1 00:00:00,200 --> 00:00:04,200 Speaker 1: She's on the Money. She's on the Money. 2 00:00:10,520 --> 00:00:13,280 Speaker 2: My name's Tatasha Bamblet. I'm a proud First Nations woman 3 00:00:13,320 --> 00:00:16,160 Speaker 2: and I'm here to acknowledge country. Hello, beautiful friends, we 4 00:00:16,280 --> 00:00:18,720 Speaker 2: gather on the lands of the Aboriginal people. We thank, 5 00:00:18,880 --> 00:00:21,560 Speaker 2: acknowledge and respect the Aboriginal people's land that we're gathering 6 00:00:21,560 --> 00:00:24,160 Speaker 2: on today. Take pleasure in all the land and respect 7 00:00:24,360 --> 00:00:28,000 Speaker 2: all that you see. She's on the Money podcast acknowledges culture, country, 8 00:00:28,080 --> 00:00:32,080 Speaker 2: community and connections, bringing you the tools, knowledge and resources 9 00:00:32,120 --> 00:00:32,680 Speaker 2: for you to thrive. 10 00:00:32,840 --> 00:00:35,280 Speaker 1: Hello, and welcome to She's on the Money, the podcast 11 00:00:35,320 --> 00:00:37,680 Speaker 1: where we discuss all of the issues concerning your wealth 12 00:00:37,680 --> 00:00:39,640 Speaker 1: goals so that you can feel more in control of 13 00:00:39,680 --> 00:00:43,720 Speaker 1: your financial future. I'm Victoria Divine and how are we 14 00:00:43,880 --> 00:00:47,040 Speaker 1: halfway through June already? I don't know about you, but 15 00:00:47,159 --> 00:00:49,160 Speaker 1: at this time of the year, there's only one thing 16 00:00:49,240 --> 00:00:53,640 Speaker 1: on my mind. My birthday and tax And according to 17 00:00:53,680 --> 00:00:56,840 Speaker 1: a twenty twenty six Pulse survey, Henry found that tax 18 00:00:56,880 --> 00:00:59,959 Speaker 1: obligations were the second biggest stressor for soul traders after 19 00:01:00,040 --> 00:01:03,440 Speaker 1: at the cost of living YEP. From preparing tax returns 20 00:01:03,480 --> 00:01:05,640 Speaker 1: to making claims and working out just how much we 21 00:01:05,720 --> 00:01:08,600 Speaker 1: owe it can get all a little low tt. So 22 00:01:08,840 --> 00:01:11,080 Speaker 1: obviously we asked our community what they wanted to know 23 00:01:11,120 --> 00:01:14,240 Speaker 1: about tax, including questions for investors, families, and those of 24 00:01:14,319 --> 00:01:16,800 Speaker 1: us who were self employed. And who better to join 25 00:01:16,880 --> 00:01:19,759 Speaker 1: me than fellow business women, Miss jessic. 26 00:01:19,520 --> 00:01:21,640 Speaker 3: Ricci business and what I like that a lot? 27 00:01:22,040 --> 00:01:22,920 Speaker 1: Well you are are you not? 28 00:01:23,080 --> 00:01:23,640 Speaker 3: It's true? 29 00:01:23,680 --> 00:01:26,559 Speaker 1: Do you have an ABN? I sure do business wore men. 30 00:01:26,680 --> 00:01:28,880 Speaker 3: And I would agree that tax time is very stressful time. 31 00:01:30,160 --> 00:01:32,600 Speaker 1: Well, it's like twofold for us. It's like the busiest 32 00:01:32,640 --> 00:01:37,320 Speaker 1: month of the year. Yes, because finance content, but also 33 00:01:38,080 --> 00:01:40,640 Speaker 1: counting down the days to my birthday, which happens to 34 00:01:40,680 --> 00:01:44,560 Speaker 1: be the eofy date. Honestly, the universe the stars really 35 00:01:44,600 --> 00:01:48,200 Speaker 1: aligned on that day. My dad really said are you 36 00:01:48,200 --> 00:01:48,760 Speaker 1: going to work with that? 37 00:01:49,440 --> 00:01:49,640 Speaker 3: Yeah? 38 00:01:49,640 --> 00:01:52,560 Speaker 1: Because he's an accountant, he was not impressed. Like the 39 00:01:52,680 --> 00:01:54,560 Speaker 1: day that I was born, my mom was like, we're 40 00:01:54,560 --> 00:01:56,880 Speaker 1: having the baby on the thirtieth fifth June. You better 41 00:01:56,880 --> 00:02:00,680 Speaker 1: come on over because I'm in labor. And my Dad's like, girl, 42 00:02:00,760 --> 00:02:05,600 Speaker 1: it's eo fy not wait, And Mum was like, nobody waits. 43 00:02:05,920 --> 00:02:08,680 Speaker 1: No anyway, it's so good to have you here because 44 00:02:08,720 --> 00:02:10,680 Speaker 1: now we can chat through all the stuff that you've 45 00:02:10,680 --> 00:02:14,480 Speaker 1: been thinking about, or let's be real, probably quietly stressing 46 00:02:14,639 --> 00:02:17,960 Speaker 1: over ahead of tax time, plus maybe some learnings from 47 00:02:18,000 --> 00:02:20,519 Speaker 1: the hustle. For example, did you know that soul traders 48 00:02:20,520 --> 00:02:22,920 Speaker 1: are spending an average of six hours a week and 49 00:02:23,000 --> 00:02:25,960 Speaker 1: up to four grand a year on tax and finance admin. 50 00:02:26,639 --> 00:02:30,160 Speaker 3: That's mind boggling, but also it kind of makes sense. Yeah, 51 00:02:30,200 --> 00:02:31,720 Speaker 3: it's one of those things you want to get right. 52 00:02:31,840 --> 00:02:34,040 Speaker 3: I think, especially when you are like me and you're 53 00:02:34,080 --> 00:02:37,280 Speaker 3: a baby business owner, it pays to do it well. 54 00:02:37,280 --> 00:02:40,720 Speaker 1: Literally, and so many of us in our community are like, no, 55 00:02:41,240 --> 00:02:43,960 Speaker 1: Like I don't have accounting software, I haven't organized anything 56 00:02:44,000 --> 00:02:47,200 Speaker 1: because I just got my spreadsheet. But how long is 57 00:02:47,240 --> 00:02:50,720 Speaker 1: that taking you to organize? At what cost? Is my 58 00:02:50,800 --> 00:02:54,440 Speaker 1: favorite question? At the moment everything in business. At the moment, 59 00:02:54,440 --> 00:02:56,840 Speaker 1: I go, that's a great idea, Jess, at what cost 60 00:02:56,919 --> 00:02:58,840 Speaker 1: can we implement it? And I just think that's a 61 00:02:58,880 --> 00:03:01,359 Speaker 1: good thing to keep in mind, and arguably that's just 62 00:03:01,400 --> 00:03:03,400 Speaker 1: the tip of the iceberg. When we get back from 63 00:03:03,440 --> 00:03:05,880 Speaker 1: this really quick break, we'll be sharing stats on just 64 00:03:05,919 --> 00:03:08,040 Speaker 1: how much money you might be leaving on the table 65 00:03:08,080 --> 00:03:14,400 Speaker 1: at tax time. My friends, welcome back to She's on 66 00:03:14,400 --> 00:03:16,560 Speaker 1: the Money, the podcast that's shining a light on your 67 00:03:16,600 --> 00:03:19,360 Speaker 1: tax time questions, both the things that you're worried about 68 00:03:19,400 --> 00:03:21,880 Speaker 1: out loud and the stuff that you're arguably too shy 69 00:03:21,919 --> 00:03:22,920 Speaker 1: to ask your accountant. 70 00:03:23,000 --> 00:03:26,040 Speaker 3: Speaking of which, the recent announcements around CDT and the 71 00:03:26,120 --> 00:03:27,840 Speaker 3: change in this year's budget have got a lot of 72 00:03:27,880 --> 00:03:30,600 Speaker 3: the community members reaching out and asking what that means, 73 00:03:30,600 --> 00:03:32,560 Speaker 3: what that might look like for them. Can you give 74 00:03:32,639 --> 00:03:33,600 Speaker 3: us a little bit of an update. 75 00:03:33,720 --> 00:03:36,360 Speaker 1: Obviously, because I was there, I went to the budget 76 00:03:36,440 --> 00:03:39,040 Speaker 1: because I am a really cool person. 77 00:03:39,200 --> 00:03:40,720 Speaker 3: She was bits on the ground reporting for you. 78 00:03:40,800 --> 00:03:44,160 Speaker 1: When cool people go to the budget, everybody else I 79 00:03:44,200 --> 00:03:46,640 Speaker 1: went to Taylor Swift. Me I went to the budget. 80 00:03:46,680 --> 00:03:47,400 Speaker 3: It's pretty cool. 81 00:03:47,440 --> 00:03:49,560 Speaker 1: But I also did go to Taylor Swift, so maybe 82 00:03:49,600 --> 00:03:52,800 Speaker 1: I am actually cool. And of course, so first of all, 83 00:03:52,840 --> 00:03:55,120 Speaker 1: we're going to cover some of the I guess, juicy 84 00:03:55,160 --> 00:03:58,320 Speaker 1: federal budget stuff. Then the new incentives that I really 85 00:03:58,320 --> 00:04:00,440 Speaker 1: want you to keep an eye out for. Soh while 86 00:04:00,480 --> 00:04:03,880 Speaker 1: these announcements, it's important to remember this, they are not 87 00:04:04,080 --> 00:04:07,360 Speaker 1: legislated yet, they aren't likely to affect your tax this 88 00:04:07,480 --> 00:04:10,080 Speaker 1: financial year. So the one ending on the thirtieth of 89 00:04:10,160 --> 00:04:12,880 Speaker 1: June twenty twenty six, they could potentially impact things like 90 00:04:12,960 --> 00:04:17,520 Speaker 1: capital gains claims that you have next year. So exactly so, 91 00:04:17,640 --> 00:04:21,080 Speaker 1: during this tax return, the current capital gains tax rules 92 00:04:21,120 --> 00:04:24,120 Speaker 1: still apply, which is very nice. So if you sold 93 00:04:24,120 --> 00:04:26,640 Speaker 1: an asset and made a profit on it before June thirty, 94 00:04:26,720 --> 00:04:29,480 Speaker 1: twenty twenty six, and you'd owned it for at least 95 00:04:29,560 --> 00:04:32,080 Speaker 1: a year, so a minimum of one year, you'd still 96 00:04:32,120 --> 00:04:36,320 Speaker 1: get a fifty percent CGT discount or CGT exemption. And 97 00:04:36,360 --> 00:04:39,279 Speaker 1: this is going to affect things like property and shares 98 00:04:39,400 --> 00:04:42,440 Speaker 1: and your ETFs. Now, many of you in our community 99 00:04:42,440 --> 00:04:45,400 Speaker 1: have asked how shares and ETFs are taxed. Good question, 100 00:04:45,480 --> 00:04:48,599 Speaker 1: and I'll say that if you haven't already, please go 101 00:04:48,680 --> 00:04:51,400 Speaker 1: back and listen to our recently released episode that is 102 00:04:51,760 --> 00:04:54,920 Speaker 1: entirely dedicated on how these assets are taxed. Because again 103 00:04:55,000 --> 00:04:57,320 Speaker 1: I told you, I'm real cool, Like the content I 104 00:04:57,400 --> 00:05:02,320 Speaker 1: create is for the girls, yeap. You'll learn about dividends, franking, credits, 105 00:05:02,320 --> 00:05:06,400 Speaker 1: we talked about distributions where basically current CGT rules apply 106 00:05:06,600 --> 00:05:08,960 Speaker 1: to all of those assets too. And if you've been 107 00:05:09,000 --> 00:05:12,200 Speaker 1: investing on platforms like Shares's, you can expect a statement 108 00:05:12,279 --> 00:05:14,279 Speaker 1: to be sent to you with all of the important 109 00:05:14,279 --> 00:05:16,840 Speaker 1: information that you need in a few months time, and 110 00:05:16,880 --> 00:05:20,960 Speaker 1: I say usually September, because this stuff doesn't come out immediately. 111 00:05:21,400 --> 00:05:23,720 Speaker 1: And if you're investing for the very first time, es, 112 00:05:23,920 --> 00:05:25,919 Speaker 1: I think you went through this as well. You were like, 113 00:05:26,160 --> 00:05:28,240 Speaker 1: I'm a galie that has my ducks in a row, 114 00:05:28,400 --> 00:05:31,200 Speaker 1: Like I do my tax on the first of July obviously, 115 00:05:31,760 --> 00:05:34,120 Speaker 1: but once you start investing, you've actually got a wait 116 00:05:34,160 --> 00:05:36,240 Speaker 1: for your investing platform to get their ducks in a 117 00:05:36,279 --> 00:05:39,599 Speaker 1: row and calculate all of your earnings and stuff like 118 00:05:39,600 --> 00:05:42,240 Speaker 1: that and then send you a tax report, so you 119 00:05:42,279 --> 00:05:45,480 Speaker 1: can't do your tax until you have that piece of content. 120 00:05:45,960 --> 00:05:49,840 Speaker 1: But any shares or ets that you purchase after the 121 00:05:49,880 --> 00:05:53,640 Speaker 1: first of July this year, they actually might be affected 122 00:05:53,760 --> 00:05:56,480 Speaker 1: by this new budget update because they will fall into 123 00:05:56,560 --> 00:06:01,360 Speaker 1: next year's tax right, Like, I don't know if it's 124 00:06:01,360 --> 00:06:03,520 Speaker 1: confusing that it is confusing if it's new to you, 125 00:06:03,960 --> 00:06:07,600 Speaker 1: where the CGT exemption is going to be based on 126 00:06:07,680 --> 00:06:11,279 Speaker 1: inflation plus then a minimum of thirty percent tax on 127 00:06:11,400 --> 00:06:14,440 Speaker 1: gains from the first of July twenty twenty seven. Again, 128 00:06:15,080 --> 00:06:19,599 Speaker 1: that's not legislated yet, but I can't see it not 129 00:06:19,640 --> 00:06:22,200 Speaker 1: becoming legislated. Yeah, sadly, but. 130 00:06:22,360 --> 00:06:25,320 Speaker 3: You're already investing. You understand it is important to remain 131 00:06:25,400 --> 00:06:28,400 Speaker 3: level headed and not make any impulsive decisions just because 132 00:06:28,400 --> 00:06:29,800 Speaker 3: we're at the end of the TAXI now right. 133 00:06:30,240 --> 00:06:33,400 Speaker 1: Yeah, better said than done. Like, I still get stressy 134 00:06:33,400 --> 00:06:35,560 Speaker 1: about my investments, and I think that's important to talk 135 00:06:35,600 --> 00:06:38,359 Speaker 1: about too, But yes, we do need to remain I 136 00:06:38,400 --> 00:06:42,880 Speaker 1: guess quite level headed. Level Headed's not how I would 137 00:06:42,960 --> 00:06:47,120 Speaker 1: explain me. But remember that this is just another market 138 00:06:47,160 --> 00:06:49,840 Speaker 1: factor that might play into things. If your strategy is 139 00:06:49,920 --> 00:06:52,640 Speaker 1: to be playing the long game. Who knows what might 140 00:06:52,680 --> 00:06:55,719 Speaker 1: happen jess in like five or ten years. Like, it's 141 00:06:55,760 --> 00:06:58,239 Speaker 1: not all doom and gloom, And a lot of people 142 00:06:58,240 --> 00:07:00,640 Speaker 1: have been saying things like, oh, well, is it investing 143 00:07:00,680 --> 00:07:04,599 Speaker 1: still yes, Like, yes, the tax system is changing, Yes 144 00:07:04,680 --> 00:07:07,760 Speaker 1: it might be more or less beneficial for you, but 145 00:07:07,920 --> 00:07:12,080 Speaker 1: the premise of investing still exists, Like we are creating 146 00:07:12,160 --> 00:07:15,640 Speaker 1: money that will compound and create a better financial future 147 00:07:15,680 --> 00:07:18,360 Speaker 1: for us. And that I guess that lesson and that 148 00:07:18,520 --> 00:07:21,680 Speaker 1: idea still exists and is still true. Not all doom 149 00:07:21,720 --> 00:07:23,960 Speaker 1: and gloom. You'll also be getting some new claiming power 150 00:07:24,400 --> 00:07:28,840 Speaker 1: in next year's tax return, including an instant tax deduction 151 00:07:28,880 --> 00:07:30,960 Speaker 1: of one thousand dollars. That's so good money in. 152 00:07:31,120 --> 00:07:33,640 Speaker 3: That sounds pretty attractive. Apparently it's meant to make tax 153 00:07:33,680 --> 00:07:36,880 Speaker 3: time simpler, more straightforward to the everyday person, where you 154 00:07:36,920 --> 00:07:39,280 Speaker 3: can just knock one thousand dollars off of your income 155 00:07:39,400 --> 00:07:41,600 Speaker 3: without having to provide any receipts and that will be 156 00:07:41,720 --> 00:07:45,000 Speaker 3: for your twenty twenty six twenty twenty seven return exactly. 157 00:07:45,280 --> 00:07:47,440 Speaker 3: Who knows, maybe it'll chip away at those six hours 158 00:07:47,440 --> 00:07:49,360 Speaker 3: we're spending on financial admin every week. 159 00:07:49,440 --> 00:07:52,920 Speaker 1: Well, hopefully people actually get their stuff together and get 160 00:07:52,920 --> 00:07:54,800 Speaker 1: a new system that makes sense for them so that 161 00:07:54,800 --> 00:07:57,120 Speaker 1: they're not spending all of that time on there. Six 162 00:07:57,200 --> 00:08:00,280 Speaker 1: hours is insane. Soul traders are spending that arguably and 163 00:08:00,320 --> 00:08:02,880 Speaker 1: some but you know you have your own business, Jess, 164 00:08:02,920 --> 00:08:05,280 Speaker 1: So what's on your radar come tax time. 165 00:08:05,720 --> 00:08:08,440 Speaker 3: I'm always looking a little bit ahead of time to 166 00:08:08,480 --> 00:08:11,640 Speaker 3: make sure that if I need to do any rejigging 167 00:08:11,960 --> 00:08:14,560 Speaker 3: because of tax brackets, because for someone like me, I 168 00:08:14,600 --> 00:08:17,840 Speaker 3: obviously have my time pyd job. Yeah big dot, I'm 169 00:08:17,840 --> 00:08:20,800 Speaker 3: doing right now. Hello, everybody, welcome to my full time jobs. 170 00:08:20,800 --> 00:08:22,720 Speaker 1: That kind of wild that both of us have quote 171 00:08:22,720 --> 00:08:24,760 Speaker 1: full time jobs and it's just us yapping on some 172 00:08:24,840 --> 00:08:27,040 Speaker 1: microphones just city on account, I mean, just does do 173 00:08:27,240 --> 00:08:29,440 Speaker 1: a lot more than that, but like for a few 174 00:08:29,480 --> 00:08:31,120 Speaker 1: hours a week, that's true. 175 00:08:31,200 --> 00:08:33,720 Speaker 3: We get to have fun in addition to that. Obviously, 176 00:08:33,920 --> 00:08:36,120 Speaker 3: within my business, I generate income there as well, which 177 00:08:36,240 --> 00:08:39,800 Speaker 3: means that this year, especially with my first time super Saver, 178 00:08:40,360 --> 00:08:42,840 Speaker 3: I'm teetering very close to the edge of a tax 179 00:08:42,880 --> 00:08:43,320 Speaker 3: bracket and. 180 00:08:43,320 --> 00:08:44,200 Speaker 1: It really nice. 181 00:08:44,760 --> 00:08:47,079 Speaker 3: I'm looking at, well, there may be purchases that I 182 00:08:47,160 --> 00:08:48,959 Speaker 3: need to make for my business that might help bring 183 00:08:49,120 --> 00:08:53,040 Speaker 3: my taxbill income down. Are there any contributions to super 184 00:08:53,240 --> 00:08:56,280 Speaker 3: or charity or things like that that might help to adjust. 185 00:08:56,400 --> 00:08:58,280 Speaker 3: You need to run the numbers. It's very dependent on 186 00:08:58,360 --> 00:09:00,480 Speaker 3: your situation. But if it's something that I planning on 187 00:09:00,559 --> 00:09:03,400 Speaker 3: buying anyway, I will often sit on it as long 188 00:09:03,440 --> 00:09:06,000 Speaker 3: as I can and nab it right before tax time. Yeah, 189 00:09:06,120 --> 00:09:07,640 Speaker 3: one because I can take advantage of the end of 190 00:09:07,720 --> 00:09:11,319 Speaker 3: financial year sales. And two because then I can run 191 00:09:11,400 --> 00:09:12,959 Speaker 3: the numbers and see if that can maybe put me 192 00:09:13,000 --> 00:09:14,880 Speaker 3: in a slightly more positive position. 193 00:09:15,120 --> 00:09:18,400 Speaker 1: Yeah, because I think that there's this really big misconception that, 194 00:09:18,960 --> 00:09:21,360 Speaker 1: oh my god, it's claimable on tax and then all 195 00:09:21,400 --> 00:09:23,599 Speaker 1: of a sudden. People just like have this mentality that 196 00:09:23,640 --> 00:09:26,000 Speaker 1: in a new laptop or the new standing desk is free, 197 00:09:26,400 --> 00:09:28,400 Speaker 1: and that's like not the case. You can just claim 198 00:09:28,480 --> 00:09:31,280 Speaker 1: back the tax on it if it's related to your business, 199 00:09:31,320 --> 00:09:33,400 Speaker 1: but you still have to outlay the money. It's still 200 00:09:33,440 --> 00:09:35,800 Speaker 1: real money that we're spending one hundred percent. 201 00:09:35,960 --> 00:09:37,439 Speaker 3: I need to keep in mind as well, like is 202 00:09:37,480 --> 00:09:40,760 Speaker 3: it claimable based on your industry too, So depending on 203 00:09:41,080 --> 00:09:43,640 Speaker 3: what your business is, what you're doing, you may be 204 00:09:43,800 --> 00:09:45,880 Speaker 3: entitled to certain things and not others. People who work 205 00:09:45,920 --> 00:09:48,360 Speaker 3: outdoors might be able to claim their sunscreen or theirs 206 00:09:48,360 --> 00:09:49,280 Speaker 3: sun protective gear. 207 00:09:49,600 --> 00:09:52,880 Speaker 1: Where you're a podcaster and you often spend a lot 208 00:09:52,920 --> 00:09:55,960 Speaker 1: of time in rooms with no windows, Yes, exactly right, 209 00:09:56,040 --> 00:09:56,560 Speaker 1: Probably not. 210 00:09:56,679 --> 00:09:59,360 Speaker 3: Right less applicable to those of us, And so it's 211 00:09:59,360 --> 00:10:02,599 Speaker 3: about knowing exactly what you can claim because again you 212 00:10:02,679 --> 00:10:04,880 Speaker 3: want to maximize it, but it's important that you're also 213 00:10:05,080 --> 00:10:05,840 Speaker 3: doing the right thing. 214 00:10:06,040 --> 00:10:07,760 Speaker 1: Did you know that if you're a gardener you can 215 00:10:07,840 --> 00:10:08,800 Speaker 1: claim garden gnomes? 216 00:10:09,600 --> 00:10:10,480 Speaker 3: That's very fun. 217 00:10:10,559 --> 00:10:12,319 Speaker 1: I did not know that if you're a farmer you 218 00:10:12,400 --> 00:10:13,280 Speaker 1: can claim your dog. 219 00:10:14,360 --> 00:10:16,560 Speaker 3: I'd almost become a farmer just to claim now, I rite. 220 00:10:16,440 --> 00:10:18,599 Speaker 1: But it's kind of crazy there are. And this is 221 00:10:18,640 --> 00:10:22,080 Speaker 1: why I always tell people not because of the dog content, 222 00:10:22,160 --> 00:10:25,160 Speaker 1: which arguably is really important, but if you are in 223 00:10:25,280 --> 00:10:29,120 Speaker 1: an industry where you know there are some niche things 224 00:10:29,200 --> 00:10:31,320 Speaker 1: going on, go to the at your website, there's very 225 00:10:31,600 --> 00:10:33,760 Speaker 1: likely a whole page on things you can and can't 226 00:10:33,840 --> 00:10:36,800 Speaker 1: claim because people ask a million questions and they actually 227 00:10:36,840 --> 00:10:39,079 Speaker 1: put up some really good blog posts. And I know 228 00:10:39,200 --> 00:10:41,679 Speaker 1: that sounds dry because their website is dry, and it 229 00:10:41,760 --> 00:10:45,120 Speaker 1: does look boring, but it can be really helpful, especially 230 00:10:45,120 --> 00:10:46,719 Speaker 1: if you're just trying to work out what's fair and 231 00:10:46,840 --> 00:10:49,800 Speaker 1: what's not. Let's sidetrack a little bit and just quickly, 232 00:10:50,240 --> 00:10:52,360 Speaker 1: can we talk about the difference between a business and 233 00:10:52,400 --> 00:10:55,520 Speaker 1: what the ATO class as a hobby. I think this 234 00:10:55,640 --> 00:10:58,240 Speaker 1: gets people a lot, Yeah, because I feel like this 235 00:10:58,360 --> 00:11:00,280 Speaker 1: comes up a lot and a lot of people are 236 00:11:00,320 --> 00:11:02,319 Speaker 1: a little bit confused. And I had a friend a 237 00:11:02,360 --> 00:11:05,280 Speaker 1: couple of years ago get stung by the ATO. They 238 00:11:05,360 --> 00:11:07,839 Speaker 1: got audited and they'd, you know, just taken up some 239 00:11:08,040 --> 00:11:10,640 Speaker 1: Uber for a little bit. Didn't like it. Only did 240 00:11:10,760 --> 00:11:12,960 Speaker 1: like two or three weeks of Uber driving, and they 241 00:11:13,000 --> 00:11:15,439 Speaker 1: were like, oh, I'll just claim it as as a hobby, 242 00:11:15,600 --> 00:11:17,920 Speaker 1: because like you know I wasn't claiming that much, but 243 00:11:18,000 --> 00:11:21,760 Speaker 1: it wasn't. It was genuinely income that she had derived 244 00:11:21,840 --> 00:11:26,040 Speaker 1: because she was trying to work anyway, so very quick refreshing, 245 00:11:26,120 --> 00:11:29,160 Speaker 1: my friends. A hobby is an activity that is conducted 246 00:11:29,280 --> 00:11:32,480 Speaker 1: in your spare time for recreation or pleasure. 247 00:11:32,679 --> 00:11:34,679 Speaker 3: I play ultimate frisbee. That is a hobby. 248 00:11:34,920 --> 00:11:38,040 Speaker 1: That is a niche piece of information about Jess as well. 249 00:11:38,280 --> 00:11:41,000 Speaker 3: At a niche hobby, one might say like, like, when 250 00:11:41,080 --> 00:11:41,520 Speaker 3: you look. 251 00:11:41,400 --> 00:11:46,080 Speaker 1: At Jess, you go sunshine and rainbows and really beautiful things, 252 00:11:46,360 --> 00:11:49,000 Speaker 1: and she's fighting you out on the frisbee field in 253 00:11:49,240 --> 00:11:51,559 Speaker 1: the pouring rain in the middle of a July like 254 00:11:51,679 --> 00:11:55,920 Speaker 1: it's crazy. It's crazy anyway. A business is something that 255 00:11:56,320 --> 00:11:59,760 Speaker 1: comes with tax and legal implications, and it often involves 256 00:12:00,440 --> 00:12:03,679 Speaker 1: the intent to make a profit or a genuine belief 257 00:12:03,760 --> 00:12:06,640 Speaker 1: that you are going to make a profit from that activity, 258 00:12:06,720 --> 00:12:09,679 Speaker 1: even if you're unlikely to do so in the short term. 259 00:12:09,880 --> 00:12:12,240 Speaker 3: I make content on the internet. That is a business. 260 00:12:12,840 --> 00:12:15,959 Speaker 1: Unfortunately it is. I would love for you to not 261 00:12:16,080 --> 00:12:18,040 Speaker 1: pay tax on the income that you make from that, 262 00:12:18,760 --> 00:12:22,160 Speaker 1: but you do, and you do it properly. But the 263 00:12:22,280 --> 00:12:25,280 Speaker 1: decision to start a business or operate in a business 264 00:12:25,480 --> 00:12:28,600 Speaker 1: like manner means that you would register a business name 265 00:12:28,679 --> 00:12:33,120 Speaker 1: and obtain an ABN. Now that's an interesting kind of 266 00:12:33,240 --> 00:12:36,079 Speaker 1: like that's what the ATO says. But a lot of 267 00:12:36,160 --> 00:12:38,839 Speaker 1: people are getting stung because they're doing hobbies and like 268 00:12:39,000 --> 00:12:42,319 Speaker 1: maybe making baby blankets and selling them on Etsy and 269 00:12:42,480 --> 00:12:44,640 Speaker 1: taking custom orders. And then you go, well, it's just 270 00:12:44,679 --> 00:12:48,240 Speaker 1: a hobby. Oh, you established a whole Etsy store. Now 271 00:12:48,280 --> 00:12:51,400 Speaker 1: you're selling the baby blankets and taking custom orders. Like, girl, 272 00:12:51,440 --> 00:12:53,040 Speaker 1: it's not really a hobby. That's a business. 273 00:12:53,320 --> 00:12:55,320 Speaker 3: That's where the intent comes in, right. It's like, well, 274 00:12:55,360 --> 00:12:58,200 Speaker 3: if you're doing something with the intention of making money, 275 00:12:58,520 --> 00:13:01,319 Speaker 3: even if you haven't got the ABM, Yeah, the intentions 276 00:13:01,360 --> 00:13:01,760 Speaker 3: still there. 277 00:13:01,920 --> 00:13:04,720 Speaker 1: Yeah, and it could be flagged. And nowadays with data 278 00:13:04,760 --> 00:13:09,920 Speaker 1: matching and honestly, I want to say how crazy AI is, 279 00:13:10,240 --> 00:13:12,800 Speaker 1: Like the ATO is really tapping into that and how 280 00:13:12,880 --> 00:13:16,400 Speaker 1: to scrape the internet for information on how Jessica Ritchie 281 00:13:16,559 --> 00:13:19,440 Speaker 1: like derives her income and like, I have seen cases 282 00:13:19,720 --> 00:13:23,480 Speaker 1: where influencers have declared a certain thing on their tax 283 00:13:23,559 --> 00:13:27,439 Speaker 1: return and then the ato's gone back and been like, 284 00:13:27,520 --> 00:13:31,040 Speaker 1: that's interesting. You had a whole trip to Disneyland that 285 00:13:31,240 --> 00:13:34,599 Speaker 1: was paid for. Where's that yeah, and I kid you 286 00:13:34,760 --> 00:13:38,480 Speaker 1: not that that has happened. So I'm obviously this isn't 287 00:13:38,520 --> 00:13:42,800 Speaker 1: targeted at just you know, influencers, but the everyday person 288 00:13:43,040 --> 00:13:45,600 Speaker 1: is being scraped by the data as well. And they 289 00:13:45,720 --> 00:13:49,280 Speaker 1: might highlight something, but if they audit you, jess, they're 290 00:13:49,320 --> 00:13:51,120 Speaker 1: not going to be like, oh, we saw the Disneyland trip, 291 00:13:51,160 --> 00:13:53,959 Speaker 1: where's that? That comes up later. They're just going to go, hey, 292 00:13:54,080 --> 00:13:57,640 Speaker 1: you're being audited proof receipts, yeah, and then that conversation 293 00:13:57,760 --> 00:14:01,360 Speaker 1: comes later. Anyway, it also plays into they say on 294 00:14:01,480 --> 00:14:05,800 Speaker 1: the website that the repetition of similar types of activities 295 00:14:06,120 --> 00:14:09,480 Speaker 1: and the size and or scale of your activity is 296 00:14:09,559 --> 00:14:12,880 Speaker 1: consistent with other businesses in your industry. So you might go, well, no, 297 00:14:13,080 --> 00:14:15,319 Speaker 1: it's just a hobby for me, Like it's not. But 298 00:14:15,480 --> 00:14:19,400 Speaker 1: you're pouring just as many candles so somebody else who's 299 00:14:19,480 --> 00:14:23,360 Speaker 1: going to markets? And anyway, I feel like you're picking 300 00:14:23,440 --> 00:14:26,400 Speaker 1: up what I'm putting down, right. And also they say 301 00:14:26,480 --> 00:14:29,520 Speaker 1: that the activity is planned, organized and carried out in 302 00:14:29,600 --> 00:14:32,840 Speaker 1: a business like manner, with records, separate bank accounts, licenses, 303 00:14:32,920 --> 00:14:37,240 Speaker 1: qualifications or premises, which again I think is an interesting 304 00:14:37,320 --> 00:14:39,480 Speaker 1: one because I see so many people being picked up 305 00:14:39,520 --> 00:14:41,880 Speaker 1: and like, I don't see it individually. Yeah, I mean 306 00:14:42,080 --> 00:14:44,320 Speaker 1: people in our community come to me and go, oh 307 00:14:44,400 --> 00:14:46,280 Speaker 1: my gosh, v I got picked up by the ATO 308 00:14:46,360 --> 00:14:47,720 Speaker 1: for this. What do I do? And I'm like, well, 309 00:14:47,960 --> 00:14:50,360 Speaker 1: go talk to the ATO about that. But it is 310 00:14:50,560 --> 00:14:54,080 Speaker 1: happening in our community, is happening around and I think 311 00:14:54,120 --> 00:14:56,040 Speaker 1: it's just really important to be aware of it. So 312 00:14:56,160 --> 00:14:58,240 Speaker 1: even if you don't have a registered business name and 313 00:14:58,280 --> 00:15:00,960 Speaker 1: you don't have an ABN and you're not keeping clean records, 314 00:15:01,360 --> 00:15:04,840 Speaker 1: but they find that you are generating a profit, they 315 00:15:04,960 --> 00:15:07,240 Speaker 1: might come down on you like a ton of bricks, 316 00:15:07,240 --> 00:15:08,560 Speaker 1: and I'm just trying to save you from that. 317 00:15:08,800 --> 00:15:08,960 Speaker 2: Yeah. 318 00:15:09,160 --> 00:15:10,920 Speaker 3: That actually reminds me of another question that we've got, 319 00:15:11,120 --> 00:15:14,120 Speaker 3: which I think is a really common one for those 320 00:15:14,120 --> 00:15:15,880 Speaker 3: of us who are in the early days of our businesses. 321 00:15:16,000 --> 00:15:19,680 Speaker 3: Especially Let's say you're hustling hard, you're operating at a loss, 322 00:15:19,840 --> 00:15:21,800 Speaker 3: and you have absolutely no idea what to do at 323 00:15:21,840 --> 00:15:24,360 Speaker 3: tax time. Fair you ideally probably don't want to be 324 00:15:24,400 --> 00:15:26,480 Speaker 3: paying for an accountant, as much as they're valuable, because 325 00:15:26,480 --> 00:15:28,360 Speaker 3: if you're operating at a loss, you haven't got a 326 00:15:28,400 --> 00:15:29,440 Speaker 3: lot of cash flow. 327 00:15:29,360 --> 00:15:30,960 Speaker 1: You already feel like you're bleeding money. 328 00:15:30,880 --> 00:15:32,800 Speaker 3: One hundred percent? Are there other things that you could 329 00:15:32,840 --> 00:15:33,480 Speaker 3: maybe consider. 330 00:15:33,760 --> 00:15:36,280 Speaker 1: So while you don't need to technically keep records for 331 00:15:36,360 --> 00:15:38,320 Speaker 1: the ATO, if what you're doing is more of a hobby, 332 00:15:38,640 --> 00:15:41,040 Speaker 1: I would say it's just good practice to keep records 333 00:15:41,280 --> 00:15:45,080 Speaker 1: just in case your circumstances change. So setting up systems 334 00:15:45,120 --> 00:15:47,120 Speaker 1: and programs can help you stay on top of business 335 00:15:47,200 --> 00:15:50,800 Speaker 1: admin and obviously reduce that six hours per week's stat. 336 00:15:51,440 --> 00:15:54,360 Speaker 1: It can help you manage invoicing and getting paid on time. 337 00:15:54,640 --> 00:15:57,360 Speaker 1: It can help you better manage unpredictable earning with I 338 00:15:57,400 --> 00:16:01,120 Speaker 1: guess clever budgeting and cash flow tools. And I would 339 00:16:01,160 --> 00:16:05,479 Speaker 1: say keep receipts for literally everything you might think is eligible, 340 00:16:05,960 --> 00:16:08,760 Speaker 1: like just track it because it might be And like 341 00:16:08,960 --> 00:16:11,120 Speaker 1: from little things, big things grow. I say that on 342 00:16:11,200 --> 00:16:13,560 Speaker 1: the podcast all the time. I know it was just 343 00:16:13,640 --> 00:16:16,480 Speaker 1: a quick, sneaky office works trip and you only spend 344 00:16:16,560 --> 00:16:19,240 Speaker 1: twenty dollars, but how often do you do that and 345 00:16:19,360 --> 00:16:22,080 Speaker 1: how much does that add up? Like those things do 346 00:16:22,400 --> 00:16:26,200 Speaker 1: genuinely make a difference come tax time. Absolutely, And besides, 347 00:16:26,240 --> 00:16:28,280 Speaker 1: you's being a good habit as well. It's a nice 348 00:16:28,280 --> 00:16:29,880 Speaker 1: way to see your progress, Like don't you want that 349 00:16:29,920 --> 00:16:33,440 Speaker 1: little dopamine hit. I do, like I love having and 350 00:16:33,560 --> 00:16:35,600 Speaker 1: I mean I've shared on the podcast before that I 351 00:16:35,720 --> 00:16:37,360 Speaker 1: take photos of all my receipts and I have a 352 00:16:37,400 --> 00:16:39,520 Speaker 1: whole album on my phone of the receipts that I have, 353 00:16:39,960 --> 00:16:43,080 Speaker 1: which is obviously really cool girl behavior. Yeah, like cool 354 00:16:43,120 --> 00:16:46,480 Speaker 1: girl behavior, but like it's a dopamine hit to see 355 00:16:46,520 --> 00:16:50,040 Speaker 1: that I'm organized. We also love a self employed queen. 356 00:16:50,120 --> 00:16:51,760 Speaker 1: But with all the freedom that you have as a 357 00:16:51,800 --> 00:16:58,000 Speaker 1: self employed queen, Miss jessic Ricci, comes huge responsibility as well. Unfortunately, yes, sorry, 358 00:16:58,160 --> 00:17:01,360 Speaker 1: So that's why it is so important to just stay organized, 359 00:17:01,480 --> 00:17:04,320 Speaker 1: because if it's not for the progress, it's for the 360 00:17:04,520 --> 00:17:09,199 Speaker 1: receipts and es. According to a twenty twenty five Pulse survey, 361 00:17:09,720 --> 00:17:12,960 Speaker 1: Henry also found that almost half of all sole traders 362 00:17:13,000 --> 00:17:17,399 Speaker 1: with business expenses don't claim them all. Almost half. That 363 00:17:18,240 --> 00:17:21,240 Speaker 1: is nuts to me, literally, and if you do the 364 00:17:21,359 --> 00:17:25,520 Speaker 1: maths on that, that's like foregoing something like three eight 365 00:17:25,640 --> 00:17:29,159 Speaker 1: hundred and fifty six dollars per year in expense claims alone. 366 00:17:29,400 --> 00:17:31,280 Speaker 3: I don't feel good about that. I know that it's 367 00:17:31,320 --> 00:17:35,560 Speaker 3: such so much money. That's so much money, especially again 368 00:17:35,600 --> 00:17:37,560 Speaker 3: in the early days of the business. If you're operating 369 00:17:37,600 --> 00:17:40,200 Speaker 3: on a very small profit, or you know you're looking 370 00:17:40,240 --> 00:17:42,720 Speaker 3: at maybe taking loss that that money is a huge 371 00:17:42,800 --> 00:17:46,000 Speaker 3: difference potentially, And even if it's not claimable now, if 372 00:17:46,040 --> 00:17:47,920 Speaker 3: you're thinking, I'm operating at a loss, what does that 373 00:17:47,960 --> 00:17:50,359 Speaker 3: look like for me? You might be able to offset 374 00:17:50,440 --> 00:17:54,000 Speaker 3: future income if it's totally now. It's all going to 375 00:17:54,040 --> 00:17:57,400 Speaker 3: depend on your personal circumstances. But I just think keep 376 00:17:57,480 --> 00:17:59,560 Speaker 3: the records because you never know, Like if you owe 377 00:17:59,600 --> 00:18:02,919 Speaker 3: a small business, maybe one day somebody mentions your product 378 00:18:03,240 --> 00:18:05,240 Speaker 3: and you sell out the next day, or maybe you 379 00:18:05,320 --> 00:18:07,600 Speaker 3: go to a market and you find your target audience, 380 00:18:07,640 --> 00:18:10,200 Speaker 3: like you just never know. You don't want to get 381 00:18:10,200 --> 00:18:14,680 Speaker 3: to tax time. And on Victoria Devine's birthday, this scrambling. 382 00:18:14,080 --> 00:18:16,080 Speaker 1: Dame, we want to have a good birthday. 383 00:18:16,280 --> 00:18:18,159 Speaker 3: All the receipts and the things that you all of 384 00:18:18,200 --> 00:18:20,560 Speaker 3: a sudden now are eligible to claim exactly. 385 00:18:20,720 --> 00:18:24,119 Speaker 1: And it's funny because like, our community is listening to 386 00:18:24,200 --> 00:18:27,200 Speaker 1: this episode, and I'm pretty sure that's not our community. 387 00:18:27,320 --> 00:18:29,600 Speaker 1: I'm pretty sure that's people who don't keep records and 388 00:18:29,680 --> 00:18:32,320 Speaker 1: don't listen to finance podcasts to put themselves in the 389 00:18:32,320 --> 00:18:35,119 Speaker 1: best possible position, Like our queens are listening to this 390 00:18:35,280 --> 00:18:37,960 Speaker 1: content to get ahead, so they're probably already doing that, 391 00:18:38,520 --> 00:18:40,879 Speaker 1: but it's a good reminder that the little things just 392 00:18:41,080 --> 00:18:43,359 Speaker 1: really do add up. All Right, We're going to take 393 00:18:43,359 --> 00:18:45,679 Speaker 1: a really quick break, but when we return, we're talking 394 00:18:45,880 --> 00:18:48,399 Speaker 1: about claims and how to make sure that you aren't 395 00:18:48,560 --> 00:18:56,480 Speaker 1: the one missing out come tax time. Our one thousandth 396 00:18:56,640 --> 00:18:59,359 Speaker 1: episode is coming up soon, and to celebrate, we're giving 397 00:18:59,400 --> 00:19:02,480 Speaker 1: one clever who listener a chance to win. She's stashed 398 00:19:02,640 --> 00:19:08,360 Speaker 1: the cash. Today's mystery word is together. Tune into episodes 399 00:19:08,400 --> 00:19:10,760 Speaker 1: of She's on the Money between the seventeenth of June 400 00:19:10,800 --> 00:19:12,960 Speaker 1: and the third of July and listen out for the 401 00:19:13,040 --> 00:19:15,760 Speaker 1: hidden code words. They are are five in total. The 402 00:19:15,880 --> 00:19:18,360 Speaker 1: first person to arrange the code words in the correct 403 00:19:18,520 --> 00:19:22,280 Speaker 1: order will win one thousand dollars. Entries open on Friday, 404 00:19:22,320 --> 00:19:25,200 Speaker 1: the third of July, with details shared live on the pod. 405 00:19:25,640 --> 00:19:28,360 Speaker 1: Good luck and happy hunting, my friends. We are back 406 00:19:28,440 --> 00:19:31,200 Speaker 1: and we are jumping straight into the juicy part, the 407 00:19:31,280 --> 00:19:34,040 Speaker 1: part that we honestly usually go to a professional for, 408 00:19:34,240 --> 00:19:37,879 Speaker 1: and that is claims. What's tax deductible and what can 409 00:19:37,960 --> 00:19:43,000 Speaker 1: you actually claim? Good question, It actually depends. I know 410 00:19:43,280 --> 00:19:46,240 Speaker 1: you hate when I say that. It all depends on 411 00:19:46,320 --> 00:19:50,639 Speaker 1: your total taxable income, your industry, and your occupation. And 412 00:19:50,760 --> 00:19:54,199 Speaker 1: there are honestly so many decent resources out there if 413 00:19:54,240 --> 00:19:56,800 Speaker 1: you've ever been curious about I guess what you can 414 00:19:56,920 --> 00:19:58,480 Speaker 1: claim in your field of work. 415 00:19:59,160 --> 00:20:01,280 Speaker 3: One of the this is actually recommended when we put 416 00:20:01,320 --> 00:20:04,159 Speaker 3: out for questions that there's some claims resources on the 417 00:20:04,200 --> 00:20:04,879 Speaker 3: Henry website. 418 00:20:05,560 --> 00:20:07,520 Speaker 1: And it's like really aesthetic. You know how I was 419 00:20:07,720 --> 00:20:11,400 Speaker 1: telling you that the Atio website sucks. Henry's website doesn't suck. 420 00:20:11,520 --> 00:20:13,600 Speaker 3: There you go, You've got that, You've got the Atier website. 421 00:20:13,600 --> 00:20:15,399 Speaker 3: They've got some really good examples of what you might 422 00:20:15,520 --> 00:20:17,280 Speaker 3: or might not be able to claim as well. And 423 00:20:17,359 --> 00:20:19,919 Speaker 3: I think there's a pretty active Atier community. You can 424 00:20:19,960 --> 00:20:24,200 Speaker 3: actually post questions forum. Yes, it's giving, that's where the 425 00:20:24,280 --> 00:20:27,840 Speaker 3: cool girls hang out, giving early two thousands. I'm loving it. 426 00:20:28,000 --> 00:20:30,040 Speaker 3: And you can hear what other people are claiming. And 427 00:20:30,119 --> 00:20:32,320 Speaker 3: I believe you might also be able to access experts 428 00:20:32,359 --> 00:20:32,880 Speaker 3: there as well. 429 00:20:33,119 --> 00:20:35,440 Speaker 1: Absolutely, And I want to be really juicy. I was 430 00:20:35,520 --> 00:20:38,480 Speaker 1: talking about this on an Instagram story a little while 431 00:20:38,560 --> 00:20:41,199 Speaker 1: ago because people were asking me like, oh, hey, how 432 00:20:41,240 --> 00:20:42,640 Speaker 1: do you get paid for that? Like you know, when 433 00:20:42,640 --> 00:20:44,639 Speaker 1: I do a Q and a box. Yes, And I 434 00:20:44,800 --> 00:20:47,160 Speaker 1: was doing a Q and a box about the food 435 00:20:47,240 --> 00:20:49,240 Speaker 1: that I was eating and they were like, how do 436 00:20:49,320 --> 00:20:51,360 Speaker 1: you get paid? And I was like, all right, sit down, queen, 437 00:20:51,400 --> 00:20:53,359 Speaker 1: I'll tell you, like I am an open book and 438 00:20:53,440 --> 00:20:56,000 Speaker 1: it's your turn. Okay, because you do a little bit 439 00:20:56,040 --> 00:20:58,119 Speaker 1: of like social posting, and I don't know, is it 440 00:20:58,240 --> 00:21:00,600 Speaker 1: rude to call people an influencer cause you're so much 441 00:21:00,640 --> 00:21:02,719 Speaker 1: more than just somebody who does content. 442 00:21:03,160 --> 00:21:05,560 Speaker 3: A content creator is my term of choice. Okay, I 443 00:21:05,640 --> 00:21:06,840 Speaker 3: did like business women earlier. 444 00:21:07,119 --> 00:21:10,119 Speaker 1: Okay, just identialize as a business woman. And because you're 445 00:21:10,160 --> 00:21:12,679 Speaker 1: a business woman, you post like some reels and get 446 00:21:12,720 --> 00:21:15,159 Speaker 1: paid for that. Can you then claim everything that you 447 00:21:15,280 --> 00:21:17,000 Speaker 1: buy for a shoot? I wish? 448 00:21:17,560 --> 00:21:21,800 Speaker 3: I know, right, It's very much dependent on again, what 449 00:21:21,960 --> 00:21:25,000 Speaker 3: you're doing, you know, for a real is it directly 450 00:21:25,080 --> 00:21:29,240 Speaker 3: related to generating the income? And more specifically, am I 451 00:21:29,440 --> 00:21:32,840 Speaker 3: only using it for business purposes? Yes? So for example, 452 00:21:32,920 --> 00:21:34,520 Speaker 3: if I was doing a cute little outfit of the 453 00:21:34,600 --> 00:21:38,480 Speaker 3: day video, I'm not claiming my outfit because I'm wearing 454 00:21:38,520 --> 00:21:40,680 Speaker 3: that outfit in my day to day life. It's not 455 00:21:40,800 --> 00:21:44,440 Speaker 3: really for business purposes. Whereas if I was required to 456 00:21:44,720 --> 00:21:46,800 Speaker 3: turn up to a shoot, and I needed a very 457 00:21:46,920 --> 00:21:50,720 Speaker 3: specific item. Let's say I need a bunny costume. Yeah, 458 00:21:50,720 --> 00:21:52,840 Speaker 3: I'm never gonna use that bunny costume again. I'm picturing 459 00:21:52,840 --> 00:21:53,960 Speaker 3: Elwoods in her little ears. 460 00:21:54,400 --> 00:21:56,840 Speaker 1: Oh I could make that happen for She's on the money. 461 00:21:57,119 --> 00:21:59,800 Speaker 1: If you want it, we'll talk later. 462 00:22:00,119 --> 00:22:02,200 Speaker 3: Yeah. But I needed this very specific item that I 463 00:22:02,280 --> 00:22:04,440 Speaker 3: was only going to use for this very specific shoot. 464 00:22:04,760 --> 00:22:05,760 Speaker 3: Then it may be claimable. 465 00:22:05,920 --> 00:22:09,080 Speaker 1: Yeah yeah, but only the tax of that is claimable. 466 00:22:09,359 --> 00:22:11,320 Speaker 1: So I think that's really important. And also I feel 467 00:22:11,320 --> 00:22:14,360 Speaker 1: like there's some like misconceptions floating around because people will 468 00:22:14,359 --> 00:22:18,040 Speaker 1: be like, oh, influencers claim everything. If you know an 469 00:22:18,080 --> 00:22:21,760 Speaker 1: influencer who is claiming everything, my friend, they're doing the 470 00:22:21,800 --> 00:22:24,560 Speaker 1: wrong thing. Yeah, So like just calling it out there. 471 00:22:24,640 --> 00:22:28,399 Speaker 1: I'm not talking about anybody specifically, but if you know 472 00:22:28,640 --> 00:22:32,240 Speaker 1: of somebody who's like, oh, I just claim everything, Actually 473 00:22:32,760 --> 00:22:36,080 Speaker 1: they're committing tax evasion, and that's just not how to 474 00:22:36,160 --> 00:22:38,320 Speaker 1: do it. That's not kosher. Like in this house, we 475 00:22:38,480 --> 00:22:40,520 Speaker 1: keep our claim records. We do the right thing, because 476 00:22:40,560 --> 00:22:43,480 Speaker 1: what goes around comes around. And I think that you know, 477 00:22:43,800 --> 00:22:46,640 Speaker 1: for individuals who are looking I guess for some low 478 00:22:46,840 --> 00:22:49,440 Speaker 1: hanging fruit, they're like Oh, but v I, you know, 479 00:22:49,560 --> 00:22:52,440 Speaker 1: have a payg job or you know I'm self employed, 480 00:22:52,640 --> 00:22:54,520 Speaker 1: Like I just I don't know what I can and 481 00:22:54,600 --> 00:22:59,280 Speaker 1: can't claim, like low hanging fruit sun protection if you 482 00:22:59,400 --> 00:23:01,439 Speaker 1: are and I'm always going to be the biggest advocate 483 00:23:01,520 --> 00:23:04,680 Speaker 1: for some protection, but some protection if you work outside 484 00:23:04,800 --> 00:23:06,720 Speaker 1: or you wear them at work to protect you from 485 00:23:06,760 --> 00:23:08,840 Speaker 1: the risk of sun damage. You can claim your sunscreen. 486 00:23:08,880 --> 00:23:11,960 Speaker 1: You can claim your hats. And if your total claim 487 00:23:12,000 --> 00:23:15,280 Speaker 1: for laundry expenses is one hundred and fifty dollars or 488 00:23:15,400 --> 00:23:18,480 Speaker 1: less excluding dry cleaning, so you're not allowed to claim 489 00:23:18,560 --> 00:23:21,240 Speaker 1: dry cleaning, you can actually claim a deduction without any 490 00:23:21,280 --> 00:23:21,960 Speaker 1: written evidence. 491 00:23:22,240 --> 00:23:22,520 Speaker 3: Love that. 492 00:23:22,960 --> 00:23:26,800 Speaker 1: Like if you're you know, laundering your uniform because you 493 00:23:26,880 --> 00:23:28,280 Speaker 1: work are hungry jacks. 494 00:23:28,080 --> 00:23:31,360 Speaker 3: Yep, claim it, claim it, get that money, that clean. 495 00:23:31,320 --> 00:23:33,480 Speaker 1: Exactly, and you would have to launder that because you 496 00:23:33,520 --> 00:23:37,160 Speaker 1: would come home every night probably like for ye exactly 497 00:23:37,280 --> 00:23:39,360 Speaker 1: and like that's hot, but not every day. 498 00:23:39,920 --> 00:23:40,080 Speaker 4: You know. 499 00:23:40,480 --> 00:23:43,240 Speaker 1: You could also, I think people don't know this and 500 00:23:43,320 --> 00:23:45,600 Speaker 1: this is a good one. Claim your accounting fees for 501 00:23:45,680 --> 00:23:48,560 Speaker 1: the previous year. So if you did engage an accountant 502 00:23:49,320 --> 00:23:51,800 Speaker 1: and you paid them next year, you can claim it. 503 00:23:52,119 --> 00:23:54,960 Speaker 1: So let's throw to our community, jess, what did they 504 00:23:55,080 --> 00:23:55,440 Speaker 1: want to know? 505 00:23:55,840 --> 00:23:58,520 Speaker 3: A bunch of people had questions about knowing when to 506 00:23:58,680 --> 00:24:01,119 Speaker 3: register a GST to avoid being fined, And we've all 507 00:24:01,119 --> 00:24:03,480 Speaker 3: had a bit of a giggle about this with Beck previously. 508 00:24:04,080 --> 00:24:07,400 Speaker 1: Yes, And I think the GST it feels so confusing 509 00:24:07,520 --> 00:24:10,359 Speaker 1: because they say it's voluntary, like they say on the thing, 510 00:24:10,480 --> 00:24:13,240 Speaker 1: like you don't have to like register for this yet, 511 00:24:13,280 --> 00:24:14,959 Speaker 1: and you go, okay, well I'm not going to if 512 00:24:15,000 --> 00:24:18,040 Speaker 1: I don't have to, but you actually have to at 513 00:24:18,040 --> 00:24:21,000 Speaker 1: a certain point. So when your business or your enterprise 514 00:24:21,640 --> 00:24:26,080 Speaker 1: has turnover, which is gross income from all business minus GST. Also, 515 00:24:26,200 --> 00:24:28,200 Speaker 1: do you know the easiest way? Like I always think 516 00:24:28,240 --> 00:24:30,200 Speaker 1: about this when I'm talking about gross or nets. I 517 00:24:30,240 --> 00:24:32,760 Speaker 1: can never remember which is which you can't No, okay, 518 00:24:33,119 --> 00:24:37,560 Speaker 1: So gross versus net. Gross income is what you would 519 00:24:37,600 --> 00:24:40,440 Speaker 1: have taken home if you didn't have to pay tax. 520 00:24:40,480 --> 00:24:42,120 Speaker 1: And it's gross to look at it because you don't 521 00:24:42,160 --> 00:24:45,879 Speaker 1: get it. Oh that's brilliant, right, So your gross income 522 00:24:46,160 --> 00:24:48,080 Speaker 1: that's gross because that's not what you get. 523 00:24:48,480 --> 00:24:49,200 Speaker 3: That's hilarious. 524 00:24:49,320 --> 00:24:52,640 Speaker 1: And net income I think of fishing and a net 525 00:24:52,720 --> 00:24:54,919 Speaker 1: and it's what you actually get to take home. Like, yea, 526 00:24:55,000 --> 00:24:56,600 Speaker 1: you know you look at the whole ocean, great, and 527 00:24:56,720 --> 00:24:58,560 Speaker 1: you scoop out of fish. That's the fish you get 528 00:24:58,640 --> 00:25:00,280 Speaker 1: to take home. What is in the net, It is 529 00:25:00,320 --> 00:25:03,639 Speaker 1: what is in your bank account. Oh, very clever from you, 530 00:25:03,840 --> 00:25:06,040 Speaker 1: whether that makes sense or not. But I just always 531 00:25:06,040 --> 00:25:08,640 Speaker 1: look at it. I'm like, ill, gross income is gross 532 00:25:08,760 --> 00:25:11,720 Speaker 1: because I don't get that because I've paid tax. 533 00:25:11,640 --> 00:25:13,440 Speaker 3: I could have been so much richer exactly. 534 00:25:13,520 --> 00:25:16,800 Speaker 1: Anyway, back on track, you do not have to register 535 00:25:17,000 --> 00:25:21,520 Speaker 1: for GST if your business earns under seventy five thousand dollars, 536 00:25:21,760 --> 00:25:24,440 Speaker 1: but if you do and you have a turnover of 537 00:25:24,560 --> 00:25:27,840 Speaker 1: more than seventy five thousand dollars in any twelve month period, 538 00:25:27,960 --> 00:25:31,200 Speaker 1: you have to consider registering. And even if you think 539 00:25:31,320 --> 00:25:34,080 Speaker 1: you might hit that like threshold later you're like, oh, 540 00:25:34,359 --> 00:25:37,000 Speaker 1: I'm not really doing that. I've been consistently doing maybe 541 00:25:37,040 --> 00:25:40,240 Speaker 1: sixty thousand dollars a year. I wouldn't wait. I would 542 00:25:40,280 --> 00:25:44,000 Speaker 1: say do it before you regret it later, because yes, 543 00:25:44,119 --> 00:25:46,760 Speaker 1: it may mean a little bit more admin like filing 544 00:25:46,800 --> 00:25:49,840 Speaker 1: a bas or business activity statement is what that is called, 545 00:25:49,880 --> 00:25:53,080 Speaker 1: every quarter, but it could prevent some really unwanted attention 546 00:25:53,200 --> 00:25:55,879 Speaker 1: from the taxman later on and also from more of 547 00:25:55,960 --> 00:25:58,520 Speaker 1: a is the word logistical point of view. And I've 548 00:25:58,600 --> 00:26:01,960 Speaker 1: always like done this myself, even if I wasn't earning 549 00:26:02,000 --> 00:26:05,000 Speaker 1: seventy five grand I want all my invoices it to 550 00:26:05,119 --> 00:26:08,480 Speaker 1: say that I'm charging GST because when I do tip 551 00:26:08,560 --> 00:26:11,440 Speaker 1: over that seventy five thousand dollar limit, I don't want 552 00:26:11,480 --> 00:26:12,760 Speaker 1: to have to go to my clients and be like 553 00:26:12,840 --> 00:26:16,080 Speaker 1: I'm now charging GST and like have to renegotiate things 554 00:26:16,119 --> 00:26:20,240 Speaker 1: because it does change what your clients have to pay, 555 00:26:20,520 --> 00:26:25,240 Speaker 1: Like GST is ten percent, and like when you're renegotiating invoices, Queen, 556 00:26:25,280 --> 00:26:27,920 Speaker 1: I want it to be because we're changing your bottom line, 557 00:26:28,080 --> 00:26:31,280 Speaker 1: not ah, the government wants more money. Like, let's just 558 00:26:31,320 --> 00:26:35,400 Speaker 1: set those expectations earlier. Also really important if you work 559 00:26:35,440 --> 00:26:37,720 Speaker 1: in the nonprofit sector, which very cool. We have a 560 00:26:37,760 --> 00:26:40,119 Speaker 1: fair few people in our community who do. If your 561 00:26:40,280 --> 00:26:43,520 Speaker 1: organization has a turnover of one hundred and fifty thousand 562 00:26:43,560 --> 00:26:46,119 Speaker 1: dollars per year or more, that's when you need to 563 00:26:46,160 --> 00:26:49,119 Speaker 1: register for GST. So they've got a different limit. And 564 00:26:49,280 --> 00:26:51,159 Speaker 1: as I mentioned earlier in this episode, I had a 565 00:26:51,200 --> 00:26:53,920 Speaker 1: friend who got stung for doing uber YEP. 566 00:26:54,560 --> 00:26:55,439 Speaker 3: So if you. 567 00:26:55,600 --> 00:27:00,320 Speaker 1: Provide ride share services. So if you do taxi or 568 00:27:00,359 --> 00:27:04,320 Speaker 1: limousines for passengers like Uber, you know, whatever you're on, 569 00:27:04,880 --> 00:27:07,159 Speaker 1: regardless of your turnover, whether it is a dollar or 570 00:27:07,200 --> 00:27:10,240 Speaker 1: a million dollars, you have to apply for GST. And 571 00:27:10,359 --> 00:27:13,480 Speaker 1: this applies to both owner drivers and if you lease 572 00:27:13,680 --> 00:27:15,800 Speaker 1: or rent a taxi. I didn't know that, which I 573 00:27:15,920 --> 00:27:19,399 Speaker 1: know leasing and renting a taxi isn't like that common 574 00:27:19,560 --> 00:27:22,240 Speaker 1: these days, no, but it's very good to know. And 575 00:27:22,640 --> 00:27:24,960 Speaker 1: if you're a door dasher, so like you're a dasher 576 00:27:25,040 --> 00:27:27,919 Speaker 1: at door Dasher, which is actually very cool side hustle, 577 00:27:28,200 --> 00:27:30,479 Speaker 1: and you earn less than seventy five thousand dollars per 578 00:27:30,600 --> 00:27:33,600 Speaker 1: year and only deliver food like you don't do the 579 00:27:33,680 --> 00:27:37,400 Speaker 1: other ride share components, you do not need to register 580 00:27:37,480 --> 00:27:40,639 Speaker 1: for GST. Oh in case you didn't know, because I 581 00:27:40,720 --> 00:27:42,800 Speaker 1: think that you might get a little bit confused and 582 00:27:42,880 --> 00:27:44,520 Speaker 1: be like, well, door dash must be the same. 583 00:27:45,119 --> 00:27:45,359 Speaker 2: It's not. 584 00:27:45,440 --> 00:27:47,959 Speaker 1: It's different. So if you've got that as a side hustle, 585 00:27:48,040 --> 00:27:49,879 Speaker 1: you don't have to sign up. 586 00:27:50,080 --> 00:27:52,560 Speaker 3: Lots of little tippits, and there are so many ways 587 00:27:52,560 --> 00:27:54,880 Speaker 3: to keep track of them all. For example, yes, when 588 00:27:54,920 --> 00:27:57,720 Speaker 3: I started, I was using the spreadsheet. It was very messy. 589 00:27:57,800 --> 00:27:59,240 Speaker 3: It was a little bit all over the place. You 590 00:27:59,320 --> 00:28:01,520 Speaker 3: can graduate. You know, there are platforms I canry out 591 00:28:01,520 --> 00:28:03,359 Speaker 3: there that collate everything and do a lot of the 592 00:28:03,400 --> 00:28:06,200 Speaker 3: work for you where you can streamline those costs and claims. 593 00:28:06,560 --> 00:28:08,320 Speaker 3: I believe it even does your GST stuff for you, 594 00:28:08,440 --> 00:28:08,720 Speaker 3: which is. 595 00:28:08,840 --> 00:28:12,440 Speaker 1: Very nice, actually does and low key. I've had a 596 00:28:12,480 --> 00:28:15,399 Speaker 1: few conversations with people at side Note. I've had a 597 00:28:15,440 --> 00:28:17,959 Speaker 1: few conversations with people in our community who do use 598 00:28:18,000 --> 00:28:19,840 Speaker 1: Henry because I was like, hey, guys, what are we doing, 599 00:28:20,000 --> 00:28:22,160 Speaker 1: like if we're small business owners? And they're like, oh 600 00:28:22,200 --> 00:28:24,719 Speaker 1: my gosh, I love Henry because I just call them 601 00:28:24,800 --> 00:28:27,920 Speaker 1: up and they answer like they're actual people just based 602 00:28:27,920 --> 00:28:30,800 Speaker 1: here in Australia who are just really passionate about small 603 00:28:30,800 --> 00:28:33,400 Speaker 1: business owners. So people like you just could be like, hey, 604 00:28:33,800 --> 00:28:35,520 Speaker 1: I don't have an accountant, but what do I do here? 605 00:28:35,560 --> 00:28:37,280 Speaker 1: And they're like, all right, bestie, sit down. We can't 606 00:28:37,280 --> 00:28:38,800 Speaker 1: give you advice, but this is what we do. 607 00:28:39,680 --> 00:28:42,520 Speaker 3: We love that sometimes you do just need to talk 608 00:28:42,560 --> 00:28:43,640 Speaker 3: to a human being, I. 609 00:28:43,680 --> 00:28:47,240 Speaker 1: Think exactly, And I think that that's really important because 610 00:28:47,280 --> 00:28:50,680 Speaker 1: like the blogs we've been recommending can only do so 611 00:28:50,920 --> 00:28:53,560 Speaker 1: much and sometimes as a business owner. You just want 612 00:28:53,600 --> 00:28:56,600 Speaker 1: someone to be like, sorry, bestie, you're not allowed to 613 00:28:56,680 --> 00:28:58,920 Speaker 1: do that, and you go, thank you. I've been looking 614 00:28:58,960 --> 00:29:02,320 Speaker 1: everywhere for that information. Anyway, it's included in their whole thing, 615 00:29:02,320 --> 00:29:04,200 Speaker 1: which might then be a good option for you. 616 00:29:04,440 --> 00:29:06,800 Speaker 3: Sounds really good. I think no matter where you're at 617 00:29:06,920 --> 00:29:09,719 Speaker 3: in your business journey, it pays to be organized. That's 618 00:29:09,760 --> 00:29:11,800 Speaker 3: the bottom line. If this episode teaches you one thing, 619 00:29:12,200 --> 00:29:14,240 Speaker 3: whatever that looks like for you, it doesn't matter that 620 00:29:14,320 --> 00:29:15,200 Speaker 3: preparation is key. 621 00:29:15,400 --> 00:29:19,160 Speaker 1: And also it looks really impressive, like the dopamine I 622 00:29:19,240 --> 00:29:21,840 Speaker 1: get from having my jucks in a row. Like Jess, 623 00:29:21,840 --> 00:29:24,160 Speaker 1: I reorganized my spicetraw the other day and I was like, 624 00:29:24,280 --> 00:29:25,720 Speaker 1: this is so good. You can do the same for 625 00:29:25,760 --> 00:29:26,240 Speaker 1: your tax. 626 00:29:26,400 --> 00:29:27,920 Speaker 3: Yeah, we want to save you that six hours a 627 00:29:27,960 --> 00:29:29,480 Speaker 3: week and that four thousand dollars a year. 628 00:29:29,640 --> 00:29:31,680 Speaker 1: Oh my goodness. Do we ever? And at the end 629 00:29:31,680 --> 00:29:33,400 Speaker 1: of the day, if you're still confused by the tax 630 00:29:33,440 --> 00:29:35,600 Speaker 1: on your earnings all your assets, it might actually be 631 00:29:35,800 --> 00:29:39,560 Speaker 1: time to level up your financing processes so you don't 632 00:29:39,560 --> 00:29:41,760 Speaker 1: get a nicety fine from the tax office or have 633 00:29:41,880 --> 00:29:44,400 Speaker 1: them trying to look under the hood keep out Like 634 00:29:44,520 --> 00:29:47,920 Speaker 1: I just want to keep my house in tip top shape. Anyway, 635 00:29:48,040 --> 00:29:50,600 Speaker 1: my friends, I could talk about tax forever literally and 636 00:29:50,720 --> 00:29:53,400 Speaker 1: I probably will because it's actually my entire career. But 637 00:29:53,560 --> 00:29:55,920 Speaker 1: that is for this episode all from us. We have 638 00:29:56,160 --> 00:29:58,200 Speaker 1: loved covering this stuff, so if you have any follow 639 00:29:58,280 --> 00:30:01,000 Speaker 1: up questions, comments, or reviews, please please send them our 640 00:30:01,040 --> 00:30:03,080 Speaker 1: way and make sure that you're subscribed so that you 641 00:30:03,240 --> 00:30:05,280 Speaker 1: never miss a money update. And we'll catch you on 642 00:30:05,400 --> 00:30:08,640 Speaker 1: Friday for another episode of Friday Drinks. Until then, take 643 00:30:08,720 --> 00:30:10,960 Speaker 1: care of yourselves out of each other by guys. 644 00:30:15,040 --> 00:30:17,600 Speaker 4: The advice shared on She's on the Money is general 645 00:30:17,640 --> 00:30:21,480 Speaker 4: in nature and does not consider your individual circumstances. 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