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Getting Ready For Tax Time · She's On The Money

0:00
Speaker 1: Hello.
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Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
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Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
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Speaker 2: get started on She's on the Money podcast, I would
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Speaker 2: like to acknowledge the traditional custodians of the land of
0:14
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
0:18
Speaker 2: the elders, the ancestors and the next generation coming through
0:23
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
0:27
Speaker 2: the storytelling of you to make a difference for today
0:31
Speaker 2: and lasting impact for tomorrow.
0:33
Speaker 1: Let's get into it. She's on the Money. She's on
0:37
Speaker 1: the Money. Hello and welcome. She's on the Money podcast
1:00
Speaker 1: for millennials who want financial freedom. My name is beck
1:03
Speaker 1: Syed Victoria Divine is with me. We are twelve. You
1:06
Speaker 1: were just trying to jump straight into the towers, so
1:12
Speaker 1: you almost forgot that I'm just as passionate about tax
1:15
Speaker 1: as you are, and I forgot you were here. Oh really,
1:19
Speaker 1: that's crazy, because you know, I am actually, like, you know,
1:21
Speaker 1: a bit of an expert in finance. So yeah, I
1:23
Speaker 1: heard you were like kind of becoming a tax expert. Yeah,
1:28
Speaker 1: I would you know, it's not a stretch.
1:29
Speaker 3: So what date are we working towards?
1:31
Speaker 1: So June thirty is fast approaching, so we're going to
1:35
Speaker 1: be talking about tax time. Are you excited?
1:37
Speaker 3: Yeah?
1:37
Speaker 1: Because June thirty is my birthday. Oh yeah, so ten
1:40
Speaker 1: out of ten always excited. Can you think of a
1:43
Speaker 1: better birth date for this finance Galie, I can't a
1:48
Speaker 1: single date. Maybe like the first of July, maybe new
1:51
Speaker 1: tax year would be a good one, but like June thirty.
1:55
Speaker 1: My dad's an accountant, so I was born to ruin
1:58
Speaker 1: his accounting each and every single year, and I just
2:01
Speaker 1: live for that.
2:02
Speaker 3: I still live for that. But I'm very excited.
2:04
Speaker 1: I can imagine that a lot of people are probably
2:07
Speaker 1: just really excited about this time of year, Beck, But
2:09
Speaker 1: I do imagine it's a time of dread for a
2:11
Speaker 1: lot of people. Yeah, Becklook, it can feel a little
2:14
Speaker 1: bit intimidating if you don't feel like you're on top
2:16
Speaker 1: of your income tax, which is exactly why we're doing
2:19
Speaker 1: an episode today to get you ready for tax time,
2:22
Speaker 1: the sexiest time of the entire year. We're going to
2:25
Speaker 1: be looking at some changes that you really should be
2:27
Speaker 1: aware of, and also some things that the at O
2:29
Speaker 1: are cracking down on this year, and then we're going
2:31
Speaker 1: to give you some tips and tricks to help this
2:33
Speaker 1: time of year run a little bit smoother. I feel
2:36
Speaker 1: like that's a good way to kind of like do
2:38
Speaker 1: a tax episode if we're being honest. Yeah, perfect, nice
2:41
Speaker 1: and easy, nice and gentle. And did you know that
2:43
Speaker 1: the Taxman cracks down is taxman tax person? Unsure of
2:47
Speaker 1: what we're going to be identifying them as, but did
2:49
Speaker 1: you know that each and every single year we'll get
2:51
Speaker 1: to it later this episode, they actually announce what they're
2:54
Speaker 1: looking out for this year, just red hearing or yeah,
2:57
Speaker 1: just like a little warning like, hey, guys going to
3:00
Speaker 1: be looking out for this this year, and hey guys,
3:02
Speaker 1: like this is what we're gonna be cracking down on
3:05
Speaker 1: this year. So it's good to know because often the
3:08
Speaker 1: things that they're cracking down on are related to recent
3:11
Speaker 1: changes which we will get too very soon, and they
3:14
Speaker 1: are this year as well, so I'm not surprised by them.
3:16
Speaker 1: They're not just picking random things. They actually have some
3:20
Speaker 1: method to their madness. But it's good to just be
3:23
Speaker 1: in the know. It's not maybe the sexiest episode, let's
3:26
Speaker 1: be honest, but it's one of those episodes where you're
3:28
Speaker 1: gonna walk away being like, no, I can actually do
3:30
Speaker 1: that myself. I do feel like I'm completely in control
3:33
Speaker 1: of this process and I'm no longer overwhelmed. So we
3:35
Speaker 1: love that. Wow, that is a perfect outcome. I hope
3:38
Speaker 1: they're not just like trying to throw us off the scent.
3:40
Speaker 3: But they're not trying to throw us off the scent promise.
3:42
Speaker 1: They actually really want us to pick up on the
3:44
Speaker 1: scent so that they get to do less work.
3:46
Speaker 3: It's quite intelligent, to be honest.
3:48
Speaker 1: Oh that's very smart. Yeah, exactly. V. This might actually
3:50
Speaker 1: surprise you, but I have prepared some stats for you.
3:53
Speaker 3: Are you trying to take my job as resident statscal?
3:57
Speaker 1: I thought I was being subtle about it, But maybe
3:58
Speaker 1: I'm not being so subtle.
3:59
Speaker 3: Maybe time don't announce it?
4:01
Speaker 1: A good idea next time. So did you know that
4:05
Speaker 1: in twenty nineteen slash twenty twenty, Australians paid four hundred
4:09
Speaker 1: and forty six million point four billion billion in tax.
4:15
Speaker 1: That's so many dollar rules. But the atier recons that
4:18
Speaker 1: if what are you doing with that albow? Yeah that's
4:20
Speaker 1: a very what are you doing with that Albut do
4:22
Speaker 1: you want to call him. I've got him on speed dial.
4:24
Speaker 1: Oh my gosh. Do you know what if anybody has
4:26
Speaker 1: Elbow on speed dial, it absolutely would be you, no doubt,
4:31
Speaker 1: no doubt. I mean we work for arn wasn't here
4:34
Speaker 1: Kyle Sandlanz's wedding true, So we basically have him on
4:37
Speaker 1: speed dial. We could get in touch with them. So
4:39
Speaker 1: that's could if we wanted to. If we don't want to,
4:41
Speaker 1: we just want to do this tax episode exactly. So
4:44
Speaker 1: the atier reconds that if all Australians were paying the
4:46
Speaker 1: correct amount of tax, they would have received four hundred
4:50
Speaker 1: and seventy nine point eight billion dollars. Yeah, so some
4:54
Speaker 1: people are being a little bit cheeky. That's not actually
4:57
Speaker 1: too bad. What do you mean doing the four hundre billions?
5:01
Speaker 1: Oh yeah, sure, that's not a big discrepancy at all.
5:04
Speaker 1: Like if those were my bank account details, I would
5:06
Speaker 1: not be mad about that at all. Beck each year
5:09
Speaker 1: the Eightier actually makes the lists of things that they're
5:11
Speaker 1: going to be paying closer attention to, which I mentioned before,
5:14
Speaker 1: and for the next round of tax reporting, that's actually
5:17
Speaker 1: going to be all about improving their systems and also
5:20
Speaker 1: our awareness or let's be honest, the honesty to get
5:23
Speaker 1: more money back into treasury. That figure that you mentioned
5:27
Speaker 1: Beck still means that ninety three percent of people in
5:30
Speaker 1: Australia are paying what they owe. Those percentages are pretty
5:34
Speaker 1: good because if you compare it to the USA, their
5:37
Speaker 1: figures actually sit at around the eighty five percent mark.
5:40
Speaker 1: Who've said this on the podcast before. Please substantiate your claims.
5:45
Speaker 1: Like if you're just going in and being like, ah,
5:47
Speaker 1: I work as an executive assistant, Oh, look, I can
5:50
Speaker 1: claim up to two hundred dollars on you know, some
5:53
Speaker 1: care products without receipts, I'll just claim that that's actually illegal. Like,
5:58
Speaker 1: you need to be able to substantiate that with proof,
6:02
Speaker 1: with a receipt with something. Even if they're not asking
6:04
Speaker 1: you to submit those receipts, they can actually audit you.
6:08
Speaker 1: And we have had people in our community get audited
6:10
Speaker 1: and they're like, oh, but I just claimed up to
6:12
Speaker 1: the threshold. It's like yes, but the atier can come
6:15
Speaker 1: back and ask you to prove that. And each year
6:18
Speaker 1: they take a bucket of random people and they ordered
6:21
Speaker 1: them to make sure that we're doing the right thing
6:23
Speaker 1: and being good people. So essentially the golden rule at
6:26
Speaker 1: tax time for everybody in our community is if you
6:30
Speaker 1: can't substantiate it, don't claim it. That's so scary. It
6:33
Speaker 1: can be scary, but I just also think it shouldn't
6:35
Speaker 1: be scary if you're doing the right thing. Yeah, Like,
6:37
Speaker 1: if you haven't claimed things that you haven't spent, then
6:40
Speaker 1: it is what it is. And I mean, if you
6:42
Speaker 1: know the taxman came knocking and said, hey, that you've
6:45
Speaker 1: been picked up in the audit and we're just going
6:46
Speaker 1: to audit all your expenses and some care came up right,
6:49
Speaker 1: like suncare sounds so small, but it's something that so
6:52
Speaker 1: many people can be picked up on because it's like
6:55
Speaker 1: a very low threshold where you go, oh, that's another
6:58
Speaker 1: two hundred bucks. I don't have to prove that I spent.
7:01
Speaker 1: They're going to ask you to prove that you spent it.
7:03
Speaker 1: If you don't, you're going to be up for one
7:06
Speaker 1: paying it back, but you'll have to pay it back
7:07
Speaker 1: with interest. That's essentially a fine beck and that is scary.
7:11
Speaker 1: I don't want to be in trouble with the tire trouble.
7:13
Speaker 1: Then you have a little red flag against your name
7:15
Speaker 1: for next year and all of it. It's just not
7:17
Speaker 1: worth your time, I promise. Yeah, that actually makes sense,
7:19
Speaker 1: So I guess we should go into the changes for
7:22
Speaker 1: this year. We else So there are a few changes,
7:24
Speaker 1: so I've round up the big ones for individuals first.
7:27
Speaker 1: The first one's not that great. The low and middle
7:30
Speaker 1: income tax offset. It didn't get extended, so as a result,
7:34
Speaker 1: low to middle income earners they might see their tax
7:36
Speaker 1: refund from July twenty twenty three reduced between six hundred
7:40
Speaker 1: and seventy five dollars and fifteen hundred bucks for incomes
7:44
Speaker 1: up to ninety thousand dollars, but phasing out up to
7:47
Speaker 1: one hundred and twenty six thousand dollars. Just feel like
7:51
Speaker 1: they could have extended that each to their own. The
7:53
Speaker 1: Medicare low income threshold for twenty twenty two to twenty
7:56
Speaker 1: twenty three year is going to be increased, so we
7:59
Speaker 1: do like this. For singles, this will be increased to
8:01
Speaker 1: twenty four thousand, two hundred and seventy six dollars, which
8:05
Speaker 1: is up from twenty three thousand, three hundred and sixty
8:08
Speaker 1: five dollars for the twenty twenty one twenty twenty two year.
8:11
Speaker 1: And then for couples with no children, the family income
8:14
Speaker 1: threshold is going to be increased up to forty thousand,
8:18
Speaker 1: nine hundred and thirty nine dollars, which is an increase
8:21
Speaker 1: from thirty nine thousand, four hundred and two dollars from
8:24
Speaker 1: the twenty twenty one to twenty twenty two year. So
8:27
Speaker 1: the additional amount for threshold for each dependent child or
8:30
Speaker 1: student is also going to be increased to three thousand,
8:33
Speaker 1: seven hundred and sixty bucks, up from three thousand, six
8:36
Speaker 1: hundred and nineteen dollars. Personally, I think that could have
8:39
Speaker 1: gone a little bit further, but you know what, at
8:41
Speaker 1: this point in time, Beck, you get what you get,
8:43
Speaker 1: and you don't get upset. Sorry, V. I know that
8:46
Speaker 1: we have a full episode to go through, but I
8:48
Speaker 1: just wanted to quickly ask I have no idea one
8:51
Speaker 1: what a tax offset is into what a lowcome threshold is. Okay,
8:55
Speaker 1: so so I am reacting like I do, but I
8:57
Speaker 1: don't actually know that's literally so classified as a low
9:02
Speaker 1: income threshold. So this might sound like a lot of money,
9:06
Speaker 1: but to receive the low income tax threshold, your taxable
9:10
Speaker 1: income needs to be less than one hundred and twenty
9:12
Speaker 1: six thousand dollars. You also have to be an Australian
9:16
Speaker 1: resident for tax purposes. If you earn under that, you're
9:20
Speaker 1: going to get access to a few different like tax
9:23
Speaker 1: off sets. So a tax offset is something that you
9:25
Speaker 1: can claim that other people might not be able to claim.
9:28
Speaker 1: So they're saying, look, because you have a lower income,
9:31
Speaker 1: we're going to allow you to claim a little bit
9:32
Speaker 1: more than a higher income earner just to kind of
9:35
Speaker 1: make life easier for you. And often they do this
9:38
Speaker 1: during periods of like turmoil, where you know, gas and
9:40
Speaker 1: electricity and stuff are really expensive, to hopefully get some
9:44
Speaker 1: more money back in your pockets. One hundred and twenty
9:46
Speaker 1: six thousand dollars sounds like a lot of money, but
9:49
Speaker 1: in reality, I won't say it's not, because it is
9:52
Speaker 1: a lot of money for a lot of people. But
9:54
Speaker 1: if you're a you know, a dual income household and
9:57
Speaker 1: your total household taxable income is one hundred twenty six
10:00
Speaker 1: thousand dollars and you have kids and stuff that does
10:03
Speaker 1: not go as far as you think it does, so
10:05
Speaker 1: these offsets kind of come in to boost you up
10:08
Speaker 1: a little bit. The other benefit there is often you
10:11
Speaker 1: can get access to things like healthcare cards and stuff
10:13
Speaker 1: like that. So if we say you're on a low
10:15
Speaker 1: income threshold. It means that you basically have access to
10:19
Speaker 1: a few different I guess let's call them bells and
10:21
Speaker 1: whistles that other people might not have access to purely
10:25
Speaker 1: because you don't earn more than a certain amount. It's
10:28
Speaker 1: the government trying to put you in a better position
10:30
Speaker 1: because you know, we want you to be paying less
10:33
Speaker 1: tax if you have less income, which I think is
10:35
Speaker 1: a fair system that makes a lot of sense. Thank you, V.
10:38
Speaker 1: Sorry you may continue, Oh, thank you so much, but
10:41
Speaker 1: I think it's important, Beck. And you know, there are
10:43
Speaker 1: a lot of people that listen to this podcast, and Hi,
10:46
Speaker 1: if you're new here, I'm Victoria and this is Beck
10:48
Speaker 1: and we love what we do. But someone might have
10:50
Speaker 1: picked up this episode because they're like, oh, fire out,
10:53
Speaker 1: tax time's coming. I'm a little bit stressed and this
10:54
Speaker 1: is their first introduction. Like, those are really good questions
10:57
Speaker 1: to be asking. And I've said there's no such thing
11:01
Speaker 1: as a silly question in this community, especially from you,
11:03
Speaker 1: because if you're thinking it, our community are thinking it.
11:06
Speaker 1: So please always, always, always, buddy, And I think it's
11:08
Speaker 1: really really important. Thank you V.
11:10
Speaker 3: Of course.
11:11
Speaker 1: So the next thing I wanted to address was for
11:13
Speaker 1: single seniors and pensioners eligible for the Seniors and Pensioners
11:17
Speaker 1: tax offset, so they get, you know, some more cash
11:20
Speaker 1: in their back pocket because they are a senior. The
11:23
Speaker 1: Medicare levy low income threshold is going to be increased
11:27
Speaker 1: to thirty eight thousand, three hundred and sixty five dollars,
11:30
Speaker 1: which is up from thirty six thousand, nine hundred and
11:33
Speaker 1: twenty five dollars from the twenty twenty one to twenty
11:36
Speaker 1: twenty two year. The family threshold for seniors and pensioners
11:40
Speaker 1: is going to be increased. This is like dual income
11:44
Speaker 1: increased to fifty three thousand, four hundred and six dollars,
11:47
Speaker 1: up from fifty one thousand, four hundred and one dollars,
11:49
Speaker 1: which is a nice little bonus. Plus three thousand, seven
11:53
Speaker 1: hundred and sixty dollars for each dependent.
11:55
Speaker 3: Child or student. Ah, so that's nice.
11:58
Speaker 1: Again. The next to are a little bit further down
12:01
Speaker 1: the track, but they are to me a pretty big deal.
12:04
Speaker 1: So under the Stage three tax changes from the first
12:07
Speaker 1: of July twenty twenty four, the average marginal tax rate
12:11
Speaker 1: is thirty two point five percent. It's going to be
12:13
Speaker 1: cut beck and we're going to be paying less tax
12:15
Speaker 1: if you're in that bracket. It's going to be cut
12:17
Speaker 1: to thirty percent for one big tax bracket between forty
12:21
Speaker 1: five thousand, get this all the way up to two
12:24
Speaker 1: hundred thousand dollars. That is a far wider range than
12:29
Speaker 1: it was before because historically it was up to about
12:32
Speaker 1: one hundred and twenty so that's so much more money.
12:35
Speaker 1: This will then more closely align to the middle tax
12:37
Speaker 1: bracket of the personal income tax system with corporate tax rates,
12:41
Speaker 1: so the thirty seven percent tax bracket will be entirely
12:45
Speaker 1: abolished at this time, which is kind of cool. But
12:48
Speaker 1: this means that from the first of July twenty twenty
12:50
Speaker 1: four beck there's only going to be three personal income
12:53
Speaker 1: tax brackets, so nineteen percent, thirty percent and forty five percent.
12:58
Speaker 1: So from the first of July twenty twenty five more
13:00
Speaker 1: taxpayers earning between forty five grand and two hundred grand
13:03
Speaker 1: they'll face a marginal tax rate of thirty percent. And
13:06
Speaker 1: with these changes, around ninety four percent of Australian taxpayers
13:10
Speaker 1: are projected to face a marginal tax rate of thirty
13:13
Speaker 1: percent or less.
13:15
Speaker 3: That is so good.
13:16
Speaker 1: That is really such a low average tax rate and
13:19
Speaker 1: I think that that's really sexy if you didn't keep
13:22
Speaker 1: up with that, because I feel like I do talk
13:24
Speaker 1: very quickly when I get excited about something. More people
13:27
Speaker 1: better off when it comes to tax, Yes, full stop,
13:31
Speaker 1: end of story. More people paying less tax. That's pretty sexy. Back,
13:35
Speaker 1: that's so good. More people less tax. What a good outcome?
13:39
Speaker 1: What a great outcome? I really really like that. There
13:42
Speaker 1: is another update, Beck. I just wanted to share this
13:44
Speaker 1: because I thought it was real cool. It doesn't happen
13:46
Speaker 1: until twenty twenty six, but I mean time flies when
13:49
Speaker 1: you're having tax fun Are you ready? Superannuation as of
13:54
Speaker 1: the first of July twenty twenty six, will actually be
13:57
Speaker 1: paid on your pay day, not quarterly, not annually. It
14:01
Speaker 1: will be paid every time you get paid, which at
14:05
Speaker 1: the moment, for most people I would say that their
14:08
Speaker 1: employers pay tax on a quarterly basis, so once every
14:12
Speaker 1: three months. This is actually really good for you because
14:15
Speaker 1: the more consistently that you're investing, the more opportunity you
14:19
Speaker 1: have to make use of something called dollar cost averaging.
14:21
Speaker 1: We've spoken about this on the podcast before, but dollar
14:24
Speaker 1: cost averaging is essentially where you're investing more regularly and
14:29
Speaker 1: your subernuation, as we know, is a tax structure that
14:32
Speaker 1: you're investing within. And if you're investing more regularly, what
14:36
Speaker 1: that means is you're making the most of the highs
14:39
Speaker 1: and the lows of the market. So instead of investing
14:41
Speaker 1: four times a year, you'll be investing probably twelve if
14:44
Speaker 1: you get paid monthly, and you'll be investing twenty six
14:47
Speaker 1: times if you get paid fortnightly. I think that's pretty sexy. Yeah, okay,
14:51
Speaker 1: that's top girlshit. I love that all right. Beck you
14:54
Speaker 1: have a little graphic design business. If people want to
14:57
Speaker 1: check out your graphic design business. What's the Instagram you? Oh,
15:00
Speaker 1: this is so nice. Well, Sorr, shouldn't call you that?
15:03
Speaker 1: If you can call me whatever you want, but ideally
15:05
Speaker 1: you call me a nice name when I'm being nice
15:07
Speaker 1: to you. Yeah, that's true, beautiful queen, thank you. It's
15:11
Speaker 1: designed by Beku. Becku is spelt b Ecu. It's really cute.
15:17
Speaker 1: If you haven't checked out beck before, she has just
15:20
Speaker 1: recent is it recent? It's quite new, like it's been
15:22
Speaker 1: around ages, but like you've just started taking it seriously.
15:25
Speaker 1: That is true. I kind of like ebbs and flows,
15:28
Speaker 1: but recently I have been more active on, but you've
15:30
Speaker 1: become a small business owner technically recently I started to
15:33
Speaker 1: take it very seriously, so I thought, right here would
15:36
Speaker 1: be a good spot to have some small business owner tips.
15:39
Speaker 1: I know there are a lot of people in our
15:41
Speaker 1: community who have either side hustles or small businesses, and
15:44
Speaker 1: this is where you need to listen up because these
15:46
Speaker 1: things are actually really important. I don't care if you
15:50
Speaker 1: just drive an Uber a couple of nights a month,
15:53
Speaker 1: but those things are not counted as hobbies. I do
15:56
Speaker 1: not care what your accountant says if you're driving income.
15:59
Speaker 1: When need to make sure that we are being transparent
16:02
Speaker 1: to the government because I have seen too many times,
16:05
Speaker 1: and you'll see in our Facebook group come tax time,
16:08
Speaker 1: there will be an influx of posts like this, Oh
16:11
Speaker 1: my accountant said that I earned less than five thousand
16:14
Speaker 1: dollars salt was a hobby. No, you worked for Uber,
16:17
Speaker 1: or you worked for DoorDash, or you did something that
16:19
Speaker 1: was generating an income. That was definitely not a hobby.
16:22
Speaker 1: The government's going to want to know about it. But
16:24
Speaker 1: one of the things that I think is worth mentioning
16:26
Speaker 1: here is the instant asset. Right off, it's going to
16:29
Speaker 1: return with a twenty thousand dollars threshold per asset from
16:34
Speaker 1: the first of July twenty twenty three to the thirtieth
16:37
Speaker 1: of June twenty twenty four. So this is a relatively
16:41
Speaker 1: good thing in general because instant asset right off means
16:44
Speaker 1: that you can claim the depreciation of an asset, so
16:47
Speaker 1: how much an asset is going to decrease in value
16:49
Speaker 1: over time in a one off lumpsum, and that is
16:52
Speaker 1: good for tax. If you had a good year where
16:54
Speaker 1: you had a good amount of income come in, that's
16:57
Speaker 1: a good way to write things off. Owners of people
17:00
Speaker 1: who want to buy cars are not too impressed because
17:04
Speaker 1: on the first of July this year, it is going
17:06
Speaker 1: to drop down from about fifty nine thousand dollars worth
17:10
Speaker 1: of instant asset right off for your car back down
17:13
Speaker 1: to the twenty thousand. So if you're looking for potentially
17:16
Speaker 1: a car, now's the time to have a quick chat
17:18
Speaker 1: with your accountant to make sure that maybe you could
17:20
Speaker 1: slip in before the new financial year. But small businesses
17:24
Speaker 1: with aggregated turnover of less than ten million dollars, can
17:28
Speaker 1: you believe that's what's constituted as a small business? I know, Oh,
17:32
Speaker 1: I've got less than ten million bucks, so are you tiny? What? Tiny?
17:36
Speaker 1: Little business? Wild? They're going to be immediately able to
17:39
Speaker 1: deduct the full cost of eligible assets costing less than
17:42
Speaker 1: twenty grand that are first used or installed ready for
17:46
Speaker 1: use between the first of July twenty twenty three and
17:48
Speaker 1: the thirtieth of June twenty twenty four. So that twenty
17:52
Speaker 1: thousand dollars threshold is going to apply on a per
17:54
Speaker 1: asset basis, So small businesses can basically instantly right off
17:59
Speaker 1: multiple ascide not just one, yeah, right off a whole
18:03
Speaker 1: heap of them. And you know what, you're like, Hey,
18:05
Speaker 1: what could be twenty thousand dollars? If you're a small
18:08
Speaker 1: business and you work in beauty. Maybe you're buying a
18:10
Speaker 1: laser machine, Maybe you're buying like ipl Maybe you're buying
18:14
Speaker 1: something like a facial machine or something that's really expensive
18:18
Speaker 1: and you really want to reinvest in your business. This
18:20
Speaker 1: is where you need to talk to your accountant to
18:22
Speaker 1: make the most of these benefits, because if you don't
18:25
Speaker 1: understand them and you don't know how to use them
18:28
Speaker 1: as a small business owner, you're doing yourself a disservice.
18:31
Speaker 1: We need to be putting ourselves first. And one of
18:33
Speaker 1: the things that you can do to put yourself first
18:35
Speaker 1: as a business that wants to grow is to actually
18:38
Speaker 1: understand what you can and can't do when it comes
18:40
Speaker 1: to tax. Yeah, because let's be honest, the instant asset
18:44
Speaker 1: right off of up to twenty thousand dollars, you might
18:46
Speaker 1: be like, what does that mean? That means that we
18:48
Speaker 1: get to claim back the tax we paid on it.
18:51
Speaker 1: That's a big, big discount on an item that you
18:54
Speaker 1: needed to purchase anyway for your business. Sexy, Yeah, Okay,
18:58
Speaker 1: that's making sense. Girls. So there's no minimum for assets. No, No,
19:03
Speaker 1: it would need to be an asset though. You can't
19:04
Speaker 1: just go buy a stapler claim depreciation on that. But
19:08
Speaker 1: like I mean, it's usually bigger ticket items that small
19:11
Speaker 1: business owners hesitate to purchase because they're like, oh, I
19:14
Speaker 1: don't know if this is going to be like a
19:15
Speaker 1: good thing or about I think talk to your accountant.
19:18
Speaker 1: We're just sharing general information on this podcast to kind
19:20
Speaker 1: of like trigger something or to kind of get you
19:23
Speaker 1: to go talk to a professional. At the end of
19:25
Speaker 1: the day, you cannot rely on just this podcast for
19:28
Speaker 1: your tax advice this year. Go and talk to an
19:30
Speaker 1: accountant and if you don't have an accountant, now is
19:33
Speaker 1: the time to go. Maybe I need one because you
19:35
Speaker 1: can actually claim accountants fees.
19:37
Speaker 3: On tax next year.
19:38
Speaker 1: Wow. So there's been plenty more stuff back for small
19:41
Speaker 1: business owners announced I honestly, if I was a small
19:44
Speaker 1: business owner, I would be heading to the at year
19:46
Speaker 1: website to read up on them before it gets too
19:49
Speaker 1: close to the thirtieth of June. Because when it comes
19:52
Speaker 1: to assets before, I told you that it needs.
19:54
Speaker 3: To be first used or installed.
19:56
Speaker 1: You can't just buy something and have it delivered midway
19:58
Speaker 1: through July and claim it in the previous year.
20:01
Speaker 3: Like, that's not going to work.
20:02
Speaker 1: It has to happen pretty soon, Okay, So it has
20:05
Speaker 1: to happen before the thirtieth of June, otherwise it goes
20:08
Speaker 1: into the next financial year. Time's a ticking, it is, indeed.
20:12
Speaker 1: So do you know what you want to talk about next?
20:14
Speaker 1: Unrelatable for you, but might be really relatable for a
20:17
Speaker 1: lot of people in our community. Back sa Vie, I
20:19
Speaker 1: really want to talk about something that I can certainly
20:22
Speaker 1: relate to what's going to happen to us property investors. Also,
20:25
Speaker 1: I'm just kidding because I'm not a property investor and
20:27
Speaker 1: I don't earn any properties, but someone out there might
20:30
Speaker 1: want to know. So what can property investors do this year?
20:33
Speaker 1: What can they except be privileged? Track on it?
20:36
Speaker 3: So I'm working on it.
20:37
Speaker 1: The government is actually going to introduce tax incentive changes
20:41
Speaker 1: to help increase the supply of housing, so that's pretty sexy.
20:44
Speaker 1: The incentives are as follows. I've written them down there,
20:47
Speaker 1: two of them, and they're quite complicated, and I knew
20:50
Speaker 1: I wouldn't remember them. They're not that complicated, but I
20:52
Speaker 1: knew I wouldn't remember them, so I wrote them down back.
20:54
Speaker 1: So the first is an increase in the depreciation rate.
20:57
Speaker 1: So for capital works purposes, depreciation is where things lose
21:01
Speaker 1: value over time. And when we say for capital works purposes,
21:05
Speaker 1: it might be like an extension that you're putting on.
21:07
Speaker 1: So the extension you see, it might be worth two
21:09
Speaker 1: hundred grand back, but in a couple of years, like
21:11
Speaker 1: you know, a twenty ten kitchen's not that sexy anymore.
21:14
Speaker 1: I just ripped one out of my house, and I'm
21:17
Speaker 1: telling you right now, nobody is going to pay for
21:19
Speaker 1: that red splash back back in twenty ten. Though, that
21:22
Speaker 1: was a very good investment. That was a very nice kitchen,
21:25
Speaker 1: so it was worth a lot. Then it depreciated over time.
21:28
Speaker 1: Now nobody thinks it's worth anything with that lino floors.
21:31
Speaker 1: I know. Look we ripped those out two also the
21:33
Speaker 1: false ceilings they had to go, so there was just
21:36
Speaker 1: a lot. But essentially that depreciation rate has been increased
21:41
Speaker 1: from two point five percent to four percent per year
21:44
Speaker 1: for eligible new build to rent projects where construction commences
21:49
Speaker 1: after the ninth of May twenty twenty three, and the
21:53
Speaker 1: reduction in the rate of the withholding tax for eligible
21:57
Speaker 1: fund payments for managed investment trusts or am I So
22:00
Speaker 1: like completely unrelated to you, but if you're following along
22:03
Speaker 1: and going, well, that's me to foreign residents on income
22:07
Speaker 1: for newly constructed residential build to rent properties after the
22:10
Speaker 1: first of July twenty twenty four goes from thirty percent
22:14
Speaker 1: down to fifteen percent, subject to further consultation on eligibility criteria.
22:18
Speaker 3: Can you see why I wrote them down?
22:20
Speaker 1: I can see. Yeah, yeah, so I had to write
22:22
Speaker 1: them down because I was like, there's no way I'm
22:24
Speaker 1: going to remember that mouthful. But essentially that means that
22:28
Speaker 1: more people will be able to invest as foreign residents,
22:31
Speaker 1: and that's a relatively good thing because it will increase,
22:35
Speaker 1: hopefully the amount of rental properties that are available for access,
22:38
Speaker 1: and as we know right now, rental properties are going
22:42
Speaker 1: bonkers because there's not enough of them. The Home Guarantee
22:45
Speaker 1: scheme is going to be expanded from the first of
22:48
Speaker 1: July twenty twenty three. I think this is a very
22:51
Speaker 1: good thing. So the government has announced an expansion to
22:54
Speaker 1: the criteria enabling people to participate in the different home
22:57
Speaker 1: guarantee schemes. Eligibility criteria for all elements of the scheme,
23:01
Speaker 1: including the First Home Guarantee, the Regional First Home Buyers Guarantee,
23:05
Speaker 1: and the Family Home Guarantee, they're going to be extended,
23:08
Speaker 1: which is very very sexy. That's actually it kind of
23:11
Speaker 1: sounds familiar, is that we're like, the government give twenty
23:14
Speaker 1: five percent and you give five percent to a deposit
23:17
Speaker 1: or Am I making this up? No, you're not making
23:19
Speaker 1: it up. It's absolutely correct. It's actually a scheme that
23:21
Speaker 1: exists to support eligible first home buyers purchase a home sooner.
23:25
Speaker 1: The thing that personally I like about this is that
23:29
Speaker 1: the government's basically underwriting you, but they don't own any
23:32
Speaker 1: of your property. Where there are schemes out there where
23:35
Speaker 1: the government kind of like co purchases with you and
23:38
Speaker 1: when you sell the property, you owe them an amount
23:41
Speaker 1: of money, and I don't particularly love the strings attached
23:45
Speaker 1: to that, But essentially, there are only a limited number
23:48
Speaker 1: of places.
23:49
Speaker 3: So the places that.
23:50
Speaker 1: Are going to be available in the twenty twenty two
23:52
Speaker 1: slash twenty twenty three financial year are thirty five thousand places,
23:56
Speaker 1: and it means that you could purchase a property with
23:59
Speaker 1: a five percent deposit if you're a first home buyer
24:02
Speaker 1: and you've like never purchased property before and you're purchasing
24:05
Speaker 1: a new or an existing home. You could be single,
24:08
Speaker 1: you could be a couple, But then depends where you're purchasing,
24:12
Speaker 1: because obviously different properties in different areas of the country
24:15
Speaker 1: have different amounts that they are worth. Maximum price purchases
24:19
Speaker 1: will apply, so like Sydney is going to be higher
24:22
Speaker 1: than you know Camera for example, So I think it's
24:25
Speaker 1: important to just look into it if you're interested in that, though,
24:29
Speaker 1: the best thing you could do is talk to a broker.
24:32
Speaker 1: And obviously I'm quite biased. I own a mortgage broken
24:34
Speaker 1: company and if you happen to be listening to this podcast,
24:37
Speaker 1: you probably would get along really well with us. Go
24:40
Speaker 1: check out Zella Money and we can sort you out
24:42
Speaker 1: and tell you whether you can get into that or not.
24:45
Speaker 1: Because when we say there are thirty five thousand places
24:48
Speaker 1: each year, usually that thirty five thousand amount is divided
24:52
Speaker 1: up among the years, so there might be you know,
24:54
Speaker 1: a quarter each quarter available or open, and they're actually
24:58
Speaker 1: only available through through certain banks, so there are like
25:02
Speaker 1: a heap of hoops. But it can be a really
25:04
Speaker 1: good way to get into your first home. And I'm
25:07
Speaker 1: really glad that it's sticking around. Okay, I really like that.
25:11
Speaker 1: I think it's pretty sexy.
25:12
Speaker 2: Yeah.
25:13
Speaker 1: I just really like that they've kind of prioritized and
25:16
Speaker 1: I mean, I'm not asking for feedback here. We all
25:19
Speaker 1: know that there are things that could be done better
25:21
Speaker 1: and changed, but it does feel like they have tried
25:23
Speaker 1: to put people who are currently not that enchanted with
25:27
Speaker 1: their property market in a position where they might, you know,
25:30
Speaker 1: get that in chairman back.
25:31
Speaker 3: Yeah.
25:32
Speaker 1: I love that each year the ATIO releases things ahead
25:35
Speaker 1: of the eof hy.
25:37
Speaker 3: End of financial year.
25:38
Speaker 1: Oh, she's a genius. By me your coke? Okay, are
25:43
Speaker 1: your coke? They will focus on certain things ahead of
25:46
Speaker 1: the end of financial year. What are they cracking down
25:49
Speaker 1: on this?
25:49
Speaker 2: All?
25:49
Speaker 1: Right, So they're cracking down on a few things, and
25:51
Speaker 1: I alluded to this at the start of the episode.
25:54
Speaker 1: This one is going to make sense, and that is
25:56
Speaker 1: working from home. So obviously during COVID we all worked
26:00
Speaker 1: from home a fair bit. But now everyone's heading back
26:03
Speaker 1: to offices, but grudgingly, but we're all heading back to officers.
26:07
Speaker 1: So the ATO is apparently sharpening it's focus in twenty
26:10
Speaker 1: twenty three on capital gains, tax and work related expenses,
26:15
Speaker 1: including changes to work from home claims. So from the
26:19
Speaker 1: first of March, taxpayers claiming work from home related deductions
26:23
Speaker 1: will be required to provide more detailed documentation. Fair the
26:29
Speaker 1: COVID shortcut isn't happening anymore. It allowed you historically to
26:34
Speaker 1: claim eighty cents each hour that you worked from home
26:36
Speaker 1: and cover all deducting running expenses. Not a thing anymore effective.
26:42
Speaker 1: From the first of July twenty twenty two, the ATO
26:45
Speaker 1: announced a revised fixed claim of sixty seven percent per
26:50
Speaker 1: hour worked from home. This is supposed to cover additional
26:53
Speaker 1: like running expenses for things like internet and electricity, phone plans,
26:56
Speaker 1: or like stationary and stuff you need at home. There
26:59
Speaker 1: are separate deductions that can be made for other purchases,
27:02
Speaker 1: so for things like desk chairs or computers or bookshelves
27:05
Speaker 1: immediately if the price is below three hundred bucks, or
27:08
Speaker 1: as depreciation over time if it costs more, so you
27:12
Speaker 1: can pick which one there. The crucial point, though, is
27:15
Speaker 1: that you need to demonstrate to the ato that you
27:18
Speaker 1: did only incur these expenses because you are working from home.
27:22
Speaker 1: So you can't just set up like a little at
27:25
Speaker 1: home office because you think it'll look real chic in
27:27
Speaker 1: the corner of your lounge room, and then you don't
27:28
Speaker 1: work from home, and then you think you can claim
27:30
Speaker 1: it because everybody else is no sis, That's not how
27:33
Speaker 1: it's going to work. They're going to ask for proof.
27:36
Speaker 1: To claim using the fixed rate, you actually need to
27:38
Speaker 1: provide a record of all the hours worked from home
27:41
Speaker 1: for the entire year, as well as receipts or invoices
27:45
Speaker 1: to show you paid for these expenses covered by the
27:48
Speaker 1: fixed rate method.
27:50
Speaker 3: Do you have friends that.
27:51
Speaker 1: Work from home? Yes? Do you think that they're actually
27:54
Speaker 1: keeping a log book of how many hours that they're
27:57
Speaker 1: working from home? Definitely not, so like that's something that
28:02
Speaker 1: we should be aware of and before doing your tax
28:04
Speaker 1: maybe pop a really simple one together and work it out, like,
28:07
Speaker 1: just do the right thing, do the right thing, don't
28:10
Speaker 1: just claim it. I know a lot of people will say, oh,
28:12
Speaker 1: you can claim this, or you can. It's not that
28:15
Speaker 1: simple anymore. And if you mess up or you do
28:17
Speaker 1: the wrong thing, it can be relatively serious. I mean,
28:21
Speaker 1: the tax man isn't as scary as people seem to
28:23
Speaker 1: make him out to be. It can be not so
28:26
Speaker 1: good when you're claiming things that you aren't entitled too, though,
28:29
Speaker 1: and that's where I think professional help could come into it.
28:32
Speaker 1: But if I'm being brutally honest, if you are a
28:34
Speaker 1: salaried PAYG employee, it's relatively easy to work out. Haybeck,
28:40
Speaker 1: did you incur any expenses this year? Did you have
28:43
Speaker 1: to buy a desk chair to work from home? Yes? Okay?
28:45
Speaker 1: Can you please look up in your bank statements because
28:48
Speaker 1: bank statements are easily looked into how much you spend
28:51
Speaker 1: it off as works great, you can claim that, no worries,
28:54
Speaker 1: but we really need to make sure that we did
28:57
Speaker 1: incur those things. We're not just writing down, oh, we
28:59
Speaker 1: want to a little refund for this and this and
29:01
Speaker 1: this even when we didn't incur it, Like, that's just
29:04
Speaker 1: cheeky and not on.
29:06
Speaker 3: Yeah, I'm just trying to make friends with the taxman.
29:08
Speaker 3: So he's like smiling and he looks for my return.
29:11
Speaker 1: Let's be honest, it doesn't order you this year. Yeah,
29:13
Speaker 1: I'm just say, oh, hey, that ve girl, she's really nice.
29:16
Speaker 1: We love her famous to Ato yeah, same same, but
29:19
Speaker 1: essentially separate records for claims not covered by the fixed
29:23
Speaker 1: rate will also be necessary, So just record keeping is
29:26
Speaker 1: really important. There is an Ato record keeping app if
29:29
Speaker 1: you want it, or if you're a little bit more
29:31
Speaker 1: old school. I don't really want to have an app either.
29:34
Speaker 1: I actually just take photos of things throughout the year.
29:38
Speaker 1: I save it to a random album. Then when tax
29:40
Speaker 1: time comes, I just go to that album and everything
29:43
Speaker 1: I need is there. Once I've claimed it, I delete
29:45
Speaker 1: everything and then I start fresh for the year. On
29:48
Speaker 1: that's a great idea.
29:49
Speaker 3: I think it's quite smart, to be honest.
29:50
Speaker 1: Obviously, don't delete them forever, because you do need to
29:53
Speaker 1: keep those things on record for seven years in case
29:55
Speaker 1: you are audited. But I remove them from the album
29:58
Speaker 1: because I don't need to, you know, quit check.
30:01
Speaker 3: But also low key phone hack in your phone when
30:04
Speaker 3: you're searching for photos, did you know you can just
30:07
Speaker 3: like type in words now and a look true in
30:09
Speaker 3: the photo.
30:09
Speaker 1: I can type in people's name what and its your
30:12
Speaker 1: people's having folder of Victoria divide. Oh my gosh, that's
30:16
Speaker 1: really creepy. Let's move on. Let's move on, all right.
30:19
Speaker 1: So the ATO this year is going to be like
30:21
Speaker 1: narrowing in on people who are claiming a substantial amount
30:25
Speaker 1: or all of their personal phone or internet plan as
30:29
Speaker 1: work related because basically, the ATRO doesn't believe that deductions
30:33
Speaker 1: for purchases like this can only be made for the
30:36
Speaker 1: portion of time that is actually used for business. So like,
30:40
Speaker 1: let's be brutally honest.
30:42
Speaker 3: I don't even.
30:42
Speaker 1: Bother claiming my phone anymore because I have an unlimited plan.
30:47
Speaker 1: I pay a set amount each month, and you know what,
30:50
Speaker 1: I mainly use it for TikTok. So I just have
30:53
Speaker 1: stopped claiming that because I don't want to get in trouble.
30:56
Speaker 1: But yeah, only claim what is worth it. And then
30:59
Speaker 1: the ATIRO also concerned that too many taxpayers are automatically
31:03
Speaker 1: claiming their five thousand kilometer limit regardless of the actual
31:07
Speaker 1: amount that they have traveled. So it's seventy eight cents
31:10
Speaker 1: per kilometer that can be claimed available for journeys of
31:13
Speaker 1: up to five thousand kilometers. But essentially they're going to
31:16
Speaker 1: be looking into that as well this year. But I
31:18
Speaker 1: think I used to do that. I was like, where
31:20
Speaker 1: am I going, I'm not going anywhere. I feel like
31:22
Speaker 1: people historically have always been like, oh, well, if you
31:24
Speaker 1: don't need to provide receipts, I'm just going to claim
31:27
Speaker 1: up to the minimum threshold and let's be honest, like ATO,
31:29
Speaker 1: please don't come for me. I'm sure like eighteen nineteen,
31:32
Speaker 1: twenty year old Victoria was doing that. I can't remember,
31:35
Speaker 1: but I totally feel like if someone said, oh, you
31:38
Speaker 1: don't have to prove that, I'll be like, yeah, right,
31:41
Speaker 1: I'm in.
31:41
Speaker 3: Yeah, it isn't.
31:43
Speaker 1: Let's be honest. But it's now a more complicated tax system.
31:46
Speaker 1: It's a far more educated tax system. I mean, let's
31:50
Speaker 1: be honest, with the likes of chat GPT. I'm not
31:52
Speaker 1: saying that the ATO was using that, but with the
31:55
Speaker 1: advancements of technology, I guarantee they are going to be
31:58
Speaker 1: so much more I guess advanced at checking whether maybe
32:02
Speaker 1: you are doing the right thing or not. Without actually
32:04
Speaker 1: having to get too many humans involved. And the more
32:08
Speaker 1: they're able to do that, the more they're able to
32:10
Speaker 1: crack down on people, because I promise that would be
32:13
Speaker 1: an automated process. Obviously am speaking completely out of tune
32:17
Speaker 1: here because I don't work for the ATO, But if
32:20
Speaker 1: the ATRO were smart, they would have created some kind
32:23
Speaker 1: of aibot that overarchingly looks at everyone's stuff and if
32:27
Speaker 1: any abnormalities come up, they automatically send an audit letter
32:31
Speaker 1: to you and you then have to prove it.
32:32
Speaker 3: Like that's how I would run.
32:34
Speaker 1: It, No, but they make it make sense right, And like,
32:38
Speaker 1: if I'm thinking of that, I guarantee someone at the
32:40
Speaker 1: ATO is sure. Sure. So it's just it's better to
32:43
Speaker 1: be safe than sorry. Just do it properly the first time.
32:46
Speaker 1: That's what this episode is all about. That's very true.
32:49
Speaker 1: V we've forgotten about one person or people? Oh have we? Yeah? Who?
32:53
Speaker 1: What about our finance bros? Cryptocurrency? Oh the finance bros?
32:58
Speaker 3: Do you reckon? They'll want to know about crypto.
33:00
Speaker 1: I think they'll want to know about crypto. So you
33:02
Speaker 1: think there are finance bros listening to this podcast? I
33:05
Speaker 1: think do you know what?
33:07
Speaker 3: Hello?
33:08
Speaker 1: To the finance bros who are currently driving the car
33:11
Speaker 1: where that girlfriend has control of the iPhone and what
33:14
Speaker 1: is currently playing in the car. Yeah, well no, it's
33:18
Speaker 1: quite clearly she's on the money. They're quite clearly she's
33:22
Speaker 1: on the money. But you know what, that would have
33:24
Speaker 1: been a better suggestion. I don't know why you.
33:26
Speaker 3: Guys are still here, but let's talk about crypto.
33:29
Speaker 1: The atier is also going to be taking a much
33:31
Speaker 1: closer look at those making investments into cryptocurrencies like bitcoin,
33:36
Speaker 1: So increasing numbers of taxpayers you're not going to be
33:38
Speaker 1: surprised at jumping on the bandwagon.
33:41
Speaker 3: And the Eightier.
33:41
Speaker 1: Believes that some of them are failing to declare their
33:45
Speaker 1: profits and in some cases their loss is beck that
33:48
Speaker 1: they're making on their investments. So you need to remember
33:50
Speaker 1: that investing in cryptocurrencies can give rise to capital gains
33:54
Speaker 1: tax on profits. Traders can be taxed on their profits
33:58
Speaker 1: as business inc as well, So we need to be
34:02
Speaker 1: just very aware of that cryptocurrency, while it is not
34:06
Speaker 1: a regulated financial asset here in Australia, it is an
34:10
Speaker 1: asset that you need to declare any profit on, Like
34:13
Speaker 1: if you make fifty bucks from it, you actually have
34:15
Speaker 1: to tell the ATO about that, and it's illegal to
34:18
Speaker 1: not do that. But the other thing you need to
34:20
Speaker 1: understand when it comes to assets is how long you
34:23
Speaker 1: hold them. So if you hold an asset, even if
34:26
Speaker 1: it is cryptocurrency, make a whole heap of money on
34:29
Speaker 1: it and sell it within the first twelve months, the
34:32
Speaker 1: tax rate is going to be higher than if you
34:34
Speaker 1: held it for longer than twelve months, So please be
34:37
Speaker 1: aware of that before you decide I'm the best crypto
34:39
Speaker 1: bro ever and I'm making all this money because you
34:42
Speaker 1: might be bitten in the bottom with a nasty tax
34:45
Speaker 1: bill which nobody wants like. Let's be honest, just be
34:48
Speaker 1: aware of it to help them in their search.
34:50
Speaker 3: The ATO is collecting.
34:52
Speaker 1: Bulk records from Australian cryptocurrency designated service providers or DSPs
34:58
Speaker 1: as part of a data matching program to ensure people
35:01
Speaker 1: trading in cryptocurrency are paying the right amount of tax.
35:05
Speaker 1: Data includes cryptocurrency purchase and sale information, and the data
35:09
Speaker 1: will identify taxpayers who failed to disclose their income details correctly.
35:15
Speaker 1: Isn't that a bit scary? That is a bit scary.
35:17
Speaker 1: Just feels like it's getting real serious. Yeah, do you
35:20
Speaker 1: know what I'm gonna repost this because it was a
35:22
Speaker 1: good TikTok. It was like, Hi, tax man, I'm just
35:25
Speaker 1: wondering how much taxio. They're like, oh, we don't know
35:28
Speaker 1: how much tax do you woe? You calculated and tell us?
35:31
Speaker 1: And then you say, oh, mister tax man, so you're
35:33
Speaker 1: saying you don't know how much tax iiO, so can
35:35
Speaker 1: pay whatever I want. They're like, oh, no, we know,
35:37
Speaker 1: we know how much tax you want? Will tell us. Yeah.
35:40
Speaker 3: At what point.
35:41
Speaker 1: Are we going to not have to do our own
35:43
Speaker 1: tax return because it's just going to be automated. M Like,
35:47
Speaker 1: I'll give you access to my bank, mister ATO man,
35:50
Speaker 1: go do my tax for me. I don't want to
35:52
Speaker 1: do it. Can't that become an automated process? Nobody likes
35:55
Speaker 1: tax time? Do you know what?
35:57
Speaker 3: They like getting their refunds.
35:59
Speaker 1: Yes, we just automate that, mister taxman, and we'll be
36:02
Speaker 1: much happier with you.
36:03
Speaker 3: Honestly.
36:04
Speaker 1: The ATO estimates that they are between half a million
36:08
Speaker 1: to one million Australians that have invested in crypto assets.
36:12
Speaker 1: Oh wow, that's a lot of people, a lot of people.
36:14
Speaker 1: That's a lot of people. And do you know what
36:16
Speaker 1: still scares me. Obviously this is just personal opinion, but haha,
36:20
Speaker 1: it's my show. But it just still baffles me that
36:24
Speaker 1: there are so many people willing to invest in crypto
36:28
Speaker 1: but are still too scared of the share market. Right,
36:31
Speaker 1: They're like, oh my gosh, the share market. That's really scary,
36:33
Speaker 1: and it's like crypto's worse. But okay, so I think
36:37
Speaker 1: it's all about education. We've done episodes on crypto, we've
36:40
Speaker 1: done introductions to the share market, go back and look
36:43
Speaker 1: for them. The best way you can do that is
36:45
Speaker 1: actually to just type in on your chosen podcast platform,
36:48
Speaker 1: She's on the Money, and then the topic that you
36:50
Speaker 1: want and will automatically come up with linked episodes. So
36:54
Speaker 1: I think a lot of.
36:54
Speaker 3: People don't know you can do that.
36:56
Speaker 1: Yeah, that's actually you don't have to scroll through everything,
36:58
Speaker 1: my friend. You can just type I few she's on
37:01
Speaker 1: the money crypto and our crypto episodes will come up. There.
37:04
Speaker 3: You go pretty sexy.
37:05
Speaker 1: No one's for the finance pros. But another huge but
37:07
Speaker 1: still emerging industry is the sharing economy. What have they
37:10
Speaker 1: said about this? So, yes, data matching is coming in
37:14
Speaker 1: hot here too, and there is a new statutory obligation
37:18
Speaker 1: on sharing economy platforms to provide information on how many
37:23
Speaker 1: sharing economy participants there are from the first of July
37:26
Speaker 1: twenty twenty three, so if you're confused, Examples quoted by
37:30
Speaker 1: the ATO include services lack ride sourcing, transporting passages for.
37:36
Speaker 3: Affair i e.
37:37
Speaker 1: Buber drivers, renting out a room or house for accommodation,
37:41
Speaker 1: so airbnb hosts are the obvious example. Here. The atier
37:45
Speaker 1: is believed to be particularly concerned about taxpayers claiming the
37:49
Speaker 1: full CGT so Capital Gains Tax main residence exemption when
37:55
Speaker 1: part of their main residence has been rented out through Airbnb,
37:59
Speaker 1: and the law prevail. It's a full CGT exemption where
38:02
Speaker 1: part of the main residents has been used to earn income.
38:06
Speaker 1: So they're like, oh, we see you. We're going to
38:08
Speaker 1: crack down on this. So things like renting out parking spaces,
38:11
Speaker 1: providing skilled services, so you might be like doing web design,
38:15
Speaker 1: graphic design. You might be on like air tasker for example,
38:19
Speaker 1: you might be supplying equipment or tools or completing odd
38:22
Speaker 1: jobs errants, deliveries, or you could be renting out equipment
38:25
Speaker 1: such as tools, musical instruments, sports equipment, or clothing. Oh why,
38:32
Speaker 1: like Jessica Ricci does this right, don't throw her straight
38:36
Speaker 1: onto the bus. But I see, yes, that is a
38:39
Speaker 1: small business. And if you are renting out your wardrobe,
38:42
Speaker 1: it would be a good idea to have a quick
38:43
Speaker 1: chat with your accountant because you might be making bank
38:46
Speaker 1: on that very nice dress that you're renting out. But
38:48
Speaker 1: at the end of the day, that is a business
38:50
Speaker 1: and they are going to want to see whether that
38:53
Speaker 1: is taxable or not. Wow, talk to your accountant, my friend,
38:57
Speaker 1: talk to your accountant. I think this is a really
38:59
Speaker 1: good place to have a little break and absorbit all
39:03
Speaker 1: and come back in two seconds.
39:05
Speaker 3: See you on the flip side, guys.
39:06
Speaker 1: Bye, okay, So now we're onto some tips, if you
39:15
Speaker 1: don't mind, I've got so many.
39:17
Speaker 3: Tax tip.
39:18
Speaker 1: Don't be fraudulent is my number one. That's the number one. Yeah. Yeah,
39:22
Speaker 1: it's actually a very good tip in life. It's really good.
39:25
Speaker 1: I mean it got me in a little bit of
39:26
Speaker 1: hot water a couple of weeks ago on TikTok where
39:29
Speaker 1: I said, oh, this could potentially be fraud when I
39:32
Speaker 1: said something about people earning quantos points on particular credit
39:37
Speaker 1: card transactions. You know what happened, terms and conditions got updated.
39:41
Speaker 1: You can no longer do that feels good to be right.
39:43
Speaker 1: Sometimes you're gonna lie. It's not gonna I was like
39:47
Speaker 1: I told you so bed okay, a little bit spicy.
39:51
Speaker 3: Moving on though, What was your question, my friend?
39:53
Speaker 1: So? What kind of things will help us make this
39:55
Speaker 1: whole process a lot smoother. Remain calm, Remain calm. Come
40:00
Speaker 1: so often getting your tax refund back, it kind of
40:03
Speaker 1: gets held up because people are making really basic mistakes
40:07
Speaker 1: that could be avoided. So like if your name or
40:10
Speaker 1: address has changed, Please make sure you update your ATO
40:13
Speaker 1: info before lodging your return, because if you lodge a
40:16
Speaker 1: return under different details, even by accident, beck, the ato
40:20
Speaker 1: is data matching technology won't be able to match it
40:23
Speaker 1: to your tax file number, and then it will have
40:24
Speaker 1: to go through a longer, lengthy, unmanual process.
40:27
Speaker 3: Not cool.
40:28
Speaker 1: Make sure that your bank details are correct. So all
40:31
Speaker 1: tax refunds are now done by direct deposits, so gone
40:34
Speaker 1: to the days where you actually received like a little
40:36
Speaker 1: check in the mail. You need to make sure that
40:38
Speaker 1: your bank details on your return are correct. Maybe you've
40:41
Speaker 1: changed banks recently and that account is empty. You don't
40:44
Speaker 1: want to not get your money. Beck one out of
40:46
Speaker 1: ten cannot recommend not being paid you spell check, so
40:50
Speaker 1: if you've added an extra letter or accidentally spelled something
40:53
Speaker 1: wrong in a key field, it's going to delay your
40:55
Speaker 1: return significantly because the ATO has to go through and
40:58
Speaker 1: manually match your detail. And as you can imagine, this
41:01
Speaker 1: actually happens a lot. So there are time delays. They're
41:05
Speaker 1: really substantial, and you might be a little bit frustrated,
41:07
Speaker 1: But my friend, that is your fault. Ah. We triple
41:10
Speaker 1: check things in this house. Make sure that you claim
41:12
Speaker 1: all your income as well, including as we mentioned before,
41:16
Speaker 1: those like three Uber shifts that you did last October
41:18
Speaker 1: or that casual shift that you do at a cafe
41:20
Speaker 1: on the weekends in addition to.
41:22
Speaker 3: Your full time job.
41:24
Speaker 1: Not claiming income is something that the ATO has been
41:26
Speaker 1: cracking down hard on for the last few years, especially
41:29
Speaker 1: with the rise of like the gig economy, so like
41:32
Speaker 1: stuff like Uber and AIRBB and social media influencers and
41:35
Speaker 1: stuff like that. Like the social media influencer crackdown was
41:38
Speaker 1: like maybe four or five years ago, and I remember
41:40
Speaker 1: that went wild because, as you guys know, I used
41:43
Speaker 1: to be a financial advisor and the amount of clients
41:46
Speaker 1: I had that were influencers, Like, let's be honest, that
41:48
Speaker 1: was my bread and butter. The amount of people that
41:51
Speaker 1: got audited that year was unfounded. Sure like it wasn't
41:55
Speaker 1: unjust at all, but they were like, hey, you probably
41:58
Speaker 1: should be paying tax on these gifts.
42:00
Speaker 3: And that's why things have changed a little bit in
42:02
Speaker 3: the last few years.
42:03
Speaker 1: See for good reason, for very good reason, because you
42:06
Speaker 1: shouldn't just be getting free stuff and just completely getting
42:09
Speaker 1: away with it, especially if it's your job. Like, if
42:12
Speaker 1: you get a gift, that's very different than being given
42:15
Speaker 1: a product to promote. Right, I don't actually use an accountant,
42:19
Speaker 1: stunning would you suggest that I do?
42:23
Speaker 3: It's totally up to you.
42:25
Speaker 1: So from my perspective, as I said before, if you're
42:29
Speaker 1: just a salaried payg employee, I think you can probably
42:33
Speaker 1: wrap your head around the my tax portal, Like it
42:36
Speaker 1: is not too hard. Beck, I'm assuming you've been doing
42:38
Speaker 1: it yourself for the past few years and it's not
42:41
Speaker 1: something where grab a cup of tea, sit down, Like,
42:45
Speaker 1: don't just try and rush through it. You know what,
42:47
Speaker 1: have a wine if you're going to have a wine,
42:48
Speaker 1: triple check, Like, just make sure all those details are
42:52
Speaker 1: absolutely correct, and you're not a little bit wine happy.
42:54
Speaker 1: Maybe let's cap it one glass of wine or like
42:57
Speaker 1: one per hour. It's like driving, like if you're over
43:00
Speaker 1: the limit, you probably shouldn't be doing your tax. But
43:02
Speaker 1: there's a reason more than seventy five percent of Australians
43:05
Speaker 1: use a tax agent, and that's because tax is not
43:08
Speaker 1: that simple and it can feel really overwhelming. The tax
43:11
Speaker 1: portal over the last few years, though, has really upped
43:14
Speaker 1: its ante. A lot of it is pre filled, a
43:17
Speaker 1: lot of it is automatic. They already have your details,
43:19
Speaker 1: they have your tax phile number, they have all of
43:21
Speaker 1: the information that your employer put into the tax portal.
43:25
Speaker 1: They have everything right, so it's actually much easier than
43:28
Speaker 1: it used to be. And obviously if you don't know
43:31
Speaker 1: exactly what you can claim, it might be worth talking
43:34
Speaker 1: to an accountant because you might be missing out on
43:36
Speaker 1: some pretty sick returns. But if you get your return wrong,
43:40
Speaker 1: you could also be in for some hefty fines. So honestly,
43:43
Speaker 1: it does pack to talk to someone if you're worried
43:45
Speaker 1: about it. But more often than not, I find, especially
43:49
Speaker 1: having had what now five years experience with the Sheese
43:52
Speaker 1: on the Money community. I think that a lot of
43:55
Speaker 1: people if you sit down and have a good look
43:57
Speaker 1: at it, you can pretty much do it yourself. The
44:01
Speaker 1: only way to get definitive tax return advice, though, is
44:04
Speaker 1: from a registered professional. So in an experienced accountant, they're
44:07
Speaker 1: always going to be able to highlight to you what
44:09
Speaker 1: you can and you can't claim on and what you
44:11
Speaker 1: can be doing in the next financial year to really
44:13
Speaker 1: ensure that you're maximizing the amount that you can claim back.
44:16
Speaker 1: A good accountant is obviously an investment that can be
44:19
Speaker 1: worth making, and you'll often find that they'll highlight things
44:22
Speaker 1: that maybe you didn't know you could claim. And the
44:24
Speaker 1: best part is that seeing an accountant is a tax
44:26
Speaker 1: deductible cost to You could also just call the ATO
44:30
Speaker 1: and ask questions. You could ask questions in our Facebook
44:33
Speaker 1: group about what you're doing and how other people are
44:35
Speaker 1: claiming it. The ATO website is a really, really good resource,
44:39
Speaker 1: and it's in very simple terms like type into the
44:42
Speaker 1: ATO search bar, can I claim x y z? Or
44:45
Speaker 1: how do I claim xyz? And there will be tutorials
44:48
Speaker 1: on it, Like I promise these things. They feel overwhelming,
44:52
Speaker 1: but if you don't want to spend the money, on
44:54
Speaker 1: an accountant, like my friend, you're probably smart enough to
44:56
Speaker 1: do it yourself. Like genuinely, I think it's worth a
44:58
Speaker 1: crack like you could probably chime in here.
45:01
Speaker 3: Do you find it challenging?
45:03
Speaker 1: I don't, but now knowing what I know about, for example,
45:08
Speaker 1: not being able to just claim the three hundred dollars
45:11
Speaker 1: laundry thing without any tax receipts, that makes it a
45:15
Speaker 1: little bit more difficult. I know how to use it.
45:17
Speaker 1: That's called the my tax portal, isn't it. Yeah, it
45:19
Speaker 1: is on the MyGov website. It's not too hard to
45:23
Speaker 1: wrap your head around. And if it feels overwhelming, it's
45:25
Speaker 1: probably because you've never done it before, and everything that
45:27
Speaker 1: we've never done before can feel really overwhelming. I would
45:31
Speaker 1: then also just say look if it's feeling a bit
45:33
Speaker 1: more complicated, like let's look at me. For example, Like
45:37
Speaker 1: you guys know, I have shees on the Money. I
45:39
Speaker 1: own a mortgage broking company's Ella money. I know, do
45:42
Speaker 1: a million other things which I actually have another business
45:45
Speaker 1: that you know. If you see me on Instagram doing
45:47
Speaker 1: speaking events, that's not through shees on the Money. That's
45:50
Speaker 1: through another business. I own a property. My husband and
45:53
Speaker 1: I have recently bought an investment property. I do see
45:56
Speaker 1: an accountant because my tax affairs are a bit more
45:59
Speaker 1: complicated than the average bears now and I'm so grateful
46:02
Speaker 1: to be in that position. And my accountant's not that
46:04
Speaker 1: grateful to be in that position. He's just always like, Victoria,
46:06
Speaker 1: what have you done this year? Like, ah, I'm so
46:09
Speaker 1: sick of dealing with you. By the way, love you, Louis.
46:11
Speaker 1: Please keep listening to my podcast. I really appreciate it.
46:14
Speaker 1: But for people like me, seeing an accountant just makes
46:17
Speaker 1: sense because my tax affairs are complicated and there's a
46:20
Speaker 1: few businesses in the mix, and there's a few different things.
46:22
Speaker 1: But as I said, if you're just a salary payg
46:25
Speaker 1: employer with like one stream of income, it's usually pretty
46:28
Speaker 1: easy to work out. And if you've been keeping track
46:31
Speaker 1: of your expenses over the year and like taking photos
46:34
Speaker 1: of things, or maybe you still operate on the shoebox method,
46:37
Speaker 1: you're chucking it in a shoe box under your bed,
46:39
Speaker 1: like it can be quite simple. Don't feel like it's
46:43
Speaker 1: really overwhelming. And I mean, accountants, I adore you. I
46:46
Speaker 1: think you do a really, really good job, but at
46:49
Speaker 1: this point in time, I also think it's really worth
46:52
Speaker 1: empowering people to give it a crack themselves, because one
46:55
Speaker 1: thing that I don't think people understand about accountants is
46:58
Speaker 1: as much as they are fantastic and they are the professionals,
47:01
Speaker 1: and they are going to give you really good advice.
47:03
Speaker 1: At the end of the day, Beck, you're the one
47:06
Speaker 1: that signs your tax return. So if you still are
47:09
Speaker 1: claiming something that you maybe shouldn't be claiming just because
47:12
Speaker 1: you told your accountant that you did it, they're going
47:15
Speaker 1: to go is everything true and correct? Beck, you sign this,
47:19
Speaker 1: It's not on them. If the ATO comes back and says, hey, Beck,
47:22
Speaker 1: we need to audit, you know it's not going to
47:24
Speaker 1: get out.
47:25
Speaker 3: Of jail free card.
47:26
Speaker 1: Because you've used an accountant, everything that you say and
47:29
Speaker 1: do can and will be used against you individually, if
47:32
Speaker 1: that makes sense. So just by using an accountant doesn't
47:35
Speaker 1: take the responsibility away. And I think that that's a
47:38
Speaker 1: very big misconception where you assume, Okay, well I'm not
47:42
Speaker 1: that good at it and I do want to claim
47:43
Speaker 1: all those naughty things. I'm going to go to the
47:45
Speaker 1: accountant and say I did do those things. At the
47:48
Speaker 1: end of the day, you're the one signing off on it,
47:49
Speaker 1: so if the ATO come back, it's on you. It's
47:52
Speaker 1: not on your accountant, because they're going to turn around
47:54
Speaker 1: and be like, well, everything that Beck told us, she
47:56
Speaker 1: told us that was true and correct, and we just
47:58
Speaker 1: processed it based on the information she provided us with. Yeah,
48:02
Speaker 1: they've done what they needed to do. They're not a
48:04
Speaker 1: safety blanket. They can be a safety blanket for like
48:07
Speaker 1: getting good advice and making sure that oh can I
48:10
Speaker 1: claim this?
48:11
Speaker 3: You might go, oh, well, have you got the receipts?
48:13
Speaker 4: Yeah?
48:13
Speaker 1: I do, Oh of course you can back. It might
48:16
Speaker 1: give you that peace of mind. But I think reminding
48:18
Speaker 1: you that they're not the get out of jail free
48:21
Speaker 1: card might be another reason why you go, you know what,
48:24
Speaker 1: You're right, V. I'll just do it myself. And I mean,
48:26
Speaker 1: at the end of the day, just downloading my tax
48:28
Speaker 1: portal and putting all your information in and then not
48:31
Speaker 1: hitting submit. You can go see an accountant after that.
48:33
Speaker 1: Why don't you give it a crack, Give it a crack,
48:35
Speaker 1: give it a crack, see what happens. If it is overwhelming,
48:38
Speaker 1: then maybe go see someone. But if it isn't, you
48:42
Speaker 1: tried your best. It worked out. Yeah, that's actually a
48:45
Speaker 1: really really good way to kind of explain it. It's
48:47
Speaker 1: not so overwhelming. Just give it a go. Just give
48:49
Speaker 1: it a go, and if you're really overwhelmed, don't hit submit,
48:52
Speaker 1: go talk to an accountant. Exactly right, So that's my
48:55
Speaker 1: tax portal. Yeah, you don't need to download any fancy
48:58
Speaker 1: software or anything and obvious. As I said before, the
49:01
Speaker 1: ATO can basically pre fiell most information from your employer
49:05
Speaker 1: and from banks and from government agencies and health funds
49:08
Speaker 1: and third parties by late July. So that's also a
49:12
Speaker 1: very common misconception that on the thirtieth of June everything
49:15
Speaker 1: will be there. Now it was due on the thirtieth
49:17
Speaker 1: of June, maybe it hasn't been processed or like input yet.
49:21
Speaker 1: So usually I would recommend, if you're doing your own tax,
49:25
Speaker 1: wait until closer to the end of July, because then
49:27
Speaker 1: you have a lot more certainty that everything that you
49:30
Speaker 1: need to process your tax is already pre filled, makes
49:33
Speaker 1: your life easier, makes the process go a lot quicker.
49:36
Speaker 1: The ATO use a whole heap of range of systems
49:38
Speaker 1: and controls to protect your information. So it's all good
49:41
Speaker 1: if you're you know, putting your tax pile number and
49:44
Speaker 1: stuff in. Make sure you are going to the legit website.
49:47
Speaker 1: There are a few websites right and I'm not going
49:49
Speaker 1: to name names, but if you type in my tax portal,
49:53
Speaker 1: double check please that it is the government website, because
49:56
Speaker 1: there are a lot of companies that kind of levery
50:00
Speaker 1: off that and call it like the my Tax log
50:02
Speaker 1: in or something, and then they're actually a company that
50:06
Speaker 1: do your tax return for you and they'll charge you
50:08
Speaker 1: for that, and you just have clicked on the wrong link.
50:10
Speaker 1: So just make sure it's the government one before we
50:12
Speaker 1: go and try and doy. Obviously, it's available twenty four hours,
50:15
Speaker 1: seven days a week, so if Saturday night at three
50:18
Speaker 1: am you can't sleep in your wander do tax.
50:20
Speaker 3: What a time to be alive.
50:22
Speaker 1: You're going to get your refund faster as well, so
50:25
Speaker 1: it's faster if it doesn't go through an accountant. Usually
50:28
Speaker 1: you'll get it back within two weeks or fourteen business days.
50:32
Speaker 1: You can then upload records that you keep in the
50:34
Speaker 1: my Deductions tool to pre fill your tax return, which
50:38
Speaker 1: is kind of sexy. Obviously, it's available for all individuals
50:41
Speaker 1: and soul traders who want to lodge their own tax
50:43
Speaker 1: return and you'll receive a very very nice lodgment receipt
50:48
Speaker 1: by email to confirm that they have your lodgment once
50:51
Speaker 1: it's in and you can kind of track.
50:52
Speaker 3: It from there.
50:53
Speaker 1: Awesome. I love that.
50:55
Speaker 3: I think I love that too.
50:56
Speaker 1: But I'm really over talking about tax and I'm pretty
50:59
Speaker 1: sure you're overhearing about it. Yes, I am up to Pussy's.
51:03
Speaker 3: Vo Gina, what with that? I think we're going to go, guys.
51:07
Speaker 3: We'll see you on Friday.
51:08
Speaker 1: Bye, guys.
51:16
Speaker 4: The advice shared on She's on the Money is general
51:18
Speaker 4: in nature and does not consider your individual circumstances. She's
51:22
Speaker 4: on the Money exists purely for educational purposes and should
51:26
Speaker 4: not be relied upon to make an investment or financial decision.
51:29
Speaker 3: If you do choose to buy a financial product.
51:31
Speaker 4: Read the PDS TMD and obtain appropriate financial advice tailored
51:35
Speaker 4: towards your needs. Victoria Divine and She's on the Money
51:39
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