Latest / Beyond Sovereignty / #054 - 4 Ways To Legally Avoid Business Tax In Australia

Transcript

#054 - 4 Ways To Legally Avoid Business Tax In Australia · Beyond Sovereignty

• 0:00
  Buy a ute before June 30, max out your super, set up
• 0:03
  a family trust, move to Dubai. Every Aussie business owner
• 0:07
  has been told at least one of these. Most people believe the
• 0:10
  only legal ways to pay less tax are the ones
• 0:13
  their accountant has already offered them. But the reality is most of
• 0:16
  these just move the bill around and there are multiple legal
• 0:20
  ways to reduce your business tax and only one of them changes
• 0:24
  which taxes apply to you in the first place. For over the
• 0:27
  last 20 years, I've helped hundreds of entrepreneurs set up
• 0:31
  and run not-for-profit structures legally and compliantly.
• 0:35
  In this episode, I am going to be running you through all the different ways where
• 0:38
  each one falls down and the one I wish someone
• 0:42
  had told me back when I had my businesses. The first thing that we're
• 0:45
  going to cover is trust structures. Now, back when I
• 0:48
  was 25, I set up my first trust. But back
• 0:52
  in the day, my accountant was like, we're going to set you up with trusts for each
• 0:55
  one of your businesses because then that is going to reduce your taxes. So
• 0:59
  the pros were they told me that it really reduced
• 1:03
  my taxes. For an individual at the end of the year it meant I
• 1:06
  went from getting a tax refund in my individual
• 1:10
  income tax to now paying five figures to
• 1:13
  the government. So on paper it looked Brilliant
• 1:17
  on my back end. I was like, I'm not into this guys. I
• 1:20
  don't love this every year I'm like what I don't see the fucking point like
• 1:24
  to me as an individual. It's not better They're like, yeah, but it was really works for your business.
• 1:28
  I'm like, it doesn't make me get out extra profits So I didn't
• 1:32
  love it And you know, it's great for having assets through it,
• 1:35
  like leasing cars and buying properties, which I did, which is
• 1:38
  awesome. But it didn't have all of the benefits that
• 1:42
  I knew was possible in businesses. So you're able
• 1:45
  to lease a car and then you can just keep on having cars and that, you know, you're allowed
• 1:48
  to have a certain amount that you can spend on your cars and then you can trade
• 1:52
  in your car and get another car and you've got a balloon payment and all this, that and
• 1:55
  the other. But for me, I was like, who gives a shit if I was paying less tax,
• 1:58
  that wouldn't really matter in the first place. And then since the
• 2:02
  federal budget this year, where, you know, they said there's a war on
• 2:05
  drugs. I'm like, there's a war on trust structures because everything
• 2:09
  has absolutely changed now within the trust structures. So it
• 2:13
  doesn't give us as much leeway and flexibility as it used to.
• 2:16
  Now, the other one is offshore and residency. So back
• 2:20
  in the day, I was like, you know, maybe where some of you guys are at now, and you're
• 2:23
  like, my gosh everything's a scam this whole government is
• 2:26
  like a multifaceted organization that isn't
• 2:30
  there for my best interest or common good well and then what
• 2:33
  do you want to do that's it I need to get offshore residency somewhere else
• 2:36
  and you're looking into Portugal and Panama and Dubai and all of these
• 2:40
  other places to see where you're gonna have a tax-free place
• 2:44
  to live now I thought this as well I was gonna live with in
• 2:47
  Costa Rica back in 2016, that was my goal. I'm like, that's
• 2:51
  it. I'm moving to Costa Rica. I'm going to take everything offshore and live
• 2:55
  in a massive retreat space with monkeys and
• 2:58
  mangoes. All I can say is thank God that didn't happen because I
• 3:02
  actually went to different places in the South Americas to see where I wanted to
• 3:05
  live. One time I was swimming in the water and there was a crocodile, and
• 3:08
  then I got chased by a black leopard. And the
• 3:12
  people there were like, it's because you look like a little dog. You're very small. You've
• 3:15
  got to be careful with the leopards and all the big cats. I
• 3:18
  was like, okie dokie. And I was like, you know what? These places are beautiful.
• 3:22
  But Australia is where I want to live. It's where I
• 3:25
  feel safest. I can go for a run by myself anywhere, anytime.
• 3:29
  Like I live in the bush and it's sweet as, right? I run night, day,
• 3:33
  everything. There is no gutters. There is no traffic lights. And so I
• 3:36
  want to live in the country that resonates in my heart the most. And for
• 3:39
  me, that's Australia. Yes, I've just spent six weeks abroad and
• 3:43
  I love being overseas and I'm going overseas again today to
• 3:46
  Spain, but I want Australia to be my base and my
• 3:49
  home, probably like most of you as well. So I didn't leave,
• 3:54
  I looked into other ways that I could stay here and
• 3:57
  still have tax-free entities that the government not
• 4:01
  only is happy to support, but literally wants
• 4:04
  to give us cash to be able to create these amazing humanitarian
• 4:08
  environmental projects that I had dreamed of as a kid, but
• 4:11
  because of systemic and family programming, no, actually it was
• 4:14
  more just systemic school programming, that those dreams were crushed, because
• 4:18
  it's like, how are you going to do that? You have to make enough money in your businesses so
• 4:22
  that you can go and fund your not-for-profit. when it's just not the
• 4:25
  case. Every accountant and lawyer will tell you that, but it's just not
• 4:28
  the freaking case. So I started looking into trusts and
• 4:32
  LLCs and all of those things overseas. I was going to get a trust in
• 4:36
  Dubai, so I'm on the phone speaking to an Aussie
• 4:39
  guy that sets up trusts over there. He's like, yep, it's so great, telling me
• 4:42
  all the things, but it's still going to cost me like 20 grand a year in accounting
• 4:46
  fees to manage that. it's still going to cost me money to set
• 4:49
  it up, not that much, but still 20 grand to get it set up. Maybe the account,
• 4:53
  and this was like five, seven years ago, maybe longer now. Yeah, probably a
• 4:56
  lot longer now, 10 years ago. So for me, the reality was
• 5:00
  I wasn't going to be able to like stay in Australia and have these offshore
• 5:03
  entities as Free as I thought they were gonna be so
• 5:07
  I was like, what's the point and I don't want to live in Dubai It's fucking desert mate, like
• 5:11
  seriously at the end of the day if you're not into shopping and Lamborghinis like
• 5:14
  it ain't your place Seriously, and I know that
• 5:18
  most of you watching are like I wouldn't mind a Lamborghini I'm like, yeah But really
• 5:22
  because you probably want to live somewhere absolutely epic where you're going to actually
• 5:25
  have to drive where there is no gutters occasionally Okay, so you really don't
• 5:28
  want a Lamborghini full-time just like borrow your mates and or have it somewhere else.
• 5:32
  Anyway, back to the point. The point is offshore residency
• 5:36
  isn't all it's cracked up to be. When I was in Bali yesterday, I
• 5:39
  had a lot of friends that have moved to Bali just for the residency. And when
• 5:43
  I talked to them about what it is that we do, they're like, holy
• 5:46
  shit, I want my residency back. If I could come back
• 5:50
  to Australia and live tax free or live part of the year there and part of
• 5:53
  the year here, that is my ultimate goal. And so literally
• 5:57
  most people that I speak to in Bali, my friends as well are like,
• 6:00
  ah, shit, you've literally found the missing link. Okay, I'm gonna reverse
• 6:04
  my residency and actually be a resident of Australia and I'm just gonna
• 6:07
  live between both countries. Because what defines a resident of
• 6:10
  Australia? There is no exact clear days on
• 6:14
  how long you have to be in Australia for these entities. So
• 6:18
  you could spend six months here and six months there. You could spend nine
• 6:21
  months here and three months there. You could spend five, you know what I mean? Like, break up
• 6:25
  your time. Like, that's what I do. Like, that's the dream, right?
• 6:28
  Because I love my property and I came back there yesterday
• 6:31
  and I've been there for less than 12 hours and I really didn't want
• 6:35
  to leave to go to Spain and have first world problems and I can't wait
• 6:38
  to come back. So it's like, I'm sure you want to have a bit of a life where it's like that, where
• 6:41
  you can, you know, go to Burning Man, go to Bali, go to Spain, be
• 6:45
  in Australia, see your dog, and then go back to wherever you
• 6:48
  want to go to when the floods come or when there's going to be fire season,
• 6:51
  right? So it's like you work with the world, you work with
• 6:55
  the seasons that you want to live in and maybe you're a snow bunny and there's other things
• 6:58
  that you want to do and you set your time and your around the
• 7:01
  world to the seasons that you want to live in, which is why I'm
• 7:04
  obviously looking a little bit more tan today. So, don't choose your
• 7:08
  countries based on their residency and their
• 7:11
  benefits. Choose where you want to live and the lifestyle that
• 7:14
  you actually want. Don't trap yourself in a corner through tax and
• 7:18
  make your whole world and your whole family about that. Instead, choose what
• 7:22
  you really want and then create the life that you
• 7:25
  want. Because if you're a business owner looking for ways to stay in Australia while
• 7:29
  not subjecting yourself to insane taxes that
• 7:32
  are happening in this country, that's exactly what I specialize in. For
• 7:36
  businesses that have a genuine mission and purpose. There's
• 7:40
  a link in the description below to find out more. Because most of you, do
• 7:43
  you have a product? Do you have a service? Is it helping people? Well,
• 7:47
  that means that it could potentially be a not-for-profit because you're helping
• 7:50
  people but you just get to do it on mass scale which you probably always dreamed of
• 7:54
  but you never really knew was a thing, right? So, self-managed super
• 7:57
  funds, pros and cons. Self-managed super funds are awesome. They
• 8:01
  are awesome for your super. However, you can't get it till later. So,
• 8:05
  bros, what are you doing now? And if I had all of my super which
• 8:08
  I did get, I got all of my super back legally so
• 8:12
  that I could literally invested into the things that I
• 8:15
  wanted to that are gonna sustain my life moving forward. Because
• 8:19
  I became permanently disabled, yeah, I know my arm moves now, but believe me,
• 8:22
  it was stuck like this for a very long time and I had no strength in my
• 8:25
  arm. Thank God for my diet and lifestyle, that's why I'm healthy. But I got all of my super
• 8:28
  back because I was permanently disabled for a couple of years. And
• 8:32
  still doesn't straighten, that's it, that's as far as it goes. And so I got all
• 8:35
  of my super back and I was able to put it all into the investments that
• 8:39
  are going to support me for the rest of my life, because that's what super is supposed to
• 8:42
  do. But I got to do that at 40. Like that was lit. That's
• 8:45
  why my life, that was a massive benefit to my life. Massive
• 8:49
  benefit to my life. Unfortunately, I was in a government funded super
• 8:53
  thingy, so that it meant that my super wasn't that much, but
• 8:56
  I was able to put that into my lifestyle. So if you've got super, yes,
• 9:00
  it's great to put into investments as an investment strategy, but that ain't
• 9:03
  going to give you lifestyle now, right? It's like being asset rich
• 9:07
  and cash poor. That's what a self-managed super fund does for you.
• 9:10
  However, is amazing for your investments because you've got to
• 9:13
  spend the money somewhere. So if you've just got normal super, you don't have a self-managed super fund, bro,
• 9:17
  invitation, get your money out, put it into self-managed super and
• 9:20
  invest it wisely. Even if you did exactly what your superannuation
• 9:24
  company does, which is all they do is put it into a
• 9:27
  Fortune 500 index fund, right? And that is
• 9:31
  just, if you don't know what a Fortune 500 index fund, go and look it up. That's
• 9:34
  all you need to do. And when a financial advisor, they help
• 9:38
  manage self-managed super funds, they literally pretend that they're doing a whole lot
• 9:41
  of things, but all they're doing is giving you Fortune 500 index funds
• 9:45
  to look through and you choose. But if you go onto the website, you can
• 9:48
  do that yourself and that means that you get all of the money back and
• 9:51
  not all of the rest of the money goes to your broker or your financial
• 9:55
  advisor because they normally take in fees anywhere
• 9:58
  from 5 to 10% depending on your returns, right? But
• 10:02
  you can get the whole 15%, the whole 10% back
• 10:05
  instead of them taking any and you're getting 4%, right? Because that's crap.
• 10:09
  So do it yourself. Look, I don't like to recommend these demonic
• 10:13
  corporations, but I will. Go onto Vanguard, go
• 10:17
  on to BlackRock, yes. Go on to Satan's websites and
• 10:20
  have a look because that's where you set up these things and they are the best, most
• 10:24
  risk adverse ways. This is not advice. This is not general advice.
• 10:27
  This is for entertainment purposes only for you to go and research and
• 10:31
  see what these other people are doing because that is literally what
• 10:34
  your financial advisor does. Now, government really manipulate
• 10:38
  and can manipulate self-managed super funds and super funds. So
• 10:41
  that is the risk factor for me. So they
• 10:45
  have got a lot of, they create the legislation around it. They can change it at
• 10:48
  any one time. Look what happened in Greece and America. There were so many places
• 10:52
  where their super was taken off them. Like not,
• 10:56
  can you give us some of your money, but literally just like clean slate taken. So
• 11:00
  make sure that you don't have your super in an industry fund and
• 11:03
  have it in a self-managed super fund. but then don't have that as just
• 11:07
  like, it's still risk. There's still risk attached to it. So just know that there is risk
• 11:10
  in everything and that is still a potential of government manipulation, right?
• 11:14
  Then we've got not-for-profit structures. Not-for-profits, obviously, I
• 11:17
  think they're lit because they do not have the tax
• 11:21
  implications. You can disappear as an income earner, which means
• 11:24
  that you as an individual don't have to pay income tax because You
• 11:28
  are literally providing your services, your time and your
• 11:31
  energy in devotion to your organisation so that you can
• 11:34
  help build the mission, whatever that mission is, right? And
• 11:38
  it means that your organisation can also not have company tax because
• 11:42
  it's set up to be tax exempt. It means that if it's purchasing investments
• 11:46
  or assets, It can pay for them and there's no stamp duty. When
• 11:49
  it sells, there's no capital gains tax. It means that you can get fringe benefits
• 11:53
  tax. It means that when you have a property and it's
• 11:56
  an investment property for the charity to grow
• 12:00
  its mission, or if it's a property where you're going
• 12:03
  to live on it so that you can help benefit the charity, then
• 12:06
  you don't have to pay land tax. You don't have to pay rates. You don't have
• 12:10
  to pay the normal things that you do in a house. You can often get a
• 12:13
  lot of discounts on your electricity, on phones, on
• 12:17
  everything, on fleets of cars in a not-for-profit structure. They
• 12:20
  recommend that you have cars for your people so that the people can do
• 12:24
  the mission safely. They recommend for you to have investments. Now,
• 12:27
  you might have seen the myths that ACNC have busted. There's
• 12:31
  literally a myth busters page. Just here is the URL link for
• 12:35
  the Mythbusters, because you don't want me to break the myths. You want the ACNC,
• 12:38
  the Australian government, to break those myths for you. This is the link. Go
• 12:42
  and check up this URL. It is lit. It will show you that
• 12:45
  I am not just saying that. This is the federal government saying this, and
• 12:48
  this is also the Commonwealth. This is all governments say
• 12:52
  this about these structures. So don't believe me, just
• 12:55
  go and check the link, right? To give you really specific examples, I'm
• 12:59
  going to talk about a few of my clients because they are actually in the NDIS
• 13:02
  space, right? So they have multi, multi-million dollar
• 13:06
  companies, PTY, LTDs, trusts, trading
• 13:10
  companies, you name it. They've got the whole normal structure of an
• 13:13
  accountant and a lawyer. So, so many different entities all over the place that
• 13:16
  own their different, and these are like, I'm talking, these organizations are over
• 13:20
  $10 million in revenue a year, right? And some of them aren't, some of them
• 13:23
  are around 500K because they're just starting off, but These entities
• 13:26
  have different structures, just like a normal accountant would, where it's
• 13:30
  got this whole family tree of like a web of bullshittery that
• 13:33
  is there to own their entities and to help them. But at
• 13:36
  the end of the day, most of them don't have as much control as
• 13:39
  you would think. And the bigger these companies get, the less support
• 13:43
  they get and the more taxes they have to pay. So let's
• 13:46
  say without these people that are coming in, they're able to save
• 13:50
  in their first year like multiple millions in
• 13:53
  taxes, multiple millions. So they're
• 13:57
  able to put that money directly back into buying more properties, assisting
• 14:01
  more people with mental and physical ails and illnesses. and
• 14:05
  disabilities. They're able to support more of the community. But do
• 14:08
  you know what the best thing is? Do you know what the best thing is? They've got two new
• 14:12
  forms of revenue stream every year. That's correct. Two
• 14:16
  new forms of revenue stream. They've got revenue coming in from grants.
• 14:20
  Grants, the government literally now can work
• 14:23
  with them because before they couldn't work with them and give them money because they weren't in the right structure.
• 14:27
  And even though these people have had their businesses for a very long time, the government
• 14:30
  would be like, we want to support you, but we can't. And they just wouldn't tell them anything
• 14:34
  else. But now they've got not-for-profits. They're like, now we can support you.
• 14:37
  So they've got a whole revenue stream just from government grants every
• 14:40
  year. And then the other one is from donations. Because now people can
• 14:44
  put money into their organization as a business, and that offsets their
• 14:47
  taxes because they're able to provide a receipt. So they've got two new
• 14:50
  forms of revenue without doing anything else, plus the
• 14:54
  taxes that they save. And you can be like, yeah, well, I've got a tradie business, or
• 14:57
  I've got a salon, or I'm just an online organization, or
• 15:01
  I'm an accountant, or I've got an academy. Well, guess what? You can still get
• 15:04
  grants. I don't care if you hold women's circles. I don't care if you're an equine therapist.
• 15:08
  I don't care if you're a tradie, because guess what? There's a grant for
• 15:11
  it. If you want to collect eucalyptus leaves, there's a grant for that
• 15:14
  too. So whatever you want, you can get support from.
• 15:18
  If you want donations, there is millions of charities that want
• 15:21
  to donate to something that you have in your mind, that is your
• 15:24
  dream, that there is people that will fund you. And yes, we have AI agents
• 15:28
  that we help you create through our portal so that you don't have to
• 15:31
  go and do all the research. They go and do the research and deliver it to you in a file every
• 15:35
  Monday, just so that you can open it up. If what I just described, you
• 15:38
  feel your business could be a fit for this, there's a link in the description
• 15:42
  below to find out more. And it is honestly my honor and
• 15:45
  my privilege to be able to support you in this and share this information because
• 15:49
  I know that I suffered for many years in my business just like knowing
• 15:52
  that there's something else out there. And I honestly feel like we found the
• 15:55
  missing link and I'm so grateful that you're able to receive this information so
• 15:59
  that you can also live and breathe the projects that you're
• 16:02
  passionate about that you've just pushed down. because they are ready for you to
• 16:06
  actually be birthing these into the world. So thank
• 16:09
  you so much for your time and spending your energy with me. I can't thank you enough and