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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr

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Speaker 1: the Order KERNI Whoalbury and a waddery woman. And before

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Speaker 1: we get started on She's on the Money podcast, I

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Speaker 1: would like to acknowledge the traditional custodians of the land

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Speaker 1: of which this podcast is recorded on a wondery country,

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Speaker 1: acknowledging the elders, the ancestors and the next generation coming

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Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing

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Speaker 1: and the storytelling of you to make a difference for

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Speaker 1: today and lasting impact for tomorrow.

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Speaker 2: Let's get into it. She's on the Money, She's on

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Speaker 2: the Money. Hello, and welcome back to the Business Bible.

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Speaker 2: I am Victoria Devine, the owner of several successful businesses.

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Speaker 2: It's not gonna get less weird saying that, is it?

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Speaker 2: Jess and I am joined by one of the hardest

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Speaker 2: working side hustlers I know, Miss jessic ricci Ah.

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Speaker 3: How kind, very exciting, nice lady. You are a very

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Speaker 3: nice lady. Pumped in into episode two of the Business Bible.

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Speaker 2: I am also very excited because today is arguably one

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Speaker 2: of these sexiest topics. Jessica, we could talk about we're

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Speaker 2: going to set up your small business books.

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Speaker 3: Jessica, I feel like you're using the term sexy very loosely.

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Speaker 2: Oh no, no, I think it's really sexy. Today we are

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Speaker 2: talking tax we're talking avns and bank accounts. Was that

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Speaker 2: sexy talk? Don'ty to me? Tell me more. In all seriousness, though, Jesse,

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Speaker 2: this is the one thing that I hop on and

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Speaker 2: on and on to people saying I'm going to start

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Speaker 2: a small business or I've got a small business. Please

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Speaker 2: set up your books properly from the very beginning, to

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Speaker 2: ensure that everything runs smoothly and we don't get into

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Speaker 2: any trouble with the ATO, because there is honestly nothing

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Speaker 2: less sexy than having the ATO knocking on your door,

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Speaker 2: right Like it's the one thing that I just go, No,

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Speaker 2: just go and get another bank account, Just go and

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Speaker 2: set it up separately, get an ABN. Stop underestimating the

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Speaker 2: power of your business, like yeah, you would hear it

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Speaker 2: all the time where people are like, oh no, I

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Speaker 2: can't be bothered, Like I don't do that much work,

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Speaker 2: Like you could just be an influencer on the side,

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Speaker 2: you know, making a couple of hundred dollars, or you

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Speaker 2: could you know, have like and I always use a

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Speaker 2: candle business because I kind of like feel like that's scalable.

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Speaker 2: It could be as big as glass house or like

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Speaker 2: a coyer or something, or it could just be something

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Speaker 2: that you like spend sundays like pouring candles because you

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Speaker 2: really like it and sell them to friends and family. Yeah,

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Speaker 2: but it's one of those businesses where you might go,

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Speaker 2: it's not worth it. No, it is worth it. And

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Speaker 2: the second you say it's not worth it, you're not

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Speaker 2: believing in your business. And so having set up books

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Speaker 2: is going to be the stable foundation of making sure

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Speaker 2: that your business is successful, which Jessica is very sexy.

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Speaker 3: That does sound very sexy to me. I think it's

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Speaker 3: probably confusing to a lot of people, which is why

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Speaker 3: they don't often do it properly. But as someone who

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Speaker 3: has kind of been through it, I think there is

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Speaker 3: nothing worse than getting to tax time and being like,

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Speaker 3: oh my god, everything's everywhere. So if you set it

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Speaker 3: up now, you're saving yourself all of that stress in

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Speaker 3: six or twelve months time.

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Speaker 2: And you too will agree that it is very sexy. Promised,

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Speaker 2: I promise. And it can be super complicated, right, so

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Speaker 2: we'll try and make it as easy and clean as

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Speaker 2: possible today, starting with getting an ABN. Jessica, you have one,

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Speaker 2: I do a big dog. And ABN is what is

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Speaker 2: called an Australian business number, which is a unique number

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Speaker 2: that identifies your business to the government and also to

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Speaker 2: your consumers. It's absolutely necessary for tax purposes, for invoicing

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Speaker 2: and at times for your banking.

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Speaker 3: Okay, I have an ABM because I got one as

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Speaker 3: a kid, because I modeled for Target.

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Speaker 2: Once I modeled for Target one. Yeah, I was in

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Speaker 2: a big post to my mum. Tried to take it home.

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Speaker 2: They wouldn't let it, so I actually would let it.

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Speaker 2: I mean, just who is this crazy woman? Please get

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Speaker 2: act O get out of the kid section. That's very fair.

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Speaker 3: But I had one set up and I think I

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Speaker 3: just had to renew it. I didn't actually start from scratch.

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Speaker 3: So tell me a little bit more, Okay.

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Speaker 2: So it is really important because when we actually talk

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Speaker 2: about an ABN, it's not as simple as just like

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Speaker 2: trotting down the road and picking up your ABN. I mean,

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Speaker 2: it is that simple online you just apply for it,

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Speaker 2: but there are actually several different options when signing up

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Speaker 2: for an ABN. Yah, and I feel like lots of

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Speaker 2: people get analysis paralysis. So let's go through the three

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Speaker 2: main types today. So the first is not having an

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Speaker 2: ABN at all, so no bueno. This is when you

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Speaker 2: choose not to register your business with the government, and

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Speaker 2: this is only for small businesses that turn over less

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Speaker 2: than seventy five thousand dollars per financial year, so it

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Speaker 2: means that you're kind of functioning under your personal name completely.

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Speaker 2: It's perfect for side hustles or if you want to

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Speaker 2: make a bit of money on the side and you

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Speaker 2: aren't expecting the business to grow and you don't really

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Speaker 2: want it to grow. You're just like, oh, I did

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Speaker 2: some gardening, and you know, one year, I just was

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Speaker 2: like trying to smash down debts, and so I offered

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Speaker 2: my gardening services for you know, the period over Christmas,

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Speaker 2: and I'll never do it again. But I did accept

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Speaker 2: business income, and obviously I wanted to make sure that

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Speaker 2: that was all clean and I paid tax on it

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Speaker 2: and stuff. So that could be a good example. You

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Speaker 2: might also be, as I said before, a mini influencer

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Speaker 2: doing a few brand deals here or there, or maybe

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Speaker 2: you're like side hustling as much as Jess does, and

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Speaker 2: you're renting your clothes out on the side, So you

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Speaker 2: might have like a few dresses listed on the vault

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Speaker 2: or something that is not a hobby that is actually

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Speaker 2: something that you need to pay tax on it. And

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Speaker 2: I think there are a lot of people who are

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Speaker 2: quite flexible about tax. I'm not one of those people

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Speaker 2: because I'm kind of like, do it right, do it once,

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Speaker 2: don't get in trouble, full stop, end of story. Whereas

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Speaker 2: I have heard historically people go, oh, well, it could

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Speaker 2: fall under being a hobby if you're earning less than

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Speaker 2: five thousand dollars a year from it. And I look

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Speaker 2: at that and I just go, yeah, but like, you're

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Speaker 2: trying to generate additional income. It's not like I just

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Speaker 2: sold a chest of draws on Facebook market plass once off,

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Speaker 2: Like you fully set up this like business structure online

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Speaker 2: to generate income from your wardrobe. Yeah, And so like

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Speaker 2: I'm a little bit more cut and dry, and I go, no,

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Speaker 2: you definitely need to be doing tax on that. But

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Speaker 2: the important thing there is talk to your accountant if

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Speaker 2: you're worried, because obviously I can't give you personal advice,

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Speaker 2: but essentially you could just be selling some goods that

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Speaker 2: you create yourself knowing that it's just never going to

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Speaker 2: exceed seventy five thousand dollars a year, so like it's

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Speaker 2: kind of, you know, the gateway to having an ABN. Yeah.

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Speaker 3: Interesting addendum. If you're providing a service to somebody, and

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Speaker 3: I only know this because it happens to me once,

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Speaker 3: if you do not have an ADM, often the company

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Speaker 3: or the person paying you will withhold the highest tax rate.

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Speaker 3: Like typically you would be taxed at your marginal tax rates.

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Speaker 3: So for example, if you were being taxed, it is

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Speaker 3: it twenty three twenty four?

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Speaker 2: What's the thirty two and a half percent?

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Speaker 1: Oh?

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Speaker 2: Really tax rate? I would like to swap it to

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Speaker 2: twenty three. You've just like flipped. It's just not wrong,

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Speaker 2: just a little on the wrong side of the tracks. Yeah,

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Speaker 2: like to do that. Yeah, we could drop it, im

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Speaker 2: me up to that.

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Speaker 3: If you were earning under the threshold, your business income

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Speaker 3: would be taxed if you were trading at like that

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Speaker 3: same tax, right, But if you're supplying to somebody else,

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Speaker 3: they will often withhold the top rate of tax, so

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Speaker 3: it might be high, so you end up paying more

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Speaker 3: tax than you would.

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Speaker 2: It came a little bit complicated, but also good to

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Speaker 2: know keeping tip it on the side because not having

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Speaker 2: an ABN, obviously you kind of go, oh, well, I'm

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Speaker 2: never gonna make more than ten grand from this little

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Speaker 2: side hustle. However, it also leaves you open legally to

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Speaker 2: a lot of like impact, if that makes sense. So

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Speaker 2: you know, if something happens, just your butt's on the line. Yeah,

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Speaker 2: like it's you personally, and I just go oh, like,

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Speaker 2: if I'm starting to provide a product or a service,

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Speaker 2: like I want some level of protection, and also I

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Speaker 2: just like things to be quite clean. Even if you

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Speaker 2: don't have an ABN, I would still be looking at

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Speaker 2: having your own bank accounts and making sure that your

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Speaker 2: business income is separate from your personal income, just to

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Speaker 2: make things easy for you. So don't think that you're

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Speaker 2: going to get out of me giving you a sexy

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Speaker 2: banking structure just because you go no ABN, no worries. Yes,

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Speaker 2: no ABN, more worries, more worries, more worries. Tell me

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Speaker 2: about the next category, which is actually the one that

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Speaker 2: I fall into. Okay, So this is sole trader. So

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Speaker 2: this is for a business of one person or someone

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Speaker 2: likely to pay for contractors or freelancers. So look at

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Speaker 2: the future of your business. Do you see it just

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Speaker 2: being you? Are you just always going to freelance? This

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Speaker 2: option is free, sexy, and can be done through the

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Speaker 2: ATO website and only through the ATO website, And it

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Speaker 2: can be done really quickly and easily. When you're googling

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Speaker 2: set up ABN. Please do not clip any of the

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Speaker 2: links that are like this proversion will help you. No,

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Speaker 2: don't do it. It's really easy. It's really easy, and

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Speaker 2: it's free to do. Don't pay some plub who's trying

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Speaker 2: to scare you. Really literally take advantage of you. Also

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Speaker 2: on that every year, Yes, I get multiple of these

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Speaker 2: letters in the mail from people going your ABN's up

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Speaker 2: for renewble or something of the like. Reader, Is it

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Speaker 2: from the ATO. If not, it's a random marketing company

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Speaker 2: who has searched your ABN on the ABN website. My

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Speaker 2: address is on there, like my business address, like so

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Speaker 2: that people can contact me. That's how business works. But

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Speaker 2: they send a little marketing email that looks like an invoice, ah,

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Speaker 2: and they go just you know, scam this QR code

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Speaker 2: and pay us and we'll get it all sorted out

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Speaker 2: for you. That's awful. Yes, it is a trap. It

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Speaker 2: is a scam. Oh my god. So we only talk

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Speaker 2: one on one with the ATO. There will never be

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Speaker 2: a third party unless it is your nominated third representative,

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Speaker 2: which will probably be your accountant. So if it is

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Speaker 2: not coming directly from the ATO, and it is, you know,

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Speaker 2: from another company, run yeah, run because they're scary. But

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Speaker 2: just you're a soul trader. Why did you pick sole

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Speaker 2: trader for your personal circumstances and not just having no

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Speaker 2: abn oh.

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Speaker 3: I think think it was kind of I was invoicing

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Speaker 3: companies and they were kind of going, where's your abien,

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Speaker 3: And I was like.

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Speaker 2: I don't have one for you to put into your system,

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Speaker 2: and so you.

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Speaker 3: Have a look and a lot of the times companies

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Speaker 3: do need them to set up like purchase orders and

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Speaker 3: things on their end, and that was when I was like, oh,

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Speaker 3: I need to renew the one. And thankfully I had

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Speaker 3: one that was existing.

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Speaker 2: And that's just as easy to renew as it is

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Speaker 2: to set up. Honestly, you just need some identification. Yeah,

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Speaker 2: let the government know what the purpose of the business is.

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Speaker 2: And hits admit like, it's so easy.

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Speaker 3: It was so easy, and I think it also made

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Speaker 3: me feel a little bit legitimate too.

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Speaker 2: Like she's got an ABN on her invoice.

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Speaker 3: Yeah, Like I felt like a proper person that was

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Speaker 3: actually trading goods and services, you know. I felt like

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Speaker 3: it just made me a little bit more legit, which

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Speaker 3: might be silly.

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Speaker 2: But no, no, no, no, I think it's really important to

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Speaker 2: feel legit when you're doing your business as well. I

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Speaker 2: know it can be you know, a little bit fluffy

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Speaker 2: because people will go, well, you know, if one person

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Speaker 2: ends ten thousand dollars with no ABN, and you're saying

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Speaker 2: that having an ABN, I'm still just going to earn

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Speaker 2: the same amount doing the same thing, you might go, well,

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Speaker 2: what's the point. Yeah, the point can sometimes honestly be legitimacy.

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Speaker 2: As somebody who who hires a lot of freelancers and

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Speaker 2: sole traders to do like you know, random content. Sometimes

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Speaker 2: sometimes we'll do events. I want you to have an

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Speaker 2: ABN because protects me. It means that I am, you know,

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Speaker 2: paying an invoice directly to an actual business that can

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Speaker 2: be traced. Everything's clean. Yeah, And so I prefer to

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Speaker 2: work that way. So often it could actually be the

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Speaker 2: difference between you being picked and another sole trader being picked.

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Speaker 2: So I think that it's important to just set it

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Speaker 2: up to make it as easy as possible for your

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Speaker 2: consumers and your clients as well, because the less friction

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Speaker 2: during that process, promise, the more money will come in

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Speaker 2: your door. Yeah, one hundred. There is a third. There

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Speaker 2: is a third, and that's what I have. I have

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Speaker 2: a company set up, So a company is a legal

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Speaker 2: entity in its own right, unlike a soul trader, So

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Speaker 2: there's a bit of protection for you and your personal assets,

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Speaker 2: obviously having a business in between them, which to me

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Speaker 2: sexy because I didn't work this hard to you know,

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Speaker 2: have something happen in the future. Obviously, like open and

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Speaker 2: honest about it. It's not like I'm worried that something's

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Speaker 2: going to happen. But I don't really want my house

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Speaker 2: to be at risk when I've got a company, like

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Speaker 2: you know, if you're earning ten thousand dollars from a

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Speaker 2: side hustle, that to me is quite different to my

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Speaker 2: entire livelihood being at risk. And like I'm responsible for

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Speaker 2: a lot of people's incomes. Yeah, so I just want

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Speaker 2: that protected. The buffer. I'm sure Jess, you feel a

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Speaker 2: lot more protected knowing that there's a business structure there,

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Speaker 2: there's something legit set up. The only way to employ

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Speaker 2: full time, part time or casual stuff is to have

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Speaker 2: a registered company. So you can't just be a sole

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Speaker 2: trader and hire someone. You actually have to set up

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Speaker 2: your entire business structure differently to hire your first employee, which,

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Speaker 2: if you're looking at it, you know, in your circumstance,

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Speaker 2: just I doubt you're ever going to hire an employee

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Speaker 2: because of the way that you work and what your

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Speaker 2: plans are. But like what if you were like, oh, actually,

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Speaker 2: I want to take content creation full time. Like I'm

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Speaker 2: going to take this really legit. One day, my personal

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Speaker 2: income is going to outweigh the amount of income that

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Speaker 2: I make in my full time job, and I'm going

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Speaker 2: to quit. Yeah that's exciting. What happens when you quit, Jess,

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Speaker 2: you might need to hire a personal assistant, you know, legit.

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Speaker 2: If you've taken this full time, you might want to

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Speaker 2: expand and have that support, So you need to think

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Speaker 2: about this could be the same. My favorite example the

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Speaker 2: candle business, yeap. It might mean you pouring candles on

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Speaker 2: a Sunday afternoon because it's really therapeutic. One day you

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Speaker 2: go viral and TikTok exciting money win like such a

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Speaker 2: business win. We'll talk about going viral and TikTok and

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Speaker 2: a whole episode one day. But you go viral, everyone's

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Speaker 2: placing candle orders. You've only got two hands. You've only

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Speaker 2: got two hands. How do you pour all the candles? Exactly?

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Speaker 2: It just gets very stressful, Jessica. So we need to

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Speaker 2: think about what could happen in the future. But it

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Speaker 2: is an investment, so it does cost between four hundred

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Speaker 2: and seventy four and five hundred and seventy six dollars

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Speaker 2: depending on the business that you are registering, And it

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Speaker 2: does come with a bit more responsibility in that you

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Speaker 2: need to do a bit more reporting. So you're likely

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Speaker 2: going to have to submit quarterly documentation to the ATO

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Speaker 2: about what's going on with your business, how much you've earnt,

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Speaker 2: how much tax you are anticipating yet to pay at

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Speaker 2: tax time. And something that I do, which a lot

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Speaker 2: of small business owners do, is pay what's called bas

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Speaker 2: and that's is essentially paying your tax in advance, because

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Speaker 2: there is nothing more stressful as business increases, right, even

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Speaker 2: as business doesn't increase, like jess how's tax time as

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Speaker 2: a small business owner. Not very fun, right, But if

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Speaker 2: you're paying BAS, you're breaking up the tax that you're

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Speaker 2: paying throughout the year. And then tax time comes and

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Speaker 2: my accountant sits me down and we kind of do

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Speaker 2: like an audit of like what have you paid? What

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Speaker 2: are things that we could now claim, what are things

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Speaker 2: that you might have missed out on, and what are

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Speaker 2: things that you still have to pay for? And my

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Speaker 2: tax time, like come June thirty, I look at it

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Speaker 2: and I go, okay, well, I'm not going to owe

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Speaker 2: thousands and thousands of dollars. You know, there's a bit

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Speaker 2: of cleanup going there. So like BAS, it's a business

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Speaker 2: activity statement if I didn't say that before, but BAS

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Speaker 2: is kind of like predicting based on your past performance

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Speaker 2: what your future tax will be, so that I don't

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Speaker 2: end up in a sticky situation where I have a

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Speaker 2: heap of tax owing all at one time. Yeah, and

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Speaker 2: that's way all you can ask for, is that? Okay?

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Speaker 3: So question, Yes, if I'm currently assult Trader and I've

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Speaker 3: picked soul Trader because I think that's going to work

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Speaker 3: for me, I am just working by myself, doing my.

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Speaker 2: Thing, doing what you're doing now, exactly right.

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Speaker 3: What happens if I do get to the point, like

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Speaker 3: you said, in a couple of years where maybe I

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Speaker 3: do leave my full time job and I do need

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Speaker 3: somebody to come on and help.

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Speaker 2: Can I change? Of course you can, although it does

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Speaker 2: get a little bit difficult changing. So that's why I

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Speaker 2: always recommend people you know you go. It could be

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Speaker 2: four hundred and fifty bucks like to set up the

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Speaker 2: entity to begin with, why bother. Yeah, sometimes it's worth

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Speaker 2: spending the money on the structure to begin with if

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Speaker 2: that could even be a possibility, and if it doesn't

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Speaker 2: become a possibility, you just have more projections. That's not

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Speaker 2: the end of the world. Please don't get me wrong.

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Speaker 2: I totally understand that it's a privilege to be able

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Speaker 2: to afford literally everything. As somebody who started their business

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Speaker 2: by making although their graphic design of Microsoft Office and

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Speaker 2: screenshotting it go, I get it. But it can be

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Speaker 2: really difficult to change from a sole trader ABN to

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Speaker 2: a company ABN down the track, So I'd really suggest

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Speaker 2: just get it right the first time. But it's not

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Speaker 2: just the difficulty in the paperwork. It can actually be

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Speaker 2: costly to set it up and change it because you're

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Speaker 2: going from a business that you know as a sole

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Speaker 2: trader has value into another company, and structuring it actually

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Speaker 2: can be a little bit more complex than what it seems.

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Speaker 2: So obviously you're going to want to weigh up your

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Speaker 2: decisions financially, time wise and work out which one is

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Speaker 2: the right one for you, because obviously moving to a

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Speaker 2: company is expensive, not to overload you, moving to a

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Speaker 2: company is expensive, But who then owns the company? Yess

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Speaker 2: So it's not just going, oh, well, maybe I'll own

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Speaker 2: your company, just so that's not the question I'm asking.

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Speaker 2: So my personal structure, and this is why I love

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Speaker 2: the Business Bible because I can just tell you what

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Speaker 2: I do. I'm not saying that this is the right

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Speaker 2: thing for you, this is the right thing for me,

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Speaker 2: but I when I set up my companies at the

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Speaker 2: same time established a family trust. So my family trust

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Speaker 2: owns my businesses, not me personally. You personally can own

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Speaker 2: a company, but you need to maybe spend the couple

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Speaker 2: of one hundred dollars sitting down with an accountant going well,

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Speaker 2: if I'm going to set up this company, what is

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Speaker 2: the best way to protect me, what is the best

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Speaker 2: way to own this do I own it personally? You

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Speaker 2: can totally own it personally. That's fine, that's a really

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Speaker 2: simple structure. But your account might turn around and be like, well, actually,

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Speaker 2: what are your plans for the future. So one of

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Speaker 2: the reasons why we made this decision is because in

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Speaker 2: the future, before my business made any money, I was like,

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Speaker 2: you know what I would love for the structure. You know,

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Speaker 2: it's kind of aspirational. It gave me a lot of

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Speaker 2: motivation as well. I'd love to be able to buy

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Speaker 2: an investment property, and I would love to be able

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Speaker 2: to put that investment property in a trust so in

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Speaker 2: the future I can distribute the dividends of that investment

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Speaker 2: property down to my family members. Could I afford an

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Speaker 2: investment property at that point in time, No, Jessica, The

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Speaker 2: answers no, because I was in debt when I started

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Speaker 2: my business. As I said, did you even have one

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Speaker 2: property at the time?

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Speaker 1: No?

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Speaker 2: Hype dream, hype dream. But we want to make sure

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Speaker 2: that we're setting ourselves up for success. And that's one

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Speaker 2: way to additionally protect yourself. That you really should have

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Speaker 2: the conversation with an account and go, well, what does

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Speaker 2: that mean for me? Like, you know, jess you might

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Speaker 2: be hiring your first assistant or content creator or whatever

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Speaker 2: you're doing. But what next? Where does the ball roll? Yeah,

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Speaker 2: so I think it's important to understand one hundred percent

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Speaker 2: to switch gears.

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Speaker 3: Ever so slightly, I just want to go back a

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Speaker 3: few steps because earlier we were chatting about the seventy

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Speaker 3: five thousand dollar threshold, and so if you're earning less

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Speaker 3: than seventy five thousand dollars, you're all gucci. But what

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Speaker 3: happens when you're earning more? Because that's what we all want,

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Speaker 3: right like we want to be earning heat.

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Speaker 2: We're going to become so rich, we're going to be

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Speaker 2: rich af So as soon as your gross income hits

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Speaker 2: seventy five thousand dollars, gross income is total earnings prior

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Speaker 2: to tax or deductions. So when you look at that number,

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Speaker 2: I think it's gross because that's what you could have

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Speaker 2: taken home but you had to pay tax, so fun

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00:19:19,040 --> 00:19:21,120
Speaker 2: so and then net is what you captured in the net.

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Speaker 2: That's really big holes, Jessica. So you're not going to

406
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Speaker 2: forget that now, but you need to register and pay

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Speaker 2: what's called goods and services tax. Summer finance Girly at heart,

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Speaker 2: if you send me an invoice, Jess, and you're not

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Speaker 2: charging the GST immediately, I know how much your business

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Speaker 2: turnover is true, I know you're earning less than seventy

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Speaker 2: five thousand dollars. Yeah, okay, so this is again not

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Speaker 2: personal advice. Do you know what I was doing before

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Speaker 2: I earned more than seventy five thousand dollars? Yes, what

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Speaker 2: I was still charging your GST. I was paying GST

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Speaker 2: because you can pay GST irrespective of what you earn

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Speaker 2: its choice up until seventy five thousand dollars. After seventy

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Speaker 2: five thousand dollars, it's compulsory. Yeah. Before seventy five thousand dollars,

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Speaker 2: they're like, you don't need to do this, you could

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Speaker 2: if you wanted to. Me earning ten thousand dollars, I'm like,

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Speaker 2: I want to because do you know why? It's kind

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Speaker 2: of like left pocket, right pocket. I'm charging you just

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Speaker 2: ten percent GST gets added to your invoice. I put

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Speaker 2: that ten percent to the side, and I just pay

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Speaker 2: it to the government. So I'm not losing money by

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Speaker 2: charging GST. But I knew that by sending out an

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Speaker 2: invoice that charged GST, people would immediately go, oh, she's

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Speaker 2: done this before. Yeah, she's just been earning a fair bit.

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Speaker 2: It's that professionalism thing again, a little bit sneaky. Should

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Speaker 2: you do it? I don't know you do, you Booth,

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Speaker 2: But I did and it made me feel powerful. Af

431
00:20:38,560 --> 00:20:40,840
Speaker 2: I love that for you. So GST is essentially an

432
00:20:40,880 --> 00:20:43,679
Speaker 2: added ten percent of the product or service that you

433
00:20:43,720 --> 00:20:46,800
Speaker 2: are selling, which has to be paid to the tax office.

434
00:20:46,880 --> 00:20:49,080
Speaker 2: It's not your money, as I said before, it's left pocket,

435
00:20:49,119 --> 00:20:51,160
Speaker 2: right pocket. Like, it's not going to cost your business

436
00:20:51,280 --> 00:20:56,360
Speaker 2: more unless you somehow have not a clean banking system

437
00:20:56,480 --> 00:20:58,119
Speaker 2: and you forget about the ten percent and then you

438
00:20:58,160 --> 00:21:00,360
Speaker 2: allocate it to something else and then come tag time,

439
00:21:00,359 --> 00:21:02,160
Speaker 2: they're like, hey, by the way, you've got to pay

440
00:21:02,160 --> 00:21:04,159
Speaker 2: a GST And you're like, wait what, I don't have

441
00:21:04,240 --> 00:21:06,240
Speaker 2: that money right now. Yeah, which is why we want

442
00:21:06,240 --> 00:21:09,680
Speaker 2: clean banking systems, Jessica. But it has to be paid,

443
00:21:09,800 --> 00:21:13,119
Speaker 2: and you can't just be having no ABN. You must

444
00:21:13,160 --> 00:21:15,840
Speaker 2: have an ABN at this stage. So the second you

445
00:21:15,880 --> 00:21:18,600
Speaker 2: get over seventy five thousand dollars, if you had no ABN,

446
00:21:18,800 --> 00:21:21,399
Speaker 2: favorite's time to get an ABN. Like it's non negotiable

447
00:21:21,400 --> 00:21:23,800
Speaker 2: at that point because the at looks at it and goes,

448
00:21:24,000 --> 00:21:26,320
Speaker 2: this is pretty legit, Like, seventy five thousand dollars is

449
00:21:26,320 --> 00:21:28,520
Speaker 2: a lot of money that we'd let you earn. So

450
00:21:28,680 --> 00:21:31,359
Speaker 2: once you hit seventy five thousand dollars, your job in

451
00:21:31,400 --> 00:21:34,600
Speaker 2: business now has two rules. First running the business and

452
00:21:34,720 --> 00:21:38,320
Speaker 2: second collecting tax for the tax office. Our tax man's

453
00:21:38,320 --> 00:21:41,520
Speaker 2: sounding pretty happy about that. He's a nice guy. I promise.

454
00:21:42,480 --> 00:21:45,359
Speaker 3: What does happen if we are maybe not keeping a

455
00:21:45,359 --> 00:21:47,600
Speaker 3: close enough eye on our bank accounts, maybe we haven't

456
00:21:47,640 --> 00:21:50,560
Speaker 3: structured it in the best way. Definitely not speaking for experience,

457
00:21:50,880 --> 00:21:53,000
Speaker 3: but what happens if you miss the seventy five thousand

458
00:21:53,000 --> 00:21:56,320
Speaker 3: dollars milestone and you are late to register for GST?

459
00:21:56,400 --> 00:21:59,440
Speaker 2: You're probably gonna have a meltdown? Yep. First, probably gonna

460
00:21:59,480 --> 00:22:02,520
Speaker 2: just be bit anxious, a little bit stressy. We're not

461
00:22:02,520 --> 00:22:05,000
Speaker 2: gonna let that be an option. I would register for

462
00:22:05,119 --> 00:22:08,240
Speaker 2: GST when setting up my ABN, just being real clean

463
00:22:08,320 --> 00:22:11,000
Speaker 2: from the very start, to be honest for a few

464
00:22:11,000 --> 00:22:13,840
Speaker 2: good reasons. So obviously, as I said before, once you

465
00:22:13,880 --> 00:22:17,080
Speaker 2: start charging GST, that's going to be an extra ten

466
00:22:17,119 --> 00:22:19,720
Speaker 2: percent for your clients or customers to pay. And if

467
00:22:19,720 --> 00:22:22,800
Speaker 2: you start prices including that ten percent. You don't have

468
00:22:22,880 --> 00:22:26,439
Speaker 2: to re talk to your clients, Jess. True. So like

469
00:22:26,720 --> 00:22:29,400
Speaker 2: you get this seventy five thousand dollars, you're partying. You've

470
00:22:29,400 --> 00:22:31,240
Speaker 2: probably gone out with your part or your friends have

471
00:22:31,320 --> 00:22:34,480
Speaker 2: some champagne. Like, look at my business, I'm killing it. Yeah,

472
00:22:34,600 --> 00:22:36,000
Speaker 2: Now you have to go to your clients and be like,

473
00:22:36,040 --> 00:22:38,360
Speaker 2: by the way prices are increasing ten percent, you don't

474
00:22:38,359 --> 00:22:40,480
Speaker 2: get more. Actually, I just have to start collecting money

475
00:22:40,480 --> 00:22:43,360
Speaker 2: for the ATO. I didn't think of. Your client's not

476
00:22:43,440 --> 00:22:46,320
Speaker 2: gonna love that, yeah, not because they're not happy for you,

477
00:22:46,400 --> 00:22:48,680
Speaker 2: but like, no one wants to pay more money. Yes,

478
00:22:48,880 --> 00:22:51,239
Speaker 2: so if you just did it from the start, there

479
00:22:51,280 --> 00:22:54,600
Speaker 2: aren't any price hikes once you suddenly become qualified to

480
00:22:54,720 --> 00:22:57,200
Speaker 2: pay for that. Yeah. And I like that, yeah, because

481
00:22:57,240 --> 00:22:59,600
Speaker 2: I like being paid for what you're worth. I mean,

482
00:22:59,640 --> 00:23:01,520
Speaker 2: if we're asking for a ten percent pay rise, it's

483
00:23:01,520 --> 00:23:03,359
Speaker 2: gonna be for Jess, not for the ATO.

484
00:23:03,560 --> 00:23:03,800
Speaker 3: Right.

485
00:23:04,480 --> 00:23:07,120
Speaker 2: The second thing is again makes your business look more

486
00:23:07,200 --> 00:23:10,120
Speaker 2: legit when you charge for GST, and when you don't,

487
00:23:10,240 --> 00:23:13,320
Speaker 2: it's very clear that you're making less than seventy five

488
00:23:13,320 --> 00:23:15,679
Speaker 2: thousand dollars. I mean maybe not everyone looks at it

489
00:23:15,800 --> 00:23:18,480
Speaker 2: the same way. I do, but I definitely you're extra nosy.

490
00:23:18,600 --> 00:23:21,040
Speaker 2: And if you're working for any other big businesses. I

491
00:23:21,040 --> 00:23:23,040
Speaker 2: don't mean to be rude here, but like, let's say

492
00:23:23,040 --> 00:23:26,560
Speaker 2: your freelancer, let's say you're just Greci, right, you are Jessica,

493
00:23:26,680 --> 00:23:30,400
Speaker 2: and you make content, beautiful content, and that for other brands,

494
00:23:31,119 --> 00:23:34,760
Speaker 2: they see all of the influences in voices. So if

495
00:23:34,840 --> 00:23:37,240
Speaker 2: one's coming through with GST and one's not coming through

496
00:23:37,240 --> 00:23:40,160
Speaker 2: with GST, if you're new in PR, you might go, oh,

497
00:23:40,280 --> 00:23:42,760
Speaker 2: we just got her invoice for jess she didn't charge GST.

498
00:23:42,920 --> 00:23:45,600
Speaker 2: What's that mean. They're gonna ask, They're gonna know. Everyone's

499
00:23:45,640 --> 00:23:49,040
Speaker 2: going to know. And I'm not saying that that's shameful. No,

500
00:23:49,240 --> 00:23:51,439
Speaker 2: Like it's not a bad thing at all, but you

501
00:23:51,560 --> 00:23:54,720
Speaker 2: need to understand if that's something you want considered or not.

502
00:23:55,520 --> 00:23:58,199
Speaker 2: And then three, it's done well ahead of time, so

503
00:23:58,240 --> 00:24:00,560
Speaker 2: you don't actually have to worry about accidents are missing it,

504
00:24:00,640 --> 00:24:03,240
Speaker 2: or are paying in arrears or you know, upsetting the

505
00:24:03,280 --> 00:24:05,239
Speaker 2: tax office, which is my favorite thing not to do.

506
00:24:05,400 --> 00:24:08,520
Speaker 3: Yeah, I hard agree from me there. I think set

507
00:24:08,560 --> 00:24:09,960
Speaker 3: it up early. I think that's the premise of this

508
00:24:10,000 --> 00:24:12,000
Speaker 3: whole episode. Really isn't it like, let's get your ducks

509
00:24:12,040 --> 00:24:14,400
Speaker 3: in a row now, so that nobody's having a meltdown.

510
00:24:14,640 --> 00:24:17,119
Speaker 2: Exactly. We don't have meltdowns. And getting your ducks in

511
00:24:17,119 --> 00:24:19,280
Speaker 2: a row is not just smart when it comes to

512
00:24:19,880 --> 00:24:22,760
Speaker 2: I guess business and getting the structure right. It's also

513
00:24:23,080 --> 00:24:26,320
Speaker 2: so essential from my perspective, because it means that you

514
00:24:26,400 --> 00:24:28,960
Speaker 2: believe in your business. So if you're just like, oh no,

515
00:24:29,160 --> 00:24:30,879
Speaker 2: just do it through my personal account, it's not worth it.

516
00:24:30,880 --> 00:24:33,000
Speaker 2: It's not going to grow be like sorry, that's not

517
00:24:33,040 --> 00:24:35,240
Speaker 2: the mentality that we have when we're starting our own

518
00:24:35,280 --> 00:24:37,920
Speaker 2: small business. We don't need to take over the world

519
00:24:37,960 --> 00:24:41,040
Speaker 2: with our small businesses. Like our small businesses could just

520
00:24:41,080 --> 00:24:43,040
Speaker 2: be that extra ten k year so you get a

521
00:24:43,040 --> 00:24:45,720
Speaker 2: bougie family holiday once a year, and like that's why

522
00:24:45,720 --> 00:24:48,920
Speaker 2: we're doing it. But we are proud of that. We

523
00:24:49,119 --> 00:24:52,080
Speaker 2: actually believe in that, and we you know, have conviction

524
00:24:52,200 --> 00:24:54,320
Speaker 2: in that because ten ground this year might be twelve

525
00:24:54,320 --> 00:24:56,600
Speaker 2: grand next year, and like things just creep up and

526
00:24:56,600 --> 00:24:59,919
Speaker 2: that's great, but the structure is what's going to crucify

527
00:25:00,119 --> 00:25:02,360
Speaker 2: you if you don't get it wrong, and that's where

528
00:25:02,400 --> 00:25:03,680
Speaker 2: most people do go wrong.

529
00:25:03,960 --> 00:25:05,840
Speaker 3: Yeah, for sure, all right, we've given you a lot

530
00:25:05,880 --> 00:25:08,639
Speaker 3: to think about talking about GST and ABNS and all

531
00:25:08,720 --> 00:25:11,600
Speaker 3: of those different options. So we know that marinate in

532
00:25:11,640 --> 00:25:14,840
Speaker 3: your brain for a little marinates, marinate away, and then

533
00:25:15,000 --> 00:25:16,280
Speaker 3: we're going to head to a quick break and when

534
00:25:16,280 --> 00:25:18,840
Speaker 3: we come back, we're going to talk about claiming and

535
00:25:18,920 --> 00:25:20,080
Speaker 3: tax in small business.

536
00:25:20,160 --> 00:25:27,160
Speaker 2: I love these episodes so much. Don't go anywhere. Welcome

537
00:25:27,200 --> 00:25:27,840
Speaker 2: back everybody.

538
00:25:27,880 --> 00:25:29,760
Speaker 3: We've gone over how to set up your business, get

539
00:25:29,800 --> 00:25:31,680
Speaker 3: it ready for tax time, and now I want to

540
00:25:31,680 --> 00:25:34,320
Speaker 3: talk about what actually does happen at tax time because it.

541
00:25:34,280 --> 00:25:37,440
Speaker 2: Seems like my birthday. That's very true, Gin thirty, good

542
00:25:37,680 --> 00:25:41,840
Speaker 2: time to work in finance, h I know, it's amazing.

543
00:25:42,400 --> 00:25:44,440
Speaker 3: Is tax onion a little bit different if you're registered

544
00:25:44,440 --> 00:25:46,520
Speaker 3: as a sole trader versus as a company.

545
00:25:46,760 --> 00:25:49,199
Speaker 2: Yeah, so it's a good question, and they are actually

546
00:25:49,400 --> 00:25:52,400
Speaker 2: very different to one another, which might help you decide

547
00:25:52,440 --> 00:25:55,000
Speaker 2: whether to register as a sole trader or as a business.

548
00:25:55,040 --> 00:25:57,280
Speaker 2: So sit down, I've written a list. Are you ready.

549
00:25:57,320 --> 00:26:00,080
Speaker 2: I'm ready. As a sole trader, your profits will be

550
00:26:00,160 --> 00:26:04,040
Speaker 2: included on your individual tax return, so you will be

551
00:26:04,160 --> 00:26:08,160
Speaker 2: paying tax at your personal marginal tax rate. Ye, which

552
00:26:08,160 --> 00:26:10,760
Speaker 2: so we're talking about before yet, so obviously that thirty

553
00:26:10,760 --> 00:26:13,040
Speaker 2: two and a half percent is just standard, but it

554
00:26:13,119 --> 00:26:16,120
Speaker 2: goes up much higher, and maybe you're in a situation

555
00:26:16,160 --> 00:26:19,360
Speaker 2: where you're like, oh, well, actually another you know, ten

556
00:26:19,400 --> 00:26:22,359
Speaker 2: grand actually pushes me over a threshold. We need to

557
00:26:22,359 --> 00:26:25,080
Speaker 2: think about that. It's an extension of you and your

558
00:26:25,119 --> 00:26:28,600
Speaker 2: personal financial affairs, and it actually makes tax time really easy.

559
00:26:28,800 --> 00:26:31,359
Speaker 2: So like back on the flip side, me trying to

560
00:26:31,359 --> 00:26:33,879
Speaker 2: do a jump scare. Most like, it's really easy to

561
00:26:33,920 --> 00:26:37,040
Speaker 2: do your tax when it comes to being a sole trader.

562
00:26:37,320 --> 00:26:39,959
Speaker 2: If you're registered as a business, you will have to

563
00:26:39,960 --> 00:26:42,680
Speaker 2: do the tax for your business and your own finances

564
00:26:42,720 --> 00:26:46,119
Speaker 2: because they're not bundled together like a sole trader, and

565
00:26:46,280 --> 00:26:48,560
Speaker 2: that is not only more complex, but can be a

566
00:26:48,560 --> 00:26:51,200
Speaker 2: little bit more costly. So you might be paying I

567
00:26:51,200 --> 00:26:52,600
Speaker 2: don't know, Jess, what do you pay for your tax

568
00:26:52,640 --> 00:26:55,600
Speaker 2: return eachy maybe like two hundred and fifty bucks nowadays

569
00:26:55,680 --> 00:26:58,680
Speaker 2: around that is pretty standard. You'll be paying maybe four

570
00:26:58,800 --> 00:27:01,520
Speaker 2: or five hundred dollars for a tax return done for

571
00:27:01,600 --> 00:27:05,600
Speaker 2: your business in addition to your individual tax return. So

572
00:27:05,680 --> 00:27:09,040
Speaker 2: just keep that in mind. Yep, big businesses pay thirty

573
00:27:09,080 --> 00:27:12,439
Speaker 2: percent tax rate on profits. Jess, Oh, just flat, just flat.

574
00:27:12,680 --> 00:27:16,080
Speaker 2: There you go very very sexy. Profit means the money

575
00:27:16,160 --> 00:27:20,679
Speaker 2: you've made after pay deductions, et cetera, not just the

576
00:27:20,760 --> 00:27:22,840
Speaker 2: gross income that you look at that you go, well,

577
00:27:22,840 --> 00:27:25,199
Speaker 2: that's gross, I could have made that. So it's not

578
00:27:25,400 --> 00:27:27,520
Speaker 2: you know, if you had ten thousand dollars coming in

579
00:27:27,520 --> 00:27:31,520
Speaker 2: the door as a business, they don't go all right,

580
00:27:31,560 --> 00:27:33,399
Speaker 2: well you are thirty percent of that. And this is

581
00:27:33,440 --> 00:27:35,800
Speaker 2: why tax time can be a little bit complicated because

582
00:27:35,840 --> 00:27:38,560
Speaker 2: you go through that and go, okay, well I paid, Jessica,

583
00:27:38,880 --> 00:27:41,800
Speaker 2: I also, you know, paid rent for my facility. I

584
00:27:41,840 --> 00:27:44,320
Speaker 2: also had these printing costs for my business. And you

585
00:27:44,359 --> 00:27:47,399
Speaker 2: have all these costs the deduction that are deductions, and

586
00:27:47,440 --> 00:27:49,760
Speaker 2: then at the end of that is your profit and

587
00:27:49,840 --> 00:27:52,200
Speaker 2: that's what you pay tax on. Okay, that's pretty good.

588
00:27:52,320 --> 00:27:55,840
Speaker 2: So look it's pretty good. But as we said, big

589
00:27:55,880 --> 00:27:58,760
Speaker 2: business pays thirty percent. You go, that's pretty sexy, jess

590
00:27:58,840 --> 00:28:02,040
Speaker 2: because obviously the average marginal tax rate is thirty two

591
00:28:02,080 --> 00:28:04,159
Speaker 2: and a half cents. It's two and a half percent

592
00:28:04,200 --> 00:28:06,320
Speaker 2: better off. It's pretty good to make. Just doing some

593
00:28:06,359 --> 00:28:11,240
Speaker 2: basic maths, not advice again, small business tax jess reduced

594
00:28:11,560 --> 00:28:15,280
Speaker 2: twenty five percent. Okay, so we're getting closer to that

595
00:28:15,440 --> 00:28:18,960
Speaker 2: mistage you made. It's much closer. That's pretty good, much

596
00:28:19,000 --> 00:28:22,000
Speaker 2: more palatable throughout the year. You're obviously, as I said

597
00:28:22,119 --> 00:28:24,320
Speaker 2: at the first half of this episode, you're going to

598
00:28:24,320 --> 00:28:27,000
Speaker 2: be required to complete what's called a business activity statement

599
00:28:27,080 --> 00:28:29,160
Speaker 2: or a MASS as you call it in the industry,

600
00:28:29,480 --> 00:28:31,960
Speaker 2: which is quarterly. And I've written down it can help

601
00:28:31,960 --> 00:28:34,680
Speaker 2: it tax time, it doesn't. It definitely does help it

602
00:28:34,760 --> 00:28:37,359
Speaker 2: tax time, not can it does? It makes me feel

603
00:28:37,400 --> 00:28:40,160
Speaker 2: so on top of it. I don't like having to

604
00:28:40,200 --> 00:28:43,200
Speaker 2: talk about tax quarterly. But I promise everything is easier

605
00:28:43,200 --> 00:28:45,880
Speaker 2: when it's broken down into smaller chunks. Yeah, So it

606
00:28:46,040 --> 00:28:47,920
Speaker 2: kind of becomes a little bit sexier when you start

607
00:28:48,000 --> 00:28:50,680
Speaker 2: talking about the cash rate, right, Jessica, Because you know,

608
00:28:50,800 --> 00:28:53,560
Speaker 2: small business is taxed at a reduced rate of twenty

609
00:28:53,560 --> 00:28:56,560
Speaker 2: five percent. You go, hold on, so twenty five percent.

610
00:28:57,120 --> 00:28:59,880
Speaker 2: What if I was, you know, earning this seventy thousand

611
00:29:00,080 --> 00:29:02,640
Speaker 2: dollars in addition to my normal income, and I've had

612
00:29:02,640 --> 00:29:05,320
Speaker 2: a really good tax here that it would actually push

613
00:29:05,360 --> 00:29:07,600
Speaker 2: you as an individual, like if you're working as a

614
00:29:07,640 --> 00:29:11,040
Speaker 2: sole trader, it is included on your individual tax return,

615
00:29:11,080 --> 00:29:14,040
Speaker 2: which might push you to the highest marginal tax rate

616
00:29:14,040 --> 00:29:18,080
Speaker 2: in Australia is forty five percent tax. Yes, and that

617
00:29:18,280 --> 00:29:20,720
Speaker 2: means you would earn over one hundred and eighty thousand dollars,

618
00:29:20,840 --> 00:29:24,000
Speaker 2: which if you are an individual who has a PAYG

619
00:29:24,160 --> 00:29:26,320
Speaker 2: job and a side hustle, it's not that hard to

620
00:29:26,360 --> 00:29:29,400
Speaker 2: get to that number. Yeah, totally plausible. Totally plausible. Like

621
00:29:29,400 --> 00:29:31,160
Speaker 2: we're not talking about pipe dreams and oh my gosh,

622
00:29:31,240 --> 00:29:33,080
Speaker 2: I wonder like one hundred and eighty thousand dollars for

623
00:29:33,120 --> 00:29:36,000
Speaker 2: a PAYG job. You go, wow, that's a lot of money. Yeah,

624
00:29:36,040 --> 00:29:38,600
Speaker 2: but if you're doing two jobs at one time, you

625
00:29:38,720 --> 00:29:40,320
Speaker 2: kind of go, all right, well, I might earn you

626
00:29:40,320 --> 00:29:42,560
Speaker 2: one hundred and ten hundred and twenty in my normal job,

627
00:29:42,600 --> 00:29:44,840
Speaker 2: and then I might, you know, earn another seventy. Well,

628
00:29:44,880 --> 00:29:47,440
Speaker 2: now you're at the highest marginal tax rate forty five thousand.

629
00:29:47,440 --> 00:29:51,080
Speaker 2: We need, yeah, forty five percent. You're not on tax,

630
00:29:51,240 --> 00:29:54,080
Speaker 2: you're on practical advice. I'll be on the math side

631
00:29:54,080 --> 00:29:56,200
Speaker 2: of things like this, so to keep it that way,

632
00:29:56,520 --> 00:29:59,040
Speaker 2: but I think it's really important to I guess look

633
00:29:59,080 --> 00:30:01,520
Speaker 2: at that because twenty five five percent bit sexier than

634
00:30:01,520 --> 00:30:04,840
Speaker 2: forty five percent. Yeah. There's also obviously going to be

635
00:30:04,840 --> 00:30:08,120
Speaker 2: things about distributing that income. So we'll talk about that later,

636
00:30:09,160 --> 00:30:10,160
Speaker 2: but they are very different.

637
00:30:10,320 --> 00:30:13,080
Speaker 3: Okay, before the break, I gave the example of someone

638
00:30:13,160 --> 00:30:15,880
Speaker 3: who's looking at the sole trader model, but they could

639
00:30:15,960 --> 00:30:18,239
Speaker 3: maybe decide to go the other way and go for

640
00:30:18,400 --> 00:30:22,200
Speaker 3: a business instead. Are there any advantages around tax time

641
00:30:22,240 --> 00:30:24,280
Speaker 3: to eat the model that may help people decide which

642
00:30:24,320 --> 00:30:26,160
Speaker 3: category would be the best option for them.

643
00:30:26,240 --> 00:30:28,800
Speaker 2: So the answer is yes. First thing first, as a

644
00:30:28,880 --> 00:30:31,120
Speaker 2: sole trader, tax is just easier and faster to do.

645
00:30:31,560 --> 00:30:33,680
Speaker 2: It's the same way you've been doing tax always. It's

646
00:30:33,720 --> 00:30:36,440
Speaker 2: just another line item, pop it in and it spits

647
00:30:36,440 --> 00:30:38,920
Speaker 2: it out. It's very straightforward. The ATO now has their

648
00:30:38,960 --> 00:30:43,000
Speaker 2: E tax system super super easy. Especially as a business owner,

649
00:30:43,080 --> 00:30:45,960
Speaker 2: I feel like once you start running a business, you

650
00:30:46,000 --> 00:30:47,840
Speaker 2: get like a little bit overwhelmed. You're like, oh my gosh,

651
00:30:47,840 --> 00:30:49,800
Speaker 2: what's tax time going to be. It's going to be crazy.

652
00:30:50,160 --> 00:30:52,160
Speaker 2: If you've got all your receipts, if you've been keeping

653
00:30:52,200 --> 00:30:55,760
Speaker 2: track of your income, it's a cinch, I promise. However,

654
00:30:55,880 --> 00:30:58,680
Speaker 2: if you register as a business, you're taxed on the profit,

655
00:30:58,800 --> 00:31:01,880
Speaker 2: meaning that before tax time you could actually look at

656
00:31:01,920 --> 00:31:04,320
Speaker 2: business claims to help you reduce your profit and pay

657
00:31:04,400 --> 00:31:07,440
Speaker 2: less tax and you can even pay yourself out of that.

658
00:31:08,600 --> 00:31:11,040
Speaker 2: So for example, you might have made like sixty grand

659
00:31:11,160 --> 00:31:13,120
Speaker 2: for the year, and then you bought a two thousand

660
00:31:13,160 --> 00:31:16,000
Speaker 2: dollar laptop and decided to pay yourself fifty thousand dollars.

661
00:31:16,520 --> 00:31:20,240
Speaker 2: That's actually fifty two thousand dollars in expenses, So you're

662
00:31:20,280 --> 00:31:24,320
Speaker 2: really only claiming an eight thousand dollars profit, Jess, and

663
00:31:24,360 --> 00:31:27,080
Speaker 2: you'll be taxed from that instead of the full sixty

664
00:31:27,160 --> 00:31:31,720
Speaker 2: thousand dollars, which I think a lot of people assume. Yeah, okay, right,

665
00:31:32,080 --> 00:31:35,200
Speaker 2: So with that said, if you are a service based business,

666
00:31:35,240 --> 00:31:38,720
Speaker 2: it might actually also be advantageous to be a sole trader. However,

667
00:31:39,240 --> 00:31:41,280
Speaker 2: if you need to buy products or materials to make

668
00:31:41,320 --> 00:31:43,840
Speaker 2: your business run, like, you probably have a heap of

669
00:31:43,880 --> 00:31:47,000
Speaker 2: outgoing costs, Whereas at tax time it would be better

670
00:31:47,040 --> 00:31:49,520
Speaker 2: to just have registered as a business because like you're

671
00:31:49,520 --> 00:31:52,800
Speaker 2: claiming them in arrears, if that makes sense. Yeah, so

672
00:31:52,880 --> 00:31:54,520
Speaker 2: it's just a little bit more complex.

673
00:31:54,720 --> 00:31:58,840
Speaker 3: Yeah, that's interesting thinking about claiming something back under tax

674
00:31:58,920 --> 00:32:02,520
Speaker 3: because I feel like, even if you're not a business owner,

675
00:32:02,640 --> 00:32:05,160
Speaker 3: at tax time, everyone's always saying what can I claim, Like,

676
00:32:05,240 --> 00:32:07,280
Speaker 3: how can I maximize the money that I've earned?

677
00:32:07,280 --> 00:32:09,520
Speaker 2: Because no one likes paying cap No one likes paying tax.

678
00:32:09,560 --> 00:32:12,120
Speaker 2: But I also this is such a spicy opinion. I'm

679
00:32:12,160 --> 00:32:17,680
Speaker 2: always like, why are we here justifying purchases for things

680
00:32:17,680 --> 00:32:19,800
Speaker 2: that your business might not need just so you can

681
00:32:19,880 --> 00:32:22,240
Speaker 2: kind of get a discount on them. Like, yes, you're

682
00:32:22,280 --> 00:32:25,400
Speaker 2: getting a tax benefit, but it doesn't make the item free.

683
00:32:25,560 --> 00:32:27,480
Speaker 2: You don't need a new car or a new laptop

684
00:32:27,600 --> 00:32:30,040
Speaker 2: just because tax time is coming. And yeah, like if

685
00:32:30,040 --> 00:32:32,600
Speaker 2: you genuinely need your new laptop, jests, good time to

686
00:32:32,600 --> 00:32:34,000
Speaker 2: do It's good time to do it. Do you know

687
00:32:34,040 --> 00:32:37,080
Speaker 2: what there's usually sales on Like office works is always like, oh,

688
00:32:37,160 --> 00:32:39,200
Speaker 2: look at our laptops coming up to the end of

689
00:32:39,320 --> 00:32:43,240
Speaker 2: financial year. Sexy, very nice if you already need one,

690
00:32:43,680 --> 00:32:47,080
Speaker 2: because the claiming process happens really quickly. So right, like

691
00:32:47,160 --> 00:32:49,240
Speaker 2: let's say you're like, oh, actually do need a laptop.

692
00:32:49,280 --> 00:32:51,600
Speaker 2: It's June. You buy it on the fifteenth of June.

693
00:32:51,640 --> 00:32:54,960
Speaker 2: You can claim that ye at the thirty June tax time.

694
00:32:55,480 --> 00:32:57,480
Speaker 2: But like, if you bought it in December last year,

695
00:32:57,560 --> 00:33:00,360
Speaker 2: still claimable jests Yeah, I'm just trying to like stuff

696
00:33:00,360 --> 00:33:01,920
Speaker 2: it in that year. And I just go, this is

697
00:33:01,960 --> 00:33:04,360
Speaker 2: so silly. You are making purchases that you didn't need

698
00:33:04,400 --> 00:33:07,480
Speaker 2: to make. So what can we claim then, is my question?

699
00:33:07,560 --> 00:33:08,960
Speaker 2: Oh my gosh, there are so many things that you

700
00:33:08,960 --> 00:33:10,960
Speaker 2: could claim, and I could go on and on and

701
00:33:11,040 --> 00:33:13,440
Speaker 2: on about it because it totally depends on what industry

702
00:33:13,480 --> 00:33:15,880
Speaker 2: you're in. You in the adult industry, Jess, you could

703
00:33:15,920 --> 00:33:20,160
Speaker 2: climb loop there go. Are you in gardening and farming? Great?

704
00:33:20,160 --> 00:33:22,040
Speaker 2: Do you know you can claim your dog and garden

705
00:33:22,080 --> 00:33:25,280
Speaker 2: notmees oh like wild? So let's give you some more

706
00:33:25,280 --> 00:33:27,920
Speaker 2: practical advice because I don't think either of those things

707
00:33:27,960 --> 00:33:31,120
Speaker 2: really help you. No, but please don't guess what you

708
00:33:31,120 --> 00:33:33,040
Speaker 2: can claim. Don't just go, oh, I assume I'd be

709
00:33:33,040 --> 00:33:35,120
Speaker 2: able to claim that, because you don't want to do

710
00:33:35,160 --> 00:33:39,440
Speaker 2: this incorrectly, because if the taxman audits you and it's incorrect,

711
00:33:39,520 --> 00:33:41,640
Speaker 2: not only are they going to ask you for the money, Jess,

712
00:33:42,040 --> 00:33:42,920
Speaker 2: they're gone find you.

713
00:33:43,840 --> 00:33:46,280
Speaker 3: That's not good as someone who's been audited as well,

714
00:33:46,320 --> 00:33:47,720
Speaker 3: Like they dot their eyes and they.

715
00:33:47,600 --> 00:33:49,600
Speaker 2: Cross their t's. Yeah, and it's kind of like not

716
00:33:49,720 --> 00:33:52,880
Speaker 2: innocent until proven guilty. With the ATO, they're like, you're

717
00:33:52,920 --> 00:33:56,000
Speaker 2: guilty until you prove that you're innocent. And with you

718
00:33:56,080 --> 00:33:58,120
Speaker 2: when you got ordered to have your receipts. You would

719
00:33:58,120 --> 00:34:00,320
Speaker 2: have had your receipts textfully, but like in that if

720
00:34:00,360 --> 00:34:03,280
Speaker 2: you were me, yeah, stressful, Thankfully I have Jess now,

721
00:34:03,400 --> 00:34:06,440
Speaker 2: so we're okay, But historically I'm like, I don't have

722
00:34:06,480 --> 00:34:09,440
Speaker 2: that receipt But I would advise getting an accountant who

723
00:34:09,520 --> 00:34:12,320
Speaker 2: specializes in the field that your business is in, who's

724
00:34:12,360 --> 00:34:15,200
Speaker 2: actually going to know what you can and can't claim. Now,

725
00:34:15,320 --> 00:34:18,600
Speaker 2: Jess used to do your tax yourself, and I bullied

726
00:34:18,640 --> 00:34:22,000
Speaker 2: you because I am the world's biggest bully, and I said,

727
00:34:22,040 --> 00:34:24,480
Speaker 2: you have to go to an accountant. Yes? Was that

728
00:34:24,560 --> 00:34:27,000
Speaker 2: a good decision? Life changing decision? Why?

729
00:34:27,400 --> 00:34:29,040
Speaker 3: I think at first I was always like, oh, I

730
00:34:29,040 --> 00:34:30,879
Speaker 3: can do my own tax myself. Why would I pace

731
00:34:30,880 --> 00:34:31,840
Speaker 3: when I was do it, like you said, two d

732
00:34:31,920 --> 00:34:33,880
Speaker 3: fifty bucks, you know, a decent amount of money, Like,

733
00:34:33,920 --> 00:34:34,200
Speaker 3: if I.

734
00:34:34,160 --> 00:34:36,640
Speaker 2: Can, it's a matter of money, Yeah, why do it?

735
00:34:36,840 --> 00:34:38,480
Speaker 3: But for me the amount of things that I just

736
00:34:38,520 --> 00:34:41,799
Speaker 3: didn't know that I could claim you as a sole trader, and.

737
00:34:41,719 --> 00:34:43,880
Speaker 2: I obviously sent you to someone who knew what they

738
00:34:43,880 --> 00:34:46,359
Speaker 2: were doing in your space. And I remember you walking

739
00:34:46,360 --> 00:34:48,319
Speaker 2: away being like, oh, she said I could claim this,

740
00:34:48,440 --> 00:34:50,040
Speaker 2: And I was like, well, yeah, of course, you can

741
00:34:50,520 --> 00:34:52,920
Speaker 2: because you aren't the tax person. And like, I'm a

742
00:34:52,960 --> 00:34:55,360
Speaker 2: money person, so I kind of knew some of those things. Yeah,

743
00:34:55,560 --> 00:34:58,120
Speaker 2: like invest the money one year and you know, if

744
00:34:58,120 --> 00:35:00,200
Speaker 2: it doesn't work out, you get to claim it or

745
00:35:00,239 --> 00:35:02,520
Speaker 2: next year's tax. It's a win and then you don't

746
00:35:02,560 --> 00:35:04,839
Speaker 2: have to do it again. But nine times out of ten,

747
00:35:04,960 --> 00:35:07,799
Speaker 2: i'd say an accountant puts you in a way better

748
00:35:07,840 --> 00:35:09,080
Speaker 2: position than you could yourself.

749
00:35:09,160 --> 00:35:11,360
Speaker 3: Yeah, and if you need a recommendation, we're happy to

750
00:35:11,400 --> 00:35:14,359
Speaker 3: pass you along to someone. So oh yeah at your website, Well, yeah,

751
00:35:14,360 --> 00:35:16,040
Speaker 3: there's a page on our website. Hit up that and

752
00:35:16,040 --> 00:35:17,520
Speaker 3: we can match you up with somebody.

753
00:35:17,560 --> 00:35:19,120
Speaker 2: I mean, we'll match you up with someone real good.

754
00:35:19,120 --> 00:35:21,080
Speaker 2: But I hate to tell you this, just as accountants

755
00:35:21,080 --> 00:35:25,160
Speaker 2: not taking on new clients un lucky. Sorry. Also another

756
00:35:25,160 --> 00:35:27,920
Speaker 2: hot tip, Jess is have a look on the ATIO website.

757
00:35:28,000 --> 00:35:30,080
Speaker 2: I know you probably don't frequent it. You're probably not

758
00:35:30,160 --> 00:35:32,680
Speaker 2: like waking up in the morning meal. I'm just gonna

759
00:35:32,719 --> 00:35:34,759
Speaker 2: have a little cover of Joe and I'm gonna sit

760
00:35:34,840 --> 00:35:37,200
Speaker 2: down on my laptop and look at the ADO website.

761
00:35:37,360 --> 00:35:40,680
Speaker 2: That's what I do, though, be more like VD I

762
00:35:40,800 --> 00:35:42,759
Speaker 2: like it, But look at the ATIO website because they

763
00:35:42,760 --> 00:35:45,680
Speaker 2: have a whole section around what you can claim and

764
00:35:45,719 --> 00:35:48,440
Speaker 2: what you can't claim, and it changes depending on the

765
00:35:48,440 --> 00:35:51,120
Speaker 2: business that you run. And they also post lots of

766
00:35:51,239 --> 00:35:54,319
Speaker 2: articles of like, I mean, they don't market it this way.

767
00:35:54,400 --> 00:35:57,520
Speaker 2: I'm just trying to be sexy marketing for the ATO,

768
00:35:57,640 --> 00:35:59,799
Speaker 2: but like they have some horror stories on there too,

769
00:36:00,080 --> 00:36:02,359
Speaker 2: of like this person tried to claim this and they

770
00:36:02,360 --> 00:36:03,719
Speaker 2: got in trouble in this way.

771
00:36:03,920 --> 00:36:04,200
Speaker 3: Yeah.

772
00:36:04,239 --> 00:36:06,359
Speaker 2: I just love a pervy story me too, so kind

773
00:36:06,360 --> 00:36:06,800
Speaker 2: of helpful.

774
00:36:06,920 --> 00:36:09,600
Speaker 3: They have a really great forum too, where it's manned

775
00:36:09,640 --> 00:36:11,680
Speaker 3: by a tier stuff and you can actually head in

776
00:36:11,719 --> 00:36:14,680
Speaker 3: there and post your question or be like, oh, theoretically

777
00:36:14,800 --> 00:36:17,719
Speaker 3: if I did this and did that hypothetically, yeah, Like

778
00:36:17,760 --> 00:36:20,359
Speaker 3: they can't provide you personal advice, but you can kind

779
00:36:20,360 --> 00:36:23,760
Speaker 3: of ask generalized questions and it's coming straight from the source.

780
00:36:23,840 --> 00:36:27,000
Speaker 3: You know that it's correct because sometimes those clickbaity articles

781
00:36:27,040 --> 00:36:28,880
Speaker 3: that you see floating around at tax time.

782
00:36:29,120 --> 00:36:30,879
Speaker 2: Yeah, like oh my gosh, did you know you can

783
00:36:30,880 --> 00:36:34,160
Speaker 2: claim your pridor handbag? I wouldn't get those to take

784
00:36:34,200 --> 00:36:37,920
Speaker 2: those legitimately. I also think it's really important to check

785
00:36:37,920 --> 00:36:40,279
Speaker 2: the Atier website because each year in the lead up

786
00:36:40,280 --> 00:36:43,719
Speaker 2: to tax time, the ATO put out like a big statement,

787
00:36:44,160 --> 00:36:49,040
Speaker 2: and the statement usually explains what they're targeting this year. Yeah,

788
00:36:49,120 --> 00:36:52,080
Speaker 2: let's use a recent example, so I think it was

789
00:36:52,160 --> 00:36:54,319
Speaker 2: this year they came out and said, all right, we're

790
00:36:54,400 --> 00:36:58,080
Speaker 2: changing the work from home claiming rules because during COVID,

791
00:36:58,360 --> 00:37:00,600
Speaker 2: we gave you guys a whole heap of care sessions

792
00:37:00,600 --> 00:37:02,640
Speaker 2: on what you could and couldn't claim from home, and

793
00:37:02,719 --> 00:37:05,400
Speaker 2: obviously we're a little bit more lenient with that because

794
00:37:05,400 --> 00:37:09,120
Speaker 2: lots of people were working from home. Now we're cracking

795
00:37:09,160 --> 00:37:11,640
Speaker 2: down on that. If you're claiming work from home, you're

796
00:37:11,680 --> 00:37:13,640
Speaker 2: going to need to back it up because we're probably

797
00:37:13,640 --> 00:37:15,719
Speaker 2: going to audit a heap of people in this situation.

798
00:37:16,080 --> 00:37:19,640
Speaker 2: So it's nice to just know where they're tightening up.

799
00:37:19,800 --> 00:37:21,759
Speaker 2: Not so that you can protect yourself even more, because

800
00:37:21,760 --> 00:37:23,360
Speaker 2: you should be doing the right thing in the first place,

801
00:37:23,640 --> 00:37:25,880
Speaker 2: but it's just pervy. It's good to keep her finger

802
00:37:25,920 --> 00:37:30,160
Speaker 2: on the pulse and stand good reminder. And also, things

803
00:37:30,160 --> 00:37:32,280
Speaker 2: that you could claim last year might not be claimable

804
00:37:32,320 --> 00:37:34,759
Speaker 2: this year, so there might have been certain concessions or

805
00:37:34,760 --> 00:37:37,239
Speaker 2: certain leniencies that they're like, oh, well, Jess, we're going

806
00:37:37,280 --> 00:37:40,200
Speaker 2: through COVID, so you can claim this this year, and

807
00:37:40,239 --> 00:37:42,759
Speaker 2: then they can't next year. So, for example, there's an

808
00:37:42,840 --> 00:37:45,120
Speaker 2: uproar in the She's on the money community this year

809
00:37:45,360 --> 00:37:48,640
Speaker 2: because the instant asset right off amount is actually decreasing

810
00:37:48,680 --> 00:37:51,480
Speaker 2: next financial year, or it has now decreased this year,

811
00:37:51,640 --> 00:37:54,279
Speaker 2: whereas historically you could claim a lot more on that.

812
00:37:54,360 --> 00:37:56,040
Speaker 2: So you just want to have your finger on the pulse,

813
00:37:56,080 --> 00:38:00,920
Speaker 2: because if you're going to make decisions financially, let's make

814
00:38:00,960 --> 00:38:02,880
Speaker 2: sure that you're not making them based on rules that

815
00:38:02,920 --> 00:38:04,040
Speaker 2: don't apply to you anymore.

816
00:38:04,160 --> 00:38:06,360
Speaker 3: Yeah, so don't guess tax claims. We don't want to

817
00:38:06,360 --> 00:38:08,120
Speaker 3: be dancing with the devil, or in this case, the

818
00:38:08,200 --> 00:38:09,760
Speaker 3: tax man. Excellent advice.

819
00:38:10,000 --> 00:38:13,120
Speaker 2: Oh hold on one more thing. Obviously I was saying

820
00:38:13,120 --> 00:38:16,080
Speaker 2: to you earlier, like, oh, yeah, I registered for GST earlier.

821
00:38:16,480 --> 00:38:20,160
Speaker 2: One of the additional benefits of registering for GST is

822
00:38:20,200 --> 00:38:23,439
Speaker 2: that you're able to claim it back. So if you're

823
00:38:23,520 --> 00:38:27,120
Speaker 2: not registered for GST JS, you're not able to claim

824
00:38:27,120 --> 00:38:29,840
Speaker 2: back the GST on any of your expenses or materials

825
00:38:29,880 --> 00:38:33,440
Speaker 2: that you purchased to sell. Okay, interesting, just good to

826
00:38:33,480 --> 00:38:35,239
Speaker 2: know because you might go, oh, I claim that back

827
00:38:35,239 --> 00:38:37,560
Speaker 2: at tax time because you've heard that gest is claimable.

828
00:38:37,680 --> 00:38:39,840
Speaker 2: It's claimable if you're paying it. Yeah, so it's like

829
00:38:39,880 --> 00:38:41,520
Speaker 2: a two way street. If you're not on the two

830
00:38:41,560 --> 00:38:43,480
Speaker 2: way street, you don't just get to claim it when

831
00:38:43,480 --> 00:38:45,800
Speaker 2: you're not paying it. That makes total sense.

832
00:38:46,320 --> 00:38:48,120
Speaker 3: Is there anything you want to leave us with about

833
00:38:48,440 --> 00:38:49,320
Speaker 3: bank accounts?

834
00:38:50,040 --> 00:38:51,600
Speaker 2: Are you going to let me talk about bank accounts

835
00:38:51,600 --> 00:38:54,239
Speaker 2: in this episode too? Your favorite topic? Oh, this is

836
00:38:54,280 --> 00:38:56,440
Speaker 2: my favorite episode. We don't even need the Sheese on

837
00:38:56,480 --> 00:38:58,840
Speaker 2: the Money podcast as a whole anymore. We just need

838
00:38:58,960 --> 00:39:03,880
Speaker 2: Victoria talking about banking systems. So yes, obviously, always open

839
00:39:04,000 --> 00:39:05,920
Speaker 2: a new bank account for your business, whether it is

840
00:39:05,960 --> 00:39:08,080
Speaker 2: big or whether it is small, because it's going to

841
00:39:08,120 --> 00:39:10,360
Speaker 2: help you keep track of all of that money that

842
00:39:10,480 --> 00:39:12,799
Speaker 2: is coming in and going out. And I promise you

843
00:39:12,840 --> 00:39:15,279
Speaker 2: are going to want to keep track of that. If

844
00:39:15,280 --> 00:39:17,840
Speaker 2: you're a registered for JSD, because obviously can't give personal advice,

845
00:39:17,880 --> 00:39:20,800
Speaker 2: you could potentially think about opening a separate bank account

846
00:39:20,840 --> 00:39:23,400
Speaker 2: for that money to go into it. I do that

847
00:39:23,520 --> 00:39:26,400
Speaker 2: personally where you're not going to spend it. I do

848
00:39:26,480 --> 00:39:30,839
Speaker 2: the same for tax. So while we said earlier we

849
00:39:30,880 --> 00:39:34,640
Speaker 2: withhold thirty percent tax, so like my business pays thirty

850
00:39:34,640 --> 00:39:39,040
Speaker 2: percent tax, say ten thousand dollars payment comes in, I

851
00:39:39,080 --> 00:39:42,440
Speaker 2: automatically put three thousand dollars into my tax account. And

852
00:39:42,480 --> 00:39:45,600
Speaker 2: I do that because it makes me feel so comfortable.

853
00:39:45,760 --> 00:39:49,279
Speaker 2: I go immediately, if we pretend this was profit, I'm

854
00:39:49,320 --> 00:39:51,480
Speaker 2: going to be paying three grand tax on this at

855
00:39:51,480 --> 00:39:53,919
Speaker 2: a minimum. And then I take my JSD and pop

856
00:39:53,960 --> 00:39:55,960
Speaker 2: that in a separate account, and I know that I'm clean.

857
00:39:56,400 --> 00:39:59,080
Speaker 2: I then use the money that is left over, So

858
00:39:59,160 --> 00:40:01,719
Speaker 2: the seven thousand dollars left over, I leave that in

859
00:40:01,760 --> 00:40:04,040
Speaker 2: my business account, and that's what pays my bills. That's

860
00:40:04,040 --> 00:40:07,960
Speaker 2: what keeps the light on. Coming to tax time, I

861
00:40:08,040 --> 00:40:10,480
Speaker 2: know that I have the money set aside to pay tax.

862
00:40:10,760 --> 00:40:14,120
Speaker 2: I pay tax from that. My business accountant goes through

863
00:40:14,160 --> 00:40:16,440
Speaker 2: everything at tax time and then lets me know at

864
00:40:16,440 --> 00:40:18,880
Speaker 2: the end of the financial year what my true profit is.

865
00:40:19,320 --> 00:40:21,080
Speaker 2: And I like it that way, and it's honestly, I

866
00:40:21,120 --> 00:40:23,200
Speaker 2: would say a privilege to act that way, because I'm

867
00:40:23,200 --> 00:40:26,520
Speaker 2: technically putting aside a full thirty percent irrespective of what

868
00:40:26,560 --> 00:40:28,960
Speaker 2: my costs are, because, as you guys know, I have

869
00:40:29,040 --> 00:40:31,040
Speaker 2: staff to pay, I have rent to pay, I have

870
00:40:31,200 --> 00:40:33,799
Speaker 2: overheads like do you know how many subscriptions I pay for?

871
00:40:33,880 --> 00:40:38,080
Speaker 2: Like Photoshop and like podcasting apps, I cannot it's expensive,

872
00:40:38,200 --> 00:40:41,040
Speaker 2: website management fees. Like we'll go through all of these

873
00:40:41,120 --> 00:40:43,880
Speaker 2: hidden costs of business at some point, but like, I

874
00:40:43,920 --> 00:40:46,880
Speaker 2: do not realize how expensive it is. Side note Jessica,

875
00:40:47,239 --> 00:40:50,160
Speaker 2: to have an edm ah, so to have an email

876
00:40:50,280 --> 00:40:53,840
Speaker 2: marketing platform, you go, oh, just sign up for Mailchimp.

877
00:40:53,880 --> 00:40:55,279
Speaker 2: And that's what I did when I started cheese on

878
00:40:55,320 --> 00:40:57,479
Speaker 2: the money, just went straight to mail Chimp. I was like, Slate,

879
00:40:57,480 --> 00:40:59,360
Speaker 2: it's free, do we love that? And you get to

880
00:40:59,400 --> 00:41:01,560
Speaker 2: a certain amount of subscribers and they're like, hah, it's

881
00:41:01,560 --> 00:41:03,399
Speaker 2: paid to play, and you're like, oh, okay, no, that's fine,

882
00:41:03,400 --> 00:41:06,239
Speaker 2: I've got some subscribers, I'll pay, and then you get

883
00:41:06,239 --> 00:41:11,120
Speaker 2: more subscribers. Anyway, back to the point separate accounts because one,

884
00:41:11,160 --> 00:41:14,439
Speaker 2: I like clarity, but two, putting aside that money means

885
00:41:14,440 --> 00:41:17,400
Speaker 2: that I sleep really well at night. Yeah, knowing that

886
00:41:17,440 --> 00:41:19,839
Speaker 2: there's money in an account to pay tax, there's money

887
00:41:19,840 --> 00:41:22,000
Speaker 2: in my other account to pay for my staff and

888
00:41:22,080 --> 00:41:24,279
Speaker 2: my team, and then at the end of the day,

889
00:41:24,360 --> 00:41:27,160
Speaker 2: we get to talk about profit once tax time comes

890
00:41:27,160 --> 00:41:29,840
Speaker 2: and goes. So I think it's really important to be

891
00:41:29,920 --> 00:41:32,680
Speaker 2: structured properly, and it might seem like a lot for

892
00:41:32,719 --> 00:41:35,320
Speaker 2: now because you're like the I have literally just started

893
00:41:35,360 --> 00:41:38,360
Speaker 2: my business. I earn like four dollars. You've got rocks

894
00:41:38,400 --> 00:41:40,560
Speaker 2: in your head, like, I cannot believe it. I just

895
00:41:40,600 --> 00:41:42,880
Speaker 2: went to sign up for this new business banking account.

896
00:41:43,160 --> 00:41:45,560
Speaker 2: It's going to cost me ten bucks, Like are you joking?

897
00:41:45,640 --> 00:41:48,200
Speaker 2: Ten bucks? And I haven't even made a profit yet. Yeah,

898
00:41:48,320 --> 00:41:52,000
Speaker 2: a promise that investment is worth it and getting it

899
00:41:52,120 --> 00:41:53,839
Speaker 2: right at the start is going to save you so

900
00:41:53,960 --> 00:41:57,080
Speaker 2: many headaches and also any questions from the tax man later.

901
00:41:57,280 --> 00:42:00,160
Speaker 3: Yeah, and on a smaller scale, having that separate account,

902
00:42:00,239 --> 00:42:03,080
Speaker 3: if you're doing all of your spending from that account

903
00:42:03,120 --> 00:42:05,960
Speaker 3: as well, it makes me really handy at tax time

904
00:42:06,000 --> 00:42:06,759
Speaker 3: if you're someone who.

905
00:42:06,719 --> 00:42:08,960
Speaker 2: Maybe does lose their receipts or forgets.

906
00:42:08,520 --> 00:42:11,000
Speaker 3: What they have and what they could claim. It's almost

907
00:42:11,000 --> 00:42:13,360
Speaker 3: like an itemized list of everything that you purchase.

908
00:42:13,480 --> 00:42:17,279
Speaker 2: So it's super duper handy, so easy. Your accountant and

909
00:42:17,320 --> 00:42:19,600
Speaker 2: your bookkeeper at some point when you have both of

910
00:42:19,640 --> 00:42:21,680
Speaker 2: those are going to love that. You're going to love

911
00:42:21,719 --> 00:42:24,319
Speaker 2: that more because you're not filtering through Oh no, that

912
00:42:24,320 --> 00:42:26,759
Speaker 2: was zoobreets. Oh that was me, Oh that was you

913
00:42:26,760 --> 00:42:29,520
Speaker 2: know me and sports girl. Oh, actually that's a business expense.

914
00:42:29,560 --> 00:42:32,960
Speaker 2: Start that one. Yeah, Like that's not helpful. That is

915
00:42:33,040 --> 00:42:35,040
Speaker 2: not an effective use of your time. And as a

916
00:42:35,080 --> 00:42:37,759
Speaker 2: small business owner, you only have so much time. We

917
00:42:37,840 --> 00:42:39,279
Speaker 2: need to make the most of it. And having a

918
00:42:39,320 --> 00:42:42,000
Speaker 2: clean banking system is going to make it easier. And

919
00:42:42,520 --> 00:42:44,520
Speaker 2: just on to that point of like, if you're someone

920
00:42:44,520 --> 00:42:48,239
Speaker 2: who loses your receipts, like Victoria Divine Years, you're going

921
00:42:48,280 --> 00:42:50,120
Speaker 2: to start an album on your phone and take a

922
00:42:50,160 --> 00:42:52,719
Speaker 2: photo of every receipt that comes in so that you

923
00:42:52,840 --> 00:42:56,239
Speaker 2: know that it's stored somewhere. That helps me a lot.

924
00:42:56,320 --> 00:43:00,120
Speaker 2: I mean, the ATO app actually enables you to upload

925
00:43:00,160 --> 00:43:02,839
Speaker 2: it directly, but like, I don't know if I want

926
00:43:02,880 --> 00:43:05,319
Speaker 2: to upload it right now, Like my accountant might go,

927
00:43:05,400 --> 00:43:07,880
Speaker 2: oh vi, that you know, work lunch only. Some of

928
00:43:07,880 --> 00:43:10,680
Speaker 2: it's claim. I just I like having it separately so

929
00:43:10,719 --> 00:43:13,560
Speaker 2: I can provide it all to my accountant. Yeah, separate.

930
00:43:13,640 --> 00:43:16,800
Speaker 2: But then also you can actually upload your receipts directly

931
00:43:16,880 --> 00:43:19,799
Speaker 2: to the ATO portal throughout the year to keep track

932
00:43:19,840 --> 00:43:23,120
Speaker 2: of them here. That's also free. There you go. I

933
00:43:23,120 --> 00:43:24,719
Speaker 2: feel like we've covered a lot too. I feel like

934
00:43:24,760 --> 00:43:26,920
Speaker 2: we've covered too much. It was a big episode. I

935
00:43:26,960 --> 00:43:28,719
Speaker 2: am really sorry to all of the people at the

936
00:43:28,719 --> 00:43:30,600
Speaker 2: start of this episode that I might have got hyped

937
00:43:30,640 --> 00:43:32,479
Speaker 2: up when I said this is a really sexy topic,

938
00:43:32,520 --> 00:43:36,600
Speaker 2: because it wasn't aware like. But I also think being

939
00:43:36,600 --> 00:43:39,799
Speaker 2: empowered in business, being on top of your numbers, that

940
00:43:40,000 --> 00:43:41,200
Speaker 2: is arguably very sexy.

941
00:43:41,280 --> 00:43:43,239
Speaker 3: I completely agree. And now you know how to set

942
00:43:43,239 --> 00:43:45,560
Speaker 3: yourselves up for tax time without getting fined, without getting

943
00:43:45,560 --> 00:43:47,959
Speaker 3: in legal trouble, and hopefully without getting a headache.

944
00:43:47,640 --> 00:43:50,279
Speaker 2: And so your business goes exactly right. We love that.

945
00:43:50,560 --> 00:43:52,879
Speaker 2: All right, Well, have a really good week, guys. We'll

946
00:43:52,880 --> 00:43:55,799
Speaker 2: see you next month for a business Bible episode. But

947
00:43:55,920 --> 00:43:58,799
Speaker 2: as always, the conversation is going to continue over on

948
00:43:58,840 --> 00:44:02,239
Speaker 2: our Facebook group business Buiable, not She's on the Money.

949
00:44:02,239 --> 00:44:04,680
Speaker 2: We're going to keep that one separate because not everyone

950
00:44:04,719 --> 00:44:07,400
Speaker 2: cares about business. That's okay, and that's all right. But

951
00:44:07,520 --> 00:44:09,879
Speaker 2: we've found our niche and we love them hard. Yes,

952
00:44:09,960 --> 00:44:12,680
Speaker 2: we do your our people. See you next time, guys.

953
00:44:12,800 --> 00:44:12,960
Speaker 1: Hi.

954
00:44:19,680 --> 00:44:22,200
Speaker 4: The advice shared on She's on the Money is general

955
00:44:22,239 --> 00:44:25,480
Speaker 4: in nature and does not consider your individual circumstances.

956
00:44:25,840 --> 00:44:29,239
Speaker 2: She's on the Money exists purely for educational purposes and

957
00:44:29,280 --> 00:44:31,719
Speaker 2: should not be relied upon to make an investment or

958
00:44:31,800 --> 00:44:35,400
Speaker 2: financial decision. If you do choose to buy a financial product,

959
00:44:35,480 --> 00:44:39,400
Speaker 2: read the PDS TMD and obtain appropriate financial advice tailored

960
00:44:39,480 --> 00:44:40,400
Speaker 2: towards your needs.

961
00:44:40,719 --> 00:44:44,680
Speaker 4: Victoria Divine and She's on the Money are authorized representatives

962
00:44:44,719 --> 00:44:48,600
Speaker 4: of Money Sherpa pty Ltd ABN three two one is

963
00:44:48,640 --> 00:44:52,520
Speaker 4: six four nine two seven seven zero eight AFSL four

964
00:44:52,600 --> 00:45:01,920
Speaker 4: five one two eight nine The Day