1 00:00:00,200 --> 00:00:04,400 Speaker 1: She's on the Money. She's on the Money. 2 00:00:10,520 --> 00:00:13,280 Speaker 2: My name's Tatasha Bamblet. I'm a proud First Nations woman 3 00:00:13,320 --> 00:00:16,200 Speaker 2: and I'm here to acknowledge country. Hello, beautiful friends, we 4 00:00:16,280 --> 00:00:18,720 Speaker 2: gather on the lands of the Aboriginal people. We thank, 5 00:00:18,880 --> 00:00:21,560 Speaker 2: acknowledge and respect the Aboriginal people's land that we're gathering 6 00:00:21,560 --> 00:00:24,160 Speaker 2: on today. Take pleasure in all the land and respect 7 00:00:24,360 --> 00:00:28,000 Speaker 2: all that you see. She's on the Money podcast acknowledges culture, country, 8 00:00:28,080 --> 00:00:32,080 Speaker 2: community and connections, bringing you the tools, knowledge and resources 9 00:00:32,120 --> 00:00:32,640 Speaker 2: for you to thrive. 10 00:00:32,800 --> 00:00:36,320 Speaker 3: Hello, friends, and welcome to another deep dive episode over 11 00:00:36,360 --> 00:00:39,160 Speaker 3: She's on the Money, the podcast that helps make your. 12 00:00:39,080 --> 00:00:43,680 Speaker 4: Personal finances feel a little less overwhelming, especially at tax time. 13 00:00:44,120 --> 00:00:45,440 Speaker 4: That is right, we are. 14 00:00:45,400 --> 00:00:48,360 Speaker 3: Reaching the pointy end of the financial year, and whether 15 00:00:48,400 --> 00:00:51,479 Speaker 3: you're facing a spicy bill or you're looking forward to 16 00:00:51,520 --> 00:00:55,600 Speaker 3: a very cheeky little return, we have questions like how 17 00:00:55,640 --> 00:00:58,279 Speaker 3: are your investments taxed? And how might changes in this 18 00:00:58,400 --> 00:01:00,680 Speaker 3: year's budget affect the way that the AI is going 19 00:01:00,760 --> 00:01:03,440 Speaker 3: to view your shares. Whether you've been investing for years 20 00:01:03,560 --> 00:01:06,280 Speaker 3: or you're just getting started, My friend, this episode was 21 00:01:06,360 --> 00:01:10,679 Speaker 3: made exactly for you. Will be explaining when you actually 22 00:01:10,680 --> 00:01:13,240 Speaker 3: pay tax, what needs to be reported, and the legit 23 00:01:13,319 --> 00:01:15,600 Speaker 3: ways that savvy investors minimize their tax bill. 24 00:01:15,600 --> 00:01:16,399 Speaker 4: Come June thirty. 25 00:01:16,840 --> 00:01:23,800 Speaker 3: More on that though, after this very short break, Hello 26 00:01:23,959 --> 00:01:26,240 Speaker 3: and welcome back to She's on the Money. I am, 27 00:01:26,600 --> 00:01:29,920 Speaker 3: as always Victoria Devine and joining me on the deep 28 00:01:29,959 --> 00:01:33,280 Speaker 3: dive couch today is not who you would expect. It 29 00:01:33,360 --> 00:01:37,480 Speaker 3: is the gorgeous miss Jesse garci me. Hi, friends, are 30 00:01:37,520 --> 00:01:39,240 Speaker 3: you excited to talk about investing in. 31 00:01:39,240 --> 00:01:42,000 Speaker 1: Tax I'm very excited. I love tax time. I think 32 00:01:42,080 --> 00:01:44,120 Speaker 1: you've rubbed off on me. In that case, you get 33 00:01:44,160 --> 00:01:47,080 Speaker 1: tax back every time, correct. I am one of those 34 00:01:47,080 --> 00:01:49,120 Speaker 1: people who is looking forward to a cheeky little return. 35 00:01:49,400 --> 00:01:50,560 Speaker 4: I love that for you. 36 00:01:50,680 --> 00:01:53,600 Speaker 3: But let's get straight into it. So when do you 37 00:01:53,680 --> 00:01:55,680 Speaker 3: actually have to pay tax when it comes to shares. 38 00:01:55,840 --> 00:01:59,600 Speaker 3: Let's say that you own shares or ETFs, which are 39 00:01:59,680 --> 00:02:02,960 Speaker 3: bunds of shares, and have earned a dividend sexy or 40 00:02:02,960 --> 00:02:06,600 Speaker 3: you've gotten a distribution even sexier. Here, you might need 41 00:02:06,640 --> 00:02:09,240 Speaker 3: to pay tax on what you've earned because it's actually 42 00:02:09,280 --> 00:02:12,040 Speaker 3: considered a form of income. And I think that's where 43 00:02:12,040 --> 00:02:14,200 Speaker 3: people start going, is it worth it? 44 00:02:14,800 --> 00:02:15,720 Speaker 4: Like yes, queen? 45 00:02:16,040 --> 00:02:18,519 Speaker 3: Like if you're making money and you're paying tax, you're 46 00:02:18,600 --> 00:02:19,720 Speaker 3: clearly in a better position. 47 00:02:19,919 --> 00:02:20,119 Speaker 1: Yeah. 48 00:02:20,200 --> 00:02:23,320 Speaker 3: But the sticky thing there is that sometimes we just 49 00:02:23,520 --> 00:02:26,440 Speaker 3: don't know that we have to pay tax on income 50 00:02:26,600 --> 00:02:29,399 Speaker 3: like that because we might be just like PAYG employees 51 00:02:29,440 --> 00:02:32,200 Speaker 3: and it's always been taken out beforehand. So it feels 52 00:02:32,240 --> 00:02:33,840 Speaker 3: like a kick in the butt when you're like, I 53 00:02:33,880 --> 00:02:35,920 Speaker 3: was trying to get ahead and now I've already spent that, 54 00:02:36,040 --> 00:02:39,800 Speaker 3: or I've already reinvested that. It feels like kind of 55 00:02:39,840 --> 00:02:41,800 Speaker 3: mean to be tax Yeah. 56 00:02:41,639 --> 00:02:44,160 Speaker 1: That's why we're getting you to think about it now exactly. 57 00:02:44,880 --> 00:02:48,200 Speaker 3: And if you've earned a dividend and then you've reinvested 58 00:02:48,240 --> 00:02:50,959 Speaker 3: that back into a portfolio, I think a few people think, oh, 59 00:02:50,960 --> 00:02:53,600 Speaker 3: well it's back in my investment. I don't know anything, 60 00:02:53,840 --> 00:02:55,800 Speaker 3: but you might actually have to pay tax on that 61 00:02:55,840 --> 00:02:59,600 Speaker 3: as well. So additionally, if you've then sold some shares 62 00:02:59,680 --> 00:03:02,320 Speaker 3: or so some of your ETFs and you've made a profit, 63 00:03:02,720 --> 00:03:05,280 Speaker 3: that's actually called and it's hot topic of the moment, 64 00:03:05,320 --> 00:03:08,480 Speaker 3: that's actually called a capital gain, and you will very 65 00:03:08,720 --> 00:03:11,200 Speaker 3: likely need to pay tax on that. But the amount 66 00:03:11,200 --> 00:03:13,640 Speaker 3: of tax you pay is going to vary depending on 67 00:03:13,680 --> 00:03:16,880 Speaker 3: when you earn the dividends. The distributions or capital gains 68 00:03:16,919 --> 00:03:19,600 Speaker 3: on that asset, and how long you actually held that 69 00:03:19,680 --> 00:03:22,800 Speaker 3: asset for. So there's a little bit of, like I 70 00:03:22,880 --> 00:03:26,120 Speaker 3: keep using the word today, nuance, and I'm glad that 71 00:03:26,240 --> 00:03:28,520 Speaker 3: all of the episodes I've recorded today aren't coming out 72 00:03:28,560 --> 00:03:31,240 Speaker 3: on the same date because you'll be like, I'm nuanced out. 73 00:03:31,919 --> 00:03:34,760 Speaker 3: But there is a lot of nuance. And because earning 74 00:03:34,960 --> 00:03:38,000 Speaker 3: anything from your shares counts towards your personal income, your 75 00:03:38,040 --> 00:03:41,200 Speaker 3: investments can actually influence and this is like a good 76 00:03:41,200 --> 00:03:42,920 Speaker 3: thing and a bad thing, but it can influence your 77 00:03:42,920 --> 00:03:46,480 Speaker 3: marginal tax rate. So like, if you start to accrue 78 00:03:46,480 --> 00:03:50,320 Speaker 3: a really nice investment portfolio, it might tip you over 79 00:03:50,400 --> 00:03:53,800 Speaker 3: into the next marginal tax rate, which won't have been 80 00:03:53,840 --> 00:03:57,280 Speaker 3: considered in your actual payg job, and it might be 81 00:03:57,320 --> 00:03:59,760 Speaker 3: an even ruder surprise come tax time. So we want 82 00:03:59,760 --> 00:04:01,400 Speaker 3: to keep track of this and make sure that we're 83 00:04:01,440 --> 00:04:02,720 Speaker 3: all hunky dory, right. 84 00:04:02,760 --> 00:04:05,240 Speaker 1: Yeah, and just make it extra fun. Shares and ETFs 85 00:04:05,320 --> 00:04:07,200 Speaker 1: also taxed a little bit differently, aren't theyre. 86 00:04:07,320 --> 00:04:10,840 Speaker 3: Yes, So with shares, your tax on your dividends, which 87 00:04:10,840 --> 00:04:13,520 Speaker 3: is the amount that the company will pay its shareholders 88 00:04:13,560 --> 00:04:16,479 Speaker 3: for its profit each and every single year. But Let's 89 00:04:16,560 --> 00:04:19,400 Speaker 3: say that you paid tax on your shares at the 90 00:04:19,440 --> 00:04:22,760 Speaker 3: corporate level already. You might actually receive what's called a 91 00:04:22,800 --> 00:04:26,000 Speaker 3: franking credit, which is kind of like a little IOU certificate. 92 00:04:26,040 --> 00:04:27,880 Speaker 3: And I think that's the way or the best way 93 00:04:27,880 --> 00:04:30,560 Speaker 3: to explain it, because the company gives you an iouah 94 00:04:30,560 --> 00:04:33,520 Speaker 3: and says, hey, jes you owned this direct share, but 95 00:04:33,520 --> 00:04:36,040 Speaker 3: don't worry, we already paid thirty percent tax on it. 96 00:04:36,320 --> 00:04:37,760 Speaker 4: And you go, oh, that's hot. 97 00:04:37,960 --> 00:04:39,720 Speaker 3: I'm going to keep this IOU and give it to 98 00:04:39,760 --> 00:04:42,279 Speaker 3: the ATO, and then that can be used to offset 99 00:04:42,279 --> 00:04:44,880 Speaker 3: your income tax, which is basically a way to let 100 00:04:44,920 --> 00:04:48,240 Speaker 3: the ATO know that you've actually paid tax already through 101 00:04:48,279 --> 00:04:51,320 Speaker 3: the company on some of your investments, so that they don't. 102 00:04:51,080 --> 00:04:52,880 Speaker 4: Tax you twice. Because that's not sexy. 103 00:04:53,240 --> 00:04:54,880 Speaker 1: No, someone who's been there, not fun. 104 00:04:55,000 --> 00:04:57,400 Speaker 3: I was about to say, and you've got beef with 105 00:04:57,440 --> 00:04:59,440 Speaker 3: the ATO at the moment because they did, in fact 106 00:04:59,440 --> 00:05:02,440 Speaker 3: tax you to on something and you made the news. 107 00:05:02,680 --> 00:05:05,719 Speaker 1: Yes, the news, this the whole thing. Don't be like 108 00:05:05,760 --> 00:05:07,040 Speaker 1: me your hand. 109 00:05:07,480 --> 00:05:10,480 Speaker 3: Also, that's a really important lesson on manifesting because in 110 00:05:10,520 --> 00:05:13,600 Speaker 3: our team, when something goes wrong, we are really dramatic 111 00:05:13,640 --> 00:05:15,760 Speaker 3: and we will say something like, oh my god, I'm 112 00:05:15,800 --> 00:05:18,080 Speaker 3: gonna be on the news because obviously we're so mad 113 00:05:18,120 --> 00:05:20,600 Speaker 3: that we're going to do something that ends us up 114 00:05:20,640 --> 00:05:23,200 Speaker 3: on the news. You said that one too many times. 115 00:05:23,440 --> 00:05:26,080 Speaker 3: I fear I did you flew too close to the sun. 116 00:05:26,200 --> 00:05:28,480 Speaker 3: And the ODA was like, well, you're gonna beyond the news. 117 00:05:28,839 --> 00:05:31,719 Speaker 3: We give you what you want anyway. So that is 118 00:05:31,800 --> 00:05:35,120 Speaker 3: really nice when it comes to direct shares. But then 119 00:05:35,160 --> 00:05:37,840 Speaker 3: with ETFs, they are slightly different and they are treated 120 00:05:37,880 --> 00:05:41,680 Speaker 3: more like trusts when it comes to tax. So ETFs 121 00:05:41,720 --> 00:05:45,560 Speaker 3: often pay what's called a distribution, which is the profit 122 00:05:45,640 --> 00:05:49,159 Speaker 3: that comes off multiple different types of assets. And because 123 00:05:49,200 --> 00:05:51,920 Speaker 3: the bundles are made up of different shares and like 124 00:05:52,080 --> 00:05:55,240 Speaker 3: some would be you know, corporate direct shares, some might 125 00:05:55,320 --> 00:05:58,440 Speaker 3: be you know, different trust assets, they can often be 126 00:05:58,560 --> 00:06:02,640 Speaker 3: taxed completely differently. So you'll often receive some franking credits 127 00:06:02,640 --> 00:06:04,919 Speaker 3: to offset your income when completing your tax return, but 128 00:06:05,000 --> 00:06:07,360 Speaker 3: not every single one is going to have that, so 129 00:06:08,040 --> 00:06:09,440 Speaker 3: it's taxed a little bit. 130 00:06:09,279 --> 00:06:10,839 Speaker 4: More in a complex way. 131 00:06:11,080 --> 00:06:12,719 Speaker 3: But don't worry, because I don't want you to go, 132 00:06:12,800 --> 00:06:14,600 Speaker 3: oh my gosh, should I not buy an ETF? Then 133 00:06:14,680 --> 00:06:18,080 Speaker 3: that sounds hectic v your investing platform will usually just 134 00:06:18,120 --> 00:06:20,200 Speaker 3: put it on a silver platter for you and be like, hey, 135 00:06:20,760 --> 00:06:23,679 Speaker 3: this is what your ETF did. Just provide this piece 136 00:06:23,680 --> 00:06:25,239 Speaker 3: of information to the ATO. 137 00:06:25,560 --> 00:06:29,000 Speaker 1: Amazing, So don't stress. If you've invested in shares and ETFSR, 138 00:06:29,200 --> 00:06:30,960 Speaker 1: is that how you would go about finding out how 139 00:06:31,040 --> 00:06:34,160 Speaker 1: much you've earned in dividends and capital gains and distributions. 140 00:06:34,240 --> 00:06:36,320 Speaker 3: Yes, and this is why we talk about the importance 141 00:06:36,360 --> 00:06:38,960 Speaker 3: of the platform that you're on. So if you've bought 142 00:06:39,000 --> 00:06:41,080 Speaker 3: your shares through a platform, you're going to get a 143 00:06:41,120 --> 00:06:43,279 Speaker 3: statement at the end of the financial gear that is 144 00:06:43,400 --> 00:06:46,719 Speaker 3: literally a rundown of all of this information so that 145 00:06:46,880 --> 00:06:49,520 Speaker 3: you just hand it over. And now I'm going to 146 00:06:49,520 --> 00:06:52,400 Speaker 3: talk about shares's in a non sponsored way, but just 147 00:06:52,480 --> 00:06:54,960 Speaker 3: in a way that's like, Okay, I know most of 148 00:06:54,960 --> 00:06:57,800 Speaker 3: our community use shares is to invest, and I know 149 00:06:57,880 --> 00:06:59,760 Speaker 3: that the comments on Spotify are going to be like, 150 00:06:59,760 --> 00:07:00,560 Speaker 3: how do I do this? 151 00:07:00,600 --> 00:07:02,840 Speaker 4: Does chares support this? Yeah, there are. 152 00:07:02,800 --> 00:07:05,560 Speaker 3: Features on the Chaiseas platform that let you do this, 153 00:07:05,880 --> 00:07:08,720 Speaker 3: and it basically just if you go into your settings 154 00:07:09,120 --> 00:07:11,920 Speaker 3: at any point, it will show you how much you've earned, 155 00:07:12,040 --> 00:07:15,160 Speaker 3: like so think dividends, your distributions, your capital gains and 156 00:07:15,240 --> 00:07:18,000 Speaker 3: if you've sold it will also note that and will 157 00:07:18,080 --> 00:07:20,080 Speaker 3: let you know what profit you have to pay tax 158 00:07:20,120 --> 00:07:22,200 Speaker 3: on during that year. So it kind of like I 159 00:07:22,440 --> 00:07:25,320 Speaker 3: use that part in my shares EA's app, not just 160 00:07:25,440 --> 00:07:27,480 Speaker 3: for tax because I'm pervy. I want to know how 161 00:07:27,520 --> 00:07:30,239 Speaker 3: much money I'm making. I like logging in and being like, oh, 162 00:07:30,560 --> 00:07:31,440 Speaker 3: X return. 163 00:07:32,000 --> 00:07:33,440 Speaker 1: And I like that it tells you when there's one 164 00:07:33,440 --> 00:07:35,720 Speaker 1: coming up, like when it says all upcoming dividend, I 165 00:07:35,720 --> 00:07:37,560 Speaker 1: get really excited, even though it might not be that much, 166 00:07:37,600 --> 00:07:39,280 Speaker 1: but like money is coming. 167 00:07:39,440 --> 00:07:40,440 Speaker 4: From a little things. 168 00:07:40,480 --> 00:07:43,360 Speaker 3: Big things grow and I think that's fun, right, But 169 00:07:43,640 --> 00:07:45,000 Speaker 3: I love the nuance. 170 00:07:45,640 --> 00:07:46,520 Speaker 4: There's that word again. 171 00:07:46,800 --> 00:07:49,160 Speaker 3: But I love being able to see ooh okay, I've 172 00:07:49,200 --> 00:07:51,800 Speaker 3: had you know, let's pretend I had eleven percent return 173 00:07:51,880 --> 00:07:54,280 Speaker 3: on something. The second I've seen numbers like that, I'm like, oh, 174 00:07:54,280 --> 00:07:56,080 Speaker 3: I want to know how, Like was that a dividend? 175 00:07:56,160 --> 00:07:59,280 Speaker 3: Was it a distribution? Like was it just growth in 176 00:07:59,440 --> 00:08:01,360 Speaker 3: the value of a ship? Like I wouldn't know what 177 00:08:01,360 --> 00:08:05,000 Speaker 3: that looks like. Yeah, but here's the thing. If you're going, 178 00:08:05,200 --> 00:08:07,760 Speaker 3: oh my gosh, and miss jessic RICHI used to be 179 00:08:07,920 --> 00:08:11,120 Speaker 3: like this, where come June thirty yeah, dot all o 180 00:08:11,240 --> 00:08:14,240 Speaker 3: Ies cross aller tease, she's got an income statement from work, 181 00:08:14,280 --> 00:08:16,480 Speaker 3: and you would basically put your tax in on the 182 00:08:16,480 --> 00:08:17,120 Speaker 3: first of July. 183 00:08:17,240 --> 00:08:19,400 Speaker 1: Oh yeah, I was like, give me that refund, Yeah, 184 00:08:19,400 --> 00:08:20,200 Speaker 1: one hundred percent. 185 00:08:20,600 --> 00:08:24,360 Speaker 3: But if you're an investa, that statement from your share 186 00:08:24,400 --> 00:08:28,360 Speaker 3: platform actually can't even be started to be generated until 187 00:08:28,400 --> 00:08:31,000 Speaker 3: they have all of the information from the ASX to 188 00:08:31,000 --> 00:08:34,600 Speaker 3: start creating these reports for you, So that statement might 189 00:08:34,640 --> 00:08:36,960 Speaker 3: not arrive in your hot little hands until mid July 190 00:08:37,200 --> 00:08:40,720 Speaker 3: or even September. And that's reasonable. Yeah, Like I know 191 00:08:40,800 --> 00:08:42,559 Speaker 3: it doesn't feel it because you're like, but I want 192 00:08:42,559 --> 00:08:45,680 Speaker 3: to do my tax but they're doing like all of 193 00:08:45,679 --> 00:08:48,240 Speaker 3: the numbers for every single one of the people on 194 00:08:48,320 --> 00:08:49,080 Speaker 3: their platform. 195 00:08:49,800 --> 00:08:51,120 Speaker 4: That's a lot so way. 196 00:08:51,200 --> 00:08:54,960 Speaker 3: For some share platforms, you will not see your tax 197 00:08:55,000 --> 00:08:57,040 Speaker 3: statements till September, and that's okay. 198 00:08:57,080 --> 00:08:59,000 Speaker 4: The atier is not going to crucify you for that. 199 00:08:59,600 --> 00:09:02,600 Speaker 4: But in come September you can do your tax return. Yeah. 200 00:09:02,679 --> 00:09:04,480 Speaker 1: And if you're going to book in to see somebody, 201 00:09:04,559 --> 00:09:06,520 Speaker 1: because I always booking to see my tax agent ahead 202 00:09:06,520 --> 00:09:08,840 Speaker 1: of time because they obviously book out really quickly, Yeah, 203 00:09:08,880 --> 00:09:11,160 Speaker 1: don't be booking an early. 204 00:09:11,000 --> 00:09:13,880 Speaker 4: July one appointment and thinking for you're so smart. 205 00:09:14,080 --> 00:09:15,280 Speaker 1: Yeah, but push it out. 206 00:09:15,200 --> 00:09:16,400 Speaker 4: A little bit, give yourself some room. 207 00:09:16,440 --> 00:09:17,880 Speaker 1: Meant, all your reports from your back. 208 00:09:17,720 --> 00:09:19,560 Speaker 3: By letters going to be like, what are you doing here, Jess, 209 00:09:19,559 --> 00:09:21,240 Speaker 3: You have not got all your stuff to me, and 210 00:09:21,280 --> 00:09:24,240 Speaker 3: you'll be like, I'm just really tenacious, just excited. So 211 00:09:24,360 --> 00:09:26,920 Speaker 3: say if you bought shares directly and you just went 212 00:09:26,960 --> 00:09:30,480 Speaker 3: straight through to the ASX and you actually have chess 213 00:09:30,559 --> 00:09:33,400 Speaker 3: sponsored shares, which a lot of people talk about, and 214 00:09:33,760 --> 00:09:36,560 Speaker 3: a platform like Perla has chess sponsored shares, I feel 215 00:09:36,559 --> 00:09:38,959 Speaker 3: like there's like a very big conversation at the moment 216 00:09:39,000 --> 00:09:42,520 Speaker 3: going on about like whether it's chess sponsored or not. Personally, 217 00:09:42,640 --> 00:09:45,880 Speaker 3: I don't mind, Like I don't need chess sponsored shares. 218 00:09:45,920 --> 00:09:48,800 Speaker 3: You might think it's important for you anyway, if you 219 00:09:49,160 --> 00:09:52,160 Speaker 3: also have shares through like a privately owned company or 220 00:09:52,200 --> 00:09:54,520 Speaker 3: they were like my husband has some shares from companies 221 00:09:54,559 --> 00:09:57,040 Speaker 3: he used to work for and they were issued directly. 222 00:09:57,320 --> 00:10:01,160 Speaker 3: There's actually a registry called computer Share, and Jess, you've 223 00:10:01,160 --> 00:10:04,280 Speaker 3: probably gotten letters from computer Share before, where if you've 224 00:10:04,280 --> 00:10:07,400 Speaker 3: bought an asset, then a letter turns up at home 225 00:10:07,440 --> 00:10:10,600 Speaker 3: and it's like registry and you're like, wait, what why, Like, 226 00:10:10,880 --> 00:10:13,120 Speaker 3: I don't know computer shap share never heard of it. 227 00:10:13,240 --> 00:10:14,800 Speaker 4: But computer share. 228 00:10:14,679 --> 00:10:18,319 Speaker 3: Is actually like an all rounder where you can access 229 00:10:18,320 --> 00:10:21,360 Speaker 3: your information about the shares that you own, including earnings 230 00:10:21,400 --> 00:10:24,559 Speaker 3: and things like that that the ASEX uses to register 231 00:10:24,640 --> 00:10:27,880 Speaker 3: your information. So if you own anything directly and it's 232 00:10:27,880 --> 00:10:31,080 Speaker 3: stamped with Jess's name, computer share kind of just gets 233 00:10:31,120 --> 00:10:33,560 Speaker 3: the register to keep track of everything, because otherwise, how 234 00:10:33,559 --> 00:10:35,920 Speaker 3: do you know where all of this stuff that you're 235 00:10:35,960 --> 00:10:38,240 Speaker 3: buying is going if not on a platform, And. 236 00:10:38,200 --> 00:10:40,400 Speaker 1: That might be handy. Like my partner has shares that 237 00:10:40,480 --> 00:10:42,240 Speaker 1: I think were bought for him when he was young 238 00:10:42,280 --> 00:10:44,720 Speaker 1: by his dad or his grandpa, and it's you know, 239 00:10:44,720 --> 00:10:47,520 Speaker 1: there's the paperwork back then there you didn't have the 240 00:10:47,559 --> 00:10:51,960 Speaker 1: computer or the email the computer, We didn't the internet, yea, 241 00:10:51,960 --> 00:10:54,000 Speaker 1: I had to like send things on Yeah, and so 242 00:10:54,080 --> 00:10:55,840 Speaker 1: it might be handy if there's things like that where 243 00:10:55,840 --> 00:10:57,360 Speaker 1: you go, oh, I know I own something, but I 244 00:10:57,360 --> 00:10:58,800 Speaker 1: don't know what it is. You could jump on that 245 00:10:58,840 --> 00:11:00,440 Speaker 1: registry and search up to find it. 246 00:11:00,640 --> 00:11:02,679 Speaker 3: Yeah, you should be able to do that, and if 247 00:11:02,720 --> 00:11:04,560 Speaker 3: it's not on there, you can trace it through a 248 00:11:04,600 --> 00:11:07,960 Speaker 3: platform like computer share. I do think it's so funny though, 249 00:11:08,000 --> 00:11:11,240 Speaker 3: because you know, we now jump online and I say 250 00:11:11,280 --> 00:11:13,520 Speaker 3: things so flippantly like oh, you can invest for as 251 00:11:13,559 --> 00:11:15,600 Speaker 3: little as one cent, and you just go wow. That 252 00:11:15,720 --> 00:11:19,680 Speaker 3: means you know, that's quite incidental. Back in the day, Jess, 253 00:11:19,840 --> 00:11:22,240 Speaker 3: you used to have to trot down to Colin Street 254 00:11:22,480 --> 00:11:25,920 Speaker 3: and go to the Australian Stock Exchange and be like, hello, 255 00:11:26,040 --> 00:11:29,560 Speaker 3: kind sir, I would like to buy six sterlings worth 256 00:11:29,559 --> 00:11:33,200 Speaker 3: of PHP Yeah. Wow, Like you had to physically turn 257 00:11:33,280 --> 00:11:36,080 Speaker 3: up to the exchange and you would exchange your money 258 00:11:36,600 --> 00:11:37,840 Speaker 3: for a share in a business. 259 00:11:38,120 --> 00:11:38,480 Speaker 1: Wow. 260 00:11:38,600 --> 00:11:39,680 Speaker 4: Talk about prohibitive. 261 00:11:40,040 --> 00:11:42,199 Speaker 1: Yeah, I'd say what if you didn't live close to one? 262 00:11:42,480 --> 00:11:45,080 Speaker 1: It just that I'm not for you. No, I don't 263 00:11:45,120 --> 00:11:46,000 Speaker 1: like leaving my house. 264 00:11:46,320 --> 00:11:46,920 Speaker 4: No you need that. 265 00:11:47,080 --> 00:11:50,320 Speaker 3: So I now just invest from home. And also I 266 00:11:50,400 --> 00:11:53,319 Speaker 3: realized that I'm is this psychotic. The other day I 267 00:11:53,400 --> 00:11:57,079 Speaker 3: was like, oh, I'd like some more vdhg m H. 268 00:11:57,440 --> 00:11:59,960 Speaker 3: And I was just sitting in bed at eleven pm, 269 00:12:00,520 --> 00:12:02,440 Speaker 3: and so I put a little trade in to pick 270 00:12:02,480 --> 00:12:05,319 Speaker 3: up some more VDHD when the market opened the next day, 271 00:12:05,320 --> 00:12:08,920 Speaker 3: and I was like, past victoria, Like if we went 272 00:12:08,960 --> 00:12:11,480 Speaker 3: back to high school, should be so confused. 273 00:12:11,840 --> 00:12:14,400 Speaker 1: It's like the antithesis of late night shopping. 274 00:12:14,520 --> 00:12:15,920 Speaker 4: But yessibly. 275 00:12:16,280 --> 00:12:18,320 Speaker 3: But I was like, oh, market's like a little bit, 276 00:12:18,400 --> 00:12:20,520 Speaker 3: you know what, I'll just do a little toppy toppy up. 277 00:12:20,760 --> 00:12:21,520 Speaker 1: That's so fun. 278 00:12:21,600 --> 00:12:24,959 Speaker 3: And that's how I talk about investing nowadays. The mediocre 279 00:12:25,000 --> 00:12:26,120 Speaker 3: middle aged white men are not. 280 00:12:26,080 --> 00:12:26,680 Speaker 4: Gonna like this. 281 00:12:28,240 --> 00:12:30,360 Speaker 1: Well, speaking of the video middle aged white men, the 282 00:12:30,400 --> 00:12:31,840 Speaker 1: latest budget did just drop. 283 00:12:31,720 --> 00:12:34,920 Speaker 4: No good segue. Thank full of medioc middle aged white men. 284 00:12:35,000 --> 00:12:37,520 Speaker 1: Thank you. There were some new changes to CDT which 285 00:12:37,559 --> 00:12:39,240 Speaker 1: have just been announced, and it seems like this has 286 00:12:39,240 --> 00:12:42,080 Speaker 1: got everybody in all of a tizzy. When does this 287 00:12:42,120 --> 00:12:44,360 Speaker 1: come into effect? And can you explain what it might 288 00:12:44,480 --> 00:12:46,400 Speaker 1: mean for you know, every day investmation? 289 00:12:46,440 --> 00:12:48,160 Speaker 4: Totally? Totally and do you know what. 290 00:12:48,160 --> 00:12:50,120 Speaker 3: The first thing I'm going to say about this is 291 00:12:50,400 --> 00:12:53,240 Speaker 3: the budget is not actually written in stone, so this 292 00:12:53,360 --> 00:12:55,280 Speaker 3: is a proposed budget. 293 00:12:55,480 --> 00:12:57,800 Speaker 4: Yeah. So these CGT. 294 00:12:57,559 --> 00:13:01,160 Speaker 3: Changes now have to be legislated, so nothing has been 295 00:13:01,280 --> 00:13:05,120 Speaker 3: legislated yet. And I think that's a very important thing. 296 00:13:05,440 --> 00:13:08,000 Speaker 1: Because people talk about it it seems like it's done. 297 00:13:08,120 --> 00:13:09,760 Speaker 4: Yeah, it's done, It's gonna happen. 298 00:13:10,200 --> 00:13:13,080 Speaker 3: There's still the potential this will get chucked out of 299 00:13:13,080 --> 00:13:16,560 Speaker 3: parliament and they go absolutely not I mean I'm not 300 00:13:16,600 --> 00:13:18,760 Speaker 3: going to get too political, but right now Labor have 301 00:13:18,880 --> 00:13:21,360 Speaker 3: so many seats that it is very unlikely that one 302 00:13:21,400 --> 00:13:24,280 Speaker 3: of their proposed changes gets chucked out. But I mean, 303 00:13:24,360 --> 00:13:26,520 Speaker 3: this is why it's so important to be vocal on 304 00:13:26,640 --> 00:13:30,680 Speaker 3: changes that you don't particularly like, because that's not a 305 00:13:30,720 --> 00:13:33,199 Speaker 3: done deal. If you aren't happy with that, you can 306 00:13:33,200 --> 00:13:36,200 Speaker 3: talk to your local member of parliament and have them 307 00:13:36,320 --> 00:13:38,920 Speaker 3: maybe change their mind on it. So when it comes 308 00:13:38,920 --> 00:13:42,880 Speaker 3: to voting, your votes matter anyway. Talking about CGT or 309 00:13:42,920 --> 00:13:47,040 Speaker 3: capital gains tax, that's the tax applied when you sell 310 00:13:47,080 --> 00:13:49,840 Speaker 3: an asset like an etf or share or even property 311 00:13:50,200 --> 00:13:52,920 Speaker 3: when you make a profit. So you're not ever going 312 00:13:53,000 --> 00:13:55,920 Speaker 3: to pay capital gains tax if you don't make a gain. 313 00:13:56,120 --> 00:13:57,959 Speaker 3: Ye Like, it's not just like a tax you pay 314 00:13:58,000 --> 00:14:00,440 Speaker 3: when you sell something. It's only a tax you pay 315 00:14:00,520 --> 00:14:04,840 Speaker 3: when you profit from it. So to date, if you 316 00:14:04,920 --> 00:14:08,920 Speaker 3: have held an asset for more than a year, like 317 00:14:09,040 --> 00:14:12,640 Speaker 3: three hundred and sixty six days Jess, and then you 318 00:14:12,679 --> 00:14:15,240 Speaker 3: sell it and you've made a profit, you would only 319 00:14:15,280 --> 00:14:17,440 Speaker 3: be taxed on fifty percent of that profit. 320 00:14:17,800 --> 00:14:18,760 Speaker 4: So let's say you. 321 00:14:18,720 --> 00:14:22,520 Speaker 3: Made a ten thousand dollar profit on an asset, go 322 00:14:23,080 --> 00:14:25,280 Speaker 3: the ATO is going to go great Norries, you actually 323 00:14:25,320 --> 00:14:27,400 Speaker 3: only have to pay tax on five thousand dollars worth 324 00:14:27,440 --> 00:14:29,960 Speaker 3: of that. That sounds like a money win, right, So 325 00:14:30,040 --> 00:14:32,800 Speaker 3: that was the fifty percent CGT discount. 326 00:14:32,880 --> 00:14:33,600 Speaker 4: And if you didn't know. 327 00:14:33,560 --> 00:14:35,560 Speaker 3: About this, I'm really sorry, but if you held that 328 00:14:35,640 --> 00:14:38,400 Speaker 3: asset for less than a year and then you sold 329 00:14:38,400 --> 00:14:41,000 Speaker 3: that asset, you would actually be taxed on that full 330 00:14:41,080 --> 00:14:44,000 Speaker 3: ten thousand dollar profit, so on one hundred percent of 331 00:14:44,000 --> 00:14:47,360 Speaker 3: the profit you made. So this is also why long 332 00:14:47,440 --> 00:14:49,920 Speaker 3: term investment makes a little bit more sense at this 333 00:14:50,040 --> 00:14:54,280 Speaker 3: point in time. Hilariously, do you remember back when during 334 00:14:54,320 --> 00:14:57,120 Speaker 3: COVID everyone was talking about like crypto yes, and they 335 00:14:57,160 --> 00:14:58,520 Speaker 3: were like the crypto bros. 336 00:14:58,240 --> 00:15:02,080 Speaker 4: Being like I made massive profit and I just sold out. 337 00:15:02,040 --> 00:15:05,320 Speaker 3: And like I was laughing so hard because they were Australian, 338 00:15:05,360 --> 00:15:07,560 Speaker 3: they were definitely under our tax laws and they were like, 339 00:15:07,640 --> 00:15:10,120 Speaker 3: in the last six months, I made ierk's profit and 340 00:15:10,160 --> 00:15:12,480 Speaker 3: I'm like, bro, hold it for another six months and 341 00:15:12,480 --> 00:15:12,960 Speaker 3: then sell it. 342 00:15:13,000 --> 00:15:14,280 Speaker 4: You just paid one. 343 00:15:14,160 --> 00:15:19,680 Speaker 3: Hundred percent CGT. Yeah, you potato be strategic. Tell me 344 00:15:19,720 --> 00:15:22,800 Speaker 3: you don't know what you're talking about without telling me anyway. 345 00:15:22,960 --> 00:15:25,920 Speaker 3: In the recent budget, the government announced that it was 346 00:15:26,080 --> 00:15:30,760 Speaker 3: going to propose to make some changes to CGT and 347 00:15:31,440 --> 00:15:36,680 Speaker 3: take away our fifty percent discount and replace it with 348 00:15:36,840 --> 00:15:40,200 Speaker 3: something different, and replace it with what they're calling a 349 00:15:40,320 --> 00:15:45,440 Speaker 3: discount based on inflation plus a minimum of thirty percent 350 00:15:45,480 --> 00:15:49,360 Speaker 3: on gains from the first of July twenty twenty seven. 351 00:15:49,560 --> 00:15:53,880 Speaker 1: So anything that you've gained before next July, next tax time, 352 00:15:54,080 --> 00:15:55,320 Speaker 1: it won't be affected. No. 353 00:15:55,480 --> 00:15:56,960 Speaker 4: And that's called grandfathering. 354 00:15:57,040 --> 00:15:59,960 Speaker 3: And you've probably heard that term floating around the media, 355 00:16:00,080 --> 00:16:02,760 Speaker 3: And basically grandfather ing is where if you own an 356 00:16:02,840 --> 00:16:06,800 Speaker 3: asset Jess, and you purchased it with certain rules and regulations, 357 00:16:06,960 --> 00:16:08,880 Speaker 3: they're not going to pull the blanket out from under you. 358 00:16:09,080 --> 00:16:12,000 Speaker 3: They're not going to go, oh, well, Jess, times have changed, 359 00:16:12,280 --> 00:16:15,560 Speaker 3: your tax rules have changed. They're going to go, all right, well, Jess, 360 00:16:15,680 --> 00:16:17,840 Speaker 3: we're not going to like change the game for you 361 00:16:17,920 --> 00:16:20,200 Speaker 3: too much. We're going to let you have the old 362 00:16:20,360 --> 00:16:24,080 Speaker 3: rules on the assets that you purchased before, but going forward, 363 00:16:24,560 --> 00:16:27,600 Speaker 3: the new assets that you have will be taxed in 364 00:16:27,640 --> 00:16:30,840 Speaker 3: this different way. So grandfather ing is basically where the 365 00:16:30,920 --> 00:16:35,240 Speaker 3: old rules still apply because like it's basically unfair to 366 00:16:35,280 --> 00:16:39,920 Speaker 3: take it away from you at this point. So hypothetically, Jess, 367 00:16:40,480 --> 00:16:44,200 Speaker 3: if you bought a Vanguard ETF tomorrow YEP, and you 368 00:16:44,360 --> 00:16:47,960 Speaker 3: sold it next June and you make a profit, you 369 00:16:48,040 --> 00:16:52,640 Speaker 3: would still get your fifty percent CGT discount. But if 370 00:16:52,640 --> 00:16:56,200 Speaker 3: you sold it after July one, the ATO would look 371 00:16:56,240 --> 00:16:59,120 Speaker 3: at the profits after July one and would look at 372 00:16:59,200 --> 00:17:03,360 Speaker 3: how inflation indexing applies to your gains before applying a 373 00:17:03,400 --> 00:17:06,680 Speaker 3: minimum of thirty percent tax on them. And I've got 374 00:17:06,800 --> 00:17:08,760 Speaker 3: and I won't go too deep into it because I 375 00:17:08,840 --> 00:17:10,320 Speaker 3: did it in our the. 376 00:17:10,280 --> 00:17:12,520 Speaker 4: Budget episodes, so people can go back to that. 377 00:17:13,359 --> 00:17:16,159 Speaker 3: But there is a difference, and it depends on what 378 00:17:16,200 --> 00:17:18,800 Speaker 3: your marginal tax rate was, how it impacts you. And 379 00:17:18,840 --> 00:17:21,080 Speaker 3: I can make some examples for socials because I think 380 00:17:21,080 --> 00:17:24,399 Speaker 3: people will care a lot, But for me right now, 381 00:17:24,720 --> 00:17:27,879 Speaker 3: it's more about this is like hypothetical. I'm not going 382 00:17:27,960 --> 00:17:30,920 Speaker 3: to keep creating content on things that haven't happened yet. 383 00:17:31,440 --> 00:17:33,600 Speaker 3: I will do so and jump up and down if 384 00:17:33,640 --> 00:17:36,160 Speaker 3: it does get legislated though, on how you can be 385 00:17:36,640 --> 00:17:40,800 Speaker 3: the smartest with your money. Right So, if your marginal 386 00:17:40,840 --> 00:17:43,720 Speaker 3: tax rate is above thirty percent, this could really impact you, 387 00:17:43,760 --> 00:17:46,360 Speaker 3: and most of our listeners who are gainfully employed pay 388 00:17:46,400 --> 00:17:50,040 Speaker 3: more than thirty percent tax, then you will pay your 389 00:17:50,080 --> 00:17:51,919 Speaker 3: marginal tax rate on those gains. 390 00:17:52,560 --> 00:17:54,359 Speaker 1: Interesting, So if you're somebody who put a little bit 391 00:17:54,400 --> 00:17:57,760 Speaker 1: away every month or every week towards the same ETFs 392 00:17:57,840 --> 00:18:01,160 Speaker 1: or shares, it can be hard to see how long 393 00:18:01,200 --> 00:18:04,000 Speaker 1: you've owned each share for Like I can look at 394 00:18:04,359 --> 00:18:07,040 Speaker 1: I earn own x amount of dollars of a specific share, 395 00:18:07,480 --> 00:18:10,119 Speaker 1: but it's hard for me to tell what percentage of 396 00:18:10,160 --> 00:18:12,600 Speaker 1: that I bought before a certain date. Is there an 397 00:18:12,600 --> 00:18:13,680 Speaker 1: easy way to find that out? 398 00:18:13,840 --> 00:18:13,959 Speaker 2: Oh? 399 00:18:14,080 --> 00:18:17,600 Speaker 3: Yes, thank god, thank god, Because back when I was 400 00:18:17,600 --> 00:18:20,520 Speaker 3: a financial advisor, Jess, there was a client that came 401 00:18:20,560 --> 00:18:24,440 Speaker 3: to me and I had to backdate their share portfolio 402 00:18:24,480 --> 00:18:29,480 Speaker 3: to calculate the CGT because they had owned shares that 403 00:18:29,560 --> 00:18:34,200 Speaker 3: were owned by a grandparent and BHP shares were literally 404 00:18:34,280 --> 00:18:37,960 Speaker 3: bought in British sterling. Wow, because we didn't have the 405 00:18:37,960 --> 00:18:41,400 Speaker 3: Australian dollar when they started investing in them. So not 406 00:18:41,440 --> 00:18:43,800 Speaker 3: only did I have to calculate the CGT on that, 407 00:18:43,920 --> 00:18:46,399 Speaker 3: I had to do the currency exchange what that would 408 00:18:46,440 --> 00:18:49,520 Speaker 3: actually mean. And I'm telling you right now, if there 409 00:18:49,560 --> 00:18:51,480 Speaker 3: was ever a day where I wanted to quit being 410 00:18:51,520 --> 00:18:53,680 Speaker 3: a financial advisor before I did, it was that day. 411 00:18:53,800 --> 00:18:57,399 Speaker 3: I can imagine anyway, So whether you're with shares is 412 00:18:57,760 --> 00:19:00,679 Speaker 3: or you've got computer share, you'll actually be to see 413 00:19:01,000 --> 00:19:03,960 Speaker 3: which shares were purchased and when so that you can 414 00:19:04,000 --> 00:19:07,679 Speaker 3: make more strategic decisions, like if you choose to sell. Obviously, 415 00:19:07,720 --> 00:19:11,440 Speaker 3: what we're going to do is sell the oldest ones first. Right, 416 00:19:12,359 --> 00:19:14,600 Speaker 3: we are going to take a very quick break, but 417 00:19:14,640 --> 00:19:16,480 Speaker 3: when we return, we're going to be sharing the finer 418 00:19:16,560 --> 00:19:19,560 Speaker 3: details around how you can minimize your tax if you 419 00:19:19,680 --> 00:19:27,080 Speaker 3: have been investing. Welcome back, my friends, and this week 420 00:19:27,200 --> 00:19:30,240 Speaker 3: Jess and I are chatting tax time and its implication 421 00:19:30,320 --> 00:19:33,800 Speaker 3: on investors, which sounds a lot sexier to me than 422 00:19:33,800 --> 00:19:36,200 Speaker 3: it probably does to our listeners, but it's really important 423 00:19:36,280 --> 00:19:38,480 Speaker 3: that you get this. So if you've become a share 424 00:19:38,520 --> 00:19:40,879 Speaker 3: market girly in the last twelve months, or you're planning 425 00:19:40,880 --> 00:19:42,760 Speaker 3: on starting, you're probably going to want to tune in 426 00:19:42,760 --> 00:19:45,320 Speaker 3: for the tips that we have on how savvy investors 427 00:19:45,320 --> 00:19:49,760 Speaker 3: are minimizing their tax this end of financial year. Mster GRICI, 428 00:19:50,480 --> 00:19:53,159 Speaker 3: what do you do personally before tax time when it 429 00:19:53,160 --> 00:19:56,639 Speaker 3: comes to investing? Don't say listen to Victoria, because I 430 00:19:56,640 --> 00:19:58,000 Speaker 3: would never give you advice. 431 00:19:57,720 --> 00:20:00,080 Speaker 1: Absolutely not. No, I like to get my house in 432 00:20:00,200 --> 00:20:02,199 Speaker 1: order I like to download all of my statements. I 433 00:20:02,240 --> 00:20:04,840 Speaker 1: look at my tax holistically because obviously I freelance in 434 00:20:04,840 --> 00:20:08,159 Speaker 1: addition to my PAAG income. Okay, I know, look at 435 00:20:08,200 --> 00:20:11,840 Speaker 1: we go my I have earned a profit or dividends 436 00:20:11,880 --> 00:20:13,679 Speaker 1: on my shares, and so I have to factor in 437 00:20:13,840 --> 00:20:16,320 Speaker 1: all of the money that I've earned. And I look 438 00:20:16,320 --> 00:20:19,040 Speaker 1: at that for me personally to see what tax bracket 439 00:20:19,119 --> 00:20:22,359 Speaker 1: I'm sitting in and do some calculations around whether or 440 00:20:22,440 --> 00:20:24,800 Speaker 1: not there's anything I can do to drop that. 441 00:20:25,080 --> 00:20:29,679 Speaker 3: Oh I'm just thinking about that, and you might be 442 00:20:29,800 --> 00:20:31,080 Speaker 3: screens great. 443 00:20:30,920 --> 00:20:33,280 Speaker 1: Year for me, everybody playing along at home because I 444 00:20:33,480 --> 00:20:36,120 Speaker 1: read on because I released my first Time to Save 445 00:20:36,119 --> 00:20:37,520 Speaker 1: a scheme and a lot of things has been happening. 446 00:20:37,600 --> 00:20:39,600 Speaker 1: So we're really crunching the numbers this year. 447 00:20:39,800 --> 00:20:43,040 Speaker 3: Oh yo, letters got to work cut out for my queen. 448 00:20:43,080 --> 00:20:45,359 Speaker 1: She's gonna be working hard this year. But yes, so 449 00:20:45,560 --> 00:20:47,640 Speaker 1: I like to look at it because you know we've 450 00:20:47,680 --> 00:20:50,600 Speaker 1: spoken about before general tax stuff. Yeah, there are lots 451 00:20:50,600 --> 00:20:52,159 Speaker 1: of things that you can do to reduce your taxable 452 00:20:52,160 --> 00:20:54,680 Speaker 1: income that might be contributing to super or your first 453 00:20:54,680 --> 00:20:56,879 Speaker 1: home super Saver scheme. If you're saving to buy a house. 454 00:20:57,040 --> 00:21:00,280 Speaker 1: It might be making charitable contributions. There are lots of 455 00:21:00,280 --> 00:21:02,359 Speaker 1: different things that you can do, and if you're sitting 456 00:21:02,840 --> 00:21:05,880 Speaker 1: right on the precipice of the next tax bracket up, 457 00:21:06,040 --> 00:21:08,840 Speaker 1: it might be worth pulling it down. Because I obviously 458 00:21:08,840 --> 00:21:11,199 Speaker 1: own my own business, I can also make purchases for 459 00:21:11,240 --> 00:21:13,480 Speaker 1: the business that I need to make anyway, and those 460 00:21:13,560 --> 00:21:16,680 Speaker 1: then can help offset some of my income. So having 461 00:21:16,680 --> 00:21:20,520 Speaker 1: a look at how much I've earned holistically specifically including 462 00:21:20,640 --> 00:21:24,359 Speaker 1: any dividends or payments that have come from my investments, 463 00:21:24,800 --> 00:21:27,600 Speaker 1: mean that I can plan as best I can to 464 00:21:27,840 --> 00:21:30,640 Speaker 1: put myself in the most positive position when it comes 465 00:21:30,640 --> 00:21:31,520 Speaker 1: to my tax bracket. 466 00:21:31,600 --> 00:21:34,480 Speaker 3: Yeah, ill d and then yeah, you can just handle 467 00:21:34,480 --> 00:21:37,920 Speaker 3: all of that information over to your accountant. But if 468 00:21:37,960 --> 00:21:39,920 Speaker 3: you do happen to be doing your tax yourself, which 469 00:21:39,920 --> 00:21:41,160 Speaker 3: a lot of people in the Shees on the Morning 470 00:21:41,200 --> 00:21:44,720 Speaker 3: community do and like we encourage because the ATO has 471 00:21:44,840 --> 00:21:48,120 Speaker 3: a really good system that makes it I don't want 472 00:21:48,119 --> 00:21:50,359 Speaker 3: to say fail safe, because it's not because you have 473 00:21:50,400 --> 00:21:52,240 Speaker 3: to DoD all your eyes and cross all your teas, 474 00:21:52,720 --> 00:21:56,199 Speaker 3: but like it is quite self directed, Like it is 475 00:21:56,359 --> 00:21:59,639 Speaker 3: very easy to upload information and access it. But if 476 00:21:59,680 --> 00:22:01,760 Speaker 3: you're doing your tax yourself, it really does pay to 477 00:22:01,840 --> 00:22:05,200 Speaker 3: keep records relating to your shares and ETFs. But your 478 00:22:05,240 --> 00:22:09,200 Speaker 3: statement from your platform will show the following things, right, 479 00:22:09,240 --> 00:22:12,199 Speaker 3: It'll have the date and the price or reinvestments that 480 00:22:12,240 --> 00:22:15,280 Speaker 3: have been made, the date and sale and sale price, 481 00:22:15,400 --> 00:22:18,000 Speaker 3: like if you sold things. It will actually break down 482 00:22:18,000 --> 00:22:20,879 Speaker 3: your brokerage cost or commissions paid to brokers when you 483 00:22:20,920 --> 00:22:24,080 Speaker 3: buy and sell, which is something a lot of people 484 00:22:24,160 --> 00:22:27,560 Speaker 3: are able to claim on their tax other expenses you 485 00:22:27,640 --> 00:22:31,080 Speaker 3: incur to purchase them, like loan interest, the date and 486 00:22:31,119 --> 00:22:34,960 Speaker 3: amount of any distributions you've received, even for ETFs, and 487 00:22:35,000 --> 00:22:37,840 Speaker 3: the details of any non accessible payments that have been 488 00:22:37,840 --> 00:22:40,199 Speaker 3: made to you. Then it will also have like the 489 00:22:40,240 --> 00:22:43,320 Speaker 3: details of other CGT events, like if there have been 490 00:22:43,720 --> 00:22:45,720 Speaker 3: unit splits, and this is where. 491 00:22:45,560 --> 00:22:46,720 Speaker 4: It starts to get converts. 492 00:22:47,000 --> 00:22:49,359 Speaker 3: Yeah, it starts to get a little bit complex, but 493 00:22:49,400 --> 00:22:51,439 Speaker 3: you don't have to stress because your platform will do 494 00:22:51,520 --> 00:22:54,879 Speaker 3: this for you. But things like unit splits or unit 495 00:22:54,920 --> 00:22:58,879 Speaker 3: consolidations or returns of capitals, or takeovers or mergers or 496 00:22:58,920 --> 00:23:03,280 Speaker 3: d mergers or like bonus unit issues which can happen. Yeah, 497 00:23:03,280 --> 00:23:05,879 Speaker 3: that sounds complex, but it's usually just broken down in 498 00:23:05,920 --> 00:23:10,040 Speaker 3: your statement, and then details of capital losses made in 499 00:23:10,119 --> 00:23:12,760 Speaker 3: other years and now no one wants a loss, but 500 00:23:12,840 --> 00:23:16,439 Speaker 3: losses can be used because you might be able to 501 00:23:16,520 --> 00:23:19,360 Speaker 3: use that loss and say, well, actually, Victoria, last year, 502 00:23:19,400 --> 00:23:21,560 Speaker 3: I lost some money. I'm going to put my hand 503 00:23:21,640 --> 00:23:24,639 Speaker 3: up and tell the ATO about that. And then you 504 00:23:24,720 --> 00:23:28,400 Speaker 3: might be able to offset these losses against your future gains. 505 00:23:29,040 --> 00:23:29,920 Speaker 1: That's abstractive. 506 00:23:30,560 --> 00:23:34,600 Speaker 3: That means TLDR, you will pay less tax on your 507 00:23:34,640 --> 00:23:36,960 Speaker 3: gains because we made a loss prior. Yeah, so we 508 00:23:36,960 --> 00:23:38,720 Speaker 3: don't bury our head in the sand when we have 509 00:23:38,760 --> 00:23:41,800 Speaker 3: a loss. We are allowed to be a little bit annoyed, rightly, So, 510 00:23:42,359 --> 00:23:44,280 Speaker 3: but just pop that one in your back pocket because 511 00:23:44,320 --> 00:23:46,159 Speaker 3: then when you have a gain, you're paying less tax. 512 00:23:46,359 --> 00:23:46,800 Speaker 1: Yeah. 513 00:23:46,840 --> 00:23:48,879 Speaker 3: And now here's like where you can I guess make 514 00:23:48,920 --> 00:23:51,280 Speaker 3: a quick win when it comes to minimizing your tax. 515 00:23:51,840 --> 00:23:56,359 Speaker 3: Things like investment platform fees, brokerage cost or commissions paid 516 00:23:56,400 --> 00:23:59,720 Speaker 3: to brokers during buying or selling, all of those can 517 00:23:59,720 --> 00:24:03,359 Speaker 3: be against your earnings. These are things that usually I 518 00:24:03,359 --> 00:24:06,240 Speaker 3: guess are reported in platforms, So just make sure you're 519 00:24:06,240 --> 00:24:09,800 Speaker 3: taking a closer look at your dashboard and your confirmation 520 00:24:09,920 --> 00:24:13,159 Speaker 3: emails or statements to find these. And just remember that 521 00:24:13,240 --> 00:24:15,240 Speaker 3: while you can't claim, like if you go see a 522 00:24:15,320 --> 00:24:19,960 Speaker 3: financial advisor, this is so dumb. I need to talk 523 00:24:20,000 --> 00:24:23,840 Speaker 3: to someone at the government without this, because like I 524 00:24:23,960 --> 00:24:26,399 Speaker 3: just have a personal gripe with this right. So you 525 00:24:26,440 --> 00:24:29,920 Speaker 3: can't claim your initial statement of advice or initial advice 526 00:24:30,000 --> 00:24:33,040 Speaker 3: session if you've seen a financial advisor, but you can 527 00:24:33,240 --> 00:24:36,960 Speaker 3: claim your ongoing investment or like your sessions, they are claimable. 528 00:24:37,800 --> 00:24:39,919 Speaker 3: Does the government not want me to be self funded 529 00:24:39,920 --> 00:24:42,560 Speaker 3: in retirement? Yeah, Like if you want me to be 530 00:24:42,640 --> 00:24:45,119 Speaker 3: self funded in retirement, which is going to take like 531 00:24:45,280 --> 00:24:48,320 Speaker 3: big rants coming will cut myself off. You want me 532 00:24:48,480 --> 00:24:50,520 Speaker 3: to be self funded in retirement so that I can 533 00:24:50,560 --> 00:24:54,080 Speaker 3: help the economy keep moving forward and that you don't 534 00:24:54,080 --> 00:24:55,919 Speaker 3: have to budget as much for me because I'm not 535 00:24:55,960 --> 00:24:57,960 Speaker 3: relying on a pension or government assistance. 536 00:24:58,119 --> 00:24:58,320 Speaker 1: Yeap. 537 00:24:58,880 --> 00:24:59,960 Speaker 4: Why would you not make. 538 00:24:59,840 --> 00:25:03,800 Speaker 3: Me getting advice in the first place deductible on my tax. 539 00:25:03,880 --> 00:25:06,600 Speaker 1: It really doesn't make sense, And especially because I think 540 00:25:07,000 --> 00:25:09,320 Speaker 1: a lot of people will just get their initial statement 541 00:25:09,320 --> 00:25:11,439 Speaker 1: of advice and that will be their touch point and 542 00:25:11,480 --> 00:25:13,000 Speaker 1: that's it, not that that's like. 543 00:25:13,000 --> 00:25:16,240 Speaker 3: The thing that gets the ball rolling investing for myself sometimes, 544 00:25:16,600 --> 00:25:18,080 Speaker 3: why can't I claim that on tax? 545 00:25:18,200 --> 00:25:19,919 Speaker 4: It just makes sense because I'm gonna save you so 546 00:25:20,119 --> 00:25:22,600 Speaker 4: much down the line, and especially because. 547 00:25:22,320 --> 00:25:24,639 Speaker 1: You can claim if you see an accountant like I do, 548 00:25:24,720 --> 00:25:27,520 Speaker 1: you can claim that on tax, yes, but. 549 00:25:27,400 --> 00:25:30,400 Speaker 3: Like you just can't claim your statement of advice from 550 00:25:30,400 --> 00:25:33,560 Speaker 3: a financial advisor. You can claim like any subsequent appointments 551 00:25:33,600 --> 00:25:36,760 Speaker 3: about managing your money. Yeah, like that you've already invested, 552 00:25:37,040 --> 00:25:38,760 Speaker 3: but like to set you up. They're like no go, 553 00:25:39,440 --> 00:25:42,840 Speaker 3: so see that route anyway. You can also claim some 554 00:25:42,880 --> 00:25:45,320 Speaker 3: of your personal insurances on tax if they aren't in 555 00:25:45,400 --> 00:25:49,199 Speaker 3: your superannuation, so for example, like income protection and like 556 00:25:49,240 --> 00:25:53,879 Speaker 3: maybe trauma could be claimed outside, which is kind of nice. Also, 557 00:25:54,119 --> 00:25:57,960 Speaker 3: franking credits those little io us. If you're ETF investing 558 00:25:58,040 --> 00:26:00,480 Speaker 3: companies that have already paid tax in Australia, any of 559 00:26:00,480 --> 00:26:04,040 Speaker 3: those statements that show that you've received franking credits and 560 00:26:04,119 --> 00:26:07,919 Speaker 3: income need to be documented because they're going to offset 561 00:26:07,920 --> 00:26:09,480 Speaker 3: the tax that you pay. And I think that that's 562 00:26:09,520 --> 00:26:10,400 Speaker 3: really sexy too. 563 00:26:11,160 --> 00:26:13,960 Speaker 1: So lots of bits and pieces. Yeah, and we're putting 564 00:26:14,000 --> 00:26:16,080 Speaker 1: this episode out now because we want you to start 565 00:26:16,080 --> 00:26:18,840 Speaker 1: getting all your ducks in a row, get coordinated and organized. 566 00:26:18,880 --> 00:26:20,360 Speaker 1: You've still got a little bit of time to pull 567 00:26:20,400 --> 00:26:22,280 Speaker 1: it all together. So you can take a look at 568 00:26:22,280 --> 00:26:25,000 Speaker 1: everything and make sure that you set yourself up to 569 00:26:25,000 --> 00:26:26,280 Speaker 1: be in the best possible position. 570 00:26:26,359 --> 00:26:29,280 Speaker 4: Yeah, exactly, your attacks exactly and these like. 571 00:26:29,400 --> 00:26:32,040 Speaker 3: There are a few decent levers that you can pull 572 00:26:32,119 --> 00:26:33,960 Speaker 3: to get like your balance down. But I think the 573 00:26:34,000 --> 00:26:37,320 Speaker 3: biggest tip of all is like not selling assets if 574 00:26:37,480 --> 00:26:40,200 Speaker 3: you don't have to. So that means that you don't 575 00:26:40,240 --> 00:26:42,520 Speaker 3: have to pay CGT, Like you are only ever going 576 00:26:42,520 --> 00:26:44,720 Speaker 3: to pay CGT when you sell an. 577 00:26:44,560 --> 00:26:46,200 Speaker 4: Asset and dispose of it. 578 00:26:46,600 --> 00:26:49,639 Speaker 3: And I guess that's another benefit of going well, I 579 00:26:49,720 --> 00:26:53,920 Speaker 3: have a long term portfolio. Like for me personally, everything 580 00:26:53,960 --> 00:26:57,680 Speaker 3: that I invest in shares, I don't plan to sell down. 581 00:26:58,200 --> 00:27:01,280 Speaker 3: I plan to live off the dividate and the money 582 00:27:01,280 --> 00:27:05,440 Speaker 3: that that money makes, and then hopefully one day I've 583 00:27:05,440 --> 00:27:08,920 Speaker 3: made myself wealthy enough that I can and don't get 584 00:27:08,920 --> 00:27:10,760 Speaker 3: me started on inheritance tax. 585 00:27:10,560 --> 00:27:12,200 Speaker 4: That's a whole other damn podcast. 586 00:27:12,280 --> 00:27:15,680 Speaker 3: But I can hopefully pass those down to my children, 587 00:27:15,760 --> 00:27:17,840 Speaker 3: and they also won't have to sell my shares and 588 00:27:17,880 --> 00:27:19,840 Speaker 3: they can just live off the profit that that share 589 00:27:19,880 --> 00:27:24,280 Speaker 3: portfolio generates. And thus I hope to create intergenerational wealth. 590 00:27:24,560 --> 00:27:25,280 Speaker 1: Ah don't we all? 591 00:27:25,320 --> 00:27:26,240 Speaker 4: Would that be sexy. 592 00:27:26,280 --> 00:27:27,080 Speaker 1: It'd be amazing. 593 00:27:27,240 --> 00:27:29,119 Speaker 4: Anyway, money can be sexy. Tax is not. 594 00:27:29,359 --> 00:27:31,120 Speaker 3: So you know what, having your finger on the pulse 595 00:27:31,200 --> 00:27:32,399 Speaker 3: is going to mean that you're paying less of it 596 00:27:32,440 --> 00:27:34,840 Speaker 3: and that is such a money when I think we're 597 00:27:34,880 --> 00:27:37,440 Speaker 3: done here though, Jess, because I don't want to keep 598 00:27:37,440 --> 00:27:39,680 Speaker 3: talking about tax and I'm just thinking about coffee. 599 00:27:39,680 --> 00:27:40,560 Speaker 4: So I really do. 600 00:27:40,520 --> 00:27:43,040 Speaker 3: Hope that this episode has helped ease your woes or 601 00:27:43,080 --> 00:27:45,720 Speaker 3: at least answer those niggling questions when it comes to 602 00:27:45,840 --> 00:27:47,359 Speaker 3: tax stuff and investing. 603 00:27:47,800 --> 00:27:49,600 Speaker 1: It was a really good reminders in there, especially around 604 00:27:49,640 --> 00:27:52,600 Speaker 1: why waiting that twelve month period is really the hack 605 00:27:52,680 --> 00:27:54,280 Speaker 1: to getting the most out of your investments? May I 606 00:27:54,280 --> 00:27:56,359 Speaker 1: say before you take them out? If that is, of 607 00:27:56,400 --> 00:27:57,119 Speaker 1: course your plan? 608 00:27:57,560 --> 00:28:00,840 Speaker 3: Not personal advice, never, I just told you what I 609 00:28:01,080 --> 00:28:02,800 Speaker 3: would want to do personally. 610 00:28:03,320 --> 00:28:04,160 Speaker 4: And what do we say? 611 00:28:04,560 --> 00:28:08,760 Speaker 3: Time in the market beats timing the market every single time. Well, 612 00:28:08,840 --> 00:28:10,879 Speaker 3: my friends, as I said before, that is all we 613 00:28:10,960 --> 00:28:13,119 Speaker 3: have time for today. But as always, if you have 614 00:28:13,200 --> 00:28:15,359 Speaker 3: any follow up questions, please hit us up in the 615 00:28:15,400 --> 00:28:18,840 Speaker 3: Spotify comments. Thank you so much as well to Chase's 616 00:28:18,880 --> 00:28:21,480 Speaker 3: for making this episode possible, and if you enjoy. 617 00:28:21,359 --> 00:28:23,720 Speaker 1: This episode, please leave us a Glowing Review. Wherever you 618 00:28:23,720 --> 00:28:26,720 Speaker 1: get your podcasts, leave a comment in Spotify, make sure 619 00:28:26,760 --> 00:28:28,919 Speaker 1: you subscribe to you Never miss a Tax time tip, 620 00:28:29,240 --> 00:28:32,120 Speaker 1: and follow us on Facebook on Instagram. We love hanging 621 00:28:32,160 --> 00:28:34,120 Speaker 1: out with you guys there as well. We'll catch you 622 00:28:34,200 --> 00:28:35,960 Speaker 1: later in the week for Friday drinks. 623 00:28:36,119 --> 00:28:39,000 Speaker 4: Take care fine. 624 00:28:40,960 --> 00:28:43,480 Speaker 3: The advice shared on She's on the Money is general 625 00:28:43,560 --> 00:28:47,360 Speaker 3: in nature and does not consider your individual circumstances. She's 626 00:28:47,440 --> 00:28:50,920 Speaker 3: on the Money exists purely for educational purposes and should 627 00:28:50,920 --> 00:28:54,120 Speaker 3: not be relied upon to make an investment or financial decision. 628 00:28:54,480 --> 00:28:56,960 Speaker 3: If you do choose to buy a financial product, read 629 00:28:56,960 --> 00:29:00,120 Speaker 3: the PDS TMD and obtain appropriate financial. 630 00:28:59,760 --> 00:29:01,680 Speaker 4: A tailored towards your needs. 631 00:29:02,040 --> 00:29:06,000 Speaker 3: Victoria Divine and Sheese on the Money are authorized representatives 632 00:29:06,040 --> 00:29:08,400 Speaker 3: of Money sherper P T y L t D A 633 00:29:08,520 --> 00:29:11,440 Speaker 3: b N three two one six four nine two seven 634 00:29:11,520 --> 00:29:14,320 Speaker 3: seven zero eight a F s L four five one 635 00:29:14,560 --> 00:29:16,040 Speaker 3: two eight nine