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Let's Simplify Tax Time! · She's On The Money

0:00
Speaker 1: Hello.
0:01
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the Order,
0:05
Speaker 2: Kernie Whoalbury and a waddery woman. And before we get
0:08
Speaker 2: started on She's on the Money podcast, I would like
0:11
Speaker 2: to acknowledge the traditional custodians of the land of which
0:14
Speaker 2: this podcast is recorded on a wondery country, acknowledging the elders,
0:19
Speaker 2: the ancestors and the next generation coming through as this
0:23
Speaker 2: podcast is about connecting, empowering, knowledge sharing and the storytelling
0:28
Speaker 2: of you to make a difference for today and lasting
0:31
Speaker 2: impact for tomorrow.
0:33
Speaker 1: Let's get into it.
0:34
Speaker 3: She's on the Money, She's on the Money.
0:57
Speaker 4: Hello, and welcome to She's on the Money, the podcast
1:01
Speaker 4: for millennials who want financial freedom. My name is Georgia King,
1:05
Speaker 4: and joining me as she does each and every Wednesday,
1:07
Speaker 4: is Victoria to Fine V. How are we?
1:09
Speaker 5: I'm well, I just had one of those Listerine pocket
1:12
Speaker 5: pack fresh strips.
1:13
Speaker 1: When was the last time you had one of those?
1:14
Speaker 4: So retro I think in primary school. Man has craven
1:18
Speaker 4: that fresh breath feeling.
1:19
Speaker 5: I carry them everywhere I go And we were just
1:22
Speaker 5: talking and I was like, when's the last time you
1:23
Speaker 5: had one of these and you were like, absolutely never
1:25
Speaker 5: because they are outdated. But they're delicious, underrated, they're not delicious.
1:30
Speaker 5: But if you want fresh breath in an instant Listerine
1:32
Speaker 5: pocket pack, going to get your sponsor us.
1:35
Speaker 1: I reckon they should for a three dollar product.
1:38
Speaker 4: They pack a lot of much not bad already, guys.
1:41
Speaker 4: The last financial year has been a difficult one for many,
1:44
Speaker 4: with significant changes in working conditions due to the ongoing pandemic,
1:49
Speaker 4: and with the end of financial year looming, many Australians
1:52
Speaker 4: are hoping for a bit of relief and wondering if
1:54
Speaker 4: this might come in the form of a bigger tax
1:57
Speaker 4: refund this year.
1:58
Speaker 1: Oh very sexy. Today on the show Jojah King, I
2:01
Speaker 1: am going to take you through a number of things.
2:03
Speaker 5: Let's list them off. We are going to run through
2:05
Speaker 5: what you as an individual need to prepare for tax time.
2:09
Speaker 5: Very exciting. We're going to talk the tax offset. We're
2:11
Speaker 5: going to talk about what you can claim and what
2:13
Speaker 5: you can't claim. We're going to talk about what you
2:14
Speaker 5: need to look out for and where you can get
2:16
Speaker 5: some more information. We're going to take you through everything
2:18
Speaker 5: you need to know when it comes to your investments.
2:21
Speaker 5: When you need to get an accountant, and we're obviously
2:24
Speaker 5: Jojia King also going to help you feel empowered about
2:26
Speaker 5: this process because it can be so overwhelming.
2:28
Speaker 4: Absolutely it can. Before we go anywhere, Statskills entering the chat.
2:33
Speaker 1: Hello, stats girl, welcome to the show.
2:35
Speaker 4: Did you know Vikidi you probably did that around fourteen
2:39
Speaker 4: million people lodge a tax return each year in Australia.
2:42
Speaker 1: I mean that makes sense. Thank you for that stat girl.
2:46
Speaker 4: Of those who receive a refund, about two thirds on average,
2:49
Speaker 4: they receive just over four thousand dollars each. That's so
2:52
Speaker 4: much money, resulting in a collective refund of more than
2:56
Speaker 4: three billion. But some tax cuts have been in clemented
3:00
Speaker 4: for middle and low income earners over the course of
3:02
Speaker 4: the pandemic. The perini, the pennine as you are really pushing, Aha,
3:08
Speaker 4: who gets it and how does it work?
3:09
Speaker 1: The pannini the pannini. The panini is a thing. We're
3:12
Speaker 1: making it a thing.
3:13
Speaker 4: I don't think it's caught on.
3:14
Speaker 5: Justice only caught on with me and everybody I've said
3:17
Speaker 5: it too, is like you're a loser.
3:19
Speaker 1: Sit down.
3:20
Speaker 5: Yes, So the Australian government created this tax offset a
3:23
Speaker 5: few years ago to boost the incomes of low and
3:24
Speaker 5: middle income Australians. The offset is still around this year,
3:27
Speaker 5: money Win, meaning that millions of eligible tax payers across
3:30
Speaker 5: the country are going to receive anywhere between two hundred
3:33
Speaker 5: and fifty five and one thousand and eighty dollars as
3:35
Speaker 5: an offset against their taxable income for this year, which is.
3:39
Speaker 1: Kind of helpful.
3:39
Speaker 5: I'm glad they've kept it around, especially after the past
3:42
Speaker 5: few years that were and then for many this will
3:44
Speaker 5: then flow into a larger tax refund that they were
3:47
Speaker 5: probably already expecting. The offset amount really depends on how
3:50
Speaker 5: much you already earn. For example, you need to earn
3:53
Speaker 5: less than one hundred and twenty six thousand dollars to
3:55
Speaker 5: actually qualify for this, and you don't actually have to
3:58
Speaker 5: do anything in particular to receive it, just have to
4:00
Speaker 5: earn under that amount. It will automatically be calculated as
4:03
Speaker 5: part of your tax return when you do it. So Gee,
4:05
Speaker 5: the sooner the better when it comes to doing this,
4:07
Speaker 5: didn't know that was in place?
4:08
Speaker 1: Money when?
4:10
Speaker 4: What are some basic things I need to remember when
4:12
Speaker 4: it comes to doing my tax return.
4:14
Speaker 5: That one, it is important to actually do your tax
4:16
Speaker 5: return if you've had your head in the sand for
4:18
Speaker 5: a few years and have heard.
4:19
Speaker 1: This recently because people like Victoria.
4:21
Speaker 5: It's just so hard, And now it's overwhelming because it's
4:24
Speaker 5: been five or six years and I haven't done a
4:25
Speaker 5: tax refund, which actually does happen.
4:28
Speaker 1: It's okay. You can see an accountant, which is exactly
4:30
Speaker 1: what I would recommend you do, and start getting that
4:33
Speaker 1: ball underway. You can still submit them, there's just a
4:35
Speaker 1: bit of a different process to follow, and the sooner
4:38
Speaker 1: you're on it, the sooner you're going to feel less
4:40
Speaker 1: anxious about that process, like, just get it done.
4:43
Speaker 5: Just get it done, and very likely it's not going
4:46
Speaker 5: to be nearly as overwhelming as you think it's going
4:48
Speaker 5: to be because you're probably going, oh my gosh, I'm
4:51
Speaker 5: going to be fined and I'm going to do this,
4:52
Speaker 5: and I'm going to do that.
4:53
Speaker 1: But the refund often ends up offsetting how much the
4:56
Speaker 1: penalties are, and if you've got a good accountant, they're
4:59
Speaker 1: often a able to be like, look, gee really didn't
5:01
Speaker 1: know what she was doing. Can we wipe this and
5:03
Speaker 1: have a conversation and just get an accountant on your team,
5:07
Speaker 1: because that's an anxiety you don't need to live with
5:10
Speaker 1: back onto actually what you need to do when it
5:12
Speaker 1: comes to your text return this year. Often getting your
5:14
Speaker 1: refund back is held up a bit because people are
5:17
Speaker 1: making really basic mistakes. G it's not because the ATO
5:20
Speaker 1: are taking their time. A lot of this, as I've
5:22
Speaker 1: said before, in the POD is data fed and if
5:24
Speaker 1: the data isn't crystal clean and perfect, it needs to
5:27
Speaker 1: go through a manual process, and that's the manual process
5:29
Speaker 1: that takes a bit longer. So if your name or
5:32
Speaker 1: address has changed, make sure that you update your ATO information.
5:35
Speaker 5: Before lodging a return. If you're lodging your return under
5:38
Speaker 5: different details, the ato's data matching technology isn't able to
5:41
Speaker 5: match it to your TFN, so if they can't match
5:44
Speaker 5: your tax file number, a manual person has to get involved.
5:46
Speaker 5: And as you can imagine, when that happens at scale,
5:49
Speaker 5: as you said before, fourteen million people submitting their tax returns,
5:54
Speaker 5: even if just a small amount do it wrong, that's
5:57
Speaker 5: a very long list of people that need to get
5:59
Speaker 5: manually done, So don't put yourself in that bucket. You
6:01
Speaker 5: need to make sure as well that your bank details
6:04
Speaker 5: are correct. So if you've changed banking products or changed
6:07
Speaker 5: banks recently, make sure you update those because all tax
6:11
Speaker 5: refunds now are done by direct deposit, meaning nobody at
6:15
Speaker 5: all ever is going to get a check in the
6:16
Speaker 5: mail from the ATO anymore. So making sure your bank
6:19
Speaker 5: details are correct is going to be important. You spell
6:22
Speaker 5: check Georgia King, It's very important if you see the
6:25
Speaker 5: little red squiggly lud kick it to my friend. So
6:28
Speaker 5: if you've added an extra letter or accidentally spelt something
6:31
Speaker 5: wrong in a key field, it's going to delay your
6:33
Speaker 5: tax refund significantly because, as I said, manual matching process
6:37
Speaker 5: has to occur. And I promise those people are probably
6:41
Speaker 5: pretty pissed off that Georgia King had two a's on
6:44
Speaker 5: her name and they just had to backspace it, and
6:46
Speaker 5: that was the entirely of their job to do it
6:47
Speaker 5: right the first time. My friend, Then what I want
6:50
Speaker 5: you to do, g is also make sure you're adding
6:52
Speaker 5: in all of your income, all of your shifts from
6:55
Speaker 5: Uber that you did last October, for that one time
6:57
Speaker 5: that you thought you were actually going to do that,
7:00
Speaker 5: that shifted a cafe where you were like, oh, I'm
7:02
Speaker 5: going to pick up this Sunday job, and then you
7:03
Speaker 5: realize you didn't want to do that anymore and now
7:06
Speaker 5: you just have a full time job. We can't forget
7:08
Speaker 5: about these things because this is where you're going to
7:10
Speaker 5: run into trouble. You do have to pay tax on
7:12
Speaker 5: those jobs, even if they were really fleeting. So not
7:15
Speaker 5: claiming income is something that the ATO has been coming
7:18
Speaker 5: down on really really hard recently on especially with the
7:20
Speaker 5: rise of the gig economy. They're trying to be far
7:23
Speaker 5: more on top of it because they're like, well, we
7:25
Speaker 5: need to really capture all of these income streams that
7:27
Speaker 5: people are, you know, going out and earning and making
7:29
Speaker 5: sure that we're taxing them appropriately. So just do the
7:32
Speaker 5: right thing, not because I'm trying to tell you to
7:35
Speaker 5: avoid tax or not. I'm literally just doing it because
7:38
Speaker 5: it's going to take longer if you submit your tax
7:40
Speaker 5: return and ge some random cafe out in woop woop
7:44
Speaker 5: has your details because you worked one Sunday shift one
7:46
Speaker 5: time and you.
7:46
Speaker 1: Didn't claim it.
7:47
Speaker 5: Yeah, exactly, because everything is data match to these days,
7:50
Speaker 5: like somewhere somehow there it's going to be a record
7:52
Speaker 5: of that.
7:53
Speaker 1: Just make sure it is on your actual tax return.
7:55
Speaker 4: So would you say, maybe keep a little spreadsheet with
7:57
Speaker 4: the little in.
7:59
Speaker 5: The journey out keeping a spreadsheet, so absolutely if that's
8:02
Speaker 5: down your alley. But also the other thing is probably
8:05
Speaker 5: don't try and be too fast to do your tax refund.
8:07
Speaker 5: I think a lot of people really go, oh my god,
8:09
Speaker 5: it's June thirty. I need to get my tax refund asap.
8:12
Speaker 5: And I totally get it if you need the cash, totally.
8:16
Speaker 5: But businesses actually have up until June thirty as like
8:20
Speaker 5: that cut off date for reporting on their finances. It's
8:23
Speaker 5: then going to take me a little bit to get
8:25
Speaker 5: your group certificate together, ge. And this happens in my
8:27
Speaker 5: business as well. So I'm going to sit down this
8:30
Speaker 5: year with my accountant and I'm going to go, okay, cool,
8:32
Speaker 5: it's tax time end of June thirty. I need to
8:34
Speaker 5: get all of my team their group certificates so they
8:36
Speaker 5: can submit their tax I need to upload everything to
8:39
Speaker 5: the ATO and get it all done. As an employer,
8:42
Speaker 5: that doesn't just happen on June thirty, because June thirty
8:44
Speaker 5: is the last reporting day of all those finances. Like
8:47
Speaker 5: what if you took annual leave on June thirty, or
8:50
Speaker 5: what if you actually, you know, had some sick leave
8:52
Speaker 5: balances or whatever. I need to work out I need
8:54
Speaker 5: to do that for my whole team. So usually my
8:57
Speaker 5: team get their group certificates, like at the end of
9:00
Speaker 5: the first week of July, because I just need a
9:02
Speaker 5: little bit of time to get my stuff together. It's
9:04
Speaker 5: not just me who does that though. The bigger the business,
9:07
Speaker 5: the more that can take. And it's very common to
9:10
Speaker 5: not get your group certificate until late mid July or
9:12
Speaker 5: even late July. I'm not saying it's appropriate. We want
9:15
Speaker 5: it asap, but understand the process. It's not going to
9:19
Speaker 5: be in your inbox on June thirty to submit it asap.
9:23
Speaker 4: Just back to the gig economy as well. We did
9:27
Speaker 4: do an episode a couple of weeks ago on tax
9:30
Speaker 4: and side hustles. So if you have a qual to
9:32
Speaker 4: that lieand so that you would have the resources you
9:34
Speaker 4: needed by the time tax time came. All around tax times,
9:37
Speaker 4: it's likely had a spreadsheeler gee, you know.
9:40
Speaker 5: G Another thing to keep in mind is being proactive
9:43
Speaker 5: about tax time instead of reactive. That's such good information
9:46
Speaker 5: coming from somebody who's always reactive instead of proactive.
9:49
Speaker 1: So cute from me.
9:50
Speaker 5: But once June thirty has come and gone, by the way,
9:53
Speaker 5: that's my birthday so if you don't say happy birthday
9:55
Speaker 5: to me, I'll be kind of salty. You need to
9:57
Speaker 5: wait another twelve months before you can claim it spence
10:00
Speaker 5: on tax. So if you're looking at purchasing something for
10:02
Speaker 5: your business or something that you're actually able to claim
10:05
Speaker 5: kind of now is the time to shine my love, like,
10:08
Speaker 5: go and organize that now instead of after June thirty,
10:11
Speaker 5: because if you do it after June thirty, you have
10:12
Speaker 5: to wait a whole other twelve months to claim it.
10:15
Speaker 5: In saying that, can we please stop justifying June thirty
10:19
Speaker 5: purchases as small business owners like you do not just
10:22
Speaker 5: need a new laptop because you think you'll get a
10:23
Speaker 5: tax refund. You still have to pay for the laptop,
10:27
Speaker 5: like that's still coming out of your business cash flow.
10:29
Speaker 5: So I think we need to be a lead to
10:30
Speaker 5: a bit smarter about it, because my new iPhone is
10:32
Speaker 5: telling me to tell you that.
10:34
Speaker 4: Okay, while we're on the topic of claims fee, what
10:39
Speaker 4: are your tips on making the most not doing a dodgy?
10:43
Speaker 1: Not doing a dodgy? Yeah, just don't claim things you
10:45
Speaker 1: can't claim fair enough. Don't claim things you didn't spend
10:47
Speaker 1: money on.
10:48
Speaker 5: Stop with this idea like this, This grinds my gears right,
10:52
Speaker 5: So it wasn't in our Facebook group because our Facebook
10:55
Speaker 5: group is full of very smart, very intelligent people who
10:58
Speaker 5: do the right thing. This is other Facebook group that
11:00
Speaker 5: I mean, and people like, oh, don't forget you can
11:02
Speaker 5: claim up to x amount without receipts. Yeah you can,
11:06
Speaker 5: but you still have to spend that money. Yeah, Like
11:09
Speaker 5: that is so dodgy, it's not funny. And the ATO
11:12
Speaker 5: is coming down on that. They're gonna go, g you're
11:15
Speaker 5: a podcaster, what do you mean you spent fifty dollars
11:18
Speaker 5: on sunscreen? Like, that's not related to your job. They'll
11:22
Speaker 5: ask you for the receipts, and they are getting better
11:25
Speaker 5: and better at asking for receipts because as data matching
11:28
Speaker 5: gets more intelligent, AI starts to come into it. They
11:31
Speaker 5: just like pop it up and send an automatic email
11:34
Speaker 5: to you to be like, hey, gee, you claimed this.
11:36
Speaker 1: Please provide with the receipts. You're gonna end up with
11:38
Speaker 1: a penalty if you're claiming things that you weren't meant
11:41
Speaker 1: to claim. Just do the right thing. Stop trying to
11:44
Speaker 1: be a stinge.
11:45
Speaker 4: Like, oh, let's move on. So our advice is not
11:49
Speaker 4: to put mayo on our claims what.
11:52
Speaker 5: Happened unless you're actually paid for that mayo and it
11:55
Speaker 5: was related to your job, in which case you are
11:58
Speaker 5: more than welcome to claim it, claiming things that you're
12:01
Speaker 5: not eligible for just because you want a bigger refund,
12:03
Speaker 5: because that ain't insists what happens. If we get audited,
12:06
Speaker 5: you'll get in trouble. So don't embellish is the number
12:10
Speaker 5: one rule. But obviously, as I said before, super common
12:13
Speaker 5: misconception that you can quote claim up to three hundred
12:15
Speaker 5: dollars without receipts like that is not it. People who
12:18
Speaker 5: are lodging their own tax returns using the atos MY
12:21
Speaker 5: tax software are monitored by the atos AI software as
12:24
Speaker 5: they prepare their returns to make sure that people aren't
12:27
Speaker 5: overclaiming and doing the wrong thing, like they actually track it.
12:30
Speaker 1: It's kind of scary, but at the same time it
12:33
Speaker 1: makes sense.
12:34
Speaker 5: And they also have these buckets, right, so the way
12:36
Speaker 5: that it works and this is just like a kind
12:38
Speaker 5: of like the way it works in the back end,
12:41
Speaker 5: in the technical way, I'm calling them buckets, but like
12:44
Speaker 5: let's say you're an executive assistant. They're going to have
12:47
Speaker 5: a group of people that they will compare you to
12:49
Speaker 5: that are also executive assistants, and there will be common
12:52
Speaker 5: claims and then there'll be uncommon claims. So if there
12:55
Speaker 5: are uncommon claims coming through, that's going to raise a
12:57
Speaker 5: red flag and you're more likely to be audited. It's
13:00
Speaker 5: really important to get your job classification correct as well,
13:03
Speaker 5: because it could put your risk of being audited or not,
13:06
Speaker 5: or actually getting in trouble or not. So the best
13:08
Speaker 5: thing to do is actually just the right thing.
13:10
Speaker 1: So if you're then found to let's say you have
13:12
Speaker 1: claimed something that you weren't entitled to, it doesn't just
13:15
Speaker 1: mean you have to repay what you claimed back and
13:17
Speaker 1: you just got caught out. You're actually then paying an
13:20
Speaker 1: interest rate of nine percent perannum as well on top
13:23
Speaker 1: of that as well, So you've got your nine percent.
13:24
Speaker 1: You have to pay your stuff back. But if the
13:26
Speaker 1: ATO then also believes that you are being super careless
13:29
Speaker 1: and maybe a little bit naughty and doing it on purpose,
13:32
Speaker 1: they'll then slap you with a penalty of anywhere between
13:35
Speaker 1: twenty five and ninety five percent Georgia King of the
13:38
Speaker 1: tax avoided.
13:40
Speaker 4: Right, that's not worth it. It's not worth it.
13:42
Speaker 1: Not worth it, friend, don't do it.
13:43
Speaker 5: So the easiest way to keep track of your spending
13:46
Speaker 5: from my perspective, one the ATO app is really helpful
13:49
Speaker 5: because you can keep track of things that you're going
13:51
Speaker 5: to claim throughout the year, can snap a quick picture
13:53
Speaker 5: and upload it. If you're anything like me, you don't
13:55
Speaker 5: want to have to have that app, even though it
13:58
Speaker 5: works really well and it makes a lot of sense,
14:00
Speaker 5: just trying to put another like step in the process
14:03
Speaker 5: for no good reason. You have an album on your
14:05
Speaker 5: phone where you just snap away at things and then
14:07
Speaker 5: when tax come comes you actually just go into that
14:10
Speaker 5: album and have a look.
14:11
Speaker 1: And then obviously keeping a budget's a good idea. Always
14:14
Speaker 1: just stick to it.
14:15
Speaker 4: I did the old album trick.
14:17
Speaker 1: Did it work?
14:18
Speaker 4: I have one receipt in there, but at least you
14:21
Speaker 4: set it up. I know my intention was good.
14:24
Speaker 1: The intention is always good.
14:25
Speaker 5: But I do that as a business owner because there's
14:28
Speaker 5: so many different things that go different places. It's so
14:31
Speaker 5: frustrating as well. Like you know, I could go on
14:34
Speaker 5: about this, but we only have one debit card for
14:36
Speaker 5: she's on the money the business, So sometimes I like
14:38
Speaker 5: pay for things in my personal name because Jess's got
14:40
Speaker 5: the card from work.
14:41
Speaker 1: Or something, and then I need to claim it. It's
14:43
Speaker 1: just it's a little bit confusing a headache.
14:45
Speaker 5: It could be much easier if I just listened to
14:47
Speaker 5: my accountant properly, But who's gonna do that?
14:50
Speaker 1: That's so silly.
14:52
Speaker 4: Do you know how much of your data is pre
14:55
Speaker 4: filled on your tax return? Set and forget out?
14:59
Speaker 5: It's not all set and forget It really depends on
15:01
Speaker 5: one if you've done it before, and then how much
15:03
Speaker 5: personal and financial information you've given to employers or to
15:06
Speaker 5: the ATO. But essentially, when you log into the ato's
15:09
Speaker 5: tax system, often a lot of your information is already there,
15:12
Speaker 5: and you'll be like, where did they get that from?
15:14
Speaker 5: And it's usually either from your previous employers, from your
15:17
Speaker 5: current employer, or from you having done tax returns in
15:20
Speaker 5: the past, which is kind of cool. It's actually really
15:23
Speaker 5: helpful when it comes to prefill because it means that
15:25
Speaker 5: you don't have to do it over and over again.
15:28
Speaker 5: And if you've done this a few times, it kind
15:29
Speaker 5: of becomes like second ag. You just log in, check
15:31
Speaker 5: all your details and make sure everything's correct. Was that
15:34
Speaker 5: my income this year?
15:35
Speaker 1: Yes? It was? Was there anything I needed to claim? Yes?
15:37
Speaker 2: Or no?
15:37
Speaker 5: Or Hey, here's this petrol that I did xyz on
15:40
Speaker 5: how much did my investments make this year?
15:42
Speaker 1: Pop that into the boxes.
15:43
Speaker 5: Like, it's actually much simpler than people seem to think
15:46
Speaker 5: it is. I think we think back to like two
15:48
Speaker 5: thousand and nine when you definitely weren't doing your own tax,
15:52
Speaker 5: but I was George, and it was a lot more
15:54
Speaker 5: complicated than it is today.
15:57
Speaker 1: Okay, I don't know, have a look, give it a
15:59
Speaker 1: go and have to submit it if you're overwhelmed.
16:01
Speaker 4: Do we want to go to a little right here,
16:04
Speaker 4: my girl, I would love to go to a break
16:06
Speaker 4: because tax is boring. But on the other side, guys,
16:09
Speaker 4: we'll be getting into the juicy stuff talking about what
16:12
Speaker 4: we can actually claim.
16:13
Speaker 5: Do Some people can claim dogs on tax, not me though, right,
16:18
Speaker 5: we'll talk about it after.
16:23
Speaker 1: All.
16:23
Speaker 4: Right, we are back talking tax victoria.
16:26
Speaker 1: Oh my gosh, what a dream.
16:29
Speaker 4: Let's jump straight into what we can actually claim. You
16:33
Speaker 4: mentioned before, we can claim dogs or someone.
16:35
Speaker 5: Look, someone can someway someone has claimed a dog. But
16:39
Speaker 5: you can claim a dog if a dog is actually
16:42
Speaker 5: part of your work. So like mainly obviously people in
16:44
Speaker 5: farming or security, they could claim their dog is related
16:47
Speaker 5: expenses we should come into security.
16:51
Speaker 1: Would be a good guard dog.
16:52
Speaker 4: Absolutely, anyway, tell me what else we can claim.
16:57
Speaker 5: Look, there are lots of things that you can claim. Again,
17:00
Speaker 5: please don't take this as a list of things that
17:02
Speaker 5: Victoria is suggesting you claim on it's not. It's just educational.
17:06
Speaker 5: We're just talking about tax trying to make it a
17:07
Speaker 5: little bit less dry than it actually is. But one
17:11
Speaker 5: of the things that I can claim it's my handbag,
17:14
Speaker 5: Georgia King, what what I can claim it? Stick your
17:17
Speaker 5: laptop in it.
17:17
Speaker 1: Yeah, it's a work bag.
17:18
Speaker 5: It can't be a fancy designer bag though, because the
17:21
Speaker 5: ato are going to have some buckleis with that. They're
17:23
Speaker 5: not gonna like that. It does actually have to be
17:25
Speaker 5: practical and reasonable in nature. So you can't just go
17:27
Speaker 5: buy like a Chanelle boy bag and be like, it's
17:29
Speaker 5: my work bag. It's actually to carry your work things
17:32
Speaker 5: to and from work. If you carry a laptop. You
17:35
Speaker 5: can claim shoes. We love shoes. We love shoes, except
17:38
Speaker 5: you can only claim shoes if you're like a flight engine.
17:41
Speaker 5: So it's not as good as what you would think,
17:43
Speaker 5: like a good pair of Jimmy shoes ain't gonna happen.
17:45
Speaker 5: This year for me or my tax return. If you
17:48
Speaker 5: work outside, you can actually claim makeup that has SPF
17:51
Speaker 5: in it.
17:51
Speaker 4: Kind of cool, right wow.
17:53
Speaker 5: And SPF related products because obviously if you are in
17:56
Speaker 5: the no you know you should be wearing SBF.
17:58
Speaker 1: But also if you outside you get a little cheeky
18:01
Speaker 1: tax deduction on it because it's for your health. Cute
18:04
Speaker 1: charity donations. Anything over two dollars you can claim, so
18:07
Speaker 1: keep track of those. The interest you earn from your
18:10
Speaker 1: investment income. That's very sexy. Sex toys, Georgia, you were
18:14
Speaker 1: looking a little bit dry. Are all the things that
18:16
Speaker 1: I was running through. So I'm just going to throw
18:18
Speaker 1: that one in there.
18:19
Speaker 2: Yep.
18:19
Speaker 1: If you work in the adult entertainment industry, AA too
18:22
Speaker 1: have a special guide about what you can claim. If
18:23
Speaker 1: you're an adult industry worker, interesting claim things like dance
18:27
Speaker 1: lessons or haircare or oils or tissues or lingerie or
18:30
Speaker 1: costumes up to you. Kind of cool that you can
18:33
Speaker 1: do that. Another one, garden gnomes? Do you want to
18:37
Speaker 1: claim your garden gnomes? This obviously is its own dot
18:40
Speaker 1: point in itself. Like this has made it as a
18:42
Speaker 1: line item in our spreadsheet for this planning episode, but
18:45
Speaker 1: landlord's very able to claim garden gnomes because obviously it
18:49
Speaker 1: is a property related expense.
18:51
Speaker 4: That is incredible. Wait, what's the deal with garden homes?
18:55
Speaker 4: Are they I'm not get rid of snails or something.
18:58
Speaker 1: I have no idea that a guard like a little scared.
19:02
Speaker 1: Do you know?
19:02
Speaker 5: There's this house that I walk past every single morning.
19:05
Speaker 5: And if you live near me and you've seen me
19:06
Speaker 5: walking in the morning, you know this house. You know
19:08
Speaker 5: what I'm talking about. You walk past it, it's got
19:10
Speaker 5: like a low picket fence, and then you look into
19:12
Speaker 5: the garden and the entire front garden is like full
19:16
Speaker 5: of garden gnomes. It's not that weird about that, so strange,
19:20
Speaker 5: And this house also has like gargoyles on the top
19:23
Speaker 5: of it.
19:23
Speaker 1: It's kind of creepy. But the creepiest part about.
19:26
Speaker 5: This is all of these garden homes have quite clearly
19:29
Speaker 5: been very dodgily hand painted, so.
19:32
Speaker 4: Like it's low pe creepy.
19:35
Speaker 1: Joy.
19:36
Speaker 4: No, but maybe they're just really smart when it comes
19:38
Speaker 4: to tax stiff.
19:39
Speaker 5: If that is your house, I'm so sorry. I'm so sorry.
19:44
Speaker 5: But then obviously there are some smart things that you
19:46
Speaker 5: can claim. So if you've been working from home over
19:49
Speaker 5: the last few years. You can claim your home internet
19:51
Speaker 5: and any of those working from home expenses. Have a
19:53
Speaker 5: look on the ATO website. There is an entire guide
19:57
Speaker 5: for working from home and claiming what you can claim.
20:00
Speaker 5: So two ways of going about it. You can either
20:02
Speaker 5: claim a set amount or a CeNSE per dollar, and
20:06
Speaker 5: I think you need to do the calculations on which
20:09
Speaker 5: one works out better for you instead of just looking
20:11
Speaker 5: at that big shiny set amount dollar and going let's
20:14
Speaker 5: do that. So definitely have a look into that. You
20:16
Speaker 5: can obviously also claim financial planning expenses and your accounting
20:19
Speaker 5: fees and stuff like that, but there's an entire list.
20:22
Speaker 5: There is a blog on our website that I wrote
20:23
Speaker 5: a couple of years ago about what you can and
20:25
Speaker 5: can't claim, so I would be checking that out.
20:27
Speaker 1: George King.
20:27
Speaker 4: You've also got subscriptions to work related magazines and journals
20:31
Speaker 4: if you work in the media.
20:32
Speaker 5: Yep, so like you can claim Vogue. Yes, thanks, I'm
20:35
Speaker 5: gonna go sign up for that asap.
20:37
Speaker 4: This is great. Before we move on v when we
20:39
Speaker 4: say claim is a percentage of the cost of whatever
20:43
Speaker 4: we bought and are claiming or paid for.
20:46
Speaker 5: No, it's not going to ever be the whole thing.
20:48
Speaker 5: It would be the tax component of that. So if
20:52
Speaker 5: your marginal tax rate is thirty two cents in the dollar,
20:54
Speaker 5: that is what you're claiming. You're not claiming like, oh
20:56
Speaker 5: my god, I spend a dollar, I get the whole
20:58
Speaker 5: dollar back it's free. Like that's not how tix works.
21:00
Speaker 4: Perfect.
21:00
Speaker 1: Sorry, I'm sorry.
21:01
Speaker 4: Good to know. So V do we need to pay
21:04
Speaker 4: tax if we receive gifts as payment? I'm talking about
21:08
Speaker 4: influencers specifically.
21:11
Speaker 5: It's such a thing to bring up as somebody who
21:14
Speaker 5: does have a lot of clients who work in that
21:16
Speaker 5: social media sphere and earn a lot of money but also.
21:20
Speaker 1: Get a lot of gifts.
21:21
Speaker 5: Yes, they are actually taxable, and I have actually spent
21:24
Speaker 5: I think I mentioned this on the podcast last year.
21:26
Speaker 5: I have been going back and forth with our lawyers
21:28
Speaker 5: to work out how this works because it's such a
21:31
Speaker 5: new space that the ATO hasn't come out and directly
21:34
Speaker 5: said this is taxable. This is not because obviously, gee,
21:37
Speaker 5: if I turned around and said, hey, gee, here's a
21:40
Speaker 5: Listerine pocket pack of fresh breath strips, you are welcome.
21:44
Speaker 5: That's like a genuine gift. But if an influencer given
21:47
Speaker 5: that with the intention of posting about it and generating
21:50
Speaker 5: incomes that is actually then taxable. So it's quite confusing.
21:54
Speaker 5: And a couple of years ago I had a client
21:57
Speaker 5: who ended up in a bit of a pickle because
22:00
Speaker 5: they had been gifted this gorgeous bougie overseas holiday. It
22:05
Speaker 5: was to a very big theme park in the US,
22:07
Speaker 5: and that would be so fancy, you go, gee, do
22:11
Speaker 5: you want to go to the theme park for free?
22:12
Speaker 1: But tax time came. The atier knocked on their door
22:15
Speaker 1: and said.
22:16
Speaker 5: Hey, we saw you did your tax, but we didn't
22:19
Speaker 5: see that trip that we saw on your Instagram. Could
22:22
Speaker 5: you let us know how much it was worth because
22:24
Speaker 5: you have to pay the tax component of that.
22:26
Speaker 4: It's insane.
22:27
Speaker 5: Yes, So it is very complex when it comes to gifts.
22:31
Speaker 5: If your parents want to give you money and stuff
22:34
Speaker 5: like that, let's strip it back to non influencer life. No,
22:37
Speaker 5: gift money doesn't form part of your accessible income, so
22:40
Speaker 5: you don't have to declare it. Regardless of the amount,
22:42
Speaker 5: whether it was a dollar or five million dollars, you
22:45
Speaker 5: don't have to do that. However, if it is something
22:48
Speaker 5: that was used to generate income, that is where tax
22:51
Speaker 5: does come into it, and that's where influencers actually need
22:54
Speaker 5: to be kind of careful. Obviously this is very niche content,
22:57
Speaker 5: but even if you're a baby content creator, like you
23:00
Speaker 5: need to be making sure that if you're agreeing for
23:02
Speaker 5: a sponsorship with a company or a paid collaboration, if
23:06
Speaker 5: they're just gifting you products, they need to take care
23:09
Speaker 5: of the tax component of that, because it shouldn't be
23:12
Speaker 5: on you to like take their product, post about it.
23:15
Speaker 1: And then at tax time have to pay. Like that's
23:18
Speaker 1: a lot.
23:19
Speaker 4: The other thing as well to remember, guys, is that
23:21
Speaker 4: we do need to be paying tax on our investments,
23:24
Speaker 4: and we did a whole episode on that. Listen back
23:27
Speaker 4: to our Reporting season ep if you haven't already any.
23:30
Speaker 1: Years of episodes.
23:32
Speaker 5: June is always so dense when it comes to content.
23:36
Speaker 5: Sorry not sorry, Let's have some like fluffy July episodes
23:39
Speaker 5: for them.
23:39
Speaker 1: We'll plan those later.
23:40
Speaker 4: Absolutely absolutely, all right, V. When is the right time
23:44
Speaker 4: to put our tax in the hands of the professionals
23:46
Speaker 4: versus just doing it ourselves.
23:48
Speaker 5: When you feel comfortable to do so. I think there
23:51
Speaker 5: is a very good reason why more than seventy five
23:53
Speaker 5: percent of Australians actually use a tax agent to do
23:56
Speaker 5: their tax returns. And that's because tax is arguably not
23:59
Speaker 5: very sick. If you don't know exactly what you can claim,
24:02
Speaker 5: you actually might be missing out on some sweet returns,
24:05
Speaker 5: and if you do get it wrong, you could be
24:07
Speaker 5: in for some pretty hefty fines. So from my perspective,
24:10
Speaker 5: it does pay to talk to somebody who knows what
24:12
Speaker 5: they're talking about when it comes to tax. It's also
24:14
Speaker 5: just really important to feel empowered through that process. I
24:18
Speaker 5: know it can be expensive, but don't forget that. You know,
24:20
Speaker 5: if you're paying somebody two hundred and fifty dollars to
24:23
Speaker 5: do your tax return, that two hundred and fifty dollars
24:25
Speaker 5: next year can be claimed, So it's not as big
24:27
Speaker 5: of a cost as you might think it is. But
24:31
Speaker 5: also usually an accountant's probably going to be able to
24:33
Speaker 5: find two hundred and fifty dollars worth of claims for
24:36
Speaker 5: you that you probably weren't able to find yourself.
24:38
Speaker 4: If I'm being spased for itself.
24:40
Speaker 1: Yeah, like hopefully.
24:41
Speaker 5: And basically, the only way to get definitive tax return
24:45
Speaker 5: advice is from a registered professional, Like you can't just
24:48
Speaker 5: jump on the ATR website and read all their blog
24:49
Speaker 5: articles and be like, yep, cool, I read that, guys.
24:51
Speaker 5: That's why I claimed it, like a tax professional is
24:54
Speaker 5: going to actually be able to put you in the
24:56
Speaker 5: best possible position.
24:57
Speaker 4: Before we head v Was there anything else we should
25:00
Speaker 4: keep in mind?
25:01
Speaker 5: Yes, my friend, so you know how he said, Obviously
25:04
Speaker 5: June thirty, you can't lodge it on the day if
25:06
Speaker 5: you don't have.
25:06
Speaker 4: Your group certificates.
25:08
Speaker 5: Is actually a date that you need to be aware of,
25:10
Speaker 5: and that is the thirty first of October. You need
25:12
Speaker 5: to lodge your tax returns before then. You might be
25:15
Speaker 5: able to be eligible for an extension beyond that date
25:18
Speaker 5: if you are registered with a tax accountant by the
25:20
Speaker 5: thirty first of October. But if you aren't registered and
25:23
Speaker 5: you haven't done your tax you might be up for
25:25
Speaker 5: some penalties, which is not very good. I would factor
25:28
Speaker 5: in about two weeks for your tax return to come through.
25:30
Speaker 5: And the other thing is don't pester to your tax
25:33
Speaker 5: accountant when it's actually gone through.
25:34
Speaker 1: They can't tell you the progress. There's no progress updating.
25:37
Speaker 1: There's no like logging into the ATO portal to see
25:39
Speaker 1: status like it will just be done when it's done.
25:42
Speaker 1: So I'm just quick shout out for all the accounts
25:44
Speaker 1: in our community who are probably sick of people, you know,
25:47
Speaker 1: two days after their tax return has been lodged to
25:49
Speaker 1: be asked, oh my, oh gee, where's the app? They
25:51
Speaker 1: don't know, they don't know, they can't see it.
25:53
Speaker 4: Sorry.
25:53
Speaker 1: Sorry.
25:54
Speaker 5: And then also COVID nineteen is not going to change
25:56
Speaker 5: those dates, so it's just standard procedure for lodging tax
25:59
Speaker 5: returns this year.
26:00
Speaker 4: Moral of the story, paying tax is a privilege, don't
26:03
Speaker 4: play seek privilege, Like.
26:05
Speaker 1: Let's change our mindset around this.
26:07
Speaker 5: I've said it a million times on the broadcast, like
26:10
Speaker 5: how lucky are we to live in a country where
26:13
Speaker 5: we have access to absolutely everything that we have access
26:16
Speaker 5: to and the support we have access to, and that's
26:19
Speaker 5: what tax affords us.
26:20
Speaker 1: Like it's sick. I think it's great.
26:22
Speaker 4: So but you said earlier, don't stress if you haven't
26:25
Speaker 4: lodged your tax because you won't go to jail. It
26:27
Speaker 4: might all even now out of jail.
26:29
Speaker 5: The atier is going to come down on me for
26:30
Speaker 5: saying that as well, because you should have done it
26:32
Speaker 5: by the thirty first of October. Obviously you could be
26:35
Speaker 5: up for some penalties.
26:36
Speaker 4: When you say penalties what does that mean?
26:37
Speaker 1: Fine, fine money, honey. Look, they can be hefty demands.
26:40
Speaker 1: How much tax you've avoided? My friends?
26:42
Speaker 5: Okay, but at the end of the day, I don't
26:44
Speaker 5: want you to be stressing if you haven't done it.
26:47
Speaker 5: I just want you to pull your finger out and
26:48
Speaker 5: get it done. This year, we say the thirty first
26:51
Speaker 5: of October because that's the date that after that date
26:53
Speaker 5: you'll start to get penalties and the atier might chase
26:55
Speaker 5: you for doing that, and like people have gotten letters
26:58
Speaker 5: before for you know, not lodging their tax. But I
27:01
Speaker 5: would just be trying to do it by that date,
27:03
Speaker 5: getting it done, and if you haven't done your tax
27:05
Speaker 5: from last year, just maybe pulling your finger out and
27:07
Speaker 5: speaking to an accountant, because they are going to be
27:10
Speaker 5: the ones that are got to put you in the
27:11
Speaker 5: best possible position to avoid having any penalties to actually
27:15
Speaker 5: pay on that, because they'll go.
27:16
Speaker 1: Look, we're just organizing it for them.
27:18
Speaker 4: Perfect easy, easy, easy peace.
27:21
Speaker 5: Let's wrap the even more boring but important stuff.
27:24
Speaker 4: That's the way already.
27:25
Speaker 3: Guys.
27:25
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27:28
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27:32
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27:35
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27:37
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27:38
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27:39
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28:13
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