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Speaker 1: She's on the Money.

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Speaker 2: She's on the Money. Hello, and welcome to She's on

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Speaker 2: the Money, the podcast for millennials who want financial freedom.

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Speaker 2: Tax time is almost upon us, friends, and if you're

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Speaker 2: anything like me, that means you have lots of questions

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Speaker 2: that you want answered. By the end of today's episode,

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Speaker 2: you'll know what you can and can't claim, what the

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Speaker 2: go is with tax on side, hustles, second jobs, and

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Speaker 2: your investments, plus plenty more. My name is Jessica Ricky,

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Speaker 2: and I'm so excited to be joined for today's episode

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Speaker 2: by financial advisor and all around queen Victoria Devine.

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Speaker 1: You are too kind.

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Speaker 3: I feel like it's not as She's on the Money

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Speaker 3: episode unless someone unnecessarily strokes my ego to begin it.

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Speaker 2: Absolutely, I love to lay it on you, but they

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Speaker 2: let's rip into it. Tax time is just a couple

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Speaker 2: of weeks away now, So where on earth do we

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Speaker 2: start in terms of getting our finances sorted?

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Speaker 3: Where we even start? I think we need to start

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Speaker 3: by taking a massive deep breath, because for too many

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Speaker 3: of us, tax time is a stressful time and it

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Speaker 3: shouldn't be that way. I mean, it's June thirty, it

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Speaker 3: is the end of financial year, which is your birthday?

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Speaker 1: I was about to say, which is also my birthday?

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Speaker 3: And on the thirtieth I turn thirty, And I think

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Speaker 3: that's pretty cool. I don't know, I don't think anybody

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Speaker 3: else cares, but like thirty on the thirtieth.

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Speaker 2: It's like a magical alignment of numbers. It's called a

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Speaker 2: golden birthday. I'm pretty sure. Is that right? Yeah? I

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Speaker 2: believe it. So like your agent birth date? Aline?

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Speaker 1: Oh, is that what that means?

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Speaker 2: I think? So.

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Speaker 3: Tony's sitting in the room and she's not meant to

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Speaker 3: be in this podcast, but she just got really excited

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Speaker 3: because her birthday is on the twenty eighth of November,

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Speaker 3: and on that date, she turns twenty eighth, So like,

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Speaker 3: is that her golden birthday too?

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Speaker 2: Absolutely? Is? That's kind of fun?

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Speaker 3: Gosh, I'm so excited about that. Anyway, I'm very excited

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Speaker 3: about my birthday. I'm not one of those people that

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Speaker 3: do birthday months or anything like that. I'm just excited

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Speaker 3: because it's also tax time. So there's that For.

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Speaker 2: Those of us who aren't so tax minded, me, what

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Speaker 2: is really what should we be excited for? Why do

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Speaker 2: we love tax so much?

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Speaker 1: So?

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Speaker 3: Tax time actually means a few different things for a

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Speaker 3: few different people. So it's pretty exciting if you're a

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Speaker 3: casual worker because usually you expect a little bit of

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Speaker 3: a return in your bank account. But it can actually

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Speaker 3: be really stressful for people like me who are small

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Speaker 3: business owners who potentially have tax owing, and it's a

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Speaker 3: total drainer for freelancers who maybe haven't stayed on top

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Speaker 3: of their tax throughout the year. So it's different for everybody.

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Speaker 3: But I think that what we need to understand about

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Speaker 3: tax time is one what we can claim and what

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Speaker 3: we can't claim, and maybe what we need to do

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Speaker 3: in the lead up, because unfortunately, when it comes to tax,

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Speaker 3: once the thirtieth of June passes.

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Speaker 1: You can't actually do anything in arrears.

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Speaker 3: You can't actually go and be like, okay, cool, well

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Speaker 3: I actually did need a new laptop.

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Speaker 1: I'm going to buy it now.

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Speaker 3: The dates actually have to be before the end of

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Speaker 3: financial year for you to actually claim any benefit in

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Speaker 3: that financial year. Like, of course you can do it

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Speaker 3: the next year, but that's not what it's about. That's

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Speaker 3: not why you're buying it right You want to make

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Speaker 3: the most of right now and make hay while the

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Speaker 3: sun is shining, and the sun isn't shining twelve months

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Speaker 3: from now, because that's just too far away to even

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Speaker 3: think about, right.

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Speaker 2: So it sounds like staying organized is going to be

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Speaker 2: really beneficial to anyone in prepping for tax time, especially

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Speaker 2: those freelancers and small buzoners.

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Speaker 3: I am going to be biased and just say in general,

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Speaker 3: it's quite helpful to be organized, but I wouldn't know.

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Speaker 3: That's why I have a bookkeeper, Jess, And that's why

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Speaker 3: you often run the content on somebody because I genuinely

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Speaker 3: cannot be trusted, but essentially to make sure that we

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Speaker 3: are ready for when July one rolls around. You can

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Speaker 3: do a number of different things. So you can prepare

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Speaker 3: by making sure that you have all your receipts and

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Speaker 3: sorting them out and organizing them by category. So say

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Speaker 3: you have a whole heap of different receipts, put them

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Speaker 3: all together and make sure that you've got them in

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Speaker 3: different categories so that you can give them to your

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Speaker 3: accountant to claim properly. The second thing I'd say there

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Speaker 3: is I actually have a folder on my phone, and

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Speaker 3: I know that the ATO tax app actually allows you

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Speaker 3: to take photos and audidically upload it to save it

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Speaker 3: for later. I don't use that just because I like

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Speaker 3: having them on my phone so I can share them

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Speaker 3: personally with my bookkeeper or reference them, because I think

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Speaker 3: that I wouldn't be alone when I say that we've

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Speaker 3: all lost a receipt. So I think making a habit

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Speaker 3: of actually just snapping a quick pick of it and

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Speaker 3: putting it into a folder right then and there actually

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Speaker 3: really helps because you don't need the actual original, You

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Speaker 3: just need proof of the actual receipt And so for me,

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Speaker 3: making sure that you've got the receipts is really helpful.

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Speaker 3: But then also just having photos. I promise you that

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Speaker 3: by having photos instead of a shoe box full of

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Speaker 3: dirty receipts that have gum wrappers stuck to them, is

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Speaker 3: going to make your accountant much happier or you much

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Speaker 3: happier when it comes to doing your tax.

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Speaker 2: And it is worth noting just to throw in there

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Speaker 2: because I did not know this. You want to make

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Speaker 2: sure that you're keeping those receipts or your records of

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Speaker 2: their receipts for five years because minimum, yeah, at a minimum,

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Speaker 2: because you can be audited. And I feel like, as

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Speaker 2: you were saying, having that digital copy makes it really

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Speaker 2: easy for people to file them away on your computer,

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Speaker 2: and if for whatever reason, you have to come back

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Speaker 2: and reference those, it's all there and really simple for you.

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Speaker 3: I'm crazy when it comes to tax and making sure

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Speaker 3: I keep track of them. I actually upload them all

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Speaker 3: to drop box at the end of financial year when

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Speaker 3: I don't need them anymore, and just label it like

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Speaker 3: tax receipts for twenty seventeen or twenty eighteen or twenty

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Speaker 3: nineteen or whatever you're doing, and then I delete them

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Speaker 3: all from the album on my phone so that I

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Speaker 3: don't get confused the next year. So because I do

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Speaker 3: get confused. Yeah, Like, this hasn't come from me being smart.

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Speaker 3: It has come from me not understanding what the hell

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Speaker 3: I'm doing.

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Speaker 2: Tax is definitely like it can be so overwhelming, and

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Speaker 2: I think a lot of people want to know should

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Speaker 2: they do it themselves or should they be getting an

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Speaker 2: accountant to help out.

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Speaker 3: Well, that is a question that I legitimately cannot answer

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Speaker 3: for you, because you genuinely need to work that out yourself.

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Speaker 3: But if your tax is relatively straightforward and you just

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Speaker 3: are a single employee, you don't have any investments, no

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Speaker 3: side huzzles and you're feeling pretty confident, then yeah, absolutely,

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Speaker 3: it's something you could consider doing yourself. Saying that some

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Speaker 3: people just prefer to have less stress and prefer to

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Speaker 3: have the stress taken off them so that they can

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Speaker 3: go and get someone else do it, and that is

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Speaker 3: absolutely fine. The important thing here, though, is if you

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Speaker 3: have an accountant do your tax for you as much

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Speaker 3: as they will do it and lodge it, and you

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Speaker 3: know it's to the best of their ability. They aren't

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Speaker 3: taking responsibility for your tax. So if you then end

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Speaker 3: up being audited, that's on you.

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Speaker 1: That's not on the.

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Speaker 3: Accountant that you had, because they'll make you signed to

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Speaker 3: say no, I agree that everything is true and correct.

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Speaker 3: So if you went and said to your accountant, like,

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Speaker 3: oh my gosh, I spent three hundred dollars on you know,

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Speaker 3: suncream products, so I really want to claim those like,

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Speaker 3: they'll go, yeah, okay, no problems. If you're saying that

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Speaker 3: you can claim them as a part of your job.

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Speaker 3: More often than not, an account will absolutely believe you.

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Speaker 3: They'll have a conversation about whether it's relevant or not.

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Speaker 3: Like jes I'm pretty sure if you tried to claim

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Speaker 3: sun cream and you were like, oh, it has SBF.

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Speaker 1: They're gonna be like.

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Speaker 3: Don't you like working an office environment in a studio

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Speaker 3: that it really has no windows?

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Speaker 1: Like, probably not.

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Speaker 3: But sometimes they will let you claim it and then

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Speaker 3: the ATO come back and audit it and it's not

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Speaker 3: true and correct, and so many people will say like, oh,

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Speaker 3: but my accountant said it's fine, Like that's not going

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Speaker 3: to fly with the ATO.

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Speaker 1: It is up to you. It is your responsibility.

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Speaker 2: Yeah, okay, I'm so scary. It sounds like a good accountant,

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Speaker 2: if you do want to see one, is going to

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Speaker 2: be pretty helpful. How do we figure out or find

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Speaker 2: a good accountant? How do we find someone who's going

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Speaker 2: to be able to help us out?

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Speaker 3: So making sure that you do actually have a registered

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Speaker 3: tax accountant is very helpful if you're going to be

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Speaker 3: paying for them. And tax advice can sit from anywhere

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Speaker 3: between like one hundred dollars to get your tax return

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Speaker 3: all the way up to like thousands of dollars depending

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Speaker 3: on your structure. So I think it's important to just

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Speaker 3: find someone that.

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Speaker 1: Works for you.

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Speaker 3: I always say that the best way to find someone

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Speaker 3: is just by referral. So if you're looking for an

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Speaker 3: accountant and your mate has one, ask them do you

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Speaker 3: like that person? Because more often than not, they'll be

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Speaker 3: hopefully local to you and actually understand your area, or

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Speaker 3: maybe if your friend and you have similar jobs, they'll

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Speaker 3: understand your industry. But if you work in a more

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Speaker 3: complex industry, or you're looking for someone who's a little

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Speaker 3: bit more hands on, especially if you have a small

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Speaker 3: business or you've started investing and you really need help

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Speaker 3: above and beyond just the tax statements that your micro

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Speaker 3: investing platform gives you access to. I think it's important

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Speaker 3: to do a little bit of research and just ask them, like, hey, cool, Like,

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Speaker 3: for example, an Instagram influencer, right, like, they have to

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Speaker 3: do tax in a very different way to other people

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Speaker 3: because obviously they can claim things that your I just

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Speaker 3: couldn't claim hope, not yet.

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Speaker 1: Anyway, maybe one.

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Speaker 3: Day, one day they can claim different things. So sometimes

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Speaker 3: it's just really nice to have someone who has experience

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Speaker 3: with your type of work, and like that happens often

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Speaker 3: with sex workers as well, so they can claim different things,

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Speaker 3: and more often than not, it's just helpful to have

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Speaker 3: somebody who already understands that and gets you and gets

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Speaker 3: your work. So for me, finding a good accountant that

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Speaker 3: is actually aligned to your role is important. But yeah,

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Speaker 3: it's about referral, it's about understanding where it is. But

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Speaker 3: to be honest, all accountants, if they're registered, should be

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Speaker 3: able to do the job pretty.

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Speaker 2: Well amazing, And that kind of lead into my next question,

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Speaker 2: which is what can we actually claim? So generally you

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Speaker 2: can claim any work related expenses including working from home expenses,

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Speaker 2: and then any uniform cost, vehicle expenses, self education costs,

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Speaker 2: and then there are other deductions that you can make.

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Speaker 2: So say, if you made a donation during the year,

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Speaker 2: you could claim that your personal superanuation contributions, which I

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Speaker 2: think is important to talk about because if you're planning

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Speaker 2: on making a superanuation contribution prior to the end of

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Speaker 2: financial year this year, So like, let's just absolutely go

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Speaker 2: off in a tangent here right now. So you guys

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Speaker 2: would have heard of the first home super Savior scheme

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Speaker 2: if you're planning on making use of that in the

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Speaker 2: near future, but you haven't contributed to it already, you

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Speaker 2: can at this point, and I know legislation is about

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Speaker 2: to change. You can contribute fifteen thousand dollars in one

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Speaker 2: financi year and then another fifteen thousand dollars in the

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Speaker 2: next financial year. So hypothetically, you could drop in fifteen

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Speaker 2: grand today and have that claimed on thirty June tax

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Speaker 2: and then drop in the second fifteen grand on like

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Speaker 2: the second of July or something, and then you've got

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Speaker 2: your thirty grand in there ready to purchase by the

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Speaker 2: end of the year.

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Speaker 1: If that is your plan, I.

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Speaker 3: Think it's then important to understand why you might want

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Speaker 3: to do that, because if you have been thinking about

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Speaker 3: the first home super Savor scheme and then you're like, yeah,

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Speaker 3: but i'll buy by the end of the year, I'll

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Speaker 3: make a decision, Well, you'll only be able to put

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Speaker 3: in fifteen thousand dollars because you'd have to wait until

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Speaker 3: the twenty twenty one financial year is over for you

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Speaker 3: to put the second fifteen thousand dollars in. So that's

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Speaker 3: why I'm bringing stuff like that up, because you know,

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Speaker 3: with superannuation, obviously you've got your caps as well, so

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Speaker 3: if you're wanting to make an additional contribution, it's kind

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Speaker 3: of like a user or lose it kind of situation.

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Speaker 3: Otherwise you're going to have to wait a significant period

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Speaker 3: of time before you.

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Speaker 1: Can use it again.

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Speaker 2: Yeah, and in regards to SUPA, you have done a

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Speaker 2: whole making additional contributions to Super. It's available on YouTube

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Speaker 2: and we always suggest. We know it can be a

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Speaker 2: little bit confusing, So if you want some help and

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Speaker 2: an't sure how it works, give you Super a call.

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Speaker 2: They're super helpful. They should have a dedicated in house

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Speaker 2: team who can give you a hand and answer anytase

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Speaker 2: if you might have.

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Speaker 3: They absolutely will make use of their call centers. Call

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Speaker 3: them up and say how much can I contribute? You know,

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Speaker 3: how might this impact my tax? They can talk you

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Speaker 3: through all of that. Like, use those people because they

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Speaker 3: can be really helpful. The one thing they can't do free.

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Speaker 1: They're free.

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Speaker 3: But one thing they can't do is give you personal advice.

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Speaker 3: But if you've got a whole heap of questions, they'll

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Speaker 3: be able to answer those for you and your specific circumstance.

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Speaker 3: So Jess, hypothetically, if you called them and said, hey,

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Speaker 3: I've paid X amount of Super this year, how much

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Speaker 3: more can I contribute without having, you know, any ramifications,

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Speaker 3: they'll be able to tell you. And you know, I

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Speaker 3: earn X and I want to contribute, why will that

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Speaker 3: reduce my personal tax rates, they'll be able to answer

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Speaker 3: that it's not advice. So I think that it's actually

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Speaker 3: really underrated. Like call your super fun to have a chat,

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Speaker 3: because I guarantee the people on the phone love talking

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Speaker 3: about it because that's their jobs, that's what they've chosen

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Speaker 3: to do.

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Speaker 2: There you go, and you're paying fees on your super.

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Speaker 2: Chances are anyway, so you might as well get the

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Speaker 2: extra mileage.

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Speaker 1: Make the most of it.

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Speaker 2: Absolutely so. And there are, as you said, a whole

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Speaker 2: range of things that you can claim. And the Atier

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Speaker 2: has a really extensive guide which we're going to get

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Speaker 2: Tony to pop in the show notes because it varies

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Speaker 2: industry to industry and person to person, and if you

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Speaker 2: don't speak to an accountant, that guide is a really

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Speaker 2: great way to get an overview of what you may

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Speaker 2: and may not be able to claim. It's really good.

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Speaker 2: That's what I use every years. I get on the

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Speaker 2: AHO website, I go, okay, cool, like, what can my

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Speaker 2: current job category claim? Really, how does that work? I

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Speaker 2: don't think I've seen it so on the ATO, Like

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Speaker 2: when you go to what can I claim? You can

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Speaker 2: google like and buy industry. More often than not it'll

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Speaker 2: it won't list everything, but generally they'll have an overview

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Speaker 2: of like you can claim X, Y and z, you

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Speaker 2: can't claim X, y and z. And it just for

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Speaker 2: me because I've never had my tax done, I've always

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Speaker 2: done it myself. It makes it really easy to kind

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Speaker 2: of go, Okay, well, I have this many things that

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Speaker 2: fit into that category that I am.

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Speaker 3: Going to claim and cool, so you can kind of

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Speaker 3: just do a bit more research. We'll drop that link

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Speaker 3: in the show notes because I think that'll actually be

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Speaker 3: really helpful. Yeah. I think it's also worth touching on

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Speaker 3: the fact that so many of us in this financial

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Speaker 3: year worked from home, and when you work from home,

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Speaker 3: you actually are able to claim your work from home.

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Speaker 3: So I've done some of the maths and essentially they

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Speaker 3: have two different methods, right. They've got the eighty cent method,

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Speaker 3: which would essentially, you know, if you work it out

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Speaker 3: and you work forty eight work weeks a year by

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Speaker 3: forty hours a week, you could get a fifteen hundred

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Speaker 3: dollars deduction, which is I think a pretty good money win.

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Speaker 3: And if you're not claiming that and you did work

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Speaker 3: from home, genuinely we need to talk about it. But

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Speaker 3: they have the fixed rate method or the eighty cent methods.

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Speaker 3: So just explain the eighty cent one. But if you

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Speaker 3: use the fixed rate method and you're in like middle

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Speaker 3: tax brackets, you'd end up getting fifty two cents per

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Speaker 3: hour to cover running costs, which could potentially be like

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Speaker 3: one thousand dollars. And then you might also be able

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Speaker 3: to claim a percentage of your phone bill and your internet,

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Speaker 3: which could be up to another seven hundred dollars, and

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Speaker 3: in that case, the fixed rate might work better for

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Speaker 3: you than the eighty cent rule. So I think my

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Speaker 3: hot tip there is to just do the numbers and

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Speaker 3: work out what works for you best, because you might

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Speaker 3: see that you know the fixed rate method is like

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Speaker 3: fifty two cents on the dollar, whereas the other rate,

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Speaker 3: which is the eighty cent method, where you can't claim

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Speaker 3: anything more. You might go, oh, well that's more, I

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Speaker 3: want that, but you can't claim things like your internet

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Speaker 3: you see, or your phone bill that you used in relation.

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Speaker 3: So definitely do a little comparison and work out what

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Speaker 3: actually works out better for you personally, rather than just going, oh,

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Speaker 3: eighty cents is more than fifty two cents, like that

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Speaker 3: makes sense.

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Speaker 2: And don't just plug in random numbers, because if you

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Speaker 2: do get audited, the atier will ask you to justify

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Speaker 2: your numbers, so they'll expect you to be able to

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Speaker 2: present them with a calculation of how you came up

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Speaker 2: with that amount. So exactly, don't just pull it out

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Speaker 2: of the air, but like make sure you're doing the

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Speaker 2: right thing, because they are cracking down. We've heard on

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Speaker 2: auditing and we don't want that to happen.

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Speaker 3: That you absolutely are, and we're not meaning to scare you, guys.

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Speaker 3: I think it's just important to only claim the things

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Speaker 3: that you genuinely can claim, because one we're trying not

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Speaker 3: to do the wrong thing, but two, it will come

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Speaker 3: back to bite you because not only will the ATO

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Speaker 3: then ask for the money back, but they'll also ask

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Speaker 3: for interest on that money, which is essentially a fine.

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Speaker 3: I mean, they don't call it a fine, but they

355
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Speaker 3: will ask you for interest on that money and you'll

356
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Speaker 3: end up paying oh oh he more back and it

357
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Speaker 3: won't be worth it. I promise you.

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Speaker 2: That's so interesting. Addendem. I got ordered last.

359
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Speaker 3: Year, Oh did you actually?

360
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Speaker 2: I did? Because I claimed because I worked multiple jobs

361
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Speaker 2: and my claim was like higher than like the average

362
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Speaker 2: person in my role, and obviously it was fine, like

363
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Speaker 2: I did all the right thing like I had. Of

364
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Speaker 2: course you did.

365
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Speaker 3: Jessica Ricci would have been like, hey, well here are

366
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Speaker 3: my receipts.

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Speaker 2: Well it's a filed folder. I think I was missing

368
00:15:49,200 --> 00:15:51,240
Speaker 2: like three receipts. It was like one hundred dollars or something,

369
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Speaker 2: and they're like, yeah, pay it back. And thankfully the

370
00:15:53,480 --> 00:15:55,720
Speaker 2: guy was really nice because he was like, normally we

371
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Speaker 2: would find you, but like, I can see that you've

372
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Speaker 2: done all the right thing, it's just you the error.

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Speaker 2: He was like, yeah, like normal, we will usually hit

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Speaker 2: people with fine and I was like, oh, well that's scarcary.

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Speaker 1: So it's scary.

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Speaker 3: But in saying that, they're just trying to do the

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00:16:08,400 --> 00:16:11,280
Speaker 3: right thing and make sure people aren't abusing the system. Absolutely,

378
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Speaker 3: you kind of go, yeah, all right, I can understand

379
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Speaker 3: why you might do that.

380
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Speaker 2: And that's why I'm saying to be really good about it.

381
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Speaker 2: Because it happened to me, it can happen to you.

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Speaker 2: They just make sure don't do the wrong thing, keep

383
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Speaker 2: your receipts, keep your sums and everything. So if you

384
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Speaker 2: are audited, it's really easy for you to be like no,

385
00:16:26,240 --> 00:16:28,120
Speaker 2: like actually that's just what I'm able to claim.

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Speaker 3: Yeah, and I think that that's important as well, because

387
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Speaker 3: auditing is happening more often now. Everything is so much

388
00:16:33,840 --> 00:16:37,120
Speaker 3: more automated for the AT They can automatically just flag

389
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Speaker 3: people and go, yep, great, we'll audit all of these people,

390
00:16:40,040 --> 00:16:43,160
Speaker 3: and more often than not it'll be automatic, so you

391
00:16:43,160 --> 00:16:46,040
Speaker 3: will then resubmit and then they'll re analyze it or

392
00:16:46,080 --> 00:16:49,040
Speaker 3: whatever and check it out. So more often than not,

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Speaker 3: people are being audited because it's less manual for them nowadays.

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Speaker 2: Yeah. Cool. So we've kind of covered off on what

395
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Speaker 2: you may be able to claim what can't we claim.

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Speaker 3: I mean, you can't claim things like you gin remember

397
00:17:00,040 --> 00:17:03,640
Speaker 3: year POL, like sup all, like self maintenance even though

398
00:17:03,760 --> 00:17:07,480
Speaker 3: I was doing face masks during work hours during COVID,

399
00:17:07,600 --> 00:17:10,200
Speaker 3: but it's not the point. You also can't claim your membership.

400
00:17:10,200 --> 00:17:12,919
Speaker 3: But like fancy golf clubs, even if you're networking and

401
00:17:13,000 --> 00:17:17,080
Speaker 3: doing quote business there, these aren't tax deductible. And while

402
00:17:17,119 --> 00:17:20,040
Speaker 3: none of those are relatable, what you can't claim is

403
00:17:20,080 --> 00:17:24,199
Speaker 3: actually petrol or public transport expenses getting to and from work.

404
00:17:24,440 --> 00:17:26,640
Speaker 3: Of course, if your job actually involves a whole heap

405
00:17:26,680 --> 00:17:29,800
Speaker 3: of driving during business hours. Once you arrive at work,

406
00:17:29,840 --> 00:17:32,760
Speaker 3: you can claim that, Like if you're a trades person

407
00:17:32,840 --> 00:17:35,280
Speaker 3: or a real estate agent, then you'd potentially be able

408
00:17:35,320 --> 00:17:38,280
Speaker 3: to claim that. But it's more around I think I've

409
00:17:38,320 --> 00:17:40,680
Speaker 3: had this conversation before in our DMS. So people are like,

410
00:17:40,720 --> 00:17:42,359
Speaker 3: oh my gosh, I drive to and from work and

411
00:17:42,400 --> 00:17:44,840
Speaker 3: I've been keeping a log book. I'm like, okay, but

412
00:17:44,920 --> 00:17:47,440
Speaker 3: you can't claim that because that was your choice. That's

413
00:17:47,440 --> 00:17:50,520
Speaker 3: actually not to generate profit. But if from work, you

414
00:17:50,640 --> 00:17:53,800
Speaker 3: drive to see a client and back, you can potentially

415
00:17:53,880 --> 00:17:56,840
Speaker 3: claim that. So I think it's just important to understand

416
00:17:57,200 --> 00:18:00,119
Speaker 3: the differences between what we can and can't claim. And

417
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Speaker 3: that's where I sometimes see an accountant as a really

418
00:18:03,000 --> 00:18:05,639
Speaker 3: helpful tool to go, hey, can I claim that? And

419
00:18:05,640 --> 00:18:08,320
Speaker 3: they'll say yes or no, and sometimes they'll highlight things

420
00:18:08,359 --> 00:18:10,480
Speaker 3: that you didn't even know you could claim. But Jess,

421
00:18:10,520 --> 00:18:12,600
Speaker 3: it sounds like that ATIO website that you were talking

422
00:18:12,600 --> 00:18:14,800
Speaker 3: about could and so all those questions for you anyway,

423
00:18:15,040 --> 00:18:17,119
Speaker 3: super helpful. Definitely check it out. Like we said, we'll

424
00:18:17,160 --> 00:18:19,320
Speaker 3: be in the show notes. The ATO does everything they

425
00:18:19,359 --> 00:18:21,520
Speaker 3: can to make it really easy for people to get

426
00:18:21,520 --> 00:18:24,120
Speaker 3: the information they need. Their website super clean cut, it's

427
00:18:24,160 --> 00:18:26,440
Speaker 3: really searchable. I've been doing my own tax for the

428
00:18:26,520 --> 00:18:28,280
Speaker 3: last decade. I cannot recommend it enough.

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Speaker 1: How much of the OTO paying you to say that?

430
00:18:30,440 --> 00:18:32,679
Speaker 2: Oh? I wish ato please sponsor me. I know you

431
00:18:32,680 --> 00:18:34,040
Speaker 2: have a lot of money because I am paying it

432
00:18:34,080 --> 00:18:36,879
Speaker 2: to you every year. On the other side of this,

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Speaker 2: we'll be back to chat tax brackets, what tax means

434
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Speaker 2: for all of our slide hustlers, and how we can

435
00:18:41,800 --> 00:18:44,360
Speaker 2: sort ourselves out for the next financial year if we're

436
00:18:44,359 --> 00:18:47,000
Speaker 2: maybe realizing now that we aren't as organized as we

437
00:18:47,040 --> 00:18:58,400
Speaker 2: could have been for this one. Don't go anywhere, all right?

438
00:18:58,520 --> 00:19:00,760
Speaker 2: So tax brackets? What are they?

439
00:19:00,960 --> 00:19:01,760
Speaker 1: Super sexy?

440
00:19:02,520 --> 00:19:03,040
Speaker 2: We love it?

441
00:19:03,760 --> 00:19:04,919
Speaker 1: Oh you want more? I love avation.

442
00:19:05,119 --> 00:19:07,240
Speaker 3: Okay, I'm so sorry. Do you want me to actually

443
00:19:07,280 --> 00:19:09,880
Speaker 3: explain what each bracket is and then we can test?

444
00:19:10,359 --> 00:19:11,840
Speaker 1: I was hoping you would say, no, don't worry.

445
00:19:11,880 --> 00:19:14,680
Speaker 3: We'll put a blogger up or something or so if

446
00:19:14,720 --> 00:19:17,920
Speaker 3: you earn under eighteen thousand, two hundred dollars, you don't

447
00:19:17,920 --> 00:19:19,080
Speaker 3: pay any tax money.

448
00:19:19,160 --> 00:19:21,879
Speaker 2: Win. We should note before we get into this, this

449
00:19:22,040 --> 00:19:23,960
Speaker 2: is for the twenty twenty to twenty one financial we

450
00:19:24,000 --> 00:19:25,879
Speaker 2: are It is subject to change. If you're listening to

451
00:19:25,920 --> 00:19:28,200
Speaker 2: us in the future again, you can check the tax

452
00:19:28,240 --> 00:19:29,440
Speaker 2: brackets on the eightieer website.

453
00:19:29,480 --> 00:19:31,679
Speaker 3: I think Jess will also chuck up a little text

454
00:19:31,680 --> 00:19:34,120
Speaker 3: post of what the tax brackets are and what they

455
00:19:34,200 --> 00:19:38,000
Speaker 3: actually mean on Instagram, just because I've already got that

456
00:19:38,040 --> 00:19:41,280
Speaker 3: text post ready to go, because I'm a genius, amazing. Yeah,

457
00:19:41,280 --> 00:19:44,240
Speaker 3: you're welcome anyway. Then, if you earn between eighteen thousand,

458
00:19:44,280 --> 00:19:47,320
Speaker 3: two hundred and one dollars and forty five thousand dollars,

459
00:19:47,359 --> 00:19:50,359
Speaker 3: you will incur a tax rate of nineteen cents for

460
00:19:50,440 --> 00:19:53,679
Speaker 3: every one dollar that you earn above and beyond that

461
00:19:53,800 --> 00:19:56,600
Speaker 3: eighteen thousand, two hundred dollars. So, Jess, you know, when

462
00:19:56,600 --> 00:19:58,639
Speaker 3: you start a new job and they get you to

463
00:19:58,640 --> 00:20:02,240
Speaker 3: fill in that form that says claim the tax free threshold,

464
00:20:02,520 --> 00:20:04,119
Speaker 3: and you have to remember that if you have a

465
00:20:04,160 --> 00:20:06,960
Speaker 3: second job, not to tick that because obviously the first

466
00:20:06,960 --> 00:20:09,320
Speaker 3: eighteen thousand, two hundred dollars that you earn is not

467
00:20:09,440 --> 00:20:12,320
Speaker 3: tax that is where that comes from. So if you

468
00:20:12,400 --> 00:20:14,960
Speaker 3: then accidentally tick the box that says yeah, I do

469
00:20:15,040 --> 00:20:17,800
Speaker 3: want to claim the tax free threshold for this job,

470
00:20:17,960 --> 00:20:20,920
Speaker 3: you end up claiming the eighteen thousand, two hundred dollars

471
00:20:20,920 --> 00:20:23,840
Speaker 3: of tax free money, twice, and then at tax time

472
00:20:24,160 --> 00:20:26,159
Speaker 3: that's when you get bitten in the bottom because you

473
00:20:26,280 --> 00:20:28,359
Speaker 3: have to pay tax back on all the money you

474
00:20:28,440 --> 00:20:32,560
Speaker 3: earn above and beyond that, so that's important to note there. Then,

475
00:20:32,680 --> 00:20:35,400
Speaker 3: if you earn between forty five thousand and one dollar

476
00:20:35,680 --> 00:20:38,840
Speaker 3: and one hundred and twenty thousand dollars, you'll pay five

477
00:20:38,880 --> 00:20:42,720
Speaker 3: thousand and ninety two dollars plus thirty two cents in

478
00:20:42,760 --> 00:20:47,000
Speaker 3: the dollar for every one dollar over forty five thousand dollars. Then,

479
00:20:47,000 --> 00:20:48,920
Speaker 3: if you're lucky enough to earn between one hundred and

480
00:20:49,000 --> 00:20:52,240
Speaker 3: twenty thousand and one dollars and one hundred and eighty

481
00:20:52,280 --> 00:20:55,360
Speaker 3: thousand dollars, which would be wild, you would pay twenty

482
00:20:55,440 --> 00:20:58,719
Speaker 3: nine thousand, four hundred and sixty seven dollars in tax.

483
00:20:59,280 --> 00:21:02,560
Speaker 3: And then in a addition, you'd also pay thirty seven

484
00:21:02,680 --> 00:21:05,679
Speaker 3: cents for every one dollar that you earn over one

485
00:21:05,720 --> 00:21:09,040
Speaker 3: hundred and twenty thousand dollars. And then if you're in

486
00:21:09,080 --> 00:21:11,280
Speaker 3: the bucket where you earn more than one hundred and

487
00:21:11,359 --> 00:21:14,760
Speaker 3: eighty thousand and one dollars, I'm caealous. Imagine if you

488
00:21:14,800 --> 00:21:17,080
Speaker 3: earned that much and then you're worried about that additional

489
00:21:17,080 --> 00:21:18,879
Speaker 3: one dollar. I mean you probably would be because it

490
00:21:18,960 --> 00:21:23,040
Speaker 3: changes your tax bracket. It does, But before I explain

491
00:21:23,119 --> 00:21:25,080
Speaker 3: what this means, that's what we mean when we talk

492
00:21:25,119 --> 00:21:29,000
Speaker 3: about additional super contributions to drop you a tax bracket down.

493
00:21:29,359 --> 00:21:31,959
Speaker 3: So say you were earning one hundred and eighty thousand

494
00:21:31,960 --> 00:21:35,280
Speaker 3: and one dollar and you had to pay fifty one thousand,

495
00:21:35,359 --> 00:21:39,480
Speaker 3: six hundred and sixty seven dollars plus forty five cents

496
00:21:39,520 --> 00:21:41,959
Speaker 3: for every one dollar over one hundred and eighty thousand

497
00:21:42,000 --> 00:21:43,240
Speaker 3: dollars that you earn.

498
00:21:43,880 --> 00:21:45,320
Speaker 1: Hypothetically, if you.

499
00:21:45,280 --> 00:21:49,639
Speaker 3: Went and made an additional super contribution from your post

500
00:21:49,720 --> 00:21:52,480
Speaker 3: tax income and then you were able to claim it,

501
00:21:52,480 --> 00:21:55,920
Speaker 3: it could potentially put you back into the other tax bracket,

502
00:21:56,000 --> 00:21:58,680
Speaker 3: which means that you're paying thirty seven cents to every

503
00:21:58,720 --> 00:22:01,119
Speaker 3: dollar over one hundred and twenty eight thousand dollars instead

504
00:22:01,119 --> 00:22:03,240
Speaker 3: of jumping up to that forty five cent bracket.

505
00:22:03,280 --> 00:22:04,920
Speaker 2: And a few cents doesn't sound like a lot, but

506
00:22:04,960 --> 00:22:07,960
Speaker 2: when you're paying on every dollar that adds up super quickly.

507
00:22:08,000 --> 00:22:09,159
Speaker 1: It really really adds up.

508
00:22:09,200 --> 00:22:11,680
Speaker 3: And that's why so many people who are in those

509
00:22:11,760 --> 00:22:16,040
Speaker 3: higher tax brackets often really prioritize making sure that they're

510
00:22:16,080 --> 00:22:19,960
Speaker 3: making additional superannuation contributions because it could potentially change their

511
00:22:20,000 --> 00:22:23,040
Speaker 3: tax bracket if they're sitting on the cusps. So obviously,

512
00:22:23,080 --> 00:22:25,240
Speaker 3: if they're earning like three hundred thousand dollars a year,

513
00:22:25,359 --> 00:22:27,480
Speaker 3: like a super contribution is not going to change which

514
00:22:27,560 --> 00:22:29,600
Speaker 3: tax bracket they get. But when you're like on the

515
00:22:29,680 --> 00:22:33,120
Speaker 3: cusp of something, sometimes it's really helpful to actually look

516
00:22:33,119 --> 00:22:34,359
Speaker 3: at it and be like, oh, my gosh, if I

517
00:22:34,400 --> 00:22:37,240
Speaker 3: just made an additional super contribution, I could potentially drop

518
00:22:37,280 --> 00:22:40,280
Speaker 3: my tax bracket, and therefore it would be really equitable

519
00:22:40,320 --> 00:22:42,480
Speaker 3: and you might end up with more in super while

520
00:22:42,560 --> 00:22:45,760
Speaker 3: still not significantly impacting your take home pay, which is

521
00:22:45,920 --> 00:22:48,360
Speaker 3: something that I always recommend you talk to your accountant

522
00:22:48,400 --> 00:22:51,280
Speaker 3: about because they can actually be really crafty with it

523
00:22:51,320 --> 00:22:53,360
Speaker 3: and you know, actually give you the numbers and give

524
00:22:53,400 --> 00:22:55,280
Speaker 3: you the example instead of me saying, oh, it's a

525
00:22:55,320 --> 00:22:58,520
Speaker 3: potential when we talk about it. So that's why we

526
00:22:58,600 --> 00:23:00,920
Speaker 3: make sure that we talk to our account before June

527
00:23:01,080 --> 00:23:03,880
Speaker 3: thirty about things like this and actually do a little

528
00:23:03,880 --> 00:23:06,760
Speaker 3: bit of what we call tax planning, because if you go,

529
00:23:06,840 --> 00:23:09,800
Speaker 3: oh my gosh, it's the third of July, I should

530
00:23:09,880 --> 00:23:12,160
Speaker 3: really dump some more cash into my super to bring

531
00:23:12,200 --> 00:23:14,560
Speaker 3: down my taxbile income. You can't do it. It has

532
00:23:14,560 --> 00:23:16,920
Speaker 3: to be done. It's too late, my friend. So that's

533
00:23:16,960 --> 00:23:18,920
Speaker 3: why we want to do a little bit of tax planning,

534
00:23:18,920 --> 00:23:20,679
Speaker 3: and that's why we're dropping the episode now. So if

535
00:23:20,720 --> 00:23:23,120
Speaker 3: you want to think about it, now's the time, my friends.

536
00:23:23,280 --> 00:23:25,679
Speaker 2: Amazing, and we want to remind you. We know that

537
00:23:25,720 --> 00:23:27,679
Speaker 2: tax kind of has a bit of a bad reputation

538
00:23:27,840 --> 00:23:30,160
Speaker 2: because no one likes to feel like they're giving their

539
00:23:30,280 --> 00:23:33,159
Speaker 2: hard earned dollars away. But it's part of being in

540
00:23:33,160 --> 00:23:35,880
Speaker 2: a community and you need to remember that you're paying

541
00:23:35,920 --> 00:23:38,600
Speaker 2: tax because you're earning money, and that is a great thing.

542
00:23:39,000 --> 00:23:41,840
Speaker 3: Genuinely, the more tax that you can pay, the more

543
00:23:41,880 --> 00:23:44,280
Speaker 3: money you are taking home, and it is always a

544
00:23:44,320 --> 00:23:46,359
Speaker 3: good thing. And you know, I've said this on the

545
00:23:46,400 --> 00:23:50,160
Speaker 3: podcast probably a million times now, probably a million times

546
00:23:50,200 --> 00:23:53,159
Speaker 3: too many, But I'm a genuine believer of changing our

547
00:23:53,200 --> 00:23:57,000
Speaker 3: mindset around quote have to pay tax to we get

548
00:23:57,040 --> 00:23:59,360
Speaker 3: to pay tax. We get to live in this country

549
00:23:59,359 --> 00:24:03,000
Speaker 3: that provides us with all of these really great infrastructure options,

550
00:24:03,040 --> 00:24:06,320
Speaker 3: a really great healthcare system, really great roads that we

551
00:24:06,400 --> 00:24:08,639
Speaker 3: can drive on, and you know, a police force that

552
00:24:08,720 --> 00:24:11,280
Speaker 3: look after us. And you know, it's one of those

553
00:24:11,320 --> 00:24:14,520
Speaker 3: things that I genuinely want our community to just be

554
00:24:14,600 --> 00:24:17,440
Speaker 3: more grateful for, because too often I see people complaining

555
00:24:17,440 --> 00:24:20,240
Speaker 3: about how much tax they have to pay, and I'm like, wow,

556
00:24:20,400 --> 00:24:23,359
Speaker 3: like that's of such benefit to you and I that

557
00:24:23,440 --> 00:24:25,560
Speaker 3: you are paying tax, and we should just be more

558
00:24:25,600 --> 00:24:28,359
Speaker 3: grateful for these things, because as much as you know,

559
00:24:28,680 --> 00:24:31,240
Speaker 3: sometimes people go, yeah, but it sucks it's my money,

560
00:24:31,320 --> 00:24:33,760
Speaker 3: Like it's not a surprise, Like tax was never a

561
00:24:33,800 --> 00:24:36,840
Speaker 3: surprise when you got your first job. Tax rates existed. Yeah,

562
00:24:36,840 --> 00:24:39,080
Speaker 3: they change and shift every single year, but it was

563
00:24:39,119 --> 00:24:41,760
Speaker 3: actually never your money to begin with. It was always

564
00:24:41,760 --> 00:24:43,880
Speaker 3: the plan that you would pay tax. It's not actually

565
00:24:44,080 --> 00:24:46,159
Speaker 3: some surprise where now people are like, oh, Jess, by

566
00:24:46,200 --> 00:24:47,880
Speaker 3: the way, you know how you've got that great job,

567
00:24:48,160 --> 00:24:50,160
Speaker 3: I now want to take thirty seven cents from every

568
00:24:50,200 --> 00:24:52,560
Speaker 3: dollar that you earn. Like that wasn't a surprise. We

569
00:24:52,600 --> 00:24:54,640
Speaker 3: should have always been planning for that. And that's why

570
00:24:54,720 --> 00:24:57,679
Speaker 3: often I just want people when we're talking about budget

571
00:24:57,720 --> 00:25:00,320
Speaker 3: and cash flow, like, let's not talk about tax. Let's

572
00:25:00,359 --> 00:25:02,639
Speaker 3: just talk about your post tax income and what actually

573
00:25:02,640 --> 00:25:04,520
Speaker 3: comes into your bank account and what we can actually

574
00:25:04,520 --> 00:25:07,440
Speaker 3: have a tangible impact on because sometimes we see our

575
00:25:07,680 --> 00:25:11,000
Speaker 3: you know, total remuneration package from a business and you're like, whoa,

576
00:25:11,160 --> 00:25:14,159
Speaker 3: Like it's seventy thousand dollars. That's so much money, and

577
00:25:14,200 --> 00:25:16,080
Speaker 3: then you are really upset with what you actually end

578
00:25:16,200 --> 00:25:18,159
Speaker 3: up taking home. It's like, no, like, let's actually just

579
00:25:18,200 --> 00:25:20,800
Speaker 3: look at take home. How much are you actually taking home?

580
00:25:21,000 --> 00:25:23,080
Speaker 3: And what can we do to increase that or you know,

581
00:25:23,160 --> 00:25:26,239
Speaker 3: benefit that. And then that's where tax planning comes into it.

582
00:25:26,280 --> 00:25:28,560
Speaker 3: So I don't mean to be negative, and I know

583
00:25:28,680 --> 00:25:31,359
Speaker 3: that as you were saying, tax can have a bad reputation,

584
00:25:31,560 --> 00:25:33,879
Speaker 3: but I just genuinely believe it shouldn't.

585
00:25:33,480 --> 00:25:37,040
Speaker 2: Very interesting through the thought. Now, we have a really

586
00:25:37,080 --> 00:25:39,280
Speaker 2: good amount of people in our community who love a

587
00:25:39,320 --> 00:25:41,720
Speaker 2: side hustle and we love to see it, But how

588
00:25:41,720 --> 00:25:43,320
Speaker 2: do tax work for those people?

589
00:25:43,720 --> 00:25:45,760
Speaker 3: So wouldn't it be so nice if we didn't have

590
00:25:45,840 --> 00:25:48,200
Speaker 3: to tax side hustlers, Like they could just like make

591
00:25:48,240 --> 00:25:50,240
Speaker 3: a whole heap of extra bank on the side and

592
00:25:50,240 --> 00:25:52,119
Speaker 3: then just go on good holidays and not have to

593
00:25:52,119 --> 00:25:53,000
Speaker 3: pay additional tax.

594
00:25:53,000 --> 00:25:54,080
Speaker 2: Everyone would have side hustle.

595
00:25:54,160 --> 00:25:54,320
Speaker 1: Yeah.

596
00:25:54,400 --> 00:25:57,399
Speaker 3: Unfortunately, when you have a side hustle, you do have

597
00:25:57,440 --> 00:26:00,000
Speaker 3: to declare any income that you've made from that side hustle.

598
00:26:00,240 --> 00:26:02,320
Speaker 3: No matter if it is like one hundred thousand dollars

599
00:26:02,400 --> 00:26:04,439
Speaker 3: or one thousand dollars, you're still going to have to

600
00:26:04,480 --> 00:26:07,320
Speaker 3: declare it. So if you're a sole trader with an ABN,

601
00:26:07,480 --> 00:26:10,000
Speaker 3: as most side hustlers actually tend to be, all you

602
00:26:10,080 --> 00:26:12,080
Speaker 3: need to do is declare your income at tax time

603
00:26:12,160 --> 00:26:14,920
Speaker 3: along with your individual tax return. If it's a little

604
00:26:14,920 --> 00:26:17,119
Speaker 3: more than a side hustle and you're running a business,

605
00:26:17,200 --> 00:26:19,040
Speaker 3: or you have your business set up as a partnership

606
00:26:19,080 --> 00:26:20,719
Speaker 3: or a company or a trust, then you will have

607
00:26:20,760 --> 00:26:24,040
Speaker 3: to do an additional tax return. So any money that

608
00:26:24,119 --> 00:26:26,800
Speaker 3: you earn when you're a sole trader will just be

609
00:26:26,840 --> 00:26:29,879
Speaker 3: added to your marginal tax income. So it's worth talking

610
00:26:29,960 --> 00:26:31,520
Speaker 3: about this in a little bit more depth.

611
00:26:31,720 --> 00:26:32,600
Speaker 1: So say you.

612
00:26:32,520 --> 00:26:34,760
Speaker 3: Earn right now one hundred thousand dollars from your main

613
00:26:34,760 --> 00:26:37,000
Speaker 3: source of income because you're a full time employee, but

614
00:26:37,080 --> 00:26:39,240
Speaker 3: you do some kind of side hustle on the side,

615
00:26:39,280 --> 00:26:41,480
Speaker 3: and you actually earn thirty thousand dollars a year from that,

616
00:26:41,480 --> 00:26:44,479
Speaker 3: wouldn't that be great? Like money win. The important thing

617
00:26:44,520 --> 00:26:47,399
Speaker 3: you need to remember there is it will actually increase

618
00:26:47,800 --> 00:26:51,080
Speaker 3: your taxable income and take you up another tax bracket,

619
00:26:51,160 --> 00:26:53,800
Speaker 3: so you'll go from paying thirty two cents for every

620
00:26:53,800 --> 00:26:56,879
Speaker 3: dollar over forty five thousand dollars to paying thirty seven

621
00:26:56,960 --> 00:26:59,879
Speaker 3: cents for every dollar over one twenty. So it's not

622
00:27:00,320 --> 00:27:02,240
Speaker 3: change it massively. And I think that this is such

623
00:27:02,240 --> 00:27:05,080
Speaker 3: a misconception because whether you're a side hustler or you've

624
00:27:05,080 --> 00:27:08,399
Speaker 3: just got you know, two casual jobs, so many people

625
00:27:08,440 --> 00:27:10,359
Speaker 3: say things like, oh my gosh, like, is it even

626
00:27:10,400 --> 00:27:13,040
Speaker 3: worth having another job if you're ending up paying more

627
00:27:13,119 --> 00:27:16,480
Speaker 3: tax more often than not, yes, absolutely, Like there's no

628
00:27:16,560 --> 00:27:19,919
Speaker 3: situation where you're going to end up paying a whole

629
00:27:19,960 --> 00:27:23,680
Speaker 3: heap more for something just because you have another job. Yes,

630
00:27:23,760 --> 00:27:26,120
Speaker 3: you are increasing your taxable income, and yes you might

631
00:27:26,200 --> 00:27:29,080
Speaker 3: jump up another tax bracket, but that's where we just

632
00:27:29,160 --> 00:27:32,320
Speaker 3: need to be smart about. Okay, is that going to change?

633
00:27:32,480 --> 00:27:34,679
Speaker 3: What tax planning can I do to make sure that

634
00:27:34,760 --> 00:27:37,080
Speaker 3: I may be stay in that old tax bracket if

635
00:27:37,160 --> 00:27:40,560
Speaker 3: I can and actually make some plans around that, as

636
00:27:40,560 --> 00:27:42,479
Speaker 3: opposed to going, oh my gosh, like I'm never going

637
00:27:42,520 --> 00:27:44,440
Speaker 3: to get a second job or do something else because

638
00:27:44,440 --> 00:27:46,160
Speaker 3: like they'll just tax me through the nose.

639
00:27:46,359 --> 00:27:49,119
Speaker 2: There's a really big misconception I've seen a lot and

640
00:27:49,320 --> 00:27:51,720
Speaker 2: heard even just from friends, where people say, oh, like,

641
00:27:51,880 --> 00:27:53,919
Speaker 2: I don't want to have a second job because my

642
00:27:54,040 --> 00:27:57,080
Speaker 2: tax will be doubled as though you go from paying

643
00:27:57,160 --> 00:28:00,280
Speaker 2: let's say thirty percent to sixty percent. Yeah, which is

644
00:28:00,280 --> 00:28:02,159
Speaker 2: a case. It just gets, as you said, added on to.

645
00:28:02,240 --> 00:28:06,000
Speaker 3: Your current taxable income. And I think it's yeah, people

646
00:28:06,040 --> 00:28:08,680
Speaker 3: aren't going to charge you double tax. And often if

647
00:28:08,720 --> 00:28:11,400
Speaker 3: you're feeling like that is the case, have a chat

648
00:28:11,400 --> 00:28:13,919
Speaker 3: with an account and actually understand the semantics of it,

649
00:28:13,960 --> 00:28:17,239
Speaker 3: because sometimes if you do have a second income, you

650
00:28:17,320 --> 00:28:19,600
Speaker 3: are taxed at a higher rate because they're just trying

651
00:28:19,600 --> 00:28:22,000
Speaker 3: to make sure they're taking enough tax so that you

652
00:28:22,040 --> 00:28:24,679
Speaker 3: don't end up with a massive tax bill come June thirty.

653
00:28:25,040 --> 00:28:27,320
Speaker 3: So have a chat about how you can manage that.

654
00:28:27,640 --> 00:28:30,120
Speaker 3: And more often than not, when I see clients who

655
00:28:30,680 --> 00:28:32,679
Speaker 3: do have a number of side hustles and have been

656
00:28:32,760 --> 00:28:36,040
Speaker 3: quote overpaying tax, they end up with a really nice refund,

657
00:28:36,200 --> 00:28:39,680
Speaker 3: which sometimes we really luck absolutely so.

658
00:28:39,840 --> 00:28:42,120
Speaker 2: Jackie from our community was asking, if you have to

659
00:28:42,120 --> 00:28:44,920
Speaker 2: pay tax on your investments, how does that work?

660
00:28:45,040 --> 00:28:50,040
Speaker 3: Yes, you do because your investments are hopefully increasing your income, right, Yes,

661
00:28:50,680 --> 00:28:53,400
Speaker 3: so you definitely have to pay tax on any income

662
00:28:53,400 --> 00:28:55,680
Speaker 3: that you make from your investments, and that includes the

663
00:28:55,760 --> 00:28:58,600
Speaker 3: interest that is paid, the dividends, any rent, if it's

664
00:28:58,640 --> 00:29:02,000
Speaker 3: an investment property, any capital gains. So in terms of

665
00:29:02,000 --> 00:29:03,840
Speaker 3: how much you need to pay, it's just going to

666
00:29:03,880 --> 00:29:06,760
Speaker 3: be taxed in accordance with your marginal tax right, And

667
00:29:07,000 --> 00:29:10,280
Speaker 3: it's one of those things where it is but it isn't.

668
00:29:10,360 --> 00:29:13,120
Speaker 3: So if you've incurred that income, then great, you will

669
00:29:13,160 --> 00:29:15,920
Speaker 3: be taxed on it. But hypothetically, if you owned a

670
00:29:15,960 --> 00:29:19,920
Speaker 3: property and increased massively in value, you're not going to

671
00:29:19,960 --> 00:29:24,400
Speaker 3: be taxed on that because you haven't actually realized that increase.

672
00:29:24,480 --> 00:29:27,600
Speaker 3: So when I say realized or I say I think,

673
00:29:27,600 --> 00:29:29,400
Speaker 3: I say this a lot on the podcast, I'll say, like,

674
00:29:29,480 --> 00:29:33,160
Speaker 3: you haven't realized that gain, or you haven't crystallized that gain.

675
00:29:33,400 --> 00:29:35,880
Speaker 3: What I'm talking about is actually that money is not

676
00:29:35,960 --> 00:29:38,720
Speaker 3: in your bank account. You didn't actually receive that. That's

677
00:29:38,840 --> 00:29:41,680
Speaker 3: just a hypothetical. If you sold that asset, it would

678
00:29:41,680 --> 00:29:43,640
Speaker 3: be worth more money. So you're not paying tax on

679
00:29:43,680 --> 00:29:46,120
Speaker 3: it now, but you will pay tax on it if.

680
00:29:46,040 --> 00:29:46,680
Speaker 1: You sell it.

681
00:29:46,880 --> 00:29:49,160
Speaker 3: And if you sell any of your assets within a

682
00:29:49,200 --> 00:29:52,160
Speaker 3: financial year, you will have to make sure that there

683
00:29:52,240 --> 00:29:54,840
Speaker 3: isn't any capital gains tax to pay on that, and

684
00:29:54,880 --> 00:29:57,320
Speaker 3: you'll have to declare it. And my friends who have

685
00:29:57,440 --> 00:30:02,520
Speaker 3: been investing in cryptocurrenceries, you absolutely have to pay tax.

686
00:30:02,280 --> 00:30:03,200
Speaker 1: On that as well.

687
00:30:03,720 --> 00:30:05,959
Speaker 2: So what about dividends.

688
00:30:05,360 --> 00:30:08,040
Speaker 3: So dividends are going to be a part of your income,

689
00:30:08,160 --> 00:30:10,600
Speaker 3: So your income is going to be taxed in line

690
00:30:10,640 --> 00:30:12,000
Speaker 3: with your marginal tax rate.

691
00:30:12,400 --> 00:30:14,680
Speaker 2: And when we say it marginal tax rate, just to clarify,

692
00:30:15,080 --> 00:30:17,040
Speaker 2: is that coming back to the tax brackets that we were.

693
00:30:17,000 --> 00:30:19,720
Speaker 3: Talking So your marginal tax rate is that graph that

694
00:30:19,920 --> 00:30:23,040
Speaker 3: essentially says, hey, if you earn between X and y,

695
00:30:23,160 --> 00:30:25,520
Speaker 3: you have to pay x on tax. I think we

696
00:30:25,560 --> 00:30:26,360
Speaker 3: say this a lot, but.

697
00:30:26,280 --> 00:30:28,320
Speaker 1: People always like, well, what's my marginal tax rate?

698
00:30:28,440 --> 00:30:30,880
Speaker 3: Like, that's what bucket you fall into for how much

699
00:30:31,000 --> 00:30:32,960
Speaker 3: tax you have to pay. And if you end up

700
00:30:32,960 --> 00:30:36,800
Speaker 3: with this massive epic investment portfolio, which we obviously all

701
00:30:36,920 --> 00:30:38,960
Speaker 3: dream of, and you're making one hundred grand a year

702
00:30:38,960 --> 00:30:41,840
Speaker 3: in dividends, then that is going to become part of

703
00:30:41,880 --> 00:30:44,840
Speaker 3: your marginal tax bracket unless you have it in a trust.

704
00:30:44,840 --> 00:30:48,560
Speaker 3: All there's a completely separate structure at play there. So

705
00:30:48,600 --> 00:30:50,560
Speaker 3: I just want to say that. But if you own

706
00:30:50,640 --> 00:30:54,080
Speaker 3: them in your own name, then yes, it will become

707
00:30:54,240 --> 00:30:57,400
Speaker 3: part of your own income, because you've essentially purchased an

708
00:30:57,440 --> 00:31:00,760
Speaker 3: income for yourself and you have to pay tax on that. Obviously,

709
00:31:00,760 --> 00:31:02,760
Speaker 3: this is going to be really dependent on your age

710
00:31:02,760 --> 00:31:04,720
Speaker 3: and what stage of life you're at and how all

711
00:31:04,760 --> 00:31:07,080
Speaker 3: of that works as well, but for ninety nine point

712
00:31:07,160 --> 00:31:09,680
Speaker 3: ninety five percent of our listeners, it is going to

713
00:31:09,720 --> 00:31:12,280
Speaker 3: mean that you will pay tax on it. So also,

714
00:31:12,320 --> 00:31:15,959
Speaker 3: while we're talking about marginal tax brackets, and I mentioned CGT,

715
00:31:16,400 --> 00:31:19,640
Speaker 3: so CGT is capital gains tax, and that's essentially a

716
00:31:19,720 --> 00:31:22,320
Speaker 3: tax that you need to pay when the asset that

717
00:31:22,360 --> 00:31:25,720
Speaker 3: you have just sold increased significantly in price. So say

718
00:31:25,760 --> 00:31:28,960
Speaker 3: you bought a cryptocurrency asset for like five dollars and

719
00:31:29,000 --> 00:31:31,800
Speaker 3: then it's worth five million, you're going to have to

720
00:31:31,800 --> 00:31:34,640
Speaker 3: pay tax on the amount that is increased by You

721
00:31:34,680 --> 00:31:36,760
Speaker 3: don't just get to take the profit and run away.

722
00:31:36,800 --> 00:31:38,480
Speaker 1: But something that people.

723
00:31:38,240 --> 00:31:41,040
Speaker 3: Don't seem to have comprehended, because I feel like this

724
00:31:41,080 --> 00:31:45,240
Speaker 3: whole cryptocurrency investor world is very online at the moment

725
00:31:45,280 --> 00:31:47,640
Speaker 3: and very topical to talk about. And whilst I think

726
00:31:47,680 --> 00:31:50,479
Speaker 3: I need to be incredibly clear about the fact that

727
00:31:50,520 --> 00:31:53,360
Speaker 3: I don't support our community purchasing crypto.

728
00:31:53,320 --> 00:31:53,760
Speaker 1: Like you do.

729
00:31:53,880 --> 00:31:55,760
Speaker 3: You boo boo, like, go and buy it if that

730
00:31:55,840 --> 00:31:58,360
Speaker 3: aligns to your values. I just want to be really

731
00:31:58,400 --> 00:32:00,479
Speaker 3: clear that I don't think it is this safe as

732
00:32:00,480 --> 00:32:03,840
Speaker 3: asset to be purchasing, especially as a first asset. But

733
00:32:04,280 --> 00:32:07,200
Speaker 3: if you're classed as a crypto investor, I feel like

734
00:32:07,280 --> 00:32:10,280
Speaker 3: so many of us have forgotten to take tax into consideration.

735
00:32:10,680 --> 00:32:13,000
Speaker 3: But you will be taxed on any capital gains that

736
00:32:13,120 --> 00:32:16,280
Speaker 3: are a result of your crypto investing, And if you

737
00:32:16,360 --> 00:32:19,120
Speaker 3: hold any asset for more than twelve months, you could

738
00:32:19,160 --> 00:32:22,360
Speaker 3: be eligible for a fifty percent CGT discount. And that

739
00:32:22,480 --> 00:32:25,200
Speaker 3: is something that people are forgetting at the moment they're,

740
00:32:25,280 --> 00:32:28,280
Speaker 3: you know, buying and selling these cryptocurrency assets, like within

741
00:32:28,320 --> 00:32:31,880
Speaker 3: a month, you're going to have massive CGT issues. Potentially,

742
00:32:32,200 --> 00:32:34,080
Speaker 3: if you've bought an asset one month and then sold

743
00:32:34,080 --> 00:32:35,880
Speaker 3: it two months later, you're gonna end up having to

744
00:32:35,920 --> 00:32:38,440
Speaker 3: pay a lot of CGT on it because the government

745
00:32:38,480 --> 00:32:41,520
Speaker 3: actually wants you to buy assets for the long term

746
00:32:41,600 --> 00:32:44,360
Speaker 3: to support retirement, so they will give you discounts on

747
00:32:44,400 --> 00:32:47,000
Speaker 3: holding it for a longer period of time. So if

748
00:32:47,040 --> 00:32:51,280
Speaker 3: you've been doing that this year, I definitely recommend jumping online.

749
00:32:51,400 --> 00:32:53,800
Speaker 3: There is actually an entire blog on it from last

750
00:32:53,880 --> 00:32:55,120
Speaker 3: year on the Atier website.

751
00:32:55,400 --> 00:32:58,840
Speaker 2: Super helpful. Already last thing to touch on in terms

752
00:32:58,880 --> 00:33:01,720
Speaker 2: of getting organized for the next financial yart, especially for

753
00:33:01,800 --> 00:33:05,160
Speaker 2: outside hustlers and freelancers. How can we stay on top

754
00:33:05,200 --> 00:33:07,120
Speaker 2: of things? How do you manage it? What would you suggest?

755
00:33:07,200 --> 00:33:09,320
Speaker 3: I would suggest keeping track of all of your receipts

756
00:33:09,320 --> 00:33:12,480
Speaker 3: and all of the things that you might forget about.

757
00:33:12,760 --> 00:33:14,479
Speaker 3: It might be really easy to go, oh, great, I

758
00:33:14,520 --> 00:33:18,720
Speaker 3: incurred this laundry fee for my uniform and you forget

759
00:33:18,720 --> 00:33:21,040
Speaker 3: about it six months later when tax time comes. So

760
00:33:21,080 --> 00:33:23,840
Speaker 3: I definitely recommend having that album on your phone of

761
00:33:23,920 --> 00:33:25,800
Speaker 3: all the pictures of the receipts that you've been taking

762
00:33:25,840 --> 00:33:29,040
Speaker 3: photos of. If you want, you can download the Ato app,

763
00:33:29,040 --> 00:33:32,040
Speaker 3: which will really help you actually keep track of what's

764
00:33:32,120 --> 00:33:34,880
Speaker 3: going on and they're a little bit more clear. As

765
00:33:34,920 --> 00:33:36,280
Speaker 3: I said, I like to have it on my phone

766
00:33:36,280 --> 00:33:38,280
Speaker 3: because I like a little bit more flexibility, and to

767
00:33:38,320 --> 00:33:41,880
Speaker 3: be honest, I didn't want another app, but keeping track

768
00:33:41,920 --> 00:33:44,720
Speaker 3: of it's really helpful. Keeping a spreadsheet is also really

769
00:33:44,800 --> 00:33:46,800
Speaker 3: helpful because it's one of those things where you can

770
00:33:46,880 --> 00:33:48,400
Speaker 3: kind of put in your income and all of the

771
00:33:48,400 --> 00:33:50,520
Speaker 3: things that you want to claim so when tax time comes,

772
00:33:50,560 --> 00:33:53,360
Speaker 3: you've got everything in one location. But at the end

773
00:33:53,440 --> 00:33:56,160
Speaker 3: of the day, whatever works for you. To be honest,

774
00:33:56,200 --> 00:33:58,440
Speaker 3: everyone does it differently, Like you do it differently to me.

775
00:33:58,480 --> 00:34:00,880
Speaker 3: I'm sure Tony does it differently, is well, and we

776
00:34:00,960 --> 00:34:03,520
Speaker 3: aren't all one size fits all. And while we're on it,

777
00:34:03,560 --> 00:34:06,280
Speaker 3: if you do have multiple income streams, it's really important

778
00:34:06,320 --> 00:34:08,640
Speaker 3: to keep track of all of those. One of the

779
00:34:08,680 --> 00:34:11,560
Speaker 3: easiest ways to keep track of your income in total

780
00:34:11,719 --> 00:34:14,400
Speaker 3: is actually just to wait till your group certificates come out.

781
00:34:14,600 --> 00:34:17,720
Speaker 3: I think the people have this mad dash on June thirties,

782
00:34:17,760 --> 00:34:19,600
Speaker 3: that's July one. They're like, oh my gosh, I have

783
00:34:19,680 --> 00:34:22,239
Speaker 3: to get my tax in right now, because either they

784
00:34:22,400 --> 00:34:25,120
Speaker 3: feel stressed about it or they just really want their discount.

785
00:34:25,360 --> 00:34:28,719
Speaker 3: But more often than not, it's not the priority. Like

786
00:34:28,760 --> 00:34:30,759
Speaker 3: and I'm not saying don't do your tax. Absolutely do

787
00:34:30,800 --> 00:34:33,719
Speaker 3: your tax, but wait until you've got your group certificates

788
00:34:33,760 --> 00:34:36,520
Speaker 3: from your employer, because they'll tell you exactly how much

789
00:34:36,560 --> 00:34:39,120
Speaker 3: income they paid you. And if you've got multiple employers,

790
00:34:39,120 --> 00:34:41,400
Speaker 3: wait until you have all of those group certificates so

791
00:34:41,480 --> 00:34:43,600
Speaker 3: that you can actually submit your tax return and know

792
00:34:44,239 --> 00:34:47,360
Speaker 3: with clarity that's what it is, and given the ato

793
00:34:47,560 --> 00:34:49,759
Speaker 3: has I would say, you know, progressed with leaps and

794
00:34:49,760 --> 00:34:52,719
Speaker 3: bounds over the last few years. Those group certificates are

795
00:34:52,719 --> 00:34:56,480
Speaker 3: actually usually visible already on your tax platform, so more

796
00:34:56,480 --> 00:34:58,520
Speaker 3: often than not you can just log into your tax

797
00:34:58,560 --> 00:35:00,799
Speaker 3: platform online and see where they're at and make sure

798
00:35:00,840 --> 00:35:03,160
Speaker 3: that they're right. But the biggest tip I would have

799
00:35:03,400 --> 00:35:05,719
Speaker 3: is just keep track of all those incomes and make

800
00:35:05,760 --> 00:35:08,040
Speaker 3: sure that when you do get a group certificate, just

801
00:35:08,040 --> 00:35:10,040
Speaker 3: don't take it as gospel. Just double check it and

802
00:35:10,080 --> 00:35:12,200
Speaker 3: be like, Okay, cool, is this actually what I earned?

803
00:35:12,400 --> 00:35:14,720
Speaker 3: Do I feel comfortable with this? Does this make sense?

804
00:35:14,800 --> 00:35:16,680
Speaker 3: Because you don't want to have a mistake come up

805
00:35:16,719 --> 00:35:19,080
Speaker 3: and you had just accepted your group certificate for what

806
00:35:19,120 --> 00:35:19,480
Speaker 3: it was.

807
00:35:19,640 --> 00:35:22,480
Speaker 2: And if you're a sole trader or side hustler, maybe

808
00:35:22,560 --> 00:35:24,239
Speaker 2: keep track of it in a spreadsheet, keep a hold

809
00:35:24,239 --> 00:35:26,759
Speaker 2: of any invoices you send out because you're not going

810
00:35:26,840 --> 00:35:27,960
Speaker 2: to have a group certificate sent to you.

811
00:35:28,080 --> 00:35:30,920
Speaker 3: That's your job, absolutely, And if you're a sole trader

812
00:35:31,040 --> 00:35:33,920
Speaker 3: or a side hustler, you usually have something like moob

813
00:35:34,360 --> 00:35:37,319
Speaker 3: that keeps track of it for you, so definitely keep

814
00:35:37,360 --> 00:35:39,719
Speaker 3: on top of that. But you know, different horses for

815
00:35:39,760 --> 00:35:41,600
Speaker 3: different courses, but at the end of the day, the

816
00:35:41,640 --> 00:35:44,200
Speaker 3: summary of this is keep track of it, don't stress

817
00:35:44,280 --> 00:35:46,759
Speaker 3: too much, and make sure that when you are claiming things,

818
00:35:46,760 --> 00:35:49,320
Speaker 3: you are only claiming things that you are actually eligible

819
00:35:49,360 --> 00:35:49,760
Speaker 3: to claim.

820
00:35:49,840 --> 00:35:52,200
Speaker 2: My friends, awesome, so thank you for wrapping the key

821
00:35:52,239 --> 00:35:55,239
Speaker 2: takeaways for me. One thing that I wanted to point

822
00:35:55,239 --> 00:35:57,680
Speaker 2: out was not only a our accountants helpful, but they

823
00:35:57,719 --> 00:36:01,239
Speaker 2: are also tax deductible money exactly right. If you use

824
00:36:01,280 --> 00:36:03,880
Speaker 2: an accountant this financial year, you'll be able to claim

825
00:36:03,920 --> 00:36:07,360
Speaker 2: their fee in your following tax return the next financially.

826
00:36:06,960 --> 00:36:08,360
Speaker 1: Absolute money win huge.

827
00:36:08,480 --> 00:36:10,839
Speaker 3: But that is all we have time for today, So

828
00:36:11,040 --> 00:36:13,160
Speaker 3: just before we head off, we'd like to acknowledge and

829
00:36:13,280 --> 00:36:16,760
Speaker 3: pay respect to Australia's Aboriginal and Torrestrey Island of People's.

830
00:36:17,040 --> 00:36:20,239
Speaker 3: They're the traditional custodians of the lands, the waterways and

831
00:36:20,280 --> 00:36:23,520
Speaker 3: the skies all across Australia. We thank you for sharing

832
00:36:23,560 --> 00:36:25,200
Speaker 3: and for caring for the land on which we are

833
00:36:25,239 --> 00:36:27,680
Speaker 3: able to learn. We pay our respects to orders past

834
00:36:27,800 --> 00:36:30,320
Speaker 3: and present, and we share our friendship and our kindness.

835
00:36:30,480 --> 00:36:32,640
Speaker 2: The advice shared on She's on the Money is general

836
00:36:32,680 --> 00:36:36,080
Speaker 2: in nature and does not consider your individual circumstances. She's

837
00:36:36,080 --> 00:36:39,000
Speaker 2: on the money exists purely for educational purposes and should

838
00:36:39,040 --> 00:36:41,680
Speaker 2: not be relied upon to make an investment or financial decision,

839
00:36:42,040 --> 00:36:45,480
Speaker 2: and we promise Victoria Devine is an authorized representative of

840
00:36:45,520 --> 00:36:49,960
Speaker 2: Australian Pacific Funds Management Proprietary Limited ABM three four one

841
00:36:50,000 --> 00:36:53,520
Speaker 2: three two four six three two five seven AFSL three

842
00:36:53,560 --> 00:36:55,360
Speaker 2: three nine one five one.

843
00:36:55,480 --> 00:36:59,160
Speaker 3: And as always, let's push straight to socials.

844
00:36:59,200 --> 00:37:00,200
Speaker 1: If you haven't joyed in.

845
00:37:00,200 --> 00:37:02,680
Speaker 3: Our Facebook group, where the body hell have you been?

846
00:37:03,200 --> 00:37:05,640
Speaker 3: Join our Facebook group, where more than one hundred and

847
00:37:05,680 --> 00:37:09,320
Speaker 3: seventy thousand people share money tips and tricks every single

848
00:37:09,440 --> 00:37:11,640
Speaker 3: day for your judgment. So She's on the money on

849
00:37:11,680 --> 00:37:13,880
Speaker 3: Facebook and join us. If Facebook's not your thing, we

850
00:37:13,960 --> 00:37:16,279
Speaker 3: can If Facebook's not your thing, you can also find

851
00:37:16,320 --> 00:37:18,160
Speaker 3: us on Instagram, We're on TikTok, or we are in

852
00:37:18,200 --> 00:37:21,279
Speaker 3: your newsletter. We are everywhere, So don't forget to join us,

853
00:37:21,320 --> 00:37:24,760
Speaker 3: and also don't forget to rate, review or subscribe, because

854
00:37:24,760 --> 00:37:26,680
Speaker 3: that helps our pod keep on growing.

855
00:37:26,840 --> 00:37:27,960
Speaker 1: See you next week, guys.

856
00:37:28,040 --> 00:37:33,719
Speaker 2: Bye