1 00:00:00,680 --> 00:00:04,920 Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr 2 00:00:04,960 --> 00:00:08,680 Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before 3 00:00:08,680 --> 00:00:11,160 Speaker 1: we get started on She's on the Money podcast, I 4 00:00:11,160 --> 00:00:14,319 Speaker 1: would like to acknowledge the traditional custodians of the land 5 00:00:14,400 --> 00:00:17,680 Speaker 1: of which this podcast is recorded on a wondery country, 6 00:00:18,120 --> 00:00:22,240 Speaker 1: acknowledging the elders, the ancestors and the next generation coming 7 00:00:22,320 --> 00:00:26,960 Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing 8 00:00:27,080 --> 00:00:30,120 Speaker 1: and the storytelling of you to make a difference for 9 00:00:30,240 --> 00:00:32,640 Speaker 1: today and lasting impact for tomorrow. 10 00:00:33,320 --> 00:00:34,120 Speaker 2: Let's get into it. 11 00:00:34,800 --> 00:00:54,080 Speaker 3: She's on the Money, She's on the Money. 12 00:00:57,680 --> 00:01:00,000 Speaker 4: Hello, and welcome to She's on the Money the podcast 13 00:01:00,240 --> 00:01:02,280 Speaker 4: Millennials who want financial Freedom? 14 00:01:02,520 --> 00:01:05,000 Speaker 2: You sound so cheap, But this morning I'm in such 15 00:01:05,000 --> 00:01:06,679 Speaker 2: a good mood. Why are you in such a good mood. 16 00:01:06,720 --> 00:01:09,880 Speaker 4: You've never gotten up this early ever in my lifetime? Absolutely, 17 00:01:10,160 --> 00:01:13,080 Speaker 4: what time is it? It's nine to twelve, so. 18 00:01:13,640 --> 00:01:15,880 Speaker 2: Nine twelve am. And Beck has never been up there. 19 00:01:15,959 --> 00:01:18,360 Speaker 2: I've never seen the morning sun. It is so gorgeous. 20 00:01:19,000 --> 00:01:21,080 Speaker 5: Where I'm living at the moment is a fair bit 21 00:01:21,120 --> 00:01:23,600 Speaker 5: out of the CBD. And obviously I'm a little bit 22 00:01:23,680 --> 00:01:27,319 Speaker 5: used to having only like a fifteen minute commute. This morning, 23 00:01:27,360 --> 00:01:30,679 Speaker 5: beck one hour and fifty two minutes to get to 24 00:01:31,440 --> 00:01:33,880 Speaker 5: the hell yeah, I had to get up before six am, 25 00:01:33,920 --> 00:01:37,560 Speaker 5: and you're you're talking about nine twelve am being ridiculous. 26 00:01:37,760 --> 00:01:39,759 Speaker 2: Oh my god, why did it take so long? 27 00:01:39,920 --> 00:01:43,360 Speaker 5: Traffic? Traffic, very sexy traffic. Did you know what else 28 00:01:43,440 --> 00:01:46,440 Speaker 5: is sexy? Bet to get this tax. 29 00:01:46,560 --> 00:01:49,080 Speaker 4: Mid that is kind of sexy and you know, white sexy. 30 00:01:49,280 --> 00:01:51,560 Speaker 4: Because I have no idea how it works. Yeah, I 31 00:01:51,600 --> 00:01:52,120 Speaker 4: feel story. 32 00:01:52,440 --> 00:01:55,600 Speaker 5: Yeah it's not it's not actually a mystery, but I 33 00:01:55,640 --> 00:01:58,400 Speaker 5: feel like so many of us are just living under 34 00:01:58,440 --> 00:02:00,240 Speaker 5: a rock when it comes to taxes. Any if you've 35 00:02:00,240 --> 00:02:03,720 Speaker 5: heard any of my content historically, I genuinely believe it 36 00:02:03,800 --> 00:02:06,400 Speaker 5: is a privilege to pay tax. And we'll go on 37 00:02:06,480 --> 00:02:08,440 Speaker 5: and on about that a little bit later because I 38 00:02:08,480 --> 00:02:10,840 Speaker 5: can't stop myself. But I just think we are so 39 00:02:11,000 --> 00:02:14,760 Speaker 5: lucky to live in a world where everything is looked after, Like, 40 00:02:14,800 --> 00:02:17,040 Speaker 5: you know, if someone gets sick, we have a healthcare 41 00:02:17,040 --> 00:02:19,280 Speaker 5: system that can prop us up. We have you know, 42 00:02:19,480 --> 00:02:22,919 Speaker 5: roads that are drivable, We have infrastructure that is keeping 43 00:02:23,000 --> 00:02:25,320 Speaker 5: us safe and has been built safely. There are just 44 00:02:25,680 --> 00:02:29,000 Speaker 5: so many things in Australia that we should be grateful for. 45 00:02:29,240 --> 00:02:31,320 Speaker 5: And the amount of times I hear people saying, oh 46 00:02:31,320 --> 00:02:33,880 Speaker 5: my gosh, I have to pay so much tax the 47 00:02:33,919 --> 00:02:36,079 Speaker 5: amount of times I snap back and I'm like, okay, cool, 48 00:02:36,080 --> 00:02:38,079 Speaker 5: So you also make a lot of money. They might 49 00:02:38,120 --> 00:02:41,280 Speaker 5: be nice, That might be nice for you, but I'm 50 00:02:41,320 --> 00:02:44,200 Speaker 5: sick of people talking about how much of drag it is. 51 00:02:44,360 --> 00:02:46,480 Speaker 5: And while we'll get into it, and I know nobody 52 00:02:46,639 --> 00:02:49,520 Speaker 5: loves paying taxes, we'll talk about how they work. 53 00:02:49,560 --> 00:02:50,600 Speaker 2: But have you ever heard the. 54 00:02:50,560 --> 00:02:53,320 Speaker 5: Saying beck that there are only two certain things in love? 55 00:02:53,800 --> 00:02:58,160 Speaker 2: Yes, live, love and love. No, those are three. Those 56 00:02:58,200 --> 00:02:58,560 Speaker 2: are three. 57 00:02:58,639 --> 00:03:02,400 Speaker 5: We're talking about the phrase references too, and those two are. 58 00:03:02,280 --> 00:03:05,240 Speaker 2: Death and taxis. Ah, yeah, that's really sexy. 59 00:03:05,639 --> 00:03:08,000 Speaker 5: And obviously this show is all about money, so we're 60 00:03:08,040 --> 00:03:10,079 Speaker 5: going to be talking about the latter on today's show. 61 00:03:10,160 --> 00:03:10,760 Speaker 2: Don't worry. 62 00:03:11,000 --> 00:03:14,639 Speaker 5: But often when something is so universal, we don't actually 63 00:03:14,680 --> 00:03:17,240 Speaker 5: stop to ask really basic questions about it right. It 64 00:03:17,320 --> 00:03:19,880 Speaker 5: often becomes a given. And I think that's why our 65 00:03:20,040 --> 00:03:24,200 Speaker 5: education system has genuinely skipped over financial literacy for so long, 66 00:03:24,240 --> 00:03:26,440 Speaker 5: because we should just get it right right, And that's 67 00:03:26,560 --> 00:03:28,960 Speaker 5: not the case at all. But taxes beck just an 68 00:03:29,000 --> 00:03:31,640 Speaker 5: inevitable thing that we actually have to organize each and 69 00:03:31,680 --> 00:03:32,440 Speaker 5: every single year. 70 00:03:32,480 --> 00:03:33,120 Speaker 2: But don't worry. 71 00:03:33,200 --> 00:03:35,080 Speaker 5: If you've maybe let it slip, it is not the 72 00:03:35,200 --> 00:03:36,920 Speaker 5: end of the world. We can get you back on track. 73 00:03:37,160 --> 00:03:39,920 Speaker 5: But very few questions are ever asked. So I thought, 74 00:03:39,920 --> 00:03:43,000 Speaker 5: why not do an entire episode on the sexy, sexy 75 00:03:43,040 --> 00:03:44,440 Speaker 5: topic of paying taxes. 76 00:03:44,760 --> 00:03:45,880 Speaker 2: Let's jump straight in. 77 00:03:46,120 --> 00:03:49,400 Speaker 5: Oh, you look so psyched. You came in here absolutely cheaper. 78 00:03:49,680 --> 00:03:51,280 Speaker 5: And then I was like, we're going to talk about 79 00:03:51,360 --> 00:03:53,560 Speaker 5: tax and You're like, why did I get up this early? 80 00:03:54,280 --> 00:03:57,000 Speaker 4: All I know about tax so far is that I 81 00:03:57,000 --> 00:03:58,680 Speaker 4: don't understand how people let it slip? 82 00:03:58,720 --> 00:04:00,360 Speaker 2: How do they do it late? Because I get so 83 00:04:00,400 --> 00:04:01,800 Speaker 2: excited July first. 84 00:04:01,560 --> 00:04:03,840 Speaker 5: You get excited in my tax Yeah, because I don't 85 00:04:04,040 --> 00:04:05,560 Speaker 5: wonder I let you on this team. 86 00:04:06,760 --> 00:04:08,520 Speaker 4: I just think that, okay, cool, I'm going to get 87 00:04:08,560 --> 00:04:11,360 Speaker 4: some money and I'm going to do it as soon 88 00:04:11,480 --> 00:04:14,320 Speaker 4: as it hits July one, twelve am. I am so 89 00:04:14,480 --> 00:04:16,600 Speaker 4: excited and I don't know why. I don't know where 90 00:04:16,640 --> 00:04:18,839 Speaker 4: it's coming from, but I'm going to get some money. 91 00:04:19,000 --> 00:04:21,160 Speaker 2: Ten out of ten. That sounds like an experience. 92 00:04:21,200 --> 00:04:24,159 Speaker 5: I would like to sign up for that is your experience, 93 00:04:24,200 --> 00:04:27,279 Speaker 5: and I don't want to stereotype here. That's your experience 94 00:04:27,360 --> 00:04:30,760 Speaker 5: because you are a PAYG employee and often over the 95 00:04:30,839 --> 00:04:32,720 Speaker 5: year you would have recruit a few things that you 96 00:04:32,720 --> 00:04:35,160 Speaker 5: could have claimed on tax, and you would have submitted 97 00:04:35,200 --> 00:04:37,320 Speaker 5: in your tax return to say, oh, I can claim 98 00:04:37,360 --> 00:04:40,640 Speaker 5: ab C and D. But in your PAYG job, you 99 00:04:40,680 --> 00:04:43,080 Speaker 5: were taxed at the full rate of your marginal tax rate, 100 00:04:43,200 --> 00:04:45,400 Speaker 5: not including any of the things you could claim back. 101 00:04:45,640 --> 00:04:48,400 Speaker 5: So then tax time, when it came to submitting your tax, 102 00:04:48,440 --> 00:04:50,080 Speaker 5: you're going to get a little bit back, which is 103 00:04:50,120 --> 00:04:53,320 Speaker 5: really sexy and why so many people love doing their taxes, 104 00:04:53,440 --> 00:04:56,279 Speaker 5: just like you, but also why somebody like me, who's 105 00:04:56,320 --> 00:04:59,000 Speaker 5: a business owner doesn't love doing it because I have. 106 00:04:58,960 --> 00:05:00,200 Speaker 2: The opposite problem. 107 00:05:00,360 --> 00:05:04,000 Speaker 5: The second I submit my tax, often I end up 108 00:05:04,040 --> 00:05:06,200 Speaker 5: with a little bit more to pay than I had 109 00:05:06,320 --> 00:05:11,320 Speaker 5: actually anticipated because business financials are not as clean cut 110 00:05:11,400 --> 00:05:14,679 Speaker 5: as a PAYG employee. So you're side of the table 111 00:05:14,800 --> 00:05:18,680 Speaker 5: excited about tax. My side of the table not that excited, 112 00:05:18,760 --> 00:05:20,680 Speaker 5: but also still thinks it's a privilege. 113 00:05:20,760 --> 00:05:22,760 Speaker 4: Okay, Well, on that, I guess we'll start a base 114 00:05:22,839 --> 00:05:24,839 Speaker 4: level what is income tax? 115 00:05:24,920 --> 00:05:25,640 Speaker 2: Sexy question? 116 00:05:25,839 --> 00:05:28,479 Speaker 5: I like it So income tax is the amount of 117 00:05:28,520 --> 00:05:31,920 Speaker 5: tax that is applied to your quote taxable income every 118 00:05:32,000 --> 00:05:35,279 Speaker 5: year and is paid on every single form of income 119 00:05:35,320 --> 00:05:37,960 Speaker 5: that you derive as an individual. The amount that you 120 00:05:38,000 --> 00:05:40,000 Speaker 5: pay is going to really depend on how much that 121 00:05:40,040 --> 00:05:42,839 Speaker 5: you earn and any deductions that you can claim. 122 00:05:42,640 --> 00:05:44,440 Speaker 2: Or offset that you're entitled to. 123 00:05:44,880 --> 00:05:47,400 Speaker 5: So if you're an employee, your employee is going to 124 00:05:47,440 --> 00:05:49,520 Speaker 5: deduct the tax from each pay so you don't need 125 00:05:49,560 --> 00:05:51,279 Speaker 5: to stress about it. They're going to do it for you, 126 00:05:51,640 --> 00:05:54,200 Speaker 5: and they're going to send that tax from your pay 127 00:05:54,360 --> 00:05:57,920 Speaker 5: straight to the ATO or the Australian Taxation Office on 128 00:05:58,080 --> 00:06:00,520 Speaker 5: your behalf. And that's the pot of money that goes 129 00:06:00,520 --> 00:06:04,000 Speaker 5: to the taxation office that you're claiming on to say, actually, Hi, 130 00:06:04,120 --> 00:06:06,160 Speaker 5: I had some deductions, can you give me some of 131 00:06:06,160 --> 00:06:07,800 Speaker 5: that money back at tax time? 132 00:06:07,839 --> 00:06:09,480 Speaker 2: And that's why you think it's so sexy. 133 00:06:09,960 --> 00:06:12,800 Speaker 5: If you're someone who is self employed, or you freelance 134 00:06:12,920 --> 00:06:14,560 Speaker 5: or you have your own business, this is going to 135 00:06:14,560 --> 00:06:17,080 Speaker 5: be your responsibility. So you're going to need to set 136 00:06:17,120 --> 00:06:19,719 Speaker 5: aside money each and every single pay, or each and 137 00:06:19,760 --> 00:06:23,240 Speaker 5: every single time you derive an income to pay that tax. 138 00:06:23,360 --> 00:06:25,839 Speaker 5: And if you want some more information and I'm just 139 00:06:25,920 --> 00:06:27,719 Speaker 5: going to do a not so subtle plug to the 140 00:06:27,720 --> 00:06:31,000 Speaker 5: Business Bible, our business podcast if you haven't listened to that. 141 00:06:31,400 --> 00:06:34,520 Speaker 5: On that podcast, I actually break down exactly how I 142 00:06:34,680 --> 00:06:37,560 Speaker 5: run my business bank accounts, and I think that as 143 00:06:37,600 --> 00:06:39,800 Speaker 5: a small business owner, that's really important to go have 144 00:06:39,839 --> 00:06:42,599 Speaker 5: a look at because there is so much confusion over 145 00:06:42,680 --> 00:06:44,200 Speaker 5: what is right and what is wrong. And I'm not 146 00:06:44,240 --> 00:06:46,359 Speaker 5: saying I am absolutely right, but it works for me. 147 00:06:46,560 --> 00:06:49,919 Speaker 5: And tax is not stressful. So at the end of 148 00:06:50,000 --> 00:06:52,560 Speaker 5: every single financial year, most people need to lodge a 149 00:06:52,560 --> 00:06:55,279 Speaker 5: tax return with the ATO, and you're actually able to 150 00:06:55,320 --> 00:06:57,960 Speaker 5: do that yourself, or you're able to enlist the help 151 00:06:58,000 --> 00:06:59,840 Speaker 5: of an accountant or a tax agent. And I think 152 00:06:59,880 --> 00:07:02,200 Speaker 5: that's an important question to cover as well, because so 153 00:07:02,240 --> 00:07:04,719 Speaker 5: many people ask, do I actually need an accountant to 154 00:07:04,720 --> 00:07:06,800 Speaker 5: do this? And I guess the summary of that is 155 00:07:07,000 --> 00:07:10,239 Speaker 5: the tax system, from my perspective, is actually quite elite, 156 00:07:10,280 --> 00:07:12,920 Speaker 5: and they actually want you to file your tax return right. 157 00:07:12,960 --> 00:07:15,080 Speaker 5: They want you to do that as soon as possible, 158 00:07:15,240 --> 00:07:18,040 Speaker 5: and their online claiming system is actually super easy. So 159 00:07:18,120 --> 00:07:20,680 Speaker 5: unless you have a more complicated tax return, if you're 160 00:07:20,760 --> 00:07:24,200 Speaker 5: just a salaried payg employee who has a very clean 161 00:07:24,360 --> 00:07:27,680 Speaker 5: cut salary. I don't see why doing it yourself would 162 00:07:27,720 --> 00:07:29,240 Speaker 5: be too much of an issue. 163 00:07:28,960 --> 00:07:31,400 Speaker 4: Right right, Okay, Yeah, I do mind myself and I 164 00:07:31,440 --> 00:07:33,720 Speaker 4: feel like it's not too complicated. 165 00:07:33,760 --> 00:07:34,280 Speaker 2: It can't be. 166 00:07:34,440 --> 00:07:36,920 Speaker 5: If you're like me, I don't understand tax but I 167 00:07:37,000 --> 00:07:39,440 Speaker 5: do my own returns, I'm like, okay, well the system 168 00:07:39,720 --> 00:07:40,800 Speaker 5: must not be that flawed. 169 00:07:41,280 --> 00:07:44,800 Speaker 4: Yeah, exactly, it's very very easy to follow the prompts 170 00:07:44,800 --> 00:07:49,040 Speaker 4: and kind of like add maybe deductions that you really didn't. 171 00:07:49,600 --> 00:07:53,760 Speaker 5: All right, right backtrack, we would absolutely not do that. 172 00:07:54,280 --> 00:07:56,360 Speaker 5: You're doing that, and you're going to out yourself on 173 00:07:56,440 --> 00:08:01,840 Speaker 5: Australia's biggest finance as they might least, just do everything 174 00:08:02,120 --> 00:08:03,400 Speaker 5: very by the book. 175 00:08:03,480 --> 00:08:05,880 Speaker 2: Wow, fancy VI. 176 00:08:06,000 --> 00:08:08,360 Speaker 4: When you mentioned before that all the income you earn 177 00:08:08,560 --> 00:08:12,880 Speaker 4: is taxable, what exactly does that mean? What income is taxable? 178 00:08:13,040 --> 00:08:13,240 Speaker 2: Yeah? 179 00:08:13,240 --> 00:08:16,400 Speaker 5: Okay, so you actually have to pay tax on any 180 00:08:16,560 --> 00:08:19,200 Speaker 5: money earned from a lot of different things, so from 181 00:08:19,240 --> 00:08:21,920 Speaker 5: your job, so from any type of employment. If you 182 00:08:22,000 --> 00:08:24,400 Speaker 5: have a pension or an annuity, which is something that 183 00:08:24,440 --> 00:08:26,000 Speaker 5: a lot of people listening to Chees on the Money 184 00:08:26,000 --> 00:08:27,160 Speaker 5: probably have no experience in. 185 00:08:27,200 --> 00:08:29,120 Speaker 2: But I'll teach you about that later. Don't worry. 186 00:08:29,600 --> 00:08:33,600 Speaker 5: Most government payments from any type of investment you have, 187 00:08:34,000 --> 00:08:36,640 Speaker 5: from any type of capital gains you have. So if 188 00:08:36,679 --> 00:08:39,080 Speaker 5: you bought and then sold a property and you made 189 00:08:39,200 --> 00:08:42,800 Speaker 5: capital gain on that property, which means that property increased 190 00:08:42,840 --> 00:08:46,240 Speaker 5: in value over time, you're going to pay tax on that. 191 00:08:46,600 --> 00:08:49,360 Speaker 5: You're going to pay tax on some grants and payments 192 00:08:49,400 --> 00:08:52,120 Speaker 5: that you might receive. You would pay tax on any 193 00:08:52,160 --> 00:08:55,480 Speaker 5: income that you get from trusts or partnerships or businesses. 194 00:08:55,559 --> 00:08:58,840 Speaker 5: And you'd also pay tax on foreign income. And I 195 00:08:58,880 --> 00:09:01,120 Speaker 5: think that that is one of those ones which is 196 00:09:01,160 --> 00:09:03,960 Speaker 5: a little bit misconstrued because people go, but if I 197 00:09:04,000 --> 00:09:06,560 Speaker 5: made money in the UK, I shouldn't have to pay 198 00:09:06,600 --> 00:09:09,040 Speaker 5: tax here because I paid it in the UK, and 199 00:09:09,080 --> 00:09:11,560 Speaker 5: we actually have to declare it and some of that 200 00:09:11,640 --> 00:09:13,520 Speaker 5: income could be taxable. 201 00:09:13,800 --> 00:09:17,520 Speaker 2: Oh okay, and what income isn't taxable? Okay? 202 00:09:17,559 --> 00:09:20,880 Speaker 5: So get this. The worst of all is lottery wednings. 203 00:09:21,320 --> 00:09:23,880 Speaker 5: So if you win the lotto or other prizes, you 204 00:09:23,920 --> 00:09:26,960 Speaker 5: don't have to pay tax on it. But hypothetically, if 205 00:09:27,000 --> 00:09:28,839 Speaker 5: you are really smart, what you would do with your 206 00:09:28,840 --> 00:09:32,480 Speaker 5: lottery winnings is invest it. If that investment starts making money, 207 00:09:32,480 --> 00:09:34,320 Speaker 5: you have to start paying tax on that money. That 208 00:09:34,320 --> 00:09:36,360 Speaker 5: that money has made. Does that make sense? 209 00:09:36,440 --> 00:09:38,760 Speaker 2: That makes sense. Yeah, So the lump sum. 210 00:09:38,880 --> 00:09:42,080 Speaker 5: Absolutely tax free, but anything above and beyond that that 211 00:09:42,080 --> 00:09:44,800 Speaker 5: that money makes for you is going to be taxable 212 00:09:44,800 --> 00:09:46,280 Speaker 5: because that's just become an income. 213 00:09:46,720 --> 00:09:49,240 Speaker 2: Oh okay, so may as well splow. 214 00:09:50,400 --> 00:09:53,040 Speaker 5: Just just go ahead, buy a new car, get a boat. 215 00:09:53,120 --> 00:09:55,520 Speaker 2: Do you want to jet skalle? Let's get three? Why not? 216 00:09:55,760 --> 00:09:55,840 Speaker 1: So? 217 00:09:55,840 --> 00:09:58,280 Speaker 5: You don't have to pay any tax on lottery winnings 218 00:09:58,360 --> 00:10:01,360 Speaker 5: or other prizes. How good, things like small gifts and 219 00:10:01,400 --> 00:10:03,720 Speaker 5: birthday presents. You don't have to pay tax on the 220 00:10:03,760 --> 00:10:05,680 Speaker 5: fifty bucks that your grandma gave you for Christmas. 221 00:10:05,720 --> 00:10:07,840 Speaker 2: Imagine if you did, Oh my gosh, it would literally 222 00:10:07,920 --> 00:10:08,880 Speaker 2: be the worst. 223 00:10:10,080 --> 00:10:12,600 Speaker 5: You don't have to pay tax on some specific government 224 00:10:12,679 --> 00:10:16,160 Speaker 5: grants and payments. You don't have to pay tax thankfully 225 00:10:16,400 --> 00:10:17,400 Speaker 5: on child support. 226 00:10:17,520 --> 00:10:17,840 Speaker 1: Good. 227 00:10:17,960 --> 00:10:19,040 Speaker 2: You don't have to pay. 228 00:10:18,880 --> 00:10:22,080 Speaker 5: Tax on the tax free portion of a redundancy payout. 229 00:10:22,320 --> 00:10:25,520 Speaker 5: So if you haven't gone through the redundancy process before, 230 00:10:25,720 --> 00:10:28,320 Speaker 5: it actually could be quite confusing, and it's something that 231 00:10:28,360 --> 00:10:31,200 Speaker 5: I do think we all should understand because it could happen. 232 00:10:31,640 --> 00:10:34,240 Speaker 5: But essentially, if you get made redundant in your role, 233 00:10:34,400 --> 00:10:37,320 Speaker 5: you will accrue a lump some payment to be paid 234 00:10:37,320 --> 00:10:40,000 Speaker 5: out of, and it will depend on how long you've. 235 00:10:39,800 --> 00:10:40,720 Speaker 2: Worked for that business. 236 00:10:40,760 --> 00:10:42,520 Speaker 5: So if you've worked there for twelve months, it won't 237 00:10:42,559 --> 00:10:44,760 Speaker 5: be that chic, but if you've worked there for like 238 00:10:44,840 --> 00:10:47,760 Speaker 5: ten plus years, it could look really sexy. And then 239 00:10:47,800 --> 00:10:50,920 Speaker 5: the government looks at that lump some payment and says, okay, 240 00:10:51,200 --> 00:10:53,360 Speaker 5: we're only going to tax a certain portion of that 241 00:10:53,400 --> 00:10:53,679 Speaker 5: and the. 242 00:10:53,640 --> 00:10:55,880 Speaker 2: Rest of that is tax free, which is just good 243 00:10:55,880 --> 00:10:56,160 Speaker 2: to know. 244 00:10:56,679 --> 00:11:00,280 Speaker 5: Yeah, it's not essential information for absolutely everybody, but I 245 00:11:00,320 --> 00:11:02,360 Speaker 5: think that if you're going through that process, just a 246 00:11:02,360 --> 00:11:04,880 Speaker 5: little fyi to keep it in check. And if you 247 00:11:05,000 --> 00:11:07,040 Speaker 5: are going through that process and it is a nice 248 00:11:07,080 --> 00:11:09,520 Speaker 5: amount of money, please have a chat with your accountant 249 00:11:09,520 --> 00:11:11,520 Speaker 5: to make sure that you're in the best possible position. 250 00:11:11,800 --> 00:11:14,240 Speaker 5: Because I don't mean to be rude, but not every 251 00:11:14,280 --> 00:11:18,200 Speaker 5: single employer is going to get the calculations correct because 252 00:11:18,280 --> 00:11:20,360 Speaker 5: it's not all that often that people, you know, do 253 00:11:20,480 --> 00:11:24,400 Speaker 5: redundancy payouts for employees, right, right, And then you don't 254 00:11:24,480 --> 00:11:27,720 Speaker 5: need to pay tax on government super co contributions, which 255 00:11:27,760 --> 00:11:29,040 Speaker 5: is very nice. 256 00:11:29,320 --> 00:11:32,520 Speaker 4: Super co contributions that's when you pay a certain amount, 257 00:11:32,600 --> 00:11:35,160 Speaker 4: like a small amount, and the government matches it matches. 258 00:11:35,200 --> 00:11:37,440 Speaker 5: Matches it or adds something else for you, if. 259 00:11:37,320 --> 00:11:40,400 Speaker 2: You are on a low income, or for anyone, for anyone, 260 00:11:40,520 --> 00:11:41,599 Speaker 2: it's a co contribution. 261 00:11:42,000 --> 00:11:44,480 Speaker 5: And so essentially, if you're getting a co contribution, you 262 00:11:44,559 --> 00:11:47,120 Speaker 5: probably meet the criteria of being able to get that 263 00:11:47,200 --> 00:11:49,920 Speaker 5: co contribution. If you're making millions to probably not get 264 00:11:49,920 --> 00:11:50,800 Speaker 5: the co contribution. 265 00:11:52,080 --> 00:11:53,240 Speaker 2: I see, I see. 266 00:11:53,679 --> 00:11:57,480 Speaker 4: So my next question is why do taxes even exist? 267 00:11:57,840 --> 00:11:59,640 Speaker 4: And where are our taxes going? 268 00:12:00,360 --> 00:12:03,480 Speaker 5: So let's just do a little preparation for our next 269 00:12:03,480 --> 00:12:06,000 Speaker 5: trivia and I beck I'm pretty sure we're on the 270 00:12:06,000 --> 00:12:08,360 Speaker 5: same page. We've never done this before, but like, I reckon, 271 00:12:08,400 --> 00:12:10,800 Speaker 5: you and I would be a really good trivia team, 272 00:12:10,920 --> 00:12:13,040 Speaker 5: do you think so? I reckon, I reckon because we 273 00:12:13,120 --> 00:12:16,160 Speaker 5: have such an eclectic knowledge between us, Like there's no 274 00:12:16,240 --> 00:12:18,440 Speaker 5: way I know everything that you know, and like I'm 275 00:12:18,480 --> 00:12:21,280 Speaker 5: just technically intelligent, Like I'm just not street smart, you know, 276 00:12:21,760 --> 00:12:24,200 Speaker 5: Like you're like the street smart one in our relationship 277 00:12:24,200 --> 00:12:26,280 Speaker 5: and I'm like in books smart one, and so like 278 00:12:26,360 --> 00:12:28,160 Speaker 5: together we could take over the trivia. 279 00:12:28,160 --> 00:12:28,360 Speaker 1: Well. 280 00:12:28,440 --> 00:12:31,360 Speaker 4: I got to tell you, though, there is no question 281 00:12:31,559 --> 00:12:34,480 Speaker 4: in the history of trivia that asks about street smarts. 282 00:12:34,520 --> 00:12:36,199 Speaker 2: And I am usually quite terrible. 283 00:12:36,280 --> 00:12:38,520 Speaker 5: Yeah, well, but when it comes to book smarts, here's 284 00:12:38,520 --> 00:12:41,600 Speaker 5: some hot tips for you. So the federal income tax 285 00:12:41,720 --> 00:12:45,600 Speaker 5: was first introduced in nineteen fifteen in order to help 286 00:12:45,640 --> 00:12:48,680 Speaker 5: fund Australia's war effort in the First World War. So 287 00:12:48,880 --> 00:12:51,240 Speaker 5: it hasn't been around forever and ever and ever. But 288 00:12:51,400 --> 00:12:55,320 Speaker 5: essentially the ATO or the Australian government collects taxes and 289 00:12:55,440 --> 00:12:57,760 Speaker 5: they actually fund community services. 290 00:12:57,840 --> 00:12:59,040 Speaker 2: I feel like taxes. 291 00:12:58,640 --> 00:13:01,360 Speaker 5: Get a really bad rap some times because people are like, ah, 292 00:13:01,440 --> 00:13:05,720 Speaker 5: we're just funding dull bloodgers. Yep, cool, really glad that 293 00:13:05,760 --> 00:13:08,160 Speaker 5: we can support people in our community that need it. 294 00:13:08,320 --> 00:13:11,200 Speaker 5: There is always, always always going to be a very 295 00:13:11,240 --> 00:13:14,160 Speaker 5: small group of people who wrought a system. There is 296 00:13:14,280 --> 00:13:16,520 Speaker 5: always going to be a very small group of people 297 00:13:16,520 --> 00:13:19,560 Speaker 5: who take advantage of any system that exists. And for 298 00:13:19,640 --> 00:13:23,199 Speaker 5: you to crucify absolutely everybody else who is making use 299 00:13:23,240 --> 00:13:27,000 Speaker 5: of a system that is from my perspective, absolutely essential, 300 00:13:27,160 --> 00:13:28,400 Speaker 5: that is wildly unfair. 301 00:13:28,520 --> 00:13:30,000 Speaker 2: Absolutely we wilieve it at that. 302 00:13:30,160 --> 00:13:32,640 Speaker 5: But as you know, like it doesn't matter what it is, 303 00:13:32,679 --> 00:13:34,880 Speaker 5: like people wrought in the system, it coals when they 304 00:13:34,920 --> 00:13:38,960 Speaker 5: do their self checkout. Like absolutely every system has people 305 00:13:39,000 --> 00:13:41,720 Speaker 5: who are like na ah, I'm going to do it differently, 306 00:13:41,800 --> 00:13:44,760 Speaker 5: and I'm going to take advantage. But just because people 307 00:13:44,800 --> 00:13:46,920 Speaker 5: do that does not mean we should throw the entire 308 00:13:46,960 --> 00:13:50,480 Speaker 5: system out right. Yeah, But essentially, the ATO collecs taxes 309 00:13:50,559 --> 00:13:54,800 Speaker 5: to pay for things like our healthcare, our education system, 310 00:13:55,280 --> 00:13:59,880 Speaker 5: our emergency services, roads and then train lines and trammed 311 00:14:00,400 --> 00:14:03,720 Speaker 5: and stuff like that. It pays for the Australian Defense Force. 312 00:14:03,840 --> 00:14:06,640 Speaker 5: It also pays for welfare and disaster relief. So there 313 00:14:06,679 --> 00:14:09,959 Speaker 5: are so many things that our taxes pay for which 314 00:14:10,080 --> 00:14:14,240 Speaker 5: ultimately put us in a very privileged and better off position. 315 00:14:15,520 --> 00:14:17,960 Speaker 2: I'm very very grateful for that, so am I. 316 00:14:17,960 --> 00:14:20,920 Speaker 5: I just I hate this concept that people are like, oh, 317 00:14:20,960 --> 00:14:23,240 Speaker 5: I'm paying tax for what for them to live their 318 00:14:23,280 --> 00:14:25,600 Speaker 5: best life? It's like, do you know what if you 319 00:14:25,760 --> 00:14:28,920 Speaker 5: genuinely believe that someone is living their best life on 320 00:14:29,600 --> 00:14:33,280 Speaker 5: less than minimum wage, you've got something else coming. Yeah, 321 00:14:33,320 --> 00:14:35,720 Speaker 5: you have rocks in your head because that is not 322 00:14:35,920 --> 00:14:39,640 Speaker 5: easy or from my perspective, a best life. 323 00:14:39,800 --> 00:14:40,840 Speaker 2: Like, Yeah, that. 324 00:14:40,880 --> 00:14:44,200 Speaker 5: Income is about two hundred and fifty dollars a week, 325 00:14:44,480 --> 00:14:47,840 Speaker 5: and most people who are utilizing that system are definitely 326 00:14:47,880 --> 00:14:50,040 Speaker 5: needing more than two hundred and fifty dollars a week 327 00:14:50,120 --> 00:14:52,880 Speaker 5: to live. They might have kids, they might have other commitments, 328 00:14:53,080 --> 00:14:55,640 Speaker 5: doesn't leave anything for saving or investing or creating a 329 00:14:55,680 --> 00:14:58,440 Speaker 5: dream life. Like in a way, it blows my mind 330 00:14:58,600 --> 00:15:01,920 Speaker 5: that people would go taxes because such a small percentage 331 00:15:01,920 --> 00:15:04,880 Speaker 5: of it goes towards welfare. Like, no, I love that 332 00:15:04,960 --> 00:15:07,800 Speaker 5: system and I want to support it to the nth degree. 333 00:15:07,920 --> 00:15:08,600 Speaker 2: I love it as well. 334 00:15:08,640 --> 00:15:11,480 Speaker 4: And if they maybe touch would ever had to be 335 00:15:11,480 --> 00:15:14,720 Speaker 4: in a situation where they needed that assistance, then I'm 336 00:15:14,760 --> 00:15:17,600 Speaker 4: sure they'd be very, very grateful that they had paid 337 00:15:17,720 --> 00:15:18,200 Speaker 4: tax I. 338 00:15:18,400 --> 00:15:19,520 Speaker 2: Couldn't agree more. 339 00:15:19,600 --> 00:15:22,440 Speaker 5: And then also to further that, it's funny because Sony 340 00:15:22,480 --> 00:15:24,200 Speaker 5: and I could go on and on about this, but 341 00:15:24,240 --> 00:15:27,080 Speaker 5: we're going to do an entire episode on the cost 342 00:15:27,120 --> 00:15:29,520 Speaker 5: of care soon about how much a cost to live 343 00:15:29,560 --> 00:15:32,160 Speaker 5: with disability and the insurances you need to cover that. 344 00:15:32,200 --> 00:15:34,880 Speaker 5: But I also think it's kind of hypocritical because here 345 00:15:34,880 --> 00:15:38,320 Speaker 5: in Australia we are the most underinsured country in the 346 00:15:38,480 --> 00:15:42,360 Speaker 5: entire world. And the main argument people have when they're like, oh, 347 00:15:42,440 --> 00:15:44,640 Speaker 5: I don't need insurance back, it doesn't matter, like I 348 00:15:44,640 --> 00:15:47,280 Speaker 5: don't need to waste my money on income protection. It's 349 00:15:47,280 --> 00:15:49,880 Speaker 5: what the government's therefore, that's what I paid taxes for 350 00:15:49,920 --> 00:15:52,360 Speaker 5: But then on the flip side, they're crucifying people who 351 00:15:52,400 --> 00:15:55,120 Speaker 5: are actually making use of those systems, And it just 352 00:15:55,680 --> 00:15:58,200 Speaker 5: is this crazy juxtaposition where they're like, I don't want 353 00:15:58,200 --> 00:16:01,240 Speaker 5: to pay taxes because people are abusing the system and 354 00:16:01,400 --> 00:16:03,960 Speaker 5: I'm working so that they can live their free life. 355 00:16:04,000 --> 00:16:05,800 Speaker 5: And then on the flip side they're like, by the way, 356 00:16:05,880 --> 00:16:08,440 Speaker 5: I also don't want to get insurances because if anything 357 00:16:08,480 --> 00:16:10,760 Speaker 5: would happen to me, I could just go on the doll. 358 00:16:11,000 --> 00:16:14,680 Speaker 2: Yeah exactly, you little hypocrites. You kick a lane. 359 00:16:14,720 --> 00:16:19,400 Speaker 4: Maybe exactly on the topic of picking a lane, Yeah, 360 00:16:19,440 --> 00:16:20,400 Speaker 4: what lane. 361 00:16:20,080 --> 00:16:22,040 Speaker 2: Do we fit in? What is a tax bracket? What 362 00:16:22,080 --> 00:16:22,640 Speaker 2: are the rates? 363 00:16:22,720 --> 00:16:22,960 Speaker 1: Yeah? 364 00:16:22,960 --> 00:16:25,560 Speaker 5: All right, So a tax bracket is basically the range 365 00:16:25,560 --> 00:16:28,680 Speaker 5: of income that you fall into, which then determines how 366 00:16:28,760 --> 00:16:31,120 Speaker 5: much tax you're going to have to pay. It's kind 367 00:16:31,120 --> 00:16:33,760 Speaker 5: of like buckets. And from my perspective, Australia has a 368 00:16:33,880 --> 00:16:37,600 Speaker 5: very progressive tax system, which actually means the higher your income, 369 00:16:37,760 --> 00:16:39,640 Speaker 5: the more tax you are going to pay. So beck, 370 00:16:39,680 --> 00:16:42,000 Speaker 5: you can earn up to eighteen two hundred dollars in 371 00:16:42,040 --> 00:16:44,840 Speaker 5: a financial year and not pay one cent of tax. 372 00:16:45,320 --> 00:16:47,400 Speaker 2: Very sexy. That is very sex very sexy. 373 00:16:47,600 --> 00:16:50,200 Speaker 5: This is known as the tax free threshold, and after 374 00:16:50,200 --> 00:16:53,200 Speaker 5: which the tax rate then kicks in. So you would 375 00:16:53,200 --> 00:16:55,680 Speaker 5: have come up against a conversation or even just a 376 00:16:55,680 --> 00:16:58,400 Speaker 5: one sided conversation with you and some tax papers when 377 00:16:58,440 --> 00:17:01,120 Speaker 5: you join a new job whether you want to claim 378 00:17:01,160 --> 00:17:02,920 Speaker 5: the tax free threshold or not. 379 00:17:03,480 --> 00:17:05,560 Speaker 2: And a lot of people are like, I want a 380 00:17:05,640 --> 00:17:06,760 Speaker 2: tax free threshold. 381 00:17:06,800 --> 00:17:09,280 Speaker 5: Of course they do, So you might be really tempted 382 00:17:09,320 --> 00:17:12,080 Speaker 5: if you get a second job in the same financial year, 383 00:17:12,359 --> 00:17:14,280 Speaker 5: to go and tick that again and be like, yeah, 384 00:17:14,280 --> 00:17:16,840 Speaker 5: I'll claim it again. And basically, when you're ticking the 385 00:17:16,840 --> 00:17:20,639 Speaker 5: box that says claim the tax free threshold, you're notifying 386 00:17:20,680 --> 00:17:24,680 Speaker 5: your employer that you have not made eighteen thousand, two 387 00:17:24,800 --> 00:17:27,560 Speaker 5: hundred dollars this year, and they're then going to pay 388 00:17:27,600 --> 00:17:31,600 Speaker 5: you eighteen thousand, two hundred dollars in full before starting 389 00:17:31,680 --> 00:17:33,760 Speaker 5: to apply your tax rate. Because you know how before 390 00:17:33,800 --> 00:17:37,639 Speaker 5: I said, your boss goes and takes your income, sends 391 00:17:37,640 --> 00:17:40,080 Speaker 5: a portion of the income off to the taxman, and 392 00:17:40,119 --> 00:17:42,520 Speaker 5: then gives you the money that you can spend the 393 00:17:42,600 --> 00:17:46,399 Speaker 5: responsibilities on them. That's telling them that the responsibility on 394 00:17:46,440 --> 00:17:48,800 Speaker 5: them is to make sure that you get your eighteen thousand, 395 00:17:48,840 --> 00:17:52,040 Speaker 5: two hundred dollars tax free, no worries and carry on. 396 00:17:52,280 --> 00:17:55,000 Speaker 5: But if you've already claimed that before at a previous 397 00:17:55,160 --> 00:17:57,240 Speaker 5: job and then you're claiming it at your second job, 398 00:17:57,480 --> 00:17:59,760 Speaker 5: your second job has no idea what your previous job 399 00:17:59,760 --> 00:18:00,240 Speaker 5: pays you. 400 00:18:00,440 --> 00:18:01,719 Speaker 2: It's all about disclosure. 401 00:18:02,000 --> 00:18:04,080 Speaker 5: So what's gonna happen is they're gonna pay you, and 402 00:18:04,119 --> 00:18:08,000 Speaker 5: you're gonna get your tax free threshold twice, and then 403 00:18:08,359 --> 00:18:10,760 Speaker 5: come tax time, you're gonna have to pay it back 404 00:18:11,400 --> 00:18:13,560 Speaker 5: and you're gonna get bit in the bottom when it 405 00:18:13,560 --> 00:18:16,720 Speaker 5: comes to paying tax, and you're not going to understand why, 406 00:18:16,800 --> 00:18:18,920 Speaker 5: because you'll be like, well, I didn't understand what tax 407 00:18:18,960 --> 00:18:21,119 Speaker 5: free threshold men in the first place. I thought it 408 00:18:21,119 --> 00:18:24,120 Speaker 5: would have all been automatically calculated. And that's not actually 409 00:18:24,160 --> 00:18:28,400 Speaker 5: the case, because your employer has no idea what other 410 00:18:28,520 --> 00:18:31,240 Speaker 5: tax you've paid, because you haven't submitted a tax return yet, 411 00:18:31,640 --> 00:18:34,240 Speaker 5: has it all been added up. No one's calculated it 412 00:18:34,320 --> 00:18:36,679 Speaker 5: for you. They'll let you make use of that system 413 00:18:36,720 --> 00:18:39,720 Speaker 5: twice because they don't know any different. So what we 414 00:18:39,800 --> 00:18:42,000 Speaker 5: actually need to understand is one what the tax free 415 00:18:42,080 --> 00:18:45,240 Speaker 5: threshold is, and two, if you've already earned more than 416 00:18:45,280 --> 00:18:48,200 Speaker 5: eighteen two hundred dollars. Don't tick that box because you're 417 00:18:48,240 --> 00:18:50,160 Speaker 5: going to end up having to pay that tax back 418 00:18:50,200 --> 00:18:52,640 Speaker 5: when tax time comes, and that can be quite painful. 419 00:18:52,920 --> 00:18:55,280 Speaker 2: So on a real side notes. 420 00:18:55,080 --> 00:18:59,600 Speaker 4: So just hypothetically, yeah, I make twenty thousand dollars a year, Yes, 421 00:19:00,160 --> 00:19:02,240 Speaker 4: tick the tax three threshold box. 422 00:19:02,680 --> 00:19:04,399 Speaker 2: I only pay tax. 423 00:19:04,200 --> 00:19:07,000 Speaker 4: On one thousand, eight hundred dollars. 424 00:19:07,080 --> 00:19:11,159 Speaker 5: Do Yeah, So what would happen is up until eighteen thousand, 425 00:19:11,200 --> 00:19:13,960 Speaker 5: two hundred dollars you'd pay absolutely no tax, not one cent. 426 00:19:14,320 --> 00:19:18,080 Speaker 5: And then for every dollar you earn over eighteen thousand dollars, 427 00:19:18,480 --> 00:19:22,880 Speaker 5: you would pay nineteen percent tax. Okay, because you've only 428 00:19:22,880 --> 00:19:26,000 Speaker 5: earned twenty thousand dollars, So that takes you into the 429 00:19:26,040 --> 00:19:27,760 Speaker 5: first I guess bucket of tax. 430 00:19:27,800 --> 00:19:29,280 Speaker 2: And so that's a good segue. 431 00:19:29,320 --> 00:19:32,160 Speaker 5: I suppose let's go through what those marginal tax rates 432 00:19:32,160 --> 00:19:34,760 Speaker 5: look like. I feel like the word marginal's just so unnecessary, 433 00:19:34,800 --> 00:19:37,399 Speaker 5: but that's okay. So essentially, the tax rates for the 434 00:19:37,440 --> 00:19:39,840 Speaker 5: twenty twenty one and twenty twenty two year, which you 435 00:19:39,880 --> 00:19:43,520 Speaker 5: would have just submitted last year, and the twenty twenty 436 00:19:43,520 --> 00:19:47,480 Speaker 5: two slash twenty twenty three financial year are actually the same. 437 00:19:48,000 --> 00:19:51,320 Speaker 5: That is important because sometimes the tax rates change, So 438 00:19:51,440 --> 00:19:53,800 Speaker 5: that is what we're talking about today. So, as we 439 00:19:53,880 --> 00:19:56,919 Speaker 5: said before, no tax if you're earning eighteen thousand, two 440 00:19:57,000 --> 00:19:59,840 Speaker 5: hundred dollars or under. But the second you get to 441 00:19:59,840 --> 00:20:02,480 Speaker 5: eight eighteen thousand, two hundred and one dollars all the 442 00:20:02,520 --> 00:20:05,720 Speaker 5: way up to forty five thousand dollars, you're going to 443 00:20:05,800 --> 00:20:09,359 Speaker 5: pay nineteen percent of any dollar over that eighteen thousand, 444 00:20:09,440 --> 00:20:13,080 Speaker 5: two hundred dollars. That's the second bucket. So third bucket 445 00:20:13,240 --> 00:20:15,920 Speaker 5: is forty five thousand and one dollar all the way 446 00:20:16,040 --> 00:20:18,800 Speaker 5: up to one hundred and twenty thousand dollars. Now, this 447 00:20:19,080 --> 00:20:22,520 Speaker 5: is a relatively new tax bracket. It used to be smaller, 448 00:20:22,600 --> 00:20:24,480 Speaker 5: so the forty five thousand dollar bracket went up to 449 00:20:24,520 --> 00:20:26,800 Speaker 5: about eighty thousand dollars, and I'm really glad that this 450 00:20:26,960 --> 00:20:29,399 Speaker 5: is expanded a little bit. So you're now on a 451 00:20:29,480 --> 00:20:31,640 Speaker 5: lower tax bracket if you earn up to one hundred 452 00:20:31,680 --> 00:20:33,800 Speaker 5: and twenty thousand dollars, which I think is really sexy. 453 00:20:34,160 --> 00:20:37,440 Speaker 5: But essentially what happens when you earn over forty five 454 00:20:37,480 --> 00:20:41,040 Speaker 5: thousand dollars is you now have a two component tax rate. 455 00:20:41,320 --> 00:20:44,320 Speaker 5: You pay what's called a base amount, and then you 456 00:20:44,440 --> 00:20:47,760 Speaker 5: pay a percentage amount, and it's not confusing. I promise, 457 00:20:47,800 --> 00:20:50,280 Speaker 5: it's just a set amount. If you earn more than 458 00:20:50,400 --> 00:20:53,760 Speaker 5: forty five thousand dollars, you'll pay five thousand and ninety 459 00:20:53,800 --> 00:20:56,760 Speaker 5: two dollars in tax, and on top of that, you 460 00:20:56,800 --> 00:21:00,239 Speaker 5: will then pay thirty two and a half percent of 461 00:21:00,280 --> 00:21:02,639 Speaker 5: the excess over forty five thousand dollars. 462 00:21:02,840 --> 00:21:03,560 Speaker 2: Does that make sense? 463 00:21:03,560 --> 00:21:05,159 Speaker 5: So you've kind of got a base amount that you 464 00:21:05,200 --> 00:21:07,720 Speaker 5: owe the government as a you know, it doesn't matter 465 00:21:07,760 --> 00:21:11,160 Speaker 5: what it is. You might earn forty six thousand dollars. Yeah, 466 00:21:11,400 --> 00:21:13,720 Speaker 5: but you will always owe that five thousand and ninety 467 00:21:13,720 --> 00:21:16,480 Speaker 5: two to begin with, and then you pay a percentage 468 00:21:16,480 --> 00:21:17,679 Speaker 5: of every dollar over that. 469 00:21:18,200 --> 00:21:21,000 Speaker 4: Okay, so if I'm making one hundred and ten thousand dollars, 470 00:21:21,080 --> 00:21:24,360 Speaker 4: I'll still pay the base five thousand, yeah ninety two. Yeah, 471 00:21:24,359 --> 00:21:26,600 Speaker 4: it doesn't change whether you're earning that one hundred and 472 00:21:26,600 --> 00:21:28,160 Speaker 4: ten or you're earning fifty grand. 473 00:21:28,240 --> 00:21:30,800 Speaker 5: It's exactly the same tax rate, which is why it 474 00:21:30,880 --> 00:21:33,080 Speaker 5: kind of I want to say sucks in a way, 475 00:21:33,080 --> 00:21:36,359 Speaker 5: but it's actually a very fair and equitable tax system 476 00:21:36,440 --> 00:21:39,879 Speaker 5: from my perspective, comparing it to every other tax system 477 00:21:39,920 --> 00:21:43,399 Speaker 5: around the world. The next bracket will be nice to 478 00:21:43,440 --> 00:21:46,000 Speaker 5: be in. This tax bracket is the fourth bucket. And 479 00:21:46,040 --> 00:21:48,800 Speaker 5: this fourth bucket is from one hundred and twenty thousand 480 00:21:48,880 --> 00:21:52,200 Speaker 5: and one dollar up to one hundred and eighty thousand dollars, 481 00:21:52,480 --> 00:21:56,040 Speaker 5: in which case your base amount of tax payable that 482 00:21:56,160 --> 00:21:59,679 Speaker 5: jumps significantly. So the base amount of tax payable is 483 00:21:59,680 --> 00:22:03,360 Speaker 5: twenty nine thousand, four hundred and sixty seven. 484 00:22:03,119 --> 00:22:05,720 Speaker 2: Dollars, oh my gosh, plus. 485 00:22:05,400 --> 00:22:08,480 Speaker 5: Thirty seven percent of excess over one hundred and twenty 486 00:22:08,600 --> 00:22:12,520 Speaker 5: thousand dollars. And then the fifth bucket, which is the 487 00:22:12,600 --> 00:22:16,640 Speaker 5: highest marginal tax rate here in Australia, is anyone who 488 00:22:16,680 --> 00:22:19,480 Speaker 5: earns more than one hundred and eighty thousand dollars pays 489 00:22:19,480 --> 00:22:22,399 Speaker 5: a minimum amount of fifty one thousand, six hundred and 490 00:22:22,400 --> 00:22:26,840 Speaker 5: sixty seven dollars in tax plus forty five percent of 491 00:22:26,920 --> 00:22:30,160 Speaker 5: excess over one hundred and eighty thousand dollars. Oh that's 492 00:22:30,160 --> 00:22:31,800 Speaker 5: a lot of money. It is a lot of money. 493 00:22:31,880 --> 00:22:35,720 Speaker 5: And I guess, contextualizing this a little bit, none of 494 00:22:35,840 --> 00:22:39,440 Speaker 5: us were born before nineteen fifteen, Like, it's just it's 495 00:22:39,480 --> 00:22:42,520 Speaker 5: not possible, right, So Beck, when you were born, this 496 00:22:42,640 --> 00:22:45,840 Speaker 5: tax system existed. In fact, this tax system was not 497 00:22:45,880 --> 00:22:48,360 Speaker 5: as sexy as it is now. It's a better, more 498 00:22:48,400 --> 00:22:51,480 Speaker 5: equitable tax system today than it was when you were born, 499 00:22:51,560 --> 00:22:53,719 Speaker 5: right and you grew up and you were told you're 500 00:22:53,720 --> 00:22:55,400 Speaker 5: going to get a job, and you're going to grow 501 00:22:55,440 --> 00:22:57,480 Speaker 5: and learn and develop, and once you get your full 502 00:22:57,520 --> 00:22:59,280 Speaker 5: time job, you're going to pay tax. Like it has 503 00:22:59,400 --> 00:23:02,960 Speaker 5: always been a given. This is not something that has 504 00:23:03,000 --> 00:23:04,800 Speaker 5: been put on you as a surprise, like you didn't 505 00:23:04,800 --> 00:23:06,600 Speaker 5: get your first job and someone went, oh, by the way, 506 00:23:06,680 --> 00:23:08,359 Speaker 5: have you heard of tax? And you're like no, what, 507 00:23:09,119 --> 00:23:12,240 Speaker 5: Like this is something that has existed the entire time. 508 00:23:12,520 --> 00:23:15,240 Speaker 5: And I think it's really important to remember when we're 509 00:23:15,240 --> 00:23:18,280 Speaker 5: looking at salary packages or what we're going to have 510 00:23:18,400 --> 00:23:21,080 Speaker 5: in take home salary, is that we always talk if 511 00:23:21,160 --> 00:23:25,119 Speaker 5: we are an employee about post tax earnings because at 512 00:23:25,160 --> 00:23:27,439 Speaker 5: the end of the day, you have always been in 513 00:23:27,480 --> 00:23:29,639 Speaker 5: a position where if you wanted to work in Australia, 514 00:23:29,680 --> 00:23:32,840 Speaker 5: you would pay tax, full stop, end of story. You 515 00:23:32,960 --> 00:23:35,359 Speaker 5: have always known that it doesn't matter if you didn't 516 00:23:35,440 --> 00:23:37,639 Speaker 5: understand the tax system or how it works, like nobody 517 00:23:37,680 --> 00:23:39,399 Speaker 5: is expecting that of you. If you were in prep, 518 00:23:39,560 --> 00:23:42,640 Speaker 5: it is not going to count. But we've always known that, 519 00:23:42,880 --> 00:23:45,800 Speaker 5: so why are we now acting like tax is such 520 00:23:45,800 --> 00:23:47,639 Speaker 5: a big burden and you didn't see it coming and 521 00:23:47,680 --> 00:23:50,080 Speaker 5: you hadn't taken it into consideration when it's been there 522 00:23:50,080 --> 00:23:54,200 Speaker 5: all along. Like to me, it's about only considering your 523 00:23:54,280 --> 00:23:57,239 Speaker 5: post tax take home salary and making sure that that 524 00:23:57,280 --> 00:24:00,520 Speaker 5: puts you in a good financial position, because tax is 525 00:24:00,560 --> 00:24:02,880 Speaker 5: just a given. It literally gets taken out of your 526 00:24:02,920 --> 00:24:05,560 Speaker 5: salary before you even see it, like you can't take 527 00:24:05,560 --> 00:24:07,240 Speaker 5: it home and then you know you have to pay 528 00:24:07,280 --> 00:24:09,520 Speaker 5: the taxman later it doesn't come into your account and 529 00:24:09,600 --> 00:24:11,960 Speaker 5: you create some kind of emotional relationship with it and 530 00:24:11,960 --> 00:24:13,600 Speaker 5: you know, go, oh my gosh, but you know that 531 00:24:14,119 --> 00:24:16,720 Speaker 5: twenty nine thousand, four one hundred and sixty seven dollars 532 00:24:16,720 --> 00:24:18,399 Speaker 5: that I have to pay in tax I was actually 533 00:24:18,400 --> 00:24:19,800 Speaker 5: going to buy a new car with or that was 534 00:24:19,840 --> 00:24:22,680 Speaker 5: going to be my home deposit. It never was going 535 00:24:22,720 --> 00:24:24,720 Speaker 5: to be that for you. So I think that we 536 00:24:24,840 --> 00:24:27,919 Speaker 5: really need to reframe how we view tax as it's 537 00:24:28,000 --> 00:24:30,840 Speaker 5: the amount of money that you earn to put you 538 00:24:30,960 --> 00:24:33,800 Speaker 5: in the best possible position, and that is being in 539 00:24:33,840 --> 00:24:37,160 Speaker 5: the privileged position of working and living in Australia. Right, 540 00:24:37,400 --> 00:24:40,080 Speaker 5: Like I just think from my perspective, I get so 541 00:24:40,280 --> 00:24:42,359 Speaker 5: confused when people are like, oh my god, I just 542 00:24:42,480 --> 00:24:45,600 Speaker 5: I didn't know this, Like, if you didn't understand the process, 543 00:24:45,640 --> 00:24:48,520 Speaker 5: I get it. But to act like tax is such 544 00:24:48,520 --> 00:24:50,480 Speaker 5: a burden on you and stops you from living your 545 00:24:50,480 --> 00:24:52,760 Speaker 5: best life, that's not the case at all. In fact, 546 00:24:52,800 --> 00:24:55,479 Speaker 5: it helps you leave your best life and is usually 547 00:24:55,480 --> 00:24:58,600 Speaker 5: the reason why you're actually able to drive an income 548 00:24:58,640 --> 00:25:01,520 Speaker 5: because most of us relied on the public education system 549 00:25:01,760 --> 00:25:04,280 Speaker 5: or their healthcare system at some point, whether it always 550 00:25:04,320 --> 00:25:07,639 Speaker 5: you or family members that have relied on that, to 551 00:25:07,720 --> 00:25:10,640 Speaker 5: put you in the best possible position. Anyway, I could 552 00:25:10,720 --> 00:25:11,920 Speaker 5: ranch about this all the time. 553 00:25:11,960 --> 00:25:12,760 Speaker 2: That makes so much sense. 554 00:25:12,800 --> 00:25:14,720 Speaker 4: It's really hard to look at the money that is 555 00:25:14,760 --> 00:25:16,680 Speaker 4: being taken out, but when you explain it like that, 556 00:25:17,040 --> 00:25:19,520 Speaker 4: it makes sense, and I guess I'm happy about it. 557 00:25:19,720 --> 00:25:22,240 Speaker 5: Yeah, Like, let's just look at your take home salary 558 00:25:22,320 --> 00:25:24,480 Speaker 5: and what we can do with that and stop going, 559 00:25:24,480 --> 00:25:26,880 Speaker 5: oh my god, but pre tax, it would have been no, 560 00:25:27,400 --> 00:25:32,359 Speaker 5: pre tax was always pre tax, like tax always existed. Yeah, 561 00:25:32,440 --> 00:25:34,439 Speaker 5: I'll stop ranting about that because they could go on 562 00:25:34,520 --> 00:25:37,199 Speaker 5: and on about it for today. But summarizing all of 563 00:25:37,240 --> 00:25:39,960 Speaker 5: that part of our conversation, the lowest tax rate in 564 00:25:40,000 --> 00:25:43,280 Speaker 5: Australia is nineteen percent. The highest is forty five percent, 565 00:25:43,480 --> 00:25:46,399 Speaker 5: which is only charged on income over one hundred and 566 00:25:46,400 --> 00:25:49,960 Speaker 5: eighty thousand dollars in loveing nice. So I'm gonna let 567 00:25:50,000 --> 00:25:52,439 Speaker 5: those people who earn more than one hundred and eighty thousand, I'll. 568 00:25:52,359 --> 00:25:54,680 Speaker 2: Pay that tax, right, We'll never have to worry about it, exactly. 569 00:25:54,760 --> 00:25:57,480 Speaker 5: And most people actually sit in that middle bracket of 570 00:25:57,520 --> 00:26:00,680 Speaker 5: earning between forty five thousand and one hundred and twenty thousand. 571 00:26:00,400 --> 00:26:03,080 Speaker 2: Dollars, you are also taxed. 572 00:26:03,119 --> 00:26:04,840 Speaker 5: I feel like this is just a and you're taxed 573 00:26:04,960 --> 00:26:06,720 Speaker 5: on this, and your tax on this, like I could 574 00:26:06,720 --> 00:26:08,560 Speaker 5: be the opera of tax, like can you get a 575 00:26:08,640 --> 00:26:10,200 Speaker 5: tax and you get your tax, Like. 576 00:26:10,160 --> 00:26:11,200 Speaker 2: It just goes on and on. 577 00:26:11,240 --> 00:26:15,600 Speaker 5: But you're also taxed on superanuation contributions and earnings. And 578 00:26:15,640 --> 00:26:18,400 Speaker 5: there are obviously lots of tax benefits for paying money 579 00:26:18,440 --> 00:26:20,960 Speaker 5: into your super fund. In fact, I've said it before 580 00:26:21,000 --> 00:26:24,400 Speaker 5: on the podcast, I think super tax right really sexy. 581 00:26:24,680 --> 00:26:28,240 Speaker 5: It is fifteen percent up until twenty seven five hundred 582 00:26:28,280 --> 00:26:33,199 Speaker 5: dollars each financial year, which is arguably the closest thing 583 00:26:33,240 --> 00:26:35,720 Speaker 5: we're going to get to a tax haven here in Australia, 584 00:26:36,040 --> 00:26:39,440 Speaker 5: Like if you earn enough money to be taxed, it's 585 00:26:39,520 --> 00:26:40,600 Speaker 5: still lower than that. 586 00:26:41,359 --> 00:26:42,520 Speaker 2: Right, That's pretty good. 587 00:26:42,720 --> 00:26:46,960 Speaker 5: So literally, anybody who is earning an income, putting more 588 00:26:47,000 --> 00:26:51,520 Speaker 5: money towards their superannuation is making a return or making 589 00:26:51,600 --> 00:26:54,960 Speaker 5: a benefit, is actually getting tax back by putting money 590 00:26:54,960 --> 00:26:58,320 Speaker 5: into their super. I'm not saying that that strategy is 591 00:26:58,359 --> 00:27:00,000 Speaker 5: going to be right for you, because I think I've 592 00:27:00,040 --> 00:27:03,040 Speaker 5: said it before on the podcast. I from my perspective, 593 00:27:03,080 --> 00:27:05,760 Speaker 5: I'm thirty one. I still think I'm relatively young. I mean, 594 00:27:05,960 --> 00:27:09,120 Speaker 5: my younger sister would beg to differ. She thinks I'm 595 00:27:09,240 --> 00:27:12,680 Speaker 5: really old. But I don't contribute extra amounts of money 596 00:27:12,680 --> 00:27:15,520 Speaker 5: to my superannuation. And I get asked that all the time. 597 00:27:15,720 --> 00:27:17,959 Speaker 5: And the reason I don't is because I have an 598 00:27:18,040 --> 00:27:22,760 Speaker 5: investment portfolio outside of superranuation, and every intention inside of 599 00:27:22,800 --> 00:27:25,480 Speaker 5: me says that I would like to retire before the 600 00:27:25,520 --> 00:27:28,200 Speaker 5: age of sixty five, and right now, if I made 601 00:27:28,240 --> 00:27:31,160 Speaker 5: heaps of additional contributions to super and had the sexiest 602 00:27:31,160 --> 00:27:33,639 Speaker 5: super ever, I would still have to work till sixty 603 00:27:33,640 --> 00:27:36,680 Speaker 5: five to be able to access that properly, right, right, 604 00:27:36,720 --> 00:27:41,160 Speaker 5: But if I build up my investment portfolio outside of superanuation. 605 00:27:41,320 --> 00:27:43,680 Speaker 5: I can lean on that until I retire. So, yes, 606 00:27:43,800 --> 00:27:46,640 Speaker 5: SUPER is absolutely a priority. I pay it for myself, 607 00:27:46,680 --> 00:27:48,600 Speaker 5: but I'm not going above and beyond because I kind 608 00:27:48,600 --> 00:27:51,280 Speaker 5: of want to have access to it before then privileged. 609 00:27:51,840 --> 00:27:54,240 Speaker 5: But I need to talk about why I do that, 610 00:27:54,280 --> 00:27:56,040 Speaker 5: because if I just said to you, no, Beck, I 611 00:27:56,040 --> 00:27:59,320 Speaker 5: don't pay additional SUPER, you might deduct from that conversation 612 00:27:59,400 --> 00:28:01,920 Speaker 5: that to me is not important. Yeah, it's really importantly 613 00:28:01,960 --> 00:28:05,200 Speaker 5: what exactly, But it's really important to me. But what's 614 00:28:05,280 --> 00:28:07,600 Speaker 5: more important to me is my financial freedom at this 615 00:28:07,640 --> 00:28:10,919 Speaker 5: point in my life. And at some point, hopefully in 616 00:28:10,960 --> 00:28:12,800 Speaker 5: the future, I'm going to have the cash flow to 617 00:28:12,800 --> 00:28:14,240 Speaker 5: be able to like bump it up and you know, 618 00:28:14,600 --> 00:28:17,320 Speaker 5: make both look really sexy. But at the moment, the 619 00:28:17,480 --> 00:28:20,560 Speaker 5: entire plan is to not have my entire net wealth 620 00:28:20,600 --> 00:28:23,680 Speaker 5: sitting in superinuation. It's kind of split between my investment 621 00:28:23,720 --> 00:28:26,239 Speaker 5: portfolio and my SUPER and when I retire, I'm going 622 00:28:26,320 --> 00:28:28,439 Speaker 5: to rely on both of those, not just one or 623 00:28:28,480 --> 00:28:28,760 Speaker 5: the other. 624 00:28:29,040 --> 00:28:31,159 Speaker 2: Does that make sense? Very clever? You should be like 625 00:28:31,280 --> 00:28:33,280 Speaker 2: a financial advice Oh my god, I was one time. 626 00:28:33,440 --> 00:28:35,679 Speaker 5: Yeah, it was really fun, and then I decided to 627 00:28:35,760 --> 00:28:36,280 Speaker 5: just do this. 628 00:28:36,640 --> 00:28:37,840 Speaker 2: Yeah, yeah, yeah, yeah. 629 00:28:37,880 --> 00:28:40,600 Speaker 5: But following on from that, the other important point that 630 00:28:40,640 --> 00:28:42,240 Speaker 5: I have written down here that I think is really 631 00:28:42,280 --> 00:28:44,760 Speaker 5: important to talk about is that tax rates for foreign 632 00:28:44,840 --> 00:28:49,640 Speaker 5: residents are substantially higher. But to keep this episode really 633 00:28:49,640 --> 00:28:52,120 Speaker 5: tight and light and fun, Titan light and fun on 634 00:28:52,160 --> 00:28:55,120 Speaker 5: a tax episode, good from me, we won't actually go 635 00:28:55,280 --> 00:28:58,520 Speaker 5: into the situation for non residents because there just isn't 636 00:28:58,640 --> 00:28:59,480 Speaker 5: enough time today. 637 00:28:59,560 --> 00:29:01,840 Speaker 2: Okay, hopefully we do talk about that eventually. 638 00:29:01,920 --> 00:29:04,520 Speaker 5: We absolutely will, but I think it'll be an entire 639 00:29:04,640 --> 00:29:08,040 Speaker 5: podcast on if you are a non resident. Here are 640 00:29:08,120 --> 00:29:10,280 Speaker 5: all the things that you can do to put yourself ahead, 641 00:29:10,280 --> 00:29:12,280 Speaker 5: because it's not just about talking about the tax rates. 642 00:29:12,440 --> 00:29:15,520 Speaker 2: On that. Let's have a little cheeky break. Go grab 643 00:29:15,560 --> 00:29:17,640 Speaker 2: a tea. I need a cup of coffee. I need 644 00:29:17,680 --> 00:29:18,320 Speaker 2: a cup of coffee. 645 00:29:18,400 --> 00:29:21,440 Speaker 5: Let's go, Let's go, let's go get a coffee. 646 00:29:24,960 --> 00:29:26,040 Speaker 2: Okay, we are Backfee. 647 00:29:26,600 --> 00:29:29,720 Speaker 4: I just want to really quickly address something and it's 648 00:29:29,760 --> 00:29:30,600 Speaker 4: not part of the podcast. 649 00:29:30,640 --> 00:29:32,160 Speaker 2: It's not part of it. We can cut this out 650 00:29:32,160 --> 00:29:32,880 Speaker 2: if we need to do it. 651 00:29:32,920 --> 00:29:36,880 Speaker 5: That you brought two water bottles this recording. I usually 652 00:29:37,000 --> 00:29:39,840 Speaker 5: ring four, but you actually don't. I'm so confused then 653 00:29:39,840 --> 00:29:42,200 Speaker 5: that anyway, carry on well, I just wanted to say 654 00:29:42,200 --> 00:29:46,520 Speaker 5: that for anyone listening that's outside of Victoria Prep, that 655 00:29:46,560 --> 00:29:48,560 Speaker 5: you said something that you said before that prep means 656 00:29:49,320 --> 00:29:54,640 Speaker 5: kindy and preschool comes before kindy, and you're saying prep 657 00:29:54,680 --> 00:29:55,640 Speaker 5: which means kindy. 658 00:29:56,200 --> 00:29:57,320 Speaker 2: That's all I wanted to say. 659 00:29:57,680 --> 00:30:04,040 Speaker 5: What so an American term, no in this room is 660 00:30:04,080 --> 00:30:07,120 Speaker 5: shaking their head. I should know better, you know what, 661 00:30:07,200 --> 00:30:10,480 Speaker 5: I can't remember. I went to school for prep in Tasmania, 662 00:30:10,880 --> 00:30:13,200 Speaker 5: so I don't I don't know. I just thought it 663 00:30:13,240 --> 00:30:13,800 Speaker 5: was called prep. 664 00:30:14,000 --> 00:30:15,320 Speaker 2: Yeah, I think it's a Victorian. 665 00:30:15,800 --> 00:30:17,400 Speaker 5: I've heard it be called pre k. 666 00:30:18,720 --> 00:30:20,080 Speaker 2: Pre k is pre school. 667 00:30:20,240 --> 00:30:23,440 Speaker 5: Oh yeah, okay, cool, Well tell me you don't have 668 00:30:23,560 --> 00:30:24,600 Speaker 5: kids without telling me. 669 00:30:25,280 --> 00:30:28,120 Speaker 2: I've just got no idea. Why would I know that? Yeah, 670 00:30:28,120 --> 00:30:28,600 Speaker 2: that's fair. 671 00:30:28,760 --> 00:30:31,720 Speaker 5: Flex only had to do prep once. Oh I think 672 00:30:31,760 --> 00:30:32,520 Speaker 5: that is a flex. 673 00:30:33,080 --> 00:30:35,280 Speaker 2: I'm not too shocked. Now let's get back into it. 674 00:30:35,520 --> 00:30:38,360 Speaker 2: So we're talking all about tax learn about this in prep? 675 00:30:40,000 --> 00:30:41,200 Speaker 2: We did learn about this in prep. 676 00:30:41,640 --> 00:30:45,040 Speaker 5: I definitely didn't learn, Claire. I was like coloring outside 677 00:30:45,080 --> 00:30:47,520 Speaker 5: the lines and talking about blocks. Yeah, like you know, 678 00:30:47,640 --> 00:30:48,960 Speaker 5: probably eating tan buck. 679 00:30:49,240 --> 00:30:50,400 Speaker 2: But yeah, but. 680 00:30:50,320 --> 00:30:52,360 Speaker 4: If anyone was going to learn about texts in school, 681 00:30:52,480 --> 00:30:54,000 Speaker 4: I feel like it would have been. 682 00:30:54,360 --> 00:30:57,720 Speaker 5: My dad is and was an accountant. So oh, maybe 683 00:30:57,720 --> 00:30:59,720 Speaker 5: I did, but I didn't listen subconsciously. 684 00:31:00,040 --> 00:31:02,640 Speaker 2: I see, I see, I see, so recap. 685 00:31:02,760 --> 00:31:06,320 Speaker 4: Yeah, when calculating your tax is it as simple as 686 00:31:06,560 --> 00:31:09,240 Speaker 4: say I earn sixty k, I get taxed at thirty 687 00:31:09,240 --> 00:31:12,720 Speaker 4: two point five percent on that entire sixty k. 688 00:31:12,960 --> 00:31:15,479 Speaker 2: No. No, no, okay, no no. 689 00:31:15,920 --> 00:31:17,960 Speaker 5: And I think that's where a lot of people get 690 00:31:18,000 --> 00:31:20,760 Speaker 5: confused because you might go, tax is really easy. I'm 691 00:31:20,760 --> 00:31:23,440 Speaker 5: going to take sixty and then minus thirty two point 692 00:31:23,480 --> 00:31:26,160 Speaker 5: five percent. That makes sense, right, But that's actually not 693 00:31:26,280 --> 00:31:28,760 Speaker 5: how it works. So what would happen is you would 694 00:31:28,800 --> 00:31:31,080 Speaker 5: have to make a little chart. I'm really sorry here, 695 00:31:31,120 --> 00:31:34,440 Speaker 5: but essentially what would happen is you would draw down 696 00:31:34,480 --> 00:31:37,320 Speaker 5: your income. You go, okay, I earn sixty grand, but 697 00:31:37,720 --> 00:31:41,360 Speaker 5: of that sixty thousand dollars my first eighteen two hundred dollars, 698 00:31:41,360 --> 00:31:44,080 Speaker 5: no tax, nothing. Put that to the site. The next 699 00:31:44,120 --> 00:31:46,560 Speaker 5: amount is going to be the second tax bracket we 700 00:31:46,600 --> 00:31:48,960 Speaker 5: spoke about. So that's going to be where your tax 701 00:31:49,040 --> 00:31:51,640 Speaker 5: rate is nineteen cents in the dollar. So that would 702 00:31:51,680 --> 00:31:55,200 Speaker 5: be twenty six eight hundred dollars. Because you fall for 703 00:31:55,280 --> 00:31:58,360 Speaker 5: that amount of money into the income bracket of between 704 00:31:58,400 --> 00:32:01,719 Speaker 5: eighteen thousand, two hundred dollar and forty five thousand dollars, 705 00:32:02,040 --> 00:32:04,479 Speaker 5: which on that amount you would pay five thousand and 706 00:32:04,560 --> 00:32:08,400 Speaker 5: ninety two dollars in tax, and then to top that 707 00:32:08,600 --> 00:32:10,840 Speaker 5: up to get to the total of sixty thousand dollars, 708 00:32:10,880 --> 00:32:13,880 Speaker 5: you've got another fifteen thousand dollars to go. So for 709 00:32:13,920 --> 00:32:16,240 Speaker 5: that amount of fifteen thousand dollars, you fall into the 710 00:32:16,280 --> 00:32:18,920 Speaker 5: bracket of forty five thousand and one hundred and twenty 711 00:32:19,000 --> 00:32:21,680 Speaker 5: thousand dollars, which means that you're paying thirty two point 712 00:32:21,760 --> 00:32:24,400 Speaker 5: five cents in the dollar on that, which means you 713 00:32:24,480 --> 00:32:28,040 Speaker 5: get taxed four thousand, eight hundred and seventy five dollars. 714 00:32:28,360 --> 00:32:31,360 Speaker 5: So on a sixty thousand dollar income, you will pay 715 00:32:31,400 --> 00:32:34,720 Speaker 5: a total tax amount of nine thousand, nine hundred and 716 00:32:34,800 --> 00:32:39,880 Speaker 5: sixty seven dollars. Now, to contextualize that beck before, remember 717 00:32:39,880 --> 00:32:42,400 Speaker 5: how I said, when we're going through that tax table, 718 00:32:42,440 --> 00:32:45,520 Speaker 5: which is obviously really hard to conceptualize on a podcast. 719 00:32:45,600 --> 00:32:47,320 Speaker 5: So what I'll do is I'll post it on our 720 00:32:47,360 --> 00:32:49,320 Speaker 5: Instagram and it will be up today so you can 721 00:32:49,320 --> 00:32:51,320 Speaker 5: go and have a look at it. But remember how 722 00:32:51,320 --> 00:32:53,120 Speaker 5: I was like okay, Well, if you earn between forty 723 00:32:53,120 --> 00:32:55,120 Speaker 5: five thousand and one hundred and twenty thousand dollars, you'll 724 00:32:55,160 --> 00:32:59,120 Speaker 5: pay five thousand and ninety two dollars plus that's what 725 00:32:59,160 --> 00:33:02,920 Speaker 5: that amount came so, as it is being broken down, 726 00:33:03,320 --> 00:33:06,160 Speaker 5: the five thousand and ninety two dollars, that actually comes 727 00:33:06,160 --> 00:33:08,840 Speaker 5: from the previous tax bracket, because you will pay the 728 00:33:08,880 --> 00:33:12,040 Speaker 5: total amount of tax on the amount of money between 729 00:33:12,040 --> 00:33:15,400 Speaker 5: eighteen thousand, two hundred and forty five thousand dollars, So 730 00:33:15,520 --> 00:33:18,320 Speaker 5: that total amount is five thousand and ninety two dollars, 731 00:33:18,440 --> 00:33:21,160 Speaker 5: which is why we say, okay, you'll pay that five 732 00:33:21,160 --> 00:33:24,000 Speaker 5: thousand and ninety two dollars, which is you paying nineteen 733 00:33:24,040 --> 00:33:27,440 Speaker 5: cents in the dollar, and then after that you will 734 00:33:27,480 --> 00:33:30,120 Speaker 5: pay thirty two and a half cents on the rest 735 00:33:30,120 --> 00:33:31,080 Speaker 5: of the money that you earn. 736 00:33:31,160 --> 00:33:34,040 Speaker 2: Does that make sense? Oh, that makes so much sense. 737 00:33:33,800 --> 00:33:37,400 Speaker 5: Which is why from my perspective, we are a supreme 738 00:33:37,600 --> 00:33:41,280 Speaker 5: tax system because you are not going to go, okay, 739 00:33:41,320 --> 00:33:43,360 Speaker 5: well far out, I fall into the bracket of earning 740 00:33:43,400 --> 00:33:46,160 Speaker 5: between forty five thousand and one hundred and twenty thousand dollars, Like, 741 00:33:46,240 --> 00:33:48,520 Speaker 5: why do I have such a higher tax bracket if 742 00:33:48,560 --> 00:33:51,080 Speaker 5: I'm only on fifty grand, Like, that doesn't seem fair. 743 00:33:51,240 --> 00:33:53,240 Speaker 5: I want to be in the previous tax bracket. 744 00:33:53,480 --> 00:33:54,400 Speaker 2: Well, for the first. 745 00:33:54,280 --> 00:33:57,880 Speaker 5: Forty five thousand dollars you earn, you are already there, 746 00:33:58,000 --> 00:34:02,840 Speaker 5: are already there, so you're only paying what, from my perspective, 747 00:34:02,960 --> 00:34:05,320 Speaker 5: is really fair on tax, which is why it's kind 748 00:34:05,320 --> 00:34:09,200 Speaker 5: of like a stepped tax system instead of a super 749 00:34:09,360 --> 00:34:13,120 Speaker 5: strict No. Sorry, Beck, you earn over forty five thousand dollars, Yes, 750 00:34:13,120 --> 00:34:16,280 Speaker 5: you will be paying more tax. That is inevitable because 751 00:34:16,320 --> 00:34:18,399 Speaker 5: the more money you earn, the more tax you pay. 752 00:34:18,480 --> 00:34:21,120 Speaker 5: It is just how the world works. But you do 753 00:34:21,200 --> 00:34:23,600 Speaker 5: get to make use of that first tax bracket of 754 00:34:23,680 --> 00:34:25,759 Speaker 5: like the tax free threshold. Then you get to max 755 00:34:25,800 --> 00:34:27,840 Speaker 5: out the second tax bracket and you only have to 756 00:34:27,880 --> 00:34:30,120 Speaker 5: pay nineteen cents in the dollar for that amount, and 757 00:34:30,160 --> 00:34:32,680 Speaker 5: then after that you are subjected to all the other 758 00:34:32,719 --> 00:34:33,400 Speaker 5: tax brackets. 759 00:34:33,400 --> 00:34:35,640 Speaker 2: Does that make sense? Yeah, that really makes sense. 760 00:34:35,680 --> 00:34:37,759 Speaker 4: So ninety K or one hundred and twenty K or 761 00:34:37,800 --> 00:34:40,200 Speaker 4: two hundred k sounds like a heap of money because 762 00:34:40,200 --> 00:34:40,480 Speaker 4: it is. 763 00:34:41,040 --> 00:34:43,480 Speaker 2: It actually is a lot. Yeah money. Well, let's look 764 00:34:43,520 --> 00:34:45,560 Speaker 2: at what you can actually take home after tax. 765 00:34:45,760 --> 00:34:48,879 Speaker 5: Yeah, okay, sexy sexy. I like that you have said 766 00:34:48,880 --> 00:34:51,480 Speaker 5: to me, all right, I'm gonna have these questions which 767 00:34:51,600 --> 00:34:53,560 Speaker 5: involve you having to do maths, and I'm like, come 768 00:34:53,600 --> 00:34:56,080 Speaker 5: at me, bro me, and Grade ten would have been like, 769 00:34:56,200 --> 00:34:57,839 Speaker 5: are you the devil? Like I don't want to come 770 00:34:57,840 --> 00:35:00,440 Speaker 5: to play with you? But now I'm right and you're 771 00:35:00,440 --> 00:35:02,200 Speaker 5: ready to hear about the tax rates? All right, So 772 00:35:02,640 --> 00:35:05,399 Speaker 5: if you earn forty grand, you'd pay four thousand, one 773 00:35:05,480 --> 00:35:08,440 Speaker 5: hundred and forty two dollars in tax, meaning you get 774 00:35:08,440 --> 00:35:10,799 Speaker 5: to take home thirty five thousand, eight hundred and. 775 00:35:10,760 --> 00:35:12,720 Speaker 2: Fifty eight dollars back. Very nice. 776 00:35:12,840 --> 00:35:14,719 Speaker 5: If you bump this up, I have chosen the number 777 00:35:14,760 --> 00:35:17,640 Speaker 5: of ninety two thousand instead of your ninety k, but 778 00:35:17,760 --> 00:35:20,560 Speaker 5: ninety two thousand dollars because this was actually the average 779 00:35:20,600 --> 00:35:24,040 Speaker 5: annual salary from the Australian Bureau of Statistics in August 780 00:35:24,200 --> 00:35:27,200 Speaker 5: twenty twenty two. You'll pay a total of twenty thousand, 781 00:35:27,320 --> 00:35:30,920 Speaker 5: three hundred and sixty seven dollars in tax, meaning you 782 00:35:31,000 --> 00:35:34,360 Speaker 5: take home seventy one thousand, six hundred and thirty three dollars. 783 00:35:34,680 --> 00:35:38,359 Speaker 4: Is very depressing that that's the average annual salary, is it? 784 00:35:38,560 --> 00:35:41,160 Speaker 4: I mean, it's not depressing for anyone but myself. 785 00:35:41,239 --> 00:35:44,440 Speaker 5: Well, actually, I think that's an important conversation to have 786 00:35:44,680 --> 00:35:49,040 Speaker 5: because when we say the average salary, that is the average, 787 00:35:49,080 --> 00:35:51,520 Speaker 5: it is not the median or the mean. And when 788 00:35:51,520 --> 00:35:54,000 Speaker 5: I say that, it's kind of like if I got 789 00:35:54,000 --> 00:35:56,319 Speaker 5: you to imagine a bell curve right right, If you've 790 00:35:56,320 --> 00:35:58,640 Speaker 5: got this big bell and in the middle, you've got 791 00:35:58,840 --> 00:36:02,600 Speaker 5: what the normal people are earning. I promise you that 792 00:36:02,719 --> 00:36:05,839 Speaker 5: is not ninety two thousand dollars. But if I took 793 00:36:05,960 --> 00:36:09,360 Speaker 5: every single salary in Australia, from people earning unto eighteen 794 00:36:09,360 --> 00:36:12,040 Speaker 5: thousand dollars all the way up to top CEOs and 795 00:36:12,080 --> 00:36:15,160 Speaker 5: the billionaires, and I took all their salaries and divided 796 00:36:15,160 --> 00:36:17,080 Speaker 5: it by the amount of people we have, that's how 797 00:36:17,120 --> 00:36:20,440 Speaker 5: we get ninety two thousand dollars. That makes so obviously 798 00:36:20,719 --> 00:36:23,319 Speaker 5: on the top end there are so many really high 799 00:36:23,360 --> 00:36:25,680 Speaker 5: income owners. But it's kind of like if I said 800 00:36:25,680 --> 00:36:29,000 Speaker 5: to you, okay, Beck, take the numbers three, five, ten, 801 00:36:29,600 --> 00:36:33,200 Speaker 5: and twelve, and then add another number of one hundred 802 00:36:33,239 --> 00:36:36,719 Speaker 5: and fifty, and then we divide that. Obviously the number 803 00:36:36,760 --> 00:36:38,640 Speaker 5: is going to be higher because you've got that outlier 804 00:36:38,640 --> 00:36:41,360 Speaker 5: of one hundred and fifty right, that's not actually even 805 00:36:41,520 --> 00:36:44,960 Speaker 5: close to what the three, five, and ten are right, right, 806 00:36:45,160 --> 00:36:48,920 Speaker 5: So that one fifty is really pushing quote the average 807 00:36:48,960 --> 00:36:51,960 Speaker 5: of the group up. Yep, it's not how the world 808 00:36:52,080 --> 00:36:55,680 Speaker 5: actually works. So most people are not earning ninety two 809 00:36:55,719 --> 00:36:59,279 Speaker 5: thousand dollars, beck, because that's not what most people in 810 00:36:59,360 --> 00:37:02,560 Speaker 5: Australia earning. That's not what average means, even though you 811 00:37:02,640 --> 00:37:05,480 Speaker 5: might assume that what we actually want to go for 812 00:37:05,680 --> 00:37:09,239 Speaker 5: is what's called a median salary, and amedian is what 813 00:37:09,480 --> 00:37:13,120 Speaker 5: most people in Australia are earning, so median means the most. 814 00:37:13,680 --> 00:37:16,719 Speaker 5: So the most people in Australia are actually earning sixty 815 00:37:16,760 --> 00:37:19,600 Speaker 5: five thousand dollars, which is a lot more reasable, right, 816 00:37:19,680 --> 00:37:22,200 Speaker 5: And it's a lot more I guess relatable. So I 817 00:37:22,200 --> 00:37:23,960 Speaker 5: would hate for you to listen to that and be like, VI, 818 00:37:24,120 --> 00:37:26,399 Speaker 5: why did you pick ninety two thousand dollars, Like that's 819 00:37:26,400 --> 00:37:28,840 Speaker 5: so unrelatable. It's literally because it just works with the 820 00:37:28,920 --> 00:37:30,680 Speaker 5: tax brackets that I'm trying to explain it. I was 821 00:37:30,760 --> 00:37:32,400 Speaker 5: just trying to be relatable and show you that I 822 00:37:32,400 --> 00:37:35,760 Speaker 5: could read the ads website, Okay, and I attacked you, Okay, 823 00:37:35,800 --> 00:37:38,000 Speaker 5: you attacked me but you've got some information about it 824 00:37:38,040 --> 00:37:38,480 Speaker 5: as well. 825 00:37:38,600 --> 00:37:39,400 Speaker 2: I'm happy about that. 826 00:37:39,440 --> 00:37:42,160 Speaker 5: So most people actually earn sixty five thousand dollars, but 827 00:37:42,200 --> 00:37:45,200 Speaker 5: the average annual salary is ninety two thousand dollars, which 828 00:37:45,200 --> 00:37:47,279 Speaker 5: means you're going to pay twenty thousand, three hundred and 829 00:37:47,320 --> 00:37:49,880 Speaker 5: sixty seven dollars and get to take home a sweet, 830 00:37:49,880 --> 00:37:53,360 Speaker 5: sweet seventy one thousand, six hundred and thirty three dollars 831 00:37:53,400 --> 00:37:55,960 Speaker 5: each year. If you bump that up to a salary 832 00:37:56,000 --> 00:37:58,239 Speaker 5: of one hundred and fifty thousand dollars, which is big 833 00:37:58,239 --> 00:38:01,239 Speaker 5: dog energy, you are going to pay forty thousand, five 834 00:38:01,320 --> 00:38:03,680 Speaker 5: hundred and sixty seven dollars in tax and take home 835 00:38:03,719 --> 00:38:06,000 Speaker 5: a total of one hundred and nine thousand, four hundred 836 00:38:06,040 --> 00:38:08,879 Speaker 5: and thirty three dollars. Like, you're taking home literally six 837 00:38:08,920 --> 00:38:13,480 Speaker 5: figures of cash. That's after tals, cash cash, cash money. 838 00:38:13,520 --> 00:38:15,240 Speaker 2: Like that's so much money. Yeah. 839 00:38:15,360 --> 00:38:17,879 Speaker 5: And then if you earned two hundred grand, just because 840 00:38:17,920 --> 00:38:21,240 Speaker 5: you mentioned it before, you'd pay sixty thousand, six hundred 841 00:38:21,280 --> 00:38:23,520 Speaker 5: and sixty seven dollars in tax and you would take 842 00:38:23,600 --> 00:38:26,080 Speaker 5: home a total of one hundred and thirty nine thousand, 843 00:38:26,360 --> 00:38:28,920 Speaker 5: three hundred and thirty three dollars. 844 00:38:29,120 --> 00:38:29,359 Speaker 1: Wow. 845 00:38:29,800 --> 00:38:32,400 Speaker 5: Keep in mind. That doesn't take into consideration like the 846 00:38:32,440 --> 00:38:35,440 Speaker 5: medicare levy or any deductions that you've got or anything 847 00:38:35,480 --> 00:38:38,600 Speaker 5: like that. That's just like base maths, my favorite website. 848 00:38:38,600 --> 00:38:40,319 Speaker 5: If you're trying to work out, you know, oh I 849 00:38:40,360 --> 00:38:43,000 Speaker 5: forgot this job increase, what would my take home salary be? 850 00:38:43,440 --> 00:38:46,560 Speaker 5: It's pay Calculator dot com dot au and you will 851 00:38:46,560 --> 00:38:48,960 Speaker 5: put that in the show notes. It's not a government 852 00:38:49,040 --> 00:38:52,279 Speaker 5: run website. It's actually just a really fancy calculator where 853 00:38:52,320 --> 00:38:54,919 Speaker 5: you can like tick different boxes and it will go 854 00:38:55,239 --> 00:38:57,799 Speaker 5: do you want to include or exclude superannuation or do 855 00:38:57,840 --> 00:38:59,759 Speaker 5: you have a hex stare and it will actually tell 856 00:38:59,800 --> 00:39:03,000 Speaker 5: you how much take home pay you'll actually get from 857 00:39:03,000 --> 00:39:06,200 Speaker 5: a particular income, which I think is really sexy. Good website. 858 00:39:06,320 --> 00:39:06,960 Speaker 5: Ten out of ten. 859 00:39:07,160 --> 00:39:07,919 Speaker 2: I love that. 860 00:39:08,120 --> 00:39:10,719 Speaker 4: Because you don't get shocked when the pacelet comes through, 861 00:39:10,760 --> 00:39:13,279 Speaker 4: and they don't absolutely not a little bit of a 862 00:39:13,320 --> 00:39:17,520 Speaker 4: different via coming through. So if I am a low 863 00:39:17,560 --> 00:39:22,480 Speaker 4: income earner, not if you are not any sorry, that's 864 00:39:22,600 --> 00:39:23,080 Speaker 4: very true. 865 00:39:23,120 --> 00:39:25,160 Speaker 5: You are not allowed to identify as a low income 866 00:39:25,160 --> 00:39:25,880 Speaker 5: inner anymore. 867 00:39:25,920 --> 00:39:26,160 Speaker 2: True. 868 00:39:26,239 --> 00:39:30,000 Speaker 4: I feel like spiritually I still am, but no technically 869 00:39:30,000 --> 00:39:30,319 Speaker 4: I'm not. 870 00:39:30,400 --> 00:39:33,800 Speaker 5: So you are allowed to spiritually connect with that. Okay, 871 00:39:33,880 --> 00:39:34,400 Speaker 5: but you're not. 872 00:39:34,719 --> 00:39:35,279 Speaker 2: No, I'm not. 873 00:39:35,320 --> 00:39:38,200 Speaker 4: I can't claim that anymore if I'm a low income earner. 874 00:39:38,239 --> 00:39:40,440 Speaker 4: Is there any point taking a second job or I 875 00:39:40,600 --> 00:39:41,839 Speaker 4: just lose it all to tax? 876 00:39:41,960 --> 00:39:44,600 Speaker 5: Oh that is such a stereotypical question, and I'm actually 877 00:39:44,640 --> 00:39:45,600 Speaker 5: really glad you asked. 878 00:39:45,840 --> 00:39:48,640 Speaker 2: So many people say, oh my god, it's not worth it. 879 00:39:48,760 --> 00:39:52,000 Speaker 5: Til dear, it's worth it. But people worry that tax 880 00:39:52,080 --> 00:39:53,799 Speaker 5: is going to be so high on its second job 881 00:39:53,840 --> 00:39:56,360 Speaker 5: because you don't get to claim that tax free threshold 882 00:39:56,400 --> 00:39:59,080 Speaker 5: and it doesn't apply if you are paid. People get 883 00:39:59,360 --> 00:40:01,799 Speaker 5: genuinely so worried. They're like, oh my gosh, the tax 884 00:40:01,840 --> 00:40:04,239 Speaker 5: is going to be so high on a second job 885 00:40:04,280 --> 00:40:07,000 Speaker 5: because the tax free threshold isn't going to apply if 886 00:40:07,000 --> 00:40:10,120 Speaker 5: you're getting paid in that job. And I guess that's true. 887 00:40:10,680 --> 00:40:12,760 Speaker 5: You are just going to have to pay standard tax 888 00:40:12,760 --> 00:40:15,640 Speaker 5: from the outset though with your second job. However, when 889 00:40:15,680 --> 00:40:18,279 Speaker 5: you get your tax return completed, you'll actually pay the 890 00:40:18,280 --> 00:40:20,560 Speaker 5: same amount of tax on your income, whether you have 891 00:40:20,600 --> 00:40:24,480 Speaker 5: one or multiple incomes. So if you you know, let's say, 892 00:40:24,560 --> 00:40:26,680 Speaker 5: earned forty thousand dollars and you went and got a 893 00:40:26,719 --> 00:40:29,360 Speaker 5: side hustle and you're earning an extra ten thousand dollars. 894 00:40:29,640 --> 00:40:32,080 Speaker 5: You're literally going to pay the same amount of tax 895 00:40:32,120 --> 00:40:34,799 Speaker 5: as somebody who's on a fifty thousand dollars income, right, Like, 896 00:40:34,880 --> 00:40:37,440 Speaker 5: it's not going to change because it's the second job. 897 00:40:37,760 --> 00:40:40,560 Speaker 5: The only I guess, gotcha is that you can't claim 898 00:40:40,600 --> 00:40:42,840 Speaker 5: the tax free threshold twice. 899 00:40:42,920 --> 00:40:43,919 Speaker 2: But no one can. 900 00:40:44,239 --> 00:40:46,399 Speaker 5: And if you are claiming it twice, because I've heard 901 00:40:46,440 --> 00:40:47,680 Speaker 5: people before they're like, oh. 902 00:40:47,520 --> 00:40:49,920 Speaker 2: If you tick that box, you get paid twice. 903 00:40:50,000 --> 00:40:52,080 Speaker 5: And it's like, yeah, it's going to come back in 904 00:40:52,120 --> 00:40:54,839 Speaker 5: your tax return my friends, like it always does that. Also, 905 00:40:54,880 --> 00:40:56,600 Speaker 5: you're in love with more, but that is not fair 906 00:40:56,600 --> 00:40:58,480 Speaker 5: and that is not how it works. So I think 907 00:40:58,520 --> 00:41:01,120 Speaker 5: it's really important to remember that it doesn't actually matter 908 00:41:01,120 --> 00:41:03,200 Speaker 5: how many jobs you've got. You could have fifty jobs, 909 00:41:03,239 --> 00:41:05,120 Speaker 5: and if you earn one hundred thousand dollars from those 910 00:41:05,160 --> 00:41:07,280 Speaker 5: fifty jobs, you're going to earn exactly the same amount 911 00:41:07,320 --> 00:41:10,120 Speaker 5: of money as somebody who has one hundred thousand dollars income. 912 00:41:10,239 --> 00:41:12,120 Speaker 2: Does that make sase? So you're basically just getting like 913 00:41:12,480 --> 00:41:13,360 Speaker 2: a pay rise. 914 00:41:13,640 --> 00:41:15,560 Speaker 5: Literally you're getting a pay rise, and I mean you're 915 00:41:15,600 --> 00:41:18,000 Speaker 5: trading your time and energy and effort for money, and 916 00:41:18,120 --> 00:41:21,000 Speaker 5: you are going to be treated fairly in our tax system. 917 00:41:21,000 --> 00:41:23,560 Speaker 5: You're not going to be charged above and beyond. Because 918 00:41:23,560 --> 00:41:25,560 Speaker 5: it's a second job, you're just not going to be 919 00:41:25,560 --> 00:41:29,400 Speaker 5: able to claim that tax free threshold. But nobody can anyway, 920 00:41:29,520 --> 00:41:32,640 Speaker 5: even if they switch jobs halfway through the year. Right, So, 921 00:41:32,680 --> 00:41:35,440 Speaker 5: if you're an Australian resident for tax purposes, as we've 922 00:41:35,480 --> 00:41:38,200 Speaker 5: said before, the first eighteen thousand, two hundred dollars you 923 00:41:38,239 --> 00:41:40,799 Speaker 5: earn is free, which is a money win, and you 924 00:41:40,920 --> 00:41:44,040 Speaker 5: usually nominate one employer to be able to claim that 925 00:41:44,120 --> 00:41:47,040 Speaker 5: tax free threshold, which means they will not take any 926 00:41:47,160 --> 00:41:50,000 Speaker 5: tax from your earnings before you reach that threshold, which 927 00:41:50,000 --> 00:41:52,680 Speaker 5: we've talked about already on this episode, but I think 928 00:41:52,680 --> 00:41:56,040 Speaker 5: it's really important to reiterate that first amount of eighteen thousand, 929 00:41:56,080 --> 00:41:58,799 Speaker 5: two hundred dollars is tax free regardless of who you are, 930 00:41:59,040 --> 00:42:01,120 Speaker 5: whether you earn more than two two hundred thousand dollars 931 00:42:01,200 --> 00:42:04,000 Speaker 5: or you earn less than twenty thousand dollars, like, you 932 00:42:04,040 --> 00:42:06,160 Speaker 5: are going to be able to get that for free, 933 00:42:06,239 --> 00:42:09,480 Speaker 5: because that's how our tax system works. It is stepped. 934 00:42:09,560 --> 00:42:11,600 Speaker 5: It is not just like okay, cool, well you go 935 00:42:11,680 --> 00:42:12,680 Speaker 5: in this bucket over here. 936 00:42:12,719 --> 00:42:15,280 Speaker 2: Does that make sense? Yeah, that makes sense, that makes sense. 937 00:42:15,840 --> 00:42:19,400 Speaker 4: I am hoping at some point, if you haven't done 938 00:42:19,440 --> 00:42:23,640 Speaker 4: it already, we could do a whole episode on deductibles 939 00:42:23,719 --> 00:42:27,520 Speaker 4: and like claim your tax. Yeah, we did one ages ago, 940 00:42:27,640 --> 00:42:29,560 Speaker 4: but I think it's time for an update because each 941 00:42:29,560 --> 00:42:31,840 Speaker 4: and every single year, the tax system changes the rules, 942 00:42:31,880 --> 00:42:35,759 Speaker 4: just like the superannuation system. Get this complete sidetrack. But 943 00:42:36,040 --> 00:42:40,000 Speaker 4: since super became a mandatory inclusion for all employees in 944 00:42:40,080 --> 00:42:43,120 Speaker 4: nineteen ninety two, BECK, there have been hundreds of changes 945 00:42:43,160 --> 00:42:44,520 Speaker 4: to the superannuation system. 946 00:42:44,840 --> 00:42:46,480 Speaker 2: How is that fair? Anyway? 947 00:42:46,560 --> 00:42:48,560 Speaker 5: I know it's getting bigger and better and changing for 948 00:42:48,600 --> 00:42:50,760 Speaker 5: the better, but like, oh my gosh, the tax system 949 00:42:50,840 --> 00:42:53,479 Speaker 5: is very similar, Like there's just changing rules each year, 950 00:42:53,520 --> 00:42:56,520 Speaker 5: and each year the ATO kind of like says, hey, guys, 951 00:42:56,560 --> 00:42:59,000 Speaker 5: this year, we're looking out for this because the world changes. 952 00:42:59,080 --> 00:43:03,879 Speaker 5: Righteen years ago, were the ATO looking out for influencers 953 00:43:03,880 --> 00:43:06,799 Speaker 5: claiming their holidays to Disneyland? No, they weren't because it 954 00:43:06,840 --> 00:43:08,680 Speaker 5: wasn't a thing. But now they're looking out for it. 955 00:43:08,719 --> 00:43:11,320 Speaker 5: So I think it's just interesting to cover. From my perspectives, 956 00:43:11,360 --> 00:43:14,400 Speaker 5: let's do a p on that idea. Great, Thank you all, right, 957 00:43:14,440 --> 00:43:16,400 Speaker 5: let's go plan that. I think we're done here today. 958 00:43:16,480 --> 00:43:18,640 Speaker 5: I feel like this has been short but sweet, but 959 00:43:18,680 --> 00:43:20,600 Speaker 5: probably not that short because I can go on and 960 00:43:20,640 --> 00:43:22,640 Speaker 5: on about tax So I hope you guys have a 961 00:43:22,680 --> 00:43:25,320 Speaker 5: good day, and if you've made it to the end, congratulations, 962 00:43:25,320 --> 00:43:26,880 Speaker 5: it's honestly gold star for you. 963 00:43:27,040 --> 00:43:29,640 Speaker 2: I love you. Have a really good rest of the week, bie, guys. 964 00:43:35,880 --> 00:43:38,440 Speaker 5: The advice shared on She's on the Money is general 965 00:43:38,480 --> 00:43:42,360 Speaker 5: in nature and does not consider your individual circumstances. She's 966 00:43:42,400 --> 00:43:45,840 Speaker 5: on the Money exists purely for educational purposes and should 967 00:43:45,880 --> 00:43:49,040 Speaker 5: not be relied upon to make an investment or financial decision. 968 00:43:49,440 --> 00:43:51,879 Speaker 5: If you do choose to buy a financial product, read 969 00:43:51,920 --> 00:43:56,040 Speaker 5: the PDS TMD and obtain appropriate financial advice tailored towards 970 00:43:56,080 --> 00:43:59,359 Speaker 5: your needs. Victoria Divine and She's on the Money are 971 00:43:59,400 --> 00:44:02,799 Speaker 5: authorized representatives of Money sherper P T y L t 972 00:44:02,920 --> 00:44:05,680 Speaker 5: D A B N three two one six four nine 973 00:44:05,800 --> 00:44:08,759 Speaker 5: two seven seven zero eight A F s L four 974 00:44:08,840 --> 00:44:12,000 Speaker 5: five one two eight nine