are entitled like well, right,

546
00:24:19,560 --> 00:24:23,080
Speaker 1: you know, just like telling people that their shareholders. Let's

547
00:24:23,240 --> 00:24:26,760
Speaker 1: talk about how to pick apart these documents because it

548
00:24:26,760 --> 00:24:30,280
Speaker 1: can get dense, especially for newbies like my good self.

549
00:24:30,600 --> 00:24:33,119
Speaker 1: Let's start with a profit and loss statement. Look, not

550
00:24:33,200 --> 00:24:35,520
Speaker 1: all of you are into spreadsheets in the way that

551
00:24:35,600 --> 00:24:38,680
Speaker 1: I am into spreadsheets. Surprise, because you know what most

552
00:24:38,720 --> 00:24:40,320
Speaker 1: people do. They just look at their profit and lost

553
00:24:40,320 --> 00:24:42,240
Speaker 1: statement that gets emailed to them as a PDF and

554
00:24:42,280 --> 00:24:43,440
Speaker 1: they don't open the PDF.

555
00:24:43,680 --> 00:24:43,760
Speaker 2: Me.

556
00:24:43,920 --> 00:24:45,840
Speaker 1: I'm like, oh, can that be converted to excel? I

557
00:24:45,880 --> 00:24:47,840
Speaker 1: wonder if I could have a look at XYS Like

558
00:24:47,960 --> 00:24:50,600
Speaker 1: I'm a psycho, but I don't expect other people to

559
00:24:50,800 --> 00:24:53,600
Speaker 1: be as psychotic as I am when looking at profit

560
00:24:53,640 --> 00:24:56,399
Speaker 1: and loss statements. But essentially, the profit and loss statement

561
00:24:56,440 --> 00:24:58,760
Speaker 1: is a financial statement that summarizes the revenue and how

562
00:24:58,840 --> 00:25:01,840
Speaker 1: much money they've made in the cop and expenses incurred

563
00:25:01,880 --> 00:25:04,679
Speaker 1: during a specific period of time. That could be a

564
00:25:04,680 --> 00:25:06,600
Speaker 1: couple of months if it was generated for that, it

565
00:25:06,600 --> 00:25:08,639
Speaker 1: could be an entire financial year. It could be the

566
00:25:08,760 --> 00:25:11,680
Speaker 1: entire history of the company. The profit and loss statement,

567
00:25:11,720 --> 00:25:13,639
Speaker 1: which is sometimes just called the P and L, is

568
00:25:13,680 --> 00:25:17,879
Speaker 1: one of three financial statements that every single public company

569
00:25:17,880 --> 00:25:21,119
Speaker 1: issues quarterly and annually, along with the balance sheet and

570
00:25:21,160 --> 00:25:24,320
Speaker 1: the cash flow statement. So these are three separate documents

571
00:25:24,600 --> 00:25:27,280
Speaker 1: that all work together, but all tell you different things.

572
00:25:27,480 --> 00:25:29,000
Speaker 1: And if you put them side by side, and you

573
00:25:29,000 --> 00:25:31,000
Speaker 1: are not a finance person, you'll be like, what on

574
00:25:31,080 --> 00:25:33,680
Speaker 1: earth and why am I looking at these? But it's

575
00:25:33,720 --> 00:25:37,000
Speaker 1: a super helpful financial statement in a business plan that

576
00:25:37,240 --> 00:25:40,040
Speaker 1: basically shows how much profit and loss was generated by

577
00:25:40,040 --> 00:25:42,440
Speaker 1: a business. And that's basically the P and L.

578
00:25:42,760 --> 00:25:44,520
Speaker 4: Look that sounds pretty simple.

579
00:25:44,640 --> 00:25:46,879
Speaker 1: P and L is profit and lost. Look it is,

580
00:25:46,960 --> 00:25:49,960
Speaker 1: and it's always broken down into two sections, just assets

581
00:25:50,000 --> 00:25:53,399
Speaker 1: and liabilities and what's outstanding. So basically it is just

582
00:25:53,800 --> 00:25:56,320
Speaker 1: literally the profit of the business and how much it's

583
00:25:56,320 --> 00:26:00,640
Speaker 1: potentially lost. Beautiful. Okay, let's move on now to balance sheets.

584
00:26:00,840 --> 00:26:02,240
Speaker 4: Soft What are they?

585
00:26:02,359 --> 00:26:04,359
Speaker 1: What is a balance sheet? Yes, think of it like

586
00:26:04,359 --> 00:26:06,959
Speaker 1: a balancing act. It's kind of like two sides of

587
00:26:06,960 --> 00:26:09,920
Speaker 1: a company where it has its assets, so the things

588
00:26:09,960 --> 00:26:12,679
Speaker 1: that it owns, and then its liabilities, so the things

589
00:26:12,720 --> 00:26:15,840
Speaker 1: that it owes and the things that it might have outstanding.

590
00:26:15,880 --> 00:26:17,399
Speaker 1: So it might have a number of different things. And

591
00:26:17,440 --> 00:26:20,239
Speaker 1: you might think liabilities is that just debt? Yes? But

592
00:26:20,320 --> 00:26:23,119
Speaker 1: did you know and a liability on a balance sheet

593
00:26:23,680 --> 00:26:28,160
Speaker 1: in a company's suite of financial reports actually includes all

594
00:26:28,200 --> 00:26:31,840
Speaker 1: of their outstanding annual leave for all of their employees. Really, yeah,

595
00:26:31,840 --> 00:26:34,720
Speaker 1: because they've got to pay it back if you leave me. Yeah,

596
00:26:34,760 --> 00:26:36,160
Speaker 1: so if you leave me, ge, I've got to pay

597
00:26:36,160 --> 00:26:38,000
Speaker 1: out all of your anual leave and that sits as

598
00:26:38,040 --> 00:26:40,920
Speaker 1: a liability on my balance sheet because at some point

599
00:26:40,960 --> 00:26:42,760
Speaker 1: I'm going to have to pay that, so we keep

600
00:26:42,800 --> 00:26:45,280
Speaker 1: track of it. So it's actually quite nitty gritty. It

601
00:26:45,359 --> 00:26:47,880
Speaker 1: essentially provides a snapshot of what a company owns and owes,

602
00:26:47,960 --> 00:26:50,679
Speaker 1: as well as the amount that is currently infested by shareholders.

603
00:26:50,960 --> 00:26:53,240
Speaker 1: So you can essentially get a snapshot of this company's

604
00:26:53,280 --> 00:26:55,439
Speaker 1: well being by using a number of ratios that can

605
00:26:55,480 --> 00:26:57,880
Speaker 1: be derived from the balance sheet, including a formula called

606
00:26:57,920 --> 00:27:01,000
Speaker 1: the debt to equity ratio and the acid tests ratio,

607
00:27:01,080 --> 00:27:03,080
Speaker 1: among a number of other things, and I won't go

608
00:27:03,160 --> 00:27:06,159
Speaker 1: into them, but essentially debt to equity ratio sounds confusing

609
00:27:06,160 --> 00:27:07,879
Speaker 1: when you say it really quickly, but it's basically how

610
00:27:07,960 --> 00:27:09,919
Speaker 1: much debt to how much stuff do you own? And

611
00:27:09,960 --> 00:27:12,919
Speaker 1: what does that ratio look like like? Is it positive?

612
00:27:13,000 --> 00:27:14,760
Speaker 1: Is it negative? What does that look like? How does

613
00:27:14,760 --> 00:27:17,240
Speaker 1: that impact me? I get really into this just because

614
00:27:17,280 --> 00:27:19,239
Speaker 1: I'm really excited, But move on to the next one

615
00:27:19,320 --> 00:27:21,760
Speaker 1: so we don't get too confused. Perfect, let's chat about

616
00:27:21,800 --> 00:27:23,000
Speaker 1: cash flow statements?

617
00:27:23,040 --> 00:27:23,440
Speaker 4: What are they?

618
00:27:23,520 --> 00:27:25,399
Speaker 1: What do you reckon? A cashlow statement? Is j a

619
00:27:25,600 --> 00:27:27,879
Speaker 1: statement of a company is cash flow? Right? Well, you

620
00:27:27,880 --> 00:27:29,520
Speaker 1: don't even need me, But what does it look like?

621
00:27:29,520 --> 00:27:30,119
Speaker 4: What does it tell us?

622
00:27:30,119 --> 00:27:30,399
Speaker 3: All Right?

623
00:27:30,440 --> 00:27:32,560
Speaker 1: So, the cashlow statement, or the CFS if you want

624
00:27:32,560 --> 00:27:35,320
Speaker 1: to be a fancy lady, summarizes the movement of cash

625
00:27:35,359 --> 00:27:39,240
Speaker 1: and cash equivalents that come in and out of a company.

626
00:27:39,480 --> 00:27:42,240
Speaker 1: So the CFS measures how well a company manages its

627
00:27:42,280 --> 00:27:45,240
Speaker 1: cash position, meaning how well a company generates cash to

628
00:27:45,240 --> 00:27:48,719
Speaker 1: pay its debt obligations and fund its operating expenses. So

629
00:27:48,760 --> 00:27:50,920
Speaker 1: if we break that down a little bit more, let's

630
00:27:50,960 --> 00:27:52,800
Speaker 1: look at she's on the money, Like, am I making

631
00:27:52,880 --> 00:27:55,600
Speaker 1: enough money each month to pay all of my rent

632
00:27:55,680 --> 00:27:58,439
Speaker 1: and to pay for this very fancy studio and to

633
00:27:58,480 --> 00:28:01,360
Speaker 1: pay YUG and to pay JEF and to pay everybody?

634
00:28:01,640 --> 00:28:04,480
Speaker 1: Or am I cutting it real fine? Does that make sense?

635
00:28:04,520 --> 00:28:06,160
Speaker 1: So like, do we have enough money in the bank

636
00:28:06,200 --> 00:28:08,600
Speaker 1: to make sure that things are consistently moving and we

637
00:28:08,640 --> 00:28:10,959
Speaker 1: can invest in the business and we can grow, Like

638
00:28:11,040 --> 00:28:13,919
Speaker 1: this is what's going to show you its ability to

639
00:28:14,240 --> 00:28:17,760
Speaker 1: you know, fund new purchases or make new investments. So essentially,

640
00:28:17,840 --> 00:28:20,600
Speaker 1: the main components of the cfs are cash from three

641
00:28:20,600 --> 00:28:25,040
Speaker 1: different areas, so operating activities, investing activities, and financing activities.

642
00:28:25,080 --> 00:28:27,359
Speaker 4: Does the CFO of a company put this together?

643
00:28:27,680 --> 00:28:30,720
Speaker 1: Yes? Actually, or an accountant, so for me, we want

644
00:28:30,760 --> 00:28:32,679
Speaker 1: to know about the finances if she's on the money.

645
00:28:32,800 --> 00:28:36,040
Speaker 1: We have a bookkeeper, Hi, Helen, love you. She does

646
00:28:36,200 --> 00:28:38,680
Speaker 1: everything for us every single month to make sure that

647
00:28:38,760 --> 00:28:40,880
Speaker 1: I'm on top of what's going on. And then we

648
00:28:40,920 --> 00:28:43,280
Speaker 1: have Louis who is our accountant, and he makes sure

649
00:28:43,320 --> 00:28:46,040
Speaker 1: that every single year all of my reporting comes in

650
00:28:46,080 --> 00:28:48,000
Speaker 1: so that I can look at the business as a whole.

651
00:28:48,320 --> 00:28:50,560
Speaker 1: So we do that on a monthly basis with a bookkeeper,

652
00:28:50,600 --> 00:28:52,360
Speaker 1: and then we do it with an accountant, and then

653
00:28:52,400 --> 00:28:54,920
Speaker 1: I would basically be the CFO because we're not big

654
00:28:55,000 --> 00:28:56,200
Speaker 1: enough to be able to afford that yet.

655
00:28:56,280 --> 00:29:00,920
Speaker 4: George kids, Okay, very good. We were talking about different

656
00:29:01,160 --> 00:29:04,600
Speaker 4: levels of investing a little while back. What sort of

657
00:29:04,640 --> 00:29:08,120
Speaker 4: reporting do the different methods and platforms actually provide me?

658
00:29:08,160 --> 00:29:10,440
Speaker 1: At tax? Oh my gosh, guys, I've said it before.

659
00:29:10,520 --> 00:29:13,080
Speaker 1: It's twenty twenty two. We can expect a lot, and

660
00:29:13,120 --> 00:29:15,560
Speaker 1: when it comes to picking a platform, I do think

661
00:29:15,600 --> 00:29:18,480
Speaker 1: reporting really should come into it because that's actually quite

662
00:29:18,520 --> 00:29:20,720
Speaker 1: a heavy task if you're not into it. So we've

663
00:29:20,720 --> 00:29:23,280
Speaker 1: talked about our friends from Sharess. They basically provide you

664
00:29:23,320 --> 00:29:25,920
Speaker 1: everything like they will just send you a statement. I

665
00:29:25,960 --> 00:29:28,480
Speaker 1: know Rays do the same thing. I know Spaceship, which

666
00:29:28,480 --> 00:29:30,960
Speaker 1: are both micro investing platforms that are very popular in

667
00:29:31,000 --> 00:29:33,440
Speaker 1: our community. They will send you your tax statement to

668
00:29:33,440 --> 00:29:35,560
Speaker 1: make sure that you've got everything you need to submit

669
00:29:35,600 --> 00:29:37,360
Speaker 1: to the ATO to make sure that you're doing your

670
00:29:37,400 --> 00:29:40,880
Speaker 1: tax properly. Six Park, which is the robo advice platform

671
00:29:40,920 --> 00:29:42,480
Speaker 1: we talk about a lot, and I have a very

672
00:29:42,520 --> 00:29:45,040
Speaker 1: big affiliation with Obviously, I need to disclaim it that

673
00:29:45,080 --> 00:29:47,280
Speaker 1: every time I talk about it, it's because I'm biased

674
00:29:47,360 --> 00:29:50,280
Speaker 1: because I love them, But that's okay. But they will

675
00:29:50,280 --> 00:29:53,160
Speaker 1: send you absolutely everything as well. And then if you're

676
00:29:53,200 --> 00:29:56,200
Speaker 1: an individual share investor across a number of different platforms,

677
00:29:56,280 --> 00:29:58,360
Speaker 1: it's very likely you're going to have to do that yourself.

678
00:29:58,800 --> 00:30:00,880
Speaker 1: So if you own a number different shares on a

679
00:30:00,880 --> 00:30:03,160
Speaker 1: lot of different smaller platforms, you're probably going to have

680
00:30:03,200 --> 00:30:05,840
Speaker 1: to pull it together. But most platforms these days have

681
00:30:05,960 --> 00:30:09,200
Speaker 1: some form of very clear tax reporting that you would

682
00:30:09,200 --> 00:30:12,360
Speaker 1: then take and input into your tax return. The other

683
00:30:12,400 --> 00:30:16,400
Speaker 1: thing that is I believe got sexy George is data feeds.

684
00:30:16,640 --> 00:30:19,760
Speaker 1: So these days, if you have provided your TFN to

685
00:30:19,880 --> 00:30:24,480
Speaker 1: your investing platform, example here, you've given your TFN to Shares's,

686
00:30:24,760 --> 00:30:28,000
Speaker 1: Shares is then able to share that information with the ATO.

687
00:30:28,160 --> 00:30:30,160
Speaker 1: So it's very likely that you will be able to

688
00:30:30,160 --> 00:30:33,240
Speaker 1: log into your tax return portal. Then information's already there.

689
00:30:33,320 --> 00:30:35,360
Speaker 1: All you have to do is cross check it with

690
00:30:35,480 --> 00:30:38,120
Speaker 1: the financial reports that came into your email or came

691
00:30:38,120 --> 00:30:40,560
Speaker 1: into your mailbox, and you can go, all right, well

692
00:30:40,560 --> 00:30:42,440
Speaker 1: that's good, I'm going to submit that. So it makes

693
00:30:42,480 --> 00:30:45,800
Speaker 1: your life even easier. We love that v I've loved

694
00:30:45,800 --> 00:30:49,280
Speaker 1: today's chat. Have you no doubt? Oh you're a liar. Well,

695
00:30:49,360 --> 00:30:51,480
Speaker 1: it's been I'm just calling you for what it is.

696
00:30:51,520 --> 00:30:54,080
Speaker 1: A distance. It's made me feel a little bit dry.

697
00:30:54,520 --> 00:30:57,360
Speaker 1: But I guess what I wanted to ask you is

698
00:30:57,400 --> 00:30:59,560
Speaker 1: if there's a way that we can kind of simplify

699
00:30:59,600 --> 00:31:01,960
Speaker 1: all of this when it comes to tax time and

700
00:31:02,000 --> 00:31:06,080
Speaker 1: reporting my shares because I don't know, today's been a lot. Look,

701
00:31:06,200 --> 00:31:08,640
Speaker 1: if you have a shared trading platform, you are going

702
00:31:08,680 --> 00:31:11,280
Speaker 1: to be sent reports. I think it's important to understand

703
00:31:11,360 --> 00:31:13,600
Speaker 1: that it is as easy or as hard as you

704
00:31:13,640 --> 00:31:16,560
Speaker 1: want to make it. Understanding the report and where it

705
00:31:16,600 --> 00:31:19,840
Speaker 1: goes is probably the most important thing. Nowadays doing your

706
00:31:19,880 --> 00:31:22,360
Speaker 1: own tax is quite step by step, so it's quite

707
00:31:22,360 --> 00:31:24,520
Speaker 1: easy for you to do. I'm not saying go and

708
00:31:24,520 --> 00:31:26,760
Speaker 1: do it. Obviously, there are accountants that can do it

709
00:31:26,800 --> 00:31:29,200
Speaker 1: for you, so if you are overwhelmed by this, I

710
00:31:29,200 --> 00:31:30,840
Speaker 1: would be just going to your accountant and saying, what

711
00:31:30,840 --> 00:31:32,920
Speaker 1: do you need from me, and they will literally collect

712
00:31:32,920 --> 00:31:36,280
Speaker 1: all the information. But it's quite clear nowadays. I feel

713
00:31:36,280 --> 00:31:40,240
Speaker 1: like reporting has progressed significantly, even in the last five years,

714
00:31:40,280 --> 00:31:42,240
Speaker 1: from what I used to get and what I used

715
00:31:42,240 --> 00:31:45,680
Speaker 1: to have to calculate and workout. Now it's basically spoon fed,

716
00:31:46,080 --> 00:31:51,080
Speaker 1: and a lot of companies have blogs and resources that

717
00:31:51,200 --> 00:31:53,880
Speaker 1: you can go to. So let's say Chazy sends out

718
00:31:53,880 --> 00:31:56,400
Speaker 1: their reports and you haven't understood it. It's very likely that

719
00:31:56,440 --> 00:31:59,440
Speaker 1: there's an associated blog or website or something that goes

720
00:31:59,480 --> 00:32:01,760
Speaker 1: alongside that, so you can go I don't get it

721
00:32:01,760 --> 00:32:03,560
Speaker 1: like and have a bit of a look. So it's

722
00:32:03,600 --> 00:32:05,920
Speaker 1: quite easy in comparison to how hard it used to be.

723
00:32:06,240 --> 00:32:09,360
Speaker 4: Finally, V my last question for you today, what are

724
00:32:09,560 --> 00:32:12,320
Speaker 4: the implications if we do stuff this up?

725
00:32:12,440 --> 00:32:16,200
Speaker 1: Oh, you're going to jail. No, I feel like I

726
00:32:16,240 --> 00:32:18,080
Speaker 1: will go to jail. You're not going to go to jail.

727
00:32:18,600 --> 00:32:20,160
Speaker 1: You're not going to go to jail. There's obviously a

728
00:32:20,160 --> 00:32:23,479
Speaker 1: fair bit riding on it when it comes to tax

729
00:32:23,640 --> 00:32:25,680
Speaker 1: and if you do stuff it up, there could be

730
00:32:25,720 --> 00:32:28,120
Speaker 1: fines involved, like you could have a penalty to pay.

731
00:32:28,480 --> 00:32:30,560
Speaker 1: In saying that, I think it's always about being open

732
00:32:30,600 --> 00:32:33,280
Speaker 1: and honest and transparent and getting advice where you need it.

733
00:32:33,440 --> 00:32:35,880
Speaker 1: If you do have a more complex tax situation, I

734
00:32:35,920 --> 00:32:38,480
Speaker 1: would be reaching out to an accountant and finding someone

735
00:32:38,480 --> 00:32:40,600
Speaker 1: that you trust that can give you some advice, and

736
00:32:40,640 --> 00:32:45,280
Speaker 1: remembering that usually advice pays for itself in dividends. Nice.

737
00:32:45,640 --> 00:32:49,000
Speaker 4: Well, that's probably the perfect place to finish today's episode. B.

738
00:32:49,120 --> 00:32:51,360
Speaker 4: Although it does say play it VI's.

739
00:32:51,080 --> 00:32:54,640
Speaker 1: TikTok video about the ATO on our little shared dock here?

740
00:32:55,000 --> 00:32:57,480
Speaker 1: Does that mean? Oh, I did a ATO video a

741
00:32:57,520 --> 00:32:59,760
Speaker 1: couple of years ago, A couple years maybe twelve years ago,

742
00:32:59,800 --> 00:33:02,040
Speaker 1: maybe last year? Sure, not even a couple of years ago.

743
00:33:02,080 --> 00:33:03,520
Speaker 1: And it was just like me being a past Do

744
00:33:03,520 --> 00:33:04,280
Speaker 1: you want me to play it for you?

745
00:33:04,280 --> 00:33:04,440
Speaker 4: Here?

746
00:33:04,560 --> 00:33:06,800
Speaker 1: Go on, Hey, guys, I'm here to pay my taxes.

747
00:33:06,800 --> 00:33:08,800
Speaker 1: How much do I owe. Oh, I don't know. You'll

748
00:33:08,840 --> 00:33:11,320
Speaker 1: have to figure it out yourself, Like you don't know,

749
00:33:11,640 --> 00:33:14,640
Speaker 1: or you don't want to tell me. Oh, we don't know. Okay,

750
00:33:14,680 --> 00:33:17,040
Speaker 1: but what if I just don't pay my taxes this

751
00:33:17,160 --> 00:33:19,840
Speaker 1: year and we'll just issue you with a fine. It's fine,

752
00:33:19,920 --> 00:33:21,920
Speaker 1: But how would you know how much I owe? If

753
00:33:21,960 --> 00:33:24,760
Speaker 1: you just told me that you don't know what I owe? Oh,

754
00:33:24,800 --> 00:33:26,560
Speaker 1: we know how much you ow? Oh?

755
00:33:26,640 --> 00:33:27,720
Speaker 3: So you know how much I owe?

756
00:33:27,800 --> 00:33:29,600
Speaker 1: Can you tell me? No?

757
00:33:30,400 --> 00:33:33,560
Speaker 4: What that was? It was like a piece of butt, mate.

758
00:33:34,200 --> 00:33:37,080
Speaker 4: I love the language. Brilliant, She's a genius.

759
00:33:37,640 --> 00:33:41,000
Speaker 1: Yeah, I am the paid actor, all right. I think

760
00:33:41,000 --> 00:33:44,600
Speaker 1: that is enough from me and my very bland TikTok

761
00:33:44,720 --> 00:33:46,840
Speaker 1: Like I am definitely too old to be on TikTok,

762
00:33:46,880 --> 00:33:48,920
Speaker 1: But I'm not leaving. I came to that party and

763
00:33:48,960 --> 00:33:50,160
Speaker 1: I am staying for the dream.

764
00:33:50,240 --> 00:33:52,840
Speaker 4: I support you, doll. The advice sheed on she's on

765
00:33:52,880 --> 00:33:55,320
Speaker 4: the money is general in nature and does not consider

766
00:33:55,400 --> 00:33:59,160
Speaker 4: your individual circumstances. She's on the money exists purely for

767
00:33:59,320 --> 00:34:02,120
Speaker 4: educational per and should not be relied upon to make

768
00:34:02,160 --> 00:34:06,120
Speaker 4: an investment or a financial decision. And we promise Victoria

769
00:34:06,160 --> 00:34:09,520
Speaker 4: divine and she's on the Money are authorized representatives in

770
00:34:09,600 --> 00:34:14,480
Speaker 4: Focus Securities Australia Proprietary Limited ABN four seven zero ninety

771
00:34:14,480 --> 00:34:17,879
Speaker 4: seven seven nine seven zero four nine AFSL two three

772
00:34:17,960 --> 00:34:18,960
Speaker 4: six five two.

773
00:34:18,800 --> 00:34:21,440
Speaker 1: Three And as always, we would love it if you

774
00:34:21,520 --> 00:34:24,360
Speaker 1: joined our Facebook group where our community shares money tips

775
00:34:24,360 --> 00:34:27,400
Speaker 1: and tricks every single day of the week, free of judgment,

776
00:34:27,440 --> 00:34:29,960
Speaker 1: which is their best part. So She's on the Money

777
00:34:29,960 --> 00:34:32,640
Speaker 1: on Facebook and join us Facebook to thing. You can

778
00:34:32,680 --> 00:34:34,640
Speaker 1: find us on Instagram where She's on the Money a

779
00:34:34,800 --> 00:34:38,240
Speaker 1: US and as you heard just before, g also on TikTok,

780
00:34:38,280 --> 00:34:40,600
Speaker 1: but I do not recommend you check that out. See

781
00:34:40,640 --> 00:34:43,919
Speaker 1: you next week, guys, by guys,