Latest / Beyond Sovereignty / #048 - Labor Is Destroying Aussies' Wealth, How to Protect Your Profits

Transcript

#048 - Labor Is Destroying Aussies' Wealth, How to Protect Your Profits · Beyond Sovereignty

• 0:00
  Company tax, payroll tax, GST, then tax
• 0:03
  on whatever is left. And under Labor, every
• 0:07
  budget adds another layer. Most people believe the way to protect
• 0:11
  their profits is to earn more, or find a better accountant.
• 0:15
  But the reality is the profit was never the
• 0:18
  problem. The structure it lands in is.
• 0:23
  And there are four moves that change where it lands. Over
• 0:27
  the past 20 years, I've helped hundreds of entrepreneurs set up
• 0:30
  and run not-for-profit structures legally and
• 0:33
  compliantly. So in this episode, I'm going
• 0:37
  to be stepping you through what's changed under this government
• 0:40
  and the four moves that change where your profits land. What's
• 0:45
  the current government doing that's making it harder to build wealth
• 0:48
  right now? I have a very different opinion on this. First
• 0:52
  of all, why are you even waiting for the
• 0:56
  government to give you your rules? Because I personally believe
• 1:00
  that the government isn't making it harder. And if you're relying on
• 1:03
  them for your wealth strategy, then you're
• 1:07
  already 20 steps behind. I believe that the most important
• 1:10
  thing that you can do is right or left, Labor or
• 1:14
  Liberal, mate, they're all on the same team. You
• 1:17
  can't kidding yourself to think that they are separate. So
• 1:21
  I hope that triggers you so that you can go beyond your current programs
• 1:25
  of what you believe in because our government is
• 1:29
  a government. They're all parties, right? Even
• 1:33
  the word party. Like, it's
• 1:36
  a bit effed up, okay? So, what
• 1:40
  I would love you to consider is that the government is
• 1:43
  literally like media. It's like,
• 1:47
  you know, gladiators. It's like this way
• 1:51
  of keeping you programmed so that you don't look beyond
• 1:54
  that. So, you just have another pie, drink another beer, watch another
• 1:58
  footy match and you actually never learn what is really
• 2:01
  out there to support and protect you. Because if
• 2:05
  you want to stay an income earner and lose a lot of your
• 2:09
  dollars to income, to payroll tax,
• 2:13
  to GST, to all of these crappy capital
• 2:17
  gains tax and stamp duty and all of the things then Mate, go ahead. Go
• 2:21
  ahead. Do exactly what your accountant says. Do exactly what your lawyer says. But
• 2:24
  if you want to do what the government does, and if you want to go with another
• 2:27
  area of the government called the ACNC, also
• 2:31
  supported by the ATO, or no matter what country you're in, also
• 2:34
  supported by your federal taxation body, then there is other
• 2:38
  avenues for you. but nobody promotes them. Why? Because
• 2:42
  tax is the biggest business in every single country. So all
• 2:45
  I can say is you're freaking welcome for finding out this information because
• 2:49
  there is the not-for-profit structures that can have
• 2:53
  you run your mission and be fully aligned
• 2:57
  in your purpose and live your best life ever and not wait until
• 3:00
  this time where you finally saved enough money
• 3:03
  to do the things that you want to do. You can actually do it all now. And that's what
• 3:07
  our clients love the most. They're honestly come to us, they're like, oh,
• 3:10
  I've been waiting, you know, until I'm 50 or until I've
• 3:14
  got $3 million or until I've got this and that all
• 3:17
  organized so that I can actually do the things that I really want to do. Whilst
• 3:21
  in the meantime, they're literally in hustle mode and
• 3:24
  their soul is being sucked out of them because they
• 3:27
  are not living their full purpose. So, I
• 3:31
  believe that the government is not making it harder. It's the same that it's always been. It's
• 3:34
  just to keep you mesmerized in the bullshit that
• 3:37
  is going on in the world. So, if you actually want
• 3:41
  to create a mission and live a purpose and make a massive impact on
• 3:44
  humanity or your family or a community, well, don't rely on
• 3:48
  the government's rules and regulations of
• 3:51
  normal ways of doing business. Look for some alternative
• 3:55
  because it absolutely exists. You want to know which changes my
• 3:59
  clients are most worried about with the government and with the legislation that comes out?
• 4:03
  Sweet FA. Because they have got their structures set
• 4:06
  up so that those legislations, the new legislation that
• 4:09
  comes out, is irrelevant. It's irrelevant. It
• 4:13
  only exists for my clients from their past dealings,
• 4:16
  things that they used to have set up for their businesses or their trusts or
• 4:20
  things like that. Whereas when we create not-for-profit structures moving
• 4:23
  forward, the legislations, the changes that you're talking about and that you're concerned about,
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  they don't hit the sides of a not-for-profit because these are the oldest entities
• 4:31
  in the Commonwealth. Not Australia, because they are
• 4:34
  older than Australia. If you look into the UK,
• 4:38
  the CLG, the PMA, they have been around for longer than Australia.
• 4:43
  So, what are my clients worried about? My clients have
• 4:46
  issues about, I want to get more money from the government so that I can live my
• 4:49
  mission more. I want to get more grants. How
• 4:53
  do I help more people? That's what my clients are
• 4:56
  worried about, and that's what I hope You have problems
• 5:00
  with moving forward as well, rather than worrying about having
• 5:03
  to make all the money yourself and funding all of your hopes
• 5:08
  and dreams yourself. Because that's what government grants and corporate funding
• 5:11
  is for. You don't have to do everything yourself, that's what normal people do and look
• 5:14
  how miserable they are. Don't be like a freaking normal person, be
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  like, be better mate, be better. Now, I'm
• 5:22
  going to walk you through where every dollar of
• 5:25
  profit goes before it reaches you. Now, as
• 5:29
  I've mentioned in previous episodes, I had three multi-million dollar salons,
• 5:33
  hairdressing salons in the middle of Sydney, very successful salons. for
• 5:37
  15 years. And I want to walk you through where profit actually
• 5:41
  goes before it reaches the business owner. Because I had multi-million dollar
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  businesses. Was I a millionaire? Hell no. Hell
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  effity no. So where did the funds actually
• 5:52
  go? Obviously they go to tax, super, workers' compensation,
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  insurance, wages. Oh my gosh, my wage bill was
• 5:59
  like one of the lowest in our organisation, and it was still 43%, right?
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  So out of every dollar, and then we had royalties
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  as well, 12% in royalties. So with my
• 6:13
  businesses, they were very successful, and we still only had a
• 6:16
  profit margin of out of every dollar 12 to
• 6:20
  22 percent depending on which salon I was talking about right
• 6:24
  and if you like a blood that's pretty good Is it is it really that
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  good? Is it really that good? I forgot rent I forgot all
• 6:31
  of the other things expenses stock all of those crazy
• 6:35
  bullshit library, so With every dollar
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  you're getting like 12 percent maybe 25 percent back Why
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  do we do business again? Remind me, why do
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  we do normal businesses? I mean, if I had the chance to do it again,
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  I definitely would not do that. So many of you think being angry
• 6:55
  at labor is a strategy. Well, all that is
• 6:58
  creating is a loss of energy within you.
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  Well, I mean, besides Labor and besides the government, they win when you
• 7:05
  are angry at a political party. They freaking love it because
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  you are giving your energy to that and it's distracting you.
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  And that's what the government is. It's a distraction from what else is actually
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  there. And if you go beyond your anger
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  and actually look at what it is
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  that you are being distracted from, your mission, your purpose,
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  what it is that you actually wish that you could create massive change on in this world,
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  then you are starting to create sovereignty and freedom within
• 7:34
  your mind. And that is what I hope most for you, that you actually
• 7:38
  have freedom internally because nothing else is more liberating.
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  and that is what the government doesn't want you to do, and that's why they want you to be
• 7:45
  angry at Labor, at Liberal, or whatever. Who the hell? It
• 7:49
  doesn't matter. If you want to reclaim your power, then
• 7:53
  don't get angry at people. See how you can make the change that you
• 7:56
  actually want to change, because I can guarantee you that you are
• 7:59
  just angry because you want them to be doing something else. You wish
• 8:02
  it was another way. But guess what? Nobody's coming to save us. The government
• 8:06
  is not coming to save us. I'm 45. Come on, guys. Have
• 8:10
  we ever seen a political party where we're like, yes, this
• 8:14
  is the best for everybody? No, because it
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  doesn't exist, right? what we actually need to
• 8:20
  realise is that we've got to stop relying on people outside
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  of us to come and provide the change that
• 8:27
  we wish to see in the world. It's up to you. It's up to me. It's up to all of
• 8:30
  my clients, and that's what we work on. Rather than being angry
• 8:34
  as your strategy, why don't you think about what
• 8:37
  it is that you would really like systemic change for? What
• 8:40
  is it that you want to change within whether that be in politics,
• 8:45
  whether that be in the schooling system, hospital system, agriculture, environment,
• 8:50
  culture, what is it that you wish was massive
• 8:54
  changes in the world? And I can guarantee you that's probably why
• 8:57
  you're angry at the government. and I can guarantee you that's probably your mission, that's
• 9:00
  probably your purpose, it's probably what you should be doing in this world, but
• 9:04
  you're in hustle mode being angry at people so you haven't moved forward. Not
• 9:07
  sorry. What are the four moves in order
• 9:11
  that you could literally do today that are going to change your
• 9:14
  life, but not only your life, your family, your community, and
• 9:19
  potentially humanity and the environment, okay? So, these
• 9:22
  are the four things. Structure. Structure is
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  everything. So, what I'm talking about when I'm talking about structure is
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  having the right structure for your entities, for your assets. The
• 9:33
  right structure to hold what it is that you want to create. Because so
• 9:37
  many people are like, oh, well, how can you be doing that? How can you legally
• 9:41
  set up not-for-profits? Well tell me this, are
• 9:45
  you in service to other people? Does your service or
• 9:48
  product help other people? So why are you in normal PTYLTD when
• 9:52
  you could be helping more people, being supported and paid
• 9:55
  from the government to get your service, get your product out
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  there to more people? Because mate, that's a charity. That is literally a
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  charity. I can guarantee that you probably want
• 10:06
  to service or provide more of your products to more people. And
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  if you had all of your needs met, if you were financially backed
• 10:14
  with your dreams and your mission and your purpose, then
• 10:17
  there's probably more things that you would like to help other people with. If
• 10:21
  your family and you are all taken care of, then what would
• 10:24
  you probably want to do? Because I know that most people watching this
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  are good, kind-hearted people, and they actually want
• 10:31
  to help more people. So think big, don't be limited by
• 10:34
  yourself and your programming because there is billions of dollars
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  out there available for funding your purpose and your mission. I
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  went on a tangent, sorry about that. But number one was structure. Number
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  two is not for profit. And that's going to trigger so
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  many people already, but I want to make a profit. Do you? Tell
• 10:52
  me what your version of profit is. Profiteering means
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  that you're going to take all of those monies and you're going to use
• 10:59
  it for yourself. And you're like, yep, that's exactly what I'm going to do. Is
• 11:02
  it really though? Or are you going to support your
• 11:06
  family? Are you going to buy more assets? And then
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  when you've got all of your needs met for you and your family, are you going to support a
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  community? Or are you going to help the environment? Or are you going to help
• 11:15
  animals? Or are you going to help other people? Because
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  I can guarantee you that if you're watching this podcast, you're a kind-hearted person
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  and you want to do really great things for other people or the environment or
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  something else outside of yourself. And that's why you can
• 11:31
  be a not-for-profit. because you're a freaking legend who wants to help
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  humanity and the world. So don't put yourself in a profitable vehicle
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  that is going to be stripping all your money away through taxes. Like
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  I said before, my salons, we would make 12 to
• 11:47
  25% profit, sometimes 35%, but like, oh yeah, sometimes 35%. But
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  like, that's shit. Like it's amazing in our industry when
• 11:54
  you've got multi-million dollar business, it's freaking awesome. And, What
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  if it was 100%? What if it was 100%? All
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  of the other shit that we lost money to, the government,
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  we could have been helping more people. We were already actively
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  trying to help women that were recovering from domestic
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  violence, all different kinds of people in our local community, homeless
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  people. We had all of these initiatives within my salons to help more
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  people because once you've made all the money, and you've got a nice fancy
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  car and you've got a beautiful house and you're traveling the world and you're living
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  your best life ever, then it comes to a point where you're like, I'm freaking empty. All
• 12:30
  of this money and all of these things aren't filling my voids. I
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  want to help more people. So that's why number two is
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  not for profit. because you actually don't want profit,
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  you actually want to help more people, that's it. Now number three
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  is mission. Now mission is really important and
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  people like pump this up so much, like mission and purpose
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  and blah, blah, blah. Well, mission doesn't need
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  to be as, like you don't need to get stuck on this because a lot of people are like, oh
• 12:58
  my gosh, I don't know my mission, I don't know my purpose. Don't get caught up on it because in
• 13:01
  the not-for-profit space, we keep it broad so that you don't have
• 13:04
  to keep it hyper-specific in detail. Let me tell you, there's
• 13:08
  12 charitable causes, right? These are a couple of them. Education,
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  health, social impact and social welfare, culture, religion,
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  environment. They're just some of the
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  areas that you can have your charity be around. And
• 13:24
  you can have multiple of those things for anything that you want to create now or
• 13:27
  in the future through your organisation. So, your mission can
• 13:31
  be health, education, culture, environment, social
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  impact and social welfare. Like, cool. That's all it needs
• 13:38
  to be about. It doesn't need to be about the hyper-specific details of
• 13:41
  a business or a project that you're working on. That comes later.
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  So, don't get caught up in the purpose. You don't have to
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  have it all figured out now. And a charity can evolve with you over
• 13:52
  time. So, your mission can change. That's the beauty of
• 13:55
  it. So, that's why number three is mission. Now number four is
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  succession. Succession! Everybody's talking
• 14:02
  about generational wealth but nobody actually has a vehicle to put generational
• 14:06
  wealth into. Succession means that your charitable
• 14:10
  organisation can have your children or
• 14:13
  the people that you want to pass it on to be written into your documents. So
• 14:17
  therefore, your organisation and all of the assets that
• 14:21
  your organisation has invested in or has
• 14:24
  purchased can literally be passed on to the next succession
• 14:28
  of directors who are going to take over. No, it
• 14:31
  doesn't go to them personally. own nothing. Direct
• 14:36
  everything. That is the point. So you
• 14:39
  want you and your directors to never own anything,
• 14:43
  never put anything in your own personal name. Why? Because that
• 14:46
  creates income tax. Why would you do that? Why would you do that? Not
• 14:49
  fun. Not fun. Let's just like F that stuff off. You
• 14:53
  don't need it. Have your organisations own
• 14:56
  and you control everything for the
• 15:00
  benefit of your community, which is also you, for your community
• 15:03
  and for the mission and the purpose that you're here to do. So
• 15:07
  they are the four moves that will literally change
• 15:11
  your life. Now, you might be wondering what is the catch with a not-for-profit? Well,
• 15:15
  this is something that I love and my team, we love helping
• 15:19
  our clients with. So, if you have something comes up and you're like,
• 15:22
  oh, I can't do this, I can't move forward, oh, you know, this doesn't feel right,
• 15:26
  but you know that you are here for bigger things, then you should reach out
• 15:30
  to me and my team. The link is below or in our
• 15:33
  bio. Click the link, book a call with our team, and
• 15:36
  we will help you figure out how to get from where you are right now to
• 15:40
  exactly where you want to be. Well, probably way beyond
• 15:44
  where you want to be as well. Now, you're probably wondering what's the catch of
• 15:47
  a not-for-profit. Well, it means that you own nothing and you direct everything,
• 15:51
  which can sound scary to people because they're like, I want to own everything. What
• 15:54
  we have to do is release our egos and allow our entities to own everything on
• 15:58
  our behalf so that we can actually control everything and
• 16:01
  everybody benefits from it. Now, some people are like, oh, well, that's
• 16:05
  dodgy. Oh, really? Because that seems to be what every single government, political
• 16:08
  party, church, all these organisations in Australia are doing, but
• 16:11
  normal people just don't do. So think of a new way. Think
• 16:15
  that maybe our programming is the thing that is keeping us limited and
• 16:19
  preventing us from living how the corporations live, which
• 16:22
  is rich and enjoying life. If I was starting my
• 16:25
  salons again under this new government, do you know how different I
• 16:29
  would set everything up? Oh my gosh. First of
• 16:32
  all, I'd set it up as a charity, as CLGLTD, and then
• 16:35
  I would also set up a PMA for our community events and
• 16:39
  service work that we were going to do. I would have everything set up completely different.
• 16:44
  What would be the purpose of this? It means that every dollar that
• 16:47
  comes into us, we wouldn't be losing 30 to 70% to
• 16:51
  taxes. So that means there probably wouldn't be, well, I wouldn't have
• 16:54
  any income tax. There wouldn't be company tax and
• 16:57
  a lot of BASAs, a lot of other things that are normal regulations for
• 17:02
  a PTY LTD. or a trust-run business. Instead,
• 17:05
  I would have everything set up in my CLG LTD and also through my
• 17:09
  PMA, which means that funds are going into the organisation
• 17:13
  and we're literally, like, with every dollar that comes in, we'd be
• 17:16
  saving 30 to 70%. So, we'd be millionaires, but
• 17:20
  our organisations would be millionaires and we'd have way more money to be
• 17:24
  able to support more people. Why aren't you doing it? So payroll
• 17:27
  tax, company tax, labor, liberal, all
• 17:31
  of these things are not the issue, guys. It's the structure that
• 17:35
  you've got. So the best thing that you can do moving forward
• 17:38
  is dive deeper. If you go below, you will find my webinar
• 17:42
  and PDFs. Jump in, learn more. It's going to
• 17:45
  help you. And thank you so much for joining me on this episode.
• 17:49
  I am so grateful that you've spent your time with me.
• 17:52
  Thank you so much. I hope it really helps you and your family and