Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it. She's on the Money. She's on
Speaker 1: the Money.
Speaker 3: Hello and welcome.
Speaker 4: She's on the Money podcast for millennials who want financial freedom.
Speaker 4: My name is beck Syed Victoria Divine is with me.
Speaker 4: We are twelve.
Speaker 5: You were just trying to jump straight into the toars.
Speaker 1: You almost forgot that.
Speaker 5: I'm just as passionate about tax as you are, and
Speaker 5: I forgot you were here.
Speaker 1: Oh really, that's crazy.
Speaker 4: Because you know, I am actually, like, you know, a
Speaker 4: bit of an expert in finance.
Speaker 5: So yeah, I heard you were like kind of becoming
Speaker 5: a tax expert.
Speaker 3: Yeah, I would, you know, it's not a stretch.
Speaker 1: So what date are we working towards?
Speaker 4: So June thirty is fast approaching, so we're going to
Speaker 4: be talking about tax time.
Speaker 1: Are you excited? Yeah?
Speaker 5: Because June thirty is my birthday. Oh yeah, so ten
Speaker 5: out of ten always excited. Can you think of a
Speaker 5: better birth date for this finance Galie, I can't a
Speaker 5: single date. Maybe like the first of July, maybe new
Speaker 5: tax year would be a good one, but like June thirty.
Speaker 5: My dad's an accountant, so I was born to ruin
Speaker 5: his accounting each and every single year, and I just
Speaker 5: live for that.
Speaker 1: I still live for that. But I'm very excited.
Speaker 5: I can imagine that a lot of people are probably
Speaker 5: just really excited about this time.
Speaker 4: Of year, Beck, But I do imagine it's a time
Speaker 4: of dread for a lot of people. Yeah, Becklook, it
Speaker 4: can feel a little bit intimidating if you don't feel
Speaker 4: like you're on top of your income tax, which is
Speaker 4: exactly why we're doing an episode today to get you
Speaker 4: ready for tax time, the sexiest time of the entire year.
Speaker 4: We're going to be looking at some changes that you
Speaker 4: really should be aware of, and also some things that
Speaker 4: the at O are cracking down on this year, and
Speaker 4: then we're going to give you some tips and tricks
Speaker 4: to help this time of year run a little bit smoother.
Speaker 4: I feel like that's a good way to kind of
Speaker 4: like do a tax episode if we're being honest. Yeah, perfect,
Speaker 4: nice and easy, nice and gentle.
Speaker 5: And did you know that the Taxman cracks down is
Speaker 5: taxman tax person? Unsure of what we're going to be
Speaker 5: identifying them as, but did you know that each and
Speaker 5: every single year we'll get to it later this episode,
Speaker 5: they actually announce what they're looking out for this year,
Speaker 5: just red hearing or yeah, just like a little warning like, hey,
Speaker 5: guys going to be looking out for this this year,
Speaker 5: and hey guys, like this is what.
Speaker 1: We're gonna be cracking down on this year.
Speaker 5: So it's good to know because often the things that
Speaker 5: they're cracking down on are related to recent changes, which
Speaker 5: we will get too very soon, and they are this
Speaker 5: year as well, so I'm not surprised by them. They're
Speaker 5: not just picking random things. They actually have some method
Speaker 5: to their madness. But it's good to just be in
Speaker 5: the know. It's not maybe the sexiest episode, let's be honest,
Speaker 5: but it's one of those episodes where you're gonna walk
Speaker 5: away being like, no, I can actually do that myself.
Speaker 5: I do feel like I'm completely in control of this
Speaker 5: process and I'm no longer overwhelmed.
Speaker 1: So we love that.
Speaker 4: Wow, that is a perfect outcome. I hope they're not
Speaker 4: just like trying to throw us off the scent.
Speaker 1: But they're not trying to throw us off the scent promise.
Speaker 5: They actually really want us to pick up on the
Speaker 5: scent so that they get to do less work.
Speaker 1: It's quite intelligent, to be honest. Oh that's very smart. Yeah, exactly. V.
Speaker 4: This might actually surprise you. But I have prepared some
Speaker 4: stats for you.
Speaker 1: Are you trying to take my job as resident statscal?
Speaker 4: I thought I was being subtle about it, But maybe
Speaker 4: I'm not being so subtle.
Speaker 1: Maybe time don't announce it? A good idea next time.
Speaker 4: So did you know that in twenty nineteen slash twenty twenty,
Speaker 4: Australians paid four hundred and forty six million point four.
Speaker 3: Billion billion in tax.
Speaker 1: That's so many dollar rules?
Speaker 4: But the atier recons that if what are you doing
Speaker 4: with that albow? Yeah that's a very what are you
Speaker 4: doing with that Albut do you want to call him.
Speaker 4: I've got him on speed dial.
Speaker 1: Oh my gosh.
Speaker 5: Do you know what if anybody has Elbow on speed dial,
Speaker 5: it absolutely would be you, no doubt, no doubt. I
Speaker 5: mean we work for arn wasn't here Kyle Sandlanz's wedding true,
Speaker 5: So we basically have him on speed dial.
Speaker 3: We could get in touch with them.
Speaker 1: So that's could if we wanted to.
Speaker 5: If we don't want to, we just want to do
Speaker 5: this tax episode exactly.
Speaker 4: So the atier reconds that if all Australians were paying
Speaker 4: the correct amount of tax, they would have received four
Speaker 4: hundred and seventy nine point eight billion dollars.
Speaker 5: Yeah, so some people are being a little bit cheeky.
Speaker 4: That's not actually too bad. What do you mean doing
Speaker 4: the four hundre billions?
Speaker 5: Oh yeah, sure, that's not a big discrepancy at all.
Speaker 5: Like if those were my bank account details, I would
Speaker 5: not be mad about that at all. Beck each year,
Speaker 5: the eightier actually makes the lists of things that they're
Speaker 5: going to be paying closer attention to, which I mentioned before,
Speaker 5: and for the next round of tax reporting, that's actually
Speaker 5: going to be all about improving their systems and also
Speaker 5: our awareness or let's be honest, the honesty to get
Speaker 5: more money back into treasury. That figure that you mentioned
Speaker 5: Beck still means that ninety three percent of people in
Speaker 5: Australia are paying what they owe. Those percentages are pretty
Speaker 5: good because if you compare it to the USA, their
Speaker 5: figures actually sit at around the eighty five percent mark.
Speaker 5: We've said this on the podcast before. Please substantiate your claims.
Speaker 5: Like if you're just going in and being like, ah,
Speaker 5: I work as an executive assistant. Oh, look, I can
Speaker 5: claim up to two hundred dollars on you know, some
Speaker 5: care products without receipts. I'll just claim that that's actually illegal. Like,
Speaker 5: you need to be able to substantiate that with proof,
Speaker 5: with a receipt with something. Even if they're not asking
Speaker 5: you to submit those receipts, they can actually audit you.
Speaker 5: And we have had people in our community get audited
Speaker 5: and they're like, oh, but I just claimed up to
Speaker 5: the threshold. It's like, yes, but the atier can come
Speaker 5: back and ask you to prove that. And each year
Speaker 5: they take a bucket of random people and they ordered
Speaker 5: them to make sure that we're doing the right thing
Speaker 5: and being good people. So essentially, the golden rule at
Speaker 5: tax time for everybody in our community is if you
Speaker 5: can't substantiate it, don't claim it.
Speaker 3: That's so scary.
Speaker 5: It can be scary, but I just also think it
Speaker 5: shouldn't be scary if you're doing the right thing. Yeah, Like,
Speaker 5: if you haven't claimed things that you haven't spent, then
Speaker 5: it is what it is. And I mean, if you
Speaker 5: know the taxman came knocking and said, hey, that you've
Speaker 5: been picked up in the audit and we're just going
Speaker 5: to audit all your expenses and some care came up right,
Speaker 5: like suncare sounds so small, but it's something that so
Speaker 5: many people can be picked up on because it's like
Speaker 5: a very low threshold where you go, oh, that's another
Speaker 5: two hundred bucks. I don't have to prove that I spent.
Speaker 5: They're going to ask you to prove that you spent it.
Speaker 5: If you don't, you're going to be up for one
Speaker 5: paying it back, but you'll have to pay it back
Speaker 5: with interest. That's essentially a fine beck and that is scary.
Speaker 5: I don't want to be in trouble with the tigree trouble.
Speaker 5: Then you have a little red flag against your name
Speaker 5: for next year and all of it. It's just not
Speaker 5: worth your time, I promise.
Speaker 4: Yeah, that actually makes sense, So I guess we should
Speaker 4: go into the changes for this year.
Speaker 5: We else So there are a few changes, so I've
Speaker 5: round up the big ones for individuals first. The first
Speaker 5: one's not that great. The low and middle income tax offset.
Speaker 5: It didn't get extended, so as a result, low to
Speaker 5: middle income earners they might see their tax refund from
Speaker 5: July twenty twenty three reduced between six hundred and seventy
Speaker 5: five dollars and fifteen hundred bucks for incomes up to
Speaker 5: ninety thousand dollars, but phasing out up to one hundred
Speaker 5: and twenty six thousand dollars. Just feel like they could
Speaker 5: have extended that each to their own. The Medicare low
Speaker 5: income threshold for twenty twenty two to twenty twenty three
Speaker 5: year is going to be increased, so we do like this.
Speaker 5: For singles, this will be increased to twenty four thousand,
Speaker 5: two hundred and seventy six dollars, which is up from
Speaker 5: twenty three thousand, three hundred and sixty five dollars for
Speaker 5: the twenty twenty one twenty twenty two year. And then
Speaker 5: for couples with no children, the family income threshold is
Speaker 5: going to be increased up to forty thousand, nine hundred
Speaker 5: and thirty nine dollars, which is an increase from thirty
Speaker 5: nine thousand, four hundred and two dollars from the twenty
Speaker 5: twenty one to twenty twenty two year. So the additional
Speaker 5: amount for threshold for each dependent child or student is
Speaker 5: also going to be increased to three thousand, seven hundred
Speaker 5: and sixty bucks, up from three thousand, six hundred and
Speaker 5: nineteen dollars. Personally, I think that could have gone a
Speaker 5: little bit further, but you know what, at this point
Speaker 5: in time, Beck, you get what you get, and you
Speaker 5: don't get upset.
Speaker 1: Sorry, V.
Speaker 4: I know that we have a full episode to go through,
Speaker 4: but I just wanted to quickly ask I have no
Speaker 4: idea one what a tax offset is into what a
Speaker 4: lowcome threshold is. Okay, so so I am reacting like
Speaker 4: I do, but I don't actually know.
Speaker 5: That's literally so classified as a low income threshold. So
Speaker 5: this might sound like a lot of money, but to
Speaker 5: receive the low income tax threshold, your taxable income needs
Speaker 5: to be less than one hundred and twenty six thousand dollars.
Speaker 5: You also have to be an Australian resident for tax purposes.
Speaker 5: If you earn under that, you're going to get access
Speaker 5: to a few different like tax off sets. So a
Speaker 5: tax offset is something that you can claim that other
Speaker 5: people might not be able to claim. So they're saying, look,
Speaker 5: because you have a lower income, we're going to allow
Speaker 5: you to claim a little bit more than a higher
Speaker 5: income earner just to kind of make life easier for you.
Speaker 5: And often they do this during periods of like turmoil,
Speaker 5: where you know, gas and electricity and stuff are really expensive,
Speaker 5: to hopefully get some more money back in your pockets.
Speaker 5: One hundred and twenty six thousand dollars sounds like a
Speaker 5: lot of money, but in reality, I won't say it's not,
Speaker 5: because it is a lot of money for a lot
Speaker 5: of people. But if you're a you know, a dual
Speaker 5: income household and your total household taxable income is one
Speaker 5: hundred twenty six thousand dollars and you have kids and
Speaker 5: stuff that does not go as far as you think
Speaker 5: it does, so these offsets kind of come in to
Speaker 5: boost you up a little bit. The other benefit there
Speaker 5: is often you can get access to things like healthcare
Speaker 5: cards and stuff like that. So if we say you're
Speaker 5: on a low income threshold. It means that you basically
Speaker 5: have access to a few different I guess let's call
Speaker 5: them bells and whistles that other people might not have
Speaker 5: access to purely because you don't earn more than a
Speaker 5: certain amount. It's the government trying to put you in
Speaker 5: a better position because you know, we want you to
Speaker 5: be paying less tax if you have less income, which
Speaker 5: I think is a fair system.
Speaker 3: That makes a lot of sense.
Speaker 1: Thank you, V.
Speaker 5: Sorry you may continue, Oh, thank you so much, but
Speaker 5: I think it's important, Beck. And you know, there are
Speaker 5: a lot of people that listen to this podcast, and Hi,
Speaker 5: if you're new here, I'm Victoria and this is Beck
Speaker 5: and we love what we do. But someone might have
Speaker 5: picked up this episode because they're like, oh, fire out,
Speaker 5: tax time's coming. I'm a little bit stressed and this
Speaker 5: is their first introduction. Like, those are really good questions
Speaker 5: to be asking. And I've said there's no such thing
Speaker 5: as a silly question in this community, especially from you,
Speaker 5: because if you're thinking it, our community are thinking it.
Speaker 5: So please always, always, always, buddy, And I think it's
Speaker 5: really really important.
Speaker 1: Thank you V. Of course.
Speaker 5: So the next thing I wanted to address was for
Speaker 5: single seniors and pensioners eligible for the Seniors and Pensioners
Speaker 5: tax offset, so they get, you know, some more cash
Speaker 5: in their back pocket because they are a senior. The
Speaker 5: Medicare levy low income threshold is going to be increased
Speaker 5: to thirty eight thousand, three hundred and sixty five dollars,
Speaker 5: which is up from thirty six thousand, nine hundred and
Speaker 5: twenty five dollars from the twenty twenty one to twenty
Speaker 5: twenty two year. The family threshold for seniors and pensioners
Speaker 5: is going to be increased. This is like dual income
Speaker 5: increased to fifty three thousand, four hundred and six dollars,
Speaker 5: up from fifty one thousand, four hundred and one dollars,
Speaker 5: which is a nice little bonus. Plus three thousand, seven
Speaker 5: hundred and sixty dollars for each dependent.
Speaker 1: Child or student. Ah, so that's nice again.
Speaker 5: The next too, are a little bit further down the track,
Speaker 5: but they are to me a pretty big deal. So
Speaker 5: under the Stage three tax changes from the first of
Speaker 5: July twenty twenty four, the average marginal tax rate is
Speaker 5: thirty two point five percent. It's going to be cut
Speaker 5: beck and we're going to be paying less tax if
Speaker 5: you're in that bracket. It's going to be cut to
Speaker 5: thirty percent for one big tax bracket between forty five thousand,
Speaker 5: get this all the way up to two hundred thousand dollars.
Speaker 5: That is a far wider range than it was before
Speaker 5: because historically it was up to about one hundred and
Speaker 5: twenty so that's so much more money. This will then
Speaker 5: more closely align to the middle tax bracket of the
Speaker 5: personal income tax system with corporate tax rates, so the
Speaker 5: thirty seven percent tax bracket will be entirely abolished at
Speaker 5: this time, which is kind of cool. But this means
Speaker 5: that from the first of July twenty twenty four beck
Speaker 5: there's only going to be three personal income tax brackets,
Speaker 5: so nineteen percent, thirty percent and forty five percent. So
Speaker 5: from the first of July twenty twenty five more taxpayers
Speaker 5: earning between forty five grand and two hundred grand they'll
Speaker 5: face a marginal tax rate of thirty percent. And with
Speaker 5: these changes, around ninety four percent of Australian taxpayers are
Speaker 5: projected to face a marginal tax rate of thirty percent
Speaker 5: or less.
Speaker 4: Ah.
Speaker 1: That is so good.
Speaker 5: That is really such a low average tax rate and
Speaker 5: I think that that's really sexy if you didn't keep
Speaker 5: up with that, because I feel like I do talk
Speaker 5: very quickly when I get excited about something. More people
Speaker 5: better off when it comes to tax, Yes, full stop,
Speaker 5: end of story. More people paying less tax, that's pretty sexy.
Speaker 3: Back, that's so good.
Speaker 1: More people less tax. What a good outcome? What a
Speaker 1: great outcome?
Speaker 3: I really really like that.
Speaker 5: There is another update, Beck. I just wanted to share
Speaker 5: this because I thought it was real cool. It doesn't
Speaker 5: happen until twenty twenty six, but I mean time flies
Speaker 5: when you're having tax fun Are you ready? Superannuation as
Speaker 5: of the first of July twenty twenty six, will actually
Speaker 5: be paid on your pay day, not quarterly, not annually.
Speaker 5: It will be paid every time you get paid, which
Speaker 5: at the moment, for most people I would say that
Speaker 5: their employers pay tax on a quarterly basis, so once
Speaker 5: every three months. This is actually really good for you
Speaker 5: because the more consistently that you're investing, the more opportunity
Speaker 5: you have to make use of something called dollar cost averaging.
Speaker 5: We've spoken about this on the podcast before, but dollar
Speaker 5: cost averaging is essentially where you're investing more regularly and
Speaker 5: your subernuation, as we know, is a tax structure that
Speaker 5: you're investing within. And if you're investing more regularly, what
Speaker 5: that means is you're making the most of the highs
Speaker 5: and the lows of the market. So instead of investing
Speaker 5: four times a year, you'll be investing probably twelve if
Speaker 5: you get paid monthly, and you'll be investing twenty six
Speaker 5: times if you get paid fortnightly. I think that's pretty sexy. Yeah, okay,
Speaker 5: that's top girlshit. I love that, all right. Beck you
Speaker 5: have a little graphic design business. If people want to
Speaker 5: check out your graphic design business. What's the Instagram you?
Speaker 4: Oh, this is so nice. Well, Sorr, shouldn't call you that?
Speaker 5: If you can call me whatever you want, but ideally
Speaker 5: you call me a nice name when I'm being nice
Speaker 5: to you.
Speaker 4: Yeah, that's true, beautiful queen, thank you. It's designed by Beku.
Speaker 4: Becku is spelt b Ecu.
Speaker 1: It's really cute.
Speaker 5: If you haven't checked out beck before, she has just
Speaker 5: recent is it recent? It's quite new, like it's been
Speaker 5: around ages, but like you've just started taking it seriously.
Speaker 1: That is true.
Speaker 4: I kind of like ebbs and flows, but recently I
Speaker 4: have been more active on but you've become a small
Speaker 4: business owner technically recently I started to take it very seriously,
Speaker 4: so I thought, right here would be a good spot
Speaker 4: to have some small business owner tips. I know there
Speaker 4: are a lot of people in our community who have
Speaker 4: either side hustles or small businesses, and this is where
Speaker 4: you need to listen up because these things are actually
Speaker 4: really important. I don't care if you just drive an
Speaker 4: Uber a couple of nights a month, but those things
Speaker 4: are not counted as hobbies. I do not care what
Speaker 4: your accountant says if you're driving income. When need to
Speaker 4: make sure that we are being transparent to the government
Speaker 4: because I have seen too many times, and you'll see
Speaker 4: in our Facebook group come tax time, there will be
Speaker 4: an influx of posts like this, Oh my accountant said
Speaker 4: that I earned less than five thousand dollars salt was
Speaker 4: a hobby. No, you worked for Uber, or you worked
Speaker 4: for DoorDash, or you did something that was generating an income.
Speaker 4: That was definitely not a hobby. The government's going to
Speaker 4: want to know about it.
Speaker 5: But one of the things that I think is worth
Speaker 5: mentioning here is the instant asset. Right off, it's going
Speaker 5: to return with a twenty thousand dollars threshold per asset
Speaker 5: from the first of July twenty twenty three to the
Speaker 5: thirtieth of June twenty twenty four. So this is a
Speaker 5: relatively good thing in general because instant asset right off
Speaker 5: means that you can claim the depreciation of an asset,
Speaker 5: so how much an asset is going to decrease in
Speaker 5: value over time in a one off lumpsum, and that
Speaker 5: is good for tax. If you had a good year
Speaker 5: where you had a good amount of income come in,
Speaker 5: that's a good way to write things off. Owners of
Speaker 5: people who want to buy cars are not too impressed
Speaker 5: because on the first of July this year, it is
Speaker 5: going to drop down from about fifty nine thousand dollars
Speaker 5: worth of instant asset right off for your car back
Speaker 5: down to the twenty thousand. So if you're looking for
Speaker 5: potentially a car, now's the time to have a quick
Speaker 5: chat with your accountant to make sure that maybe you
Speaker 5: could slip in before the new financial year. But small
Speaker 5: businesses with aggregated turnover of less than ten million dollars,
Speaker 5: can you believe that's what's constituted as a small business?
Speaker 5: I know, Oh, I've got less than ten million bucks,
Speaker 5: so are you tiny?
Speaker 1: What? Tiny?
Speaker 3: Little business?
Speaker 1: Wild?
Speaker 5: They're going to be immediately able to deduct the full
Speaker 5: cost of eligible assets costing less than twenty grand that
Speaker 5: are first used or installed ready for use between the
Speaker 5: first of July twenty twenty three and the thirtieth of
Speaker 5: June twenty twenty four. So that twenty thousand dollars threshold
Speaker 5: is going to apply on a per asset basis, So
Speaker 5: small businesses can basically instantly right off multiple ascide not
Speaker 5: just one, yeah, right off a whole heap of them.
Speaker 5: And you know what, you're like, Hey, what could be
Speaker 5: twenty thousand dollars? If you're a small business and you
Speaker 5: work in beauty. Maybe you're buying a laser machine, Maybe
Speaker 5: you're buying like ipl Maybe you're buying something like a
Speaker 5: facial machine or something that's really expensive and you really
Speaker 5: want to reinvest in your business. This is where you
Speaker 5: need to talk to your accountant to make the most
Speaker 5: of these benefits, because if you don't understand them and
Speaker 5: you don't know how to use them as a small
Speaker 5: business owner, you're doing yourself a disservice. We need to
Speaker 5: be putting ourselves first. And one of the things that
Speaker 5: you can do to put yourself first as a business
Speaker 5: that wants to grow is to actually understand what you
Speaker 5: can and can't do when it comes to tax. Yeah,
Speaker 5: because let's be honest, the instant asset right off of
Speaker 5: up to twenty thousand dollars, you might be like, what
Speaker 5: does that mean? That means that we get to claim
Speaker 5: back the tax we paid on it. That's a big,
Speaker 5: big discount on an item that you needed to purchase
Speaker 5: anyway for your business.
Speaker 1: Sexy.
Speaker 4: Yeah, Okay, that's making sense.
Speaker 1: Girls. So there's no minimum for assets.
Speaker 5: No, No, it would need to be an asset though.
Speaker 5: You can't just go buy a stapler claim depreciation on that.
Speaker 5: But like I mean, it's usually bigger ticket items that
Speaker 5: small business owners hesitate to purchase because they're like, oh,
Speaker 5: I don't know if this is going to be like
Speaker 5: a good thing or about I think talk to your accountant.
Speaker 5: We're just sharing general information on this podcast to kind
Speaker 5: of like trigger something or to kind of get you
Speaker 5: to go talk to a professional. At the end of
Speaker 5: the day, you cannot rely on just this podcast for
Speaker 5: your tax advice this year. Go and talk to an accountant,
Speaker 5: and if you don't have an accountant, now is the
Speaker 5: time to go. Maybe I need one because you can
Speaker 5: actually claim accountants fees.
Speaker 1: On tax next year.
Speaker 3: Wow.
Speaker 5: So there's been plenty more stuff back for small business
Speaker 5: owners announced I honestly, if I was a small business owner,
Speaker 5: I would be heading to the at year website to
Speaker 5: read up on them before it gets too.
Speaker 1: Close to the thirtieth of June.
Speaker 5: Because when it comes to assets before, I told you
Speaker 5: that it needs to be first used or installed. You
Speaker 5: can't just buy something and have it delivered midway through
Speaker 5: July and claim it in the previous year.
Speaker 1: Like, that's not going to work.
Speaker 5: It has to happen pretty soon, Okay, So it has
Speaker 5: to happen before the thirtieth of June, otherwise it goes
Speaker 5: into the next financial year.
Speaker 3: Time's a ticking, it is.
Speaker 5: Indeed, So do you know what you want to talk
Speaker 5: about next? Unrelatable for you, but might be really relatable
Speaker 5: for a lot.
Speaker 1: Of people in our community.
Speaker 4: Back sa Vie, I really want to talk about something
Speaker 4: that I can certainly relate to what's going to happen
Speaker 4: to us property investors. Also, I'm just kidding because I
Speaker 4: I'm not a property investor, and I don't earn any properties,
Speaker 4: but someone out there might want to know.
Speaker 5: So what can property investors do this year? What can
Speaker 5: they except be privileged?
Speaker 1: Track on it? So I'm working on it.
Speaker 5: The government is actually going to introduce tax incentive changes
Speaker 5: to help increase the supply of housing, so that's pretty sexy.
Speaker 5: The incentives are as follows. I've written them down there,
Speaker 5: two of them, and they're quite complicated, and I knew
Speaker 5: I wouldn't remember them. They're not that complicated, but I
Speaker 5: knew I wouldn't remember them, so I wrote them down back.
Speaker 5: So the first is an increase in the depreciation rate,
Speaker 5: So for capital works purposes, depreciation is where things lose
Speaker 5: value over time. And when we say for capital works purposes,
Speaker 5: it might be like an extension that you're putting on.
Speaker 5: So the extension you see, it might be worth two
Speaker 5: hundred grand back, but in a couple of years, like
Speaker 5: you know, a twenty ten kitchen's not that sexy anymore.
Speaker 5: I just ripped one out of my house, and I'm
Speaker 5: telling you right now, nobody is going to pay for
Speaker 5: that red splash back back in twenty ten, though, that
Speaker 5: was a very good investment. That was a very nice kitchen,
Speaker 5: so it was worth a lot. Then it depreciated over time.
Speaker 5: Now nobody thinks it's worth anything with that lino floors.
Speaker 5: I look, we ripped those out two also the false
Speaker 5: ceilings they had to go, so there was just a lot.
Speaker 5: But essentially that depreciation rate has been increased from two
Speaker 5: point five percent to four percent per year for eligible
Speaker 5: new build to rent projects where construction commences after the
Speaker 5: ninth of May twenty twenty three, and the reduction in
Speaker 5: the rate of the withholding tax for eligible fund payments
Speaker 5: for managed investment trusts or am I so like completely
Speaker 5: unrelated to you, but if you're following along and going, well,
Speaker 5: that's me to foreign residents on income for newly constructed
Speaker 5: residential build to rent properties after the first of July
Speaker 5: twenty twenty four goes from thirty percent down to fifteen percent,
Speaker 5: subject to further consultation on eligibility criteria.
Speaker 1: Can you see why I wrote them down?
Speaker 5: I can see, yeah, yeah, so I had to write
Speaker 5: them down because I was like, there's no way I'm
Speaker 5: going to remember that mouthful. But essentially that means that
Speaker 5: more people will be able to invest as foreign residents,
Speaker 5: and that's a relatively good thing because it will increase,
Speaker 5: hopefully the amount of rental properties that are available for access,
Speaker 5: and as we know right now, rental properties are going
Speaker 5: bonkers because there's not enough of them. The Home Guarantee
Speaker 5: scheme is going to be expanded from the first of
Speaker 5: July twenty twenty three. I think this is a very
Speaker 5: good thing. So the government has announced an expansion to
Speaker 5: the criteria enabling people to participate in the different home
Speaker 5: guarantee schemes. Eligibility ceteria for all elements of the scheme,
Speaker 5: including the First Home Guarantee, the Regional First Home Buyers Guarantee,
Speaker 5: and the Family Home Guarantee. They're going to be extended,
Speaker 5: which is very very sexy.
Speaker 4: That's actually it kind of sounds familiar, is that we're like,
Speaker 4: the government give twenty five percent and you give five
Speaker 4: percent to a deposit.
Speaker 1: Or Am I making this up?
Speaker 5: No, you're not making it up. It's absolutely correct. It's
Speaker 5: actually a scheme that exists to support eligible first home
Speaker 5: buyers purchase a home sooner. The thing that personally I
Speaker 5: like about this is that the government's basically underwriting you,
Speaker 5: but they don't own any of your property where there
Speaker 5: are schemes out there where the government kind of like
Speaker 5: co purchases with you and when you sell the property,
Speaker 5: you owe them an amount of money, and I don't
Speaker 5: particularly love the strings attached to that. But essentially, there
Speaker 5: are only a limited number of places.
Speaker 1: So the places that.
Speaker 5: Are going to be available in the twenty twenty two
Speaker 5: slash twenty twenty three financial year are thirty five thousand places,
Speaker 5: and it means that you could purchase a property with
Speaker 5: a five percent deposit if you're a first home buyer
Speaker 5: and you've like never purchased property before and you're purchasing
Speaker 5: a new or an existing home. You could be single,
Speaker 5: you could be a couple, But then depends where you're purchasing,
Speaker 5: because obviously different properties in different areas of the country
Speaker 5: have different amounts that they are worth. Maximum price purchases
Speaker 5: will apply, so like Sydney is going to be higher
Speaker 5: than you know Camera for example, So I think it's
Speaker 5: important to just look into it. If you're interested in that, though,
Speaker 5: the best thing you could do is talk to a broker.
Speaker 5: And obviously I'm quite biased, I own a mortgage broken company.
Speaker 5: And if you happen to be listening to this podcast.
Speaker 5: You probably would get along really well with us. Go
Speaker 5: check out Zella Money and we can sort you out
Speaker 5: and tell you whether you can get into that or not.
Speaker 5: Because when we say there are thirty five thousand places
Speaker 5: each year, usually that thirty five thousand amount is divided
Speaker 5: up among the years, so there might be you know,
Speaker 5: a quarter each quarter available or open, and they're actually
Speaker 5: only available through through certain banks, so there are like
Speaker 5: a heap of hoops. But it can be a really
Speaker 5: good way to get into your first home. And I'm
Speaker 5: really glad that it's sticking around. Okay, I really like that.
Speaker 5: I think it's pretty sexy. Yeah, I just really like
Speaker 5: that they've kind of prioritized and I mean, I'm not
Speaker 5: asking for feedback here. We all know that there are
Speaker 5: things that could be done better and changed, but it
Speaker 5: does feel like they have tried to put people who
Speaker 5: are currently not that enchanted with their property market in
Speaker 5: a position where they might, you know, get that in
Speaker 5: chairman back.
Speaker 1: Yeah.
Speaker 4: I love that each year the ATIO releases things ahead
Speaker 4: of the eof hy.
Speaker 1: End of financial year. Oh, she's a genius. God by
Speaker 1: me your coke, okay, are your coke?
Speaker 4: They will focus on certain things ahead of the end
Speaker 4: of financial year. What are they cracking down on this?
Speaker 2: All?
Speaker 5: Right, So they're cracking down on a few things, and
Speaker 5: I alluded to this at the start of the episode.
Speaker 5: This one is going to make sense, and that is
Speaker 5: working from home. So obviously during COVID we all worked
Speaker 5: from home a fair bit. But now everyone's heading back
Speaker 5: to offices, but grudgingly, but we're all heading back to officers.
Speaker 5: So the ATO is apparently sharpening it's focus in twenty
Speaker 5: twenty three on capital gains, tax and work related expenses,
Speaker 5: including changes to work from home claims. So from the
Speaker 5: first of March, taxpayers claiming work from home related deductions
Speaker 5: will be required to provide more detailed documentation. Fair the
Speaker 5: COVID shortcut isn't happening anymore. It allowed you historically to
Speaker 5: claim eighty cents each hour that you worked from home
Speaker 5: and cover all deducting running expenses. Not a thing anymore effective.
Speaker 5: From the first of July twenty twenty two, the ATO
Speaker 5: announced a revised fixed claim of sixty seven percent per
Speaker 5: hour worked from home. This is supposed to cover additional
Speaker 5: like running expenses for things like internet and electricity, phone
Speaker 5: plans or like stationary and stuff you need at home.
Speaker 5: There are separate deductions that can be made for other purchases,
Speaker 5: so for things like desk chairs or computers or bookshelves
Speaker 5: immediately if the price is below three hundred bucks, or
Speaker 5: as depreciation over time if it costs more, so you
Speaker 5: can pick which one there. The crucial point, though, is
Speaker 5: that you need to demonstrate to the ato that you
Speaker 5: did only incur these expenses because you are working from home.
Speaker 5: So you can't just set up like a little at
Speaker 5: home office because you think it'll look real chic in
Speaker 5: the corner of your lounge room, and then you don't
Speaker 5: work from home, and then you think you can claim
Speaker 5: it because everybody else is no sis, That's not how
Speaker 5: it's going to work.
Speaker 1: They're going to ask for proof.
Speaker 5: To claim using the fixed rate, you actually need to
Speaker 5: provide a record of all the hours worked from home
Speaker 5: for the entire year, as well as receipts or invoices
Speaker 5: to show you paid for these expenses covered by the
Speaker 5: fixed rate method.
Speaker 1: Do you have friends that work from home?
Speaker 3: Yes?
Speaker 5: Do you think that they're actually keeping a log book
Speaker 5: of how many hours that they're working from home?
Speaker 3: Definitely?
Speaker 5: Not so Like that's something that we should be aware of,
Speaker 5: and before doing your tax maybe pop a really simple
Speaker 5: one together and work it out, like, just do the
Speaker 5: right thing, do the right thing, don't just claim it.
Speaker 5: I know a lot of people will say, oh, you
Speaker 5: can claim this, or you can. It's not that simple anymore.
Speaker 5: And if you mess up or you do the wrong thing,
Speaker 5: it can be relatively serious. I mean, the taxman isn't
Speaker 5: as scary as people seem to make him out to be.
Speaker 5: It can be not so good when you're claiming things
Speaker 5: that you aren't entitled too, though, And that's where I
Speaker 5: think professional help could come into it. But if I'm
Speaker 5: being brutally honest, if you are a salaried PAYG employee,
Speaker 5: it's relatively easy to work out. Haybeck, did you incur
Speaker 5: any expenses this year? Did you have to buy a
Speaker 5: desk chair to work from home?
Speaker 1: Yes? Okay?
Speaker 5: Can you please look up in your bank statements because
Speaker 5: bank statements are easily looked into how much you spend
Speaker 5: it off as works great, you can claim that, no worries,
Speaker 5: but we really need to make sure that we did
Speaker 5: incur those things. We're not just writing down, Oh, we
Speaker 5: want to a little refund for this and this and this,
Speaker 5: even when we didn't incur it, Like, that's just cheeky
Speaker 5: and not on. Yeah, I'm just trying to make friends
Speaker 5: with the taxman. So he's like smiling and he looks
Speaker 5: for my return.
Speaker 1: Let's be honest, it.
Speaker 3: Doesn't order you this year.
Speaker 1: Yeah, I'm just say, oh, hey, that ve girl, she's
Speaker 1: really nice.
Speaker 5: We love her famous to Ato yeah, same same, but
Speaker 5: essentially separate records for claims not covered by the fixed
Speaker 5: rate will also be necessary, so just record keeping is
Speaker 5: really important. There is an Ato record keeping app if
Speaker 5: you want it, or if you're a little bit more
Speaker 5: old school. I don't really want to have an app either.
Speaker 5: I actually just take photos of things throughout the year.
Speaker 5: I save it to a random album. Then when tax
Speaker 5: time comes, I just go to that album and everything
Speaker 5: I need is there. Once I've claimed it, I delete
Speaker 5: everything and then I start fresh for the year.
Speaker 1: On that's a great idea. I think it's quite smart,
Speaker 1: to be honest.
Speaker 5: Obviously, don't delete them forever, because you do need to
Speaker 5: keep those things on record for seven years in case
Speaker 5: you are audited. But I remove them from the album
Speaker 5: because I don't need to you know quit check, but
Speaker 5: also low key phone hack in your phone when you're
Speaker 5: searching for photos, did you know you can just like
Speaker 5: type in words now and a look true in the photo.
Speaker 4: I can type in people's name what and itens your
Speaker 4: people's having.
Speaker 3: Folder of Victoria divide.
Speaker 1: Oh my gosh, that's really creepy. Let's move on. Let's
Speaker 1: move on all right.
Speaker 5: So the ATO this year is going to be like
Speaker 5: narrowing in on people who are claiming a substantial amount
Speaker 5: or all of their personal phone or internet plan as
Speaker 5: work related because basically the ATRO doesn't believe that deductions
Speaker 5: for purchases like this can only be made for the
Speaker 5: portion of time that is actually used for business.
Speaker 1: So like, let's be brutally honest.
Speaker 5: I don't even bother claiming my phone anymore because I
Speaker 5: have an unlimited plan. I pay a set amount each month,
Speaker 5: and you know what, I mainly use it for TikTok.
Speaker 5: So I just have stopped claiming that because I don't
Speaker 5: want to get in trouble. But yeah, only claim what
Speaker 5: is worth it. And then the ATIRO also concerned that
Speaker 5: too many taxpayers are automatically claiming their five thousand kilometer
Speaker 5: limit regardless of the actual amount that they have traveled.
Speaker 5: So it's seventy eight cents per kilometer that can be
Speaker 5: claimed available for journeys of up to five thousand kilometers.
Speaker 5: But essentially they're going to be looking into that as
Speaker 5: well this year. But I think I used to do that.
Speaker 5: I was like, where am I going. I'm not going anywhere.
Speaker 1: I feel like.
Speaker 5: People historically have always been like, oh, well, if you
Speaker 5: don't need to provide receipts, I'm just going to claim
Speaker 5: up to the minimum threshold and let's be honest, like ATO,
Speaker 5: please don't come for me. I'm sure like eighteen nineteen
Speaker 5: twenty year old Victoria was doing that. I can't remember,
Speaker 5: but I totally feel like if someone said, oh, you
Speaker 5: don't have to prove that, I'll be like, yeah, right,
Speaker 5: I'm in.
Speaker 1: Yeah, it isn't. Let's be honest.
Speaker 5: But it's now a more complicated tax system. It's a
Speaker 5: far more educated tax system. I mean, let's be honest,
Speaker 5: with the likes of chat GPT. I'm not saying that
Speaker 5: the ATO was using that, but with the advancements of technology,
Speaker 5: I guarantee they are going to be so much more
Speaker 5: I guess advanced at checking whether maybe you are doing
Speaker 5: the right thing or not without actually having to get
Speaker 5: too many humans involved. And the more they're able to
Speaker 5: do that, the more they're able to crack down on people,
Speaker 5: because I promise that would be an automated process. Obviously
Speaker 5: am speaking completely out of tune here because I don't
Speaker 5: work for the ATO, But if the ATRO were smart,
Speaker 5: they would have created some kind of aibot that overarchingly
Speaker 5: looks at everyone's stuff and if any abnormalities come up,
Speaker 5: they automatically send an audit letter to you and you then.
Speaker 1: Have to prove it. Like that's how I would run it.
Speaker 5: No, but they make it make sense right, And like,
Speaker 5: if I'm thinking of that, I guarantee someone at the
Speaker 5: ATO is sure.
Speaker 3: Sure.
Speaker 5: So it's just it's better to be safe than sorry.
Speaker 5: Just do it properly the first time. That's what this
Speaker 5: episode is all about.
Speaker 4: That's very true. V we've forgotten about one person or people?
Speaker 1: Oh have we? Yeah? Who?
Speaker 4: What about our finance bros?
Speaker 3: Cryptocurrency?
Speaker 1: Oh the finance bros? Do you reckon? They'll want to
Speaker 1: know about crypto. I think they'll want to know about crypto.
Speaker 5: So you think there are finance bros listening to this podcast.
Speaker 5: I think, do you know what, hello to the finance
Speaker 5: bros who are currently driving the car where that girlfriend
Speaker 5: has control of the iPhone and what is currently playing
Speaker 5: in the car? Yeah, well no, it's quite clearly she's
Speaker 5: on the money. They're quite clearly she's on the money.
Speaker 5: But you know what, that would have been a better suggestion.
Speaker 5: I don't know why you.
Speaker 1: Guys are still here, but let's talk about crypto.
Speaker 5: The atier is also going to be taking a much
Speaker 5: closer look at those making investments into cryptocurrencies like bitcoin,
Speaker 5: So increasing numbers of taxpayers you're not going to be
Speaker 5: surprised at jumping on the bandwagon, and the Aightier believes
Speaker 5: that some of them are failing to declare their profits
Speaker 5: and in some cases their loss is beck that they're
Speaker 5: making on their investments. So you need to remember that
Speaker 5: investing in cryptocurrencies can give rise to capital gains tax
Speaker 5: on profits. Traders can be taxed on their profits as
Speaker 5: business inc as well, So we need to be just
Speaker 5: very aware of that cryptocurrency while it is not a
Speaker 5: regulated financial asset here in Australia, it is an asset
Speaker 5: that you need to declare any profit on, like if
Speaker 5: you make fifty bucks from it. You actually have to
Speaker 5: tell the ATO about that, and it's illegal to not
Speaker 5: do that. But the other thing you need to understand
Speaker 5: when it comes to assets is how long you hold them.
Speaker 5: So if you hold an asset, even if it is cryptocurrency,
Speaker 5: make a whole heap of money on it and sell
Speaker 5: it within the first twelve months, the tax rate is
Speaker 5: going to be higher than if you held it for
Speaker 5: longer than twelve months, So please be aware of that
Speaker 5: before you decide I'm the best crypto bro ever and
Speaker 5: I'm making all this money, because you might be bitten
Speaker 5: in the bottom with a nasty tax bill which nobody
Speaker 5: wants like. Let's be honest, just be aware of it
Speaker 5: to help them in their search.
Speaker 1: The ATO is collecting.
Speaker 5: Bulk records from Australian cryptocurrency designated service providers or DSPs
Speaker 5: as part of a data matching program to ensure people
Speaker 5: trading in cryptocurrency are paying the right amount of tax.
Speaker 5: Data includes cryptocurrency purchase and sale information, and the data
Speaker 5: will identify taxpayers who failed to disclose their income details correctly.
Speaker 1: Is not that a bit scary?
Speaker 3: That is a bit scary.
Speaker 1: Just feels like it's getting real serious.
Speaker 5: Yeah, do you know what, I'm gonna repost this because
Speaker 5: it was a good TikTok. It was like, Hi, tax man,
Speaker 5: I'm just wondering how much taxio.
Speaker 1: They're like, oh, we don't know how much tax do
Speaker 1: you woe? You calculated and tell us?
Speaker 5: And then you say, oh, mister tax man, so you're
Speaker 5: saying you don't know how much tax iiO, so can
Speaker 5: pay whatever I want.
Speaker 1: They're like, oh, no, we know, we know how much
Speaker 1: tax you wante will tell us.
Speaker 4: Yeah.
Speaker 1: At what point.
Speaker 5: Are we going to not have to do our own
Speaker 5: tax return because it's just going to be automated. M Like,
Speaker 5: I'll give you access to my bank, mister ato man,
Speaker 5: go do my tax for me. I don't want to
Speaker 5: do it. Can't that become an automated process? Nobody likes
Speaker 5: tax time?
Speaker 1: Do you know what? They like getting their refunds?
Speaker 5: Yes, we just automate that, mister taxman, and we'll be
Speaker 5: much happier with you.
Speaker 1: Honestly.
Speaker 5: The ATO estimates that there are between half a million
Speaker 5: to one million Australians that have invested in crypto assets.
Speaker 5: Oh wow, that's a lot of people, a lot of people.
Speaker 5: That's a lot of people, and do you know what
Speaker 5: still scares me? Obviously this is just personal opinion, but haha,
Speaker 5: it's my show. But it just still baffles me that
Speaker 5: there are so many people willing to invest in crypto
Speaker 5: but are still too scared of the share market. Right,
Speaker 5: They're like, oh my gosh, the share market. That's really scary,
Speaker 5: and it's like crypto's worse. But okay, so I think
Speaker 5: it's all about education. We've done episodes on crypto, we've
Speaker 5: done introductions to the share market, go back and look
Speaker 5: for them. The best way you can do that is
Speaker 5: actually to just type in on your chosen podcast platform,
Speaker 5: she's on the money, and then the topic that you
Speaker 5: want and will automatically come up with linked episodes.
Speaker 1: So I think a lot of people don't know you
Speaker 1: can do that.
Speaker 5: Yeah, that's actually you don't have to scroll through everything,
Speaker 5: my friend. You can just type I few she's on
Speaker 5: the money crypto and our crypto episodes.
Speaker 1: Will come up.
Speaker 5: There.
Speaker 4: You go pretty sexy. No one's for the finance pros.
Speaker 4: But another huge but still emerging industry is the sharing economy.
Speaker 3: What have they said about this?
Speaker 5: So, yes, data matching is coming in hot here too,
Speaker 5: and there is a new statutory obligation on sharing economy
Speaker 5: platforms to provide information on how many sharing economy participants
Speaker 5: there are from the first of July twenty twenty three,
Speaker 5: so if you're confused, examples quoted by the ATO include
Speaker 5: services lack ride sourcing, transporting passages for.
Speaker 1: Affair i e.
Speaker 5: Buber drivers, renting out a room or house for accommodation.
Speaker 5: So airbnb hosts are the obvious example. We hear the
Speaker 5: atier is believed to be particularly concerned about taxpayers claiming
Speaker 5: the full CGT so Capital Gains Tax main residence exemption
Speaker 5: when part of their main residence has been rented out
Speaker 5: through Airbnb, and the law prevail it's a full CGT
Speaker 5: exemption where part of the main residents has been used
Speaker 5: to earn income.
Speaker 1: So they're like, oh, we see you. We're going to
Speaker 1: crack down on this.
Speaker 5: So things like renting out parking spaces, providing skilled services,
Speaker 5: so you might be like doing web design, graphic design.
Speaker 5: You might be on like air tasker for example, you
Speaker 5: might be supplying equipment or tools or completing odd jobs errants, deliveries,
Speaker 5: or you could be renting out equipment such as tools,
Speaker 5: musical instruments, sports equipment or clothing.
Speaker 4: Oh why like Jessica Ricci does.
Speaker 5: This right, don't throw her straight onto the bus. But
Speaker 5: I see, yes, that is a small business. And if
Speaker 5: you are renting out your wardrobe, it would be a
Speaker 5: good idea to have a quick chat with your accountant
Speaker 5: because you might be making bank on that very nice
Speaker 5: dress that you're renting out. But at the end of
Speaker 5: the day, that is a business and they are going
Speaker 5: to want to see whether that is taxable or not. Wow,
Speaker 5: talk to your accountant, my friend, talk.
Speaker 1: To your accountant.
Speaker 4: I think this is a really good place to have
Speaker 4: a little break and absorbit all and.
Speaker 1: Come back in two seconds. See you on the flip side, guys.
Speaker 4: Bye, Okay, So now we're onto some tips if you
Speaker 4: don't mind, I've got so.
Speaker 1: Many tax tip. Don't be fraudulent is my number one.
Speaker 1: That's the number one.
Speaker 2: Yeah.
Speaker 1: Yeah, it's actually a very good tip in life. It's
Speaker 1: really good.
Speaker 5: I mean it got me in a little bit of
Speaker 5: hot water a couple of weeks ago on TikTok where
Speaker 5: I said, oh, this could potentially be fraud when I
Speaker 5: said something about people earning quantos points on particular credit
Speaker 5: card transactions.
Speaker 1: You know what happened, terms and conditions got updated. You
Speaker 1: can no longer do that feels good to be right.
Speaker 1: Sometimes you're gonna lie.
Speaker 5: It's not gonna I was like I told you so,
Speaker 5: bed Okay, a little bit spicy.
Speaker 1: Moving on though, what was your question, my friend?
Speaker 4: So? What kind of things will help us make this
Speaker 4: whole process a lot smoother?
Speaker 1: Remain calm, Remain calm.
Speaker 5: Come so often getting your tax refund back, it kind
Speaker 5: of gets held up because people are making really.
Speaker 1: Basic mistakes that could be avoided.
Speaker 5: So like if your name or address has changed, please
Speaker 5: make sure you update your ATO info before lodging your return,
Speaker 5: because if you lodge a return under different details, even
Speaker 5: by accident, beck the atier is data matching technology won't
Speaker 5: be able to match it to your tax file number,
Speaker 5: and then it will have to go through a longer, lengthy,
Speaker 5: unmanual process.
Speaker 1: Not cool.
Speaker 5: Make sure that your bank details are correct. So all
Speaker 5: tax refunds are now done by direct deposits, so gone
Speaker 5: to the days where you actually received like a little
Speaker 5: check in the mail. You need to make sure that
Speaker 5: your bank details on your return are correct. Maybe you've
Speaker 5: changed banks recently and that account is empty. You don't
Speaker 5: want to not get your money. Beck one out of
Speaker 5: ten cannot recommend not being paid. You spell check, so
Speaker 5: if you've added an extra letter or accidentally spelled something
Speaker 5: wrong in a key field, it's going to delay your
Speaker 5: return significantly because the ATO has to go through and
Speaker 5: manually match your detail. And as you can imagine, this
Speaker 5: actually happens a lot. So there are time delays. They're
Speaker 5: really substantial, and you might be a little bit frustrated,
Speaker 5: But my friend, that is your fault.
Speaker 2: Ah.
Speaker 1: We triple check things in this house.
Speaker 5: Make sure that you claim all your income as well,
Speaker 5: including as we mentioned before, those like three Uber shifts
Speaker 5: that you did last October or that casual shift that
Speaker 5: you do at a cafe on the weekends in addition to.
Speaker 1: Your full time job.
Speaker 5: Not claiming income is something that the ATO has been
Speaker 5: cracking down hard on for the last few years, especially
Speaker 5: with the rise of like the gig economy, so like
Speaker 5: stuff like Uber and AIRBB and social media influencers and
Speaker 5: stuff like that. Like the social media influencer crackdown was
Speaker 5: like maybe four or five years ago, and I remember
Speaker 5: that went wild because, as you guys know, I used
Speaker 5: to be a financial advisor and the amount of clients
Speaker 5: I had that were influencers, Like.
Speaker 1: Let's be honest, that was my bread and butter.
Speaker 5: The amount of people that got audited that year was unfounded.
Speaker 5: Sure like it wasn't unjust at all, but they were like, hey,
Speaker 5: you probably should be paying tax on these gifts.
Speaker 1: And that's why things have changed a little bit in
Speaker 1: the last few years.
Speaker 5: See for good reason, for very good reason, because you
Speaker 5: shouldn't just be getting free stuff and just completely.
Speaker 1: Getting away with it, especially if it's your job.
Speaker 5: Like, if you get a gift, that's very different than
Speaker 5: being given a product to promote. Right, I don't actually
Speaker 5: use an accountant, stunning would you suggest that I do?
Speaker 1: It's totally up to you.
Speaker 5: So from my perspective, as I said before, if you're
Speaker 5: just a salaried payg employee, I think you can probably
Speaker 5: wrap your head around the my tax portal, Like it
Speaker 5: is not too hard, Beck, I'm assuming you've been doing
Speaker 5: it yourself for the past few years and it's not
Speaker 5: something where grab a cup of tea, sit down, like,
Speaker 5: don't just try and rush through it.
Speaker 1: You know what, have a wine. If you're going to
Speaker 1: have a wine.
Speaker 5: Triple check, like just make sure all those details are
Speaker 5: absolutely correct, and you're not a little bit wine happy,
Speaker 5: maybe let's cap it one glass.
Speaker 1: Of wine or like one per hour.
Speaker 5: It's like driving, like if you're over the limit, you
Speaker 5: probably shouldn't be doing your tax. But there's a reason
Speaker 5: more than seventy five percent of Australians use a tax agent,
Speaker 5: and that's because tax is not that simple and it
Speaker 5: can feel really overwhelming. The tax portal over the last
Speaker 5: few years, though, has really upped its ante. A lot
Speaker 5: of it is pre filled, a lot of it is automatic.
Speaker 5: They already have your details, they have your tax file number,
Speaker 5: they have all of the information that your employer put
Speaker 5: into the tax portal. They have everything right, so it's
Speaker 5: actually much easier than it used to be. And obviously
Speaker 5: if you don't know exactly what you can claim, it
Speaker 5: might be worth talking to an accountant because you might
Speaker 5: be missing out on some pretty sick returns. But if
Speaker 5: you get your return wrong, you could also be in
Speaker 5: for some hefty fines. So honestly, it does pack to
Speaker 5: talk to someone if you're worried about it. But more
Speaker 5: often than not, I find, especially having had what now
Speaker 5: five years experience with the Sheese on the money community,
Speaker 5: I think that a lot of people if you sit
Speaker 5: down and have a good look at it, you can
Speaker 5: pretty much do it yourself. The only way to get
Speaker 5: definitive tax return advice, though, is from a registered professional.
Speaker 5: So in an experienced accountant, they're always going to be
Speaker 5: able to highlight to you what you can and you
Speaker 5: can't claim on and what you can be doing in
Speaker 5: the next financial year to really ensure that you're maximizing
Speaker 5: the amount that you can claim back. A good accountant
Speaker 5: is obviously an investment that can be worth making, and
Speaker 5: you'll often find that they'll highlight things that maybe you
Speaker 5: didn't know you could claim. And the best part is
Speaker 5: that seeing an accountant is a tax deductible cost to
Speaker 5: You could also just call the ATO and ask questions.
Speaker 5: You could ask questions in our Facebook group about what
Speaker 5: you're doing and how other people are claiming it. The
Speaker 5: ATO website is a really, really good resource, and it's
Speaker 5: in very simple terms like type into the ATO search bar,
Speaker 5: can I claim x y z? Or how do I
Speaker 5: claim xyz? And there will be tutorials on it. Like
Speaker 5: I promise these things they feel overwhelming, but if you
Speaker 5: don't want to spend the money on an accountant, like
Speaker 5: my friend, you're probably smart enough to do it yourself.
Speaker 5: Like genuinely, I think it's worth a crack like you
Speaker 5: could probably chime in here.
Speaker 1: Do you find it challenging?
Speaker 4: I don't, but now knowing what I know about, for example,
Speaker 4: not being able to just claim the three hundred dollars
Speaker 4: laundry thing without any tax receipts, that makes it a
Speaker 4: little bit more difficult. I know how to use it.
Speaker 4: That's called the my Tax Portal, isn't it. Yeah, it
Speaker 4: is on the MyGov website. It's not too hard to
Speaker 4: wrap your head around. And if it feels overwhelming, it's
Speaker 4: probably because you've never done it before, and everything that
Speaker 4: we've never done before can feel really overwhelming. I would
Speaker 4: then also just say look if it's feeling a bit
Speaker 4: more complicated, like let's look at me.
Speaker 5: For example, Like you guys know I have shees on
Speaker 5: the Money. I own a mortgage broking company's Ella money.
Speaker 5: I know do a million other things which I actually
Speaker 5: have another business that you know. If you see me
Speaker 5: on Instagram doing speaking events, that's not through shees on
Speaker 5: the Money. That's through another business. I own a property.
Speaker 5: My husband and I have recently bought an investment property.
Speaker 5: I do see an accountant because my tax affairs are
Speaker 5: a bit more complicated than the average bears now and
Speaker 5: I'm so grateful to be in that position. And my
Speaker 5: accountant's not that grateful to be in that position. He's
Speaker 5: just always like, Victoria, what have you done this year? Like, ah,
Speaker 5: I'm so sick of dealing with you. By the way,
Speaker 5: love you, Louis. Please keep listening to my podcast. I
Speaker 5: really appreciate it. But for people like me, seeing an
Speaker 5: accountant just makes sense because my tax affairs are complicated
Speaker 5: and there's a few businesses in the mix, and there's
Speaker 5: a few different things. But as I said, if you're
Speaker 5: just a salary payg employer with like one stream of income,
Speaker 5: it's usually pretty easy to work out. And if you've
Speaker 5: been keeping track of your expenses over the year and
Speaker 5: like taking photos of things, or maybe you still operate
Speaker 5: on the shoebox method, you're chucking it in a shoe
Speaker 5: box under your bed, like, it can be quite simple.
Speaker 5: Don't feel like it's really overwhelming. And I mean, accountants,
Speaker 5: I adore you. I think you do a really, really
Speaker 5: good job. But at this point in time, I also
Speaker 5: think it's really worth empowering people to give it a
Speaker 5: crack themselves, because one thing that I don't think people
Speaker 5: understand about accountants is as much as they are fantastic
Speaker 5: and they are the professionals and they are going to
Speaker 5: give you really good advice, at the end of the day, Beck,
Speaker 5: you're the one that.
Speaker 1: Signs your tax return.
Speaker 5: So if you still are claiming something that you maybe
Speaker 5: shouldn't be claiming just because you told your accountant that
Speaker 5: you did it, they're going to go is everything true
Speaker 5: and correct? Beck, you sign this, It's not on them.
Speaker 5: If the ATO comes back and says, hey, Beck, we
Speaker 5: need to audit, you know it's not going to get out.
Speaker 1: Of jail free card.
Speaker 5: Because you've used an accountant, everything that you say and
Speaker 5: do can and will be used against you individually, if
Speaker 5: that makes sense. So just by using an accountant doesn't
Speaker 5: take the responsibility away. And I think that that's a
Speaker 5: very big misconception where you assume, Okay, well I'm not
Speaker 5: that good at it, and I do want to claim
Speaker 5: all those naughty things. I'm going to go to the
Speaker 5: accountant and then say I did do those things. At
Speaker 5: the end of the day, you're the one signing off
Speaker 5: on it, so if the ato come back, it's on you.
Speaker 5: It's not on your accountant, because they're going to turn
Speaker 5: around and be like, well, everything that Beck told us,
Speaker 5: she told us that was true and correct, and we
Speaker 5: just processed it based on the information she provided us with. Yeah,
Speaker 5: they've done what they needed to do. They're not a
Speaker 5: safety blanket. They can be a safety blanket for like
Speaker 5: getting good advice and making sure that oh can I
Speaker 5: claim this.
Speaker 1: You might go, oh, well, have you got the receipts?
Speaker 6: Yeah?
Speaker 1: I do, Oh, of course you can back. It might
Speaker 1: give you that peace of mind.
Speaker 5: But I think reminding you that they're not the get
Speaker 5: out of jail free card might be another reason why
Speaker 5: you go, you know what, you're right, V I'll just
Speaker 5: do it myself. And I mean at the end of
Speaker 5: the day, just downloading my tax portal and putting all
Speaker 5: your information in and then not hitting submit. You can
Speaker 5: go see an accountant after that. Why don't you give
Speaker 5: it a crack, Give it a crack, Give it a crack,
Speaker 5: see what happens. If it is overwhelming, then maybe go
Speaker 5: see someone. But if it isn't you tried your best
Speaker 5: it worked out.
Speaker 1: Yeah, that's actually a really really good way to.
Speaker 4: Kind of explain it. It's not so overwhelming. Just give
Speaker 4: it a go.
Speaker 5: Just give it a go, and if you're really overwhelmed, don't
Speaker 5: hit submit, go talk to an accountant.
Speaker 4: Exactly right, So that's my tax portal.
Speaker 5: Yeah, you don't need to download any fancy software or anything.
Speaker 5: And obvious, as I said before, the ATO can basically
Speaker 5: pre fiell most information from your employer and from banks
Speaker 5: and from government agencies and health funds and third parties.
Speaker 1: By late July.
Speaker 5: So that's also a very common misconception that on the
Speaker 5: thirtieth of June everything will be there. Now it was
Speaker 5: due on the thirtieth of June, maybe it hasn't been
Speaker 5: processed or like input yet. So usually I would recommend,
Speaker 5: if you're doing your own tax, wait until closer to
Speaker 5: the end of July, because then you have a lot
Speaker 5: more certainty that everything that you need to process your
Speaker 5: tax is already pre filled, makes your life easier, makes
Speaker 5: the process go a lot quicker. The ATO use a
Speaker 5: whole heap of range of systems and controls to protect
Speaker 5: your information, so it's all good. If you're you know,
Speaker 5: putting your tax pile number and stuff in, make sure
Speaker 5: you are going to the legit website. There are a
Speaker 5: few websites right and I'm not going to name names,
Speaker 5: but if you type in my tax portal, double check
Speaker 5: please that it is the government website, because there are
Speaker 5: a lot of companies that kind of levery off that
Speaker 5: and call it like the my Tax log in or something,
Speaker 5: and then they're actually a company that do your tax
Speaker 5: return for you and they'll charge you for that, and
Speaker 5: you just have clicked on the wrong link. So just
Speaker 5: make sure it's the government one before we go and
Speaker 5: try and doy. Obviously, it's available twenty four hours, seven
Speaker 5: days a week, so if Saturday night at three am
Speaker 5: you can't sleep in your wand to do tax, what
Speaker 5: a time to be alive. You're going to get your
Speaker 5: refund faster as well, so it's faster if it doesn't
Speaker 5: go through an accountant. Usually you'll get it back within
Speaker 5: two weeks or fourteen business days. You can then upload
Speaker 5: records that you keep in the my Deductions tool to
Speaker 5: pre fill your tax return, which is kind of sexy. Obviously,
Speaker 5: it's available for all individuals and soul traders who want
Speaker 5: to lodge their own tax return, and you'll receive a
Speaker 5: very very nice lodgment receipt by email to confirm that
Speaker 5: they have your lodgment once it's in and you can
Speaker 5: kind of track it from there.
Speaker 3: Awesome. I love that.
Speaker 1: I think I love that too.
Speaker 5: But I'm really over talking about tax and I'm pretty
Speaker 5: sure you're overhearing about it.
Speaker 4: Yes, I am up to Pussy's vo.
Speaker 5: Gina what with that? I think we're going to go, guys.
Speaker 5: We'll see you on Friday.
Speaker 3: Bye, guys.
Speaker 6: The advice shared on She's on the Money is general
Speaker 6: in nature and does not consider your individual circumstances. She's
Speaker 6: on the Money exists purely for educational purposes and should
Speaker 6: not be relied upon to make an investment or financial decision.
Speaker 1: If you do choose to buy a financial product.
Speaker 6: Read the PDS TMD and obtain appropriate financial advice tailored
Speaker 6: towards your needs. Victoria Divine and She's on the Money
Speaker 6: are authorized representatives of Money sheper Pty Ltd a BN
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