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Answers to Tax Questions You Were Too Afraid To Ask · She's On The Money

• 0:00
  Speaker 1: She's on the Money. She's on the Money.
• 0:10
  Speaker 2: My name's Tatasha Bamblet. I'm a proud First Nations woman
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  Speaker 2: and I'm here to acknowledge country. Hello, beautiful friends, we
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  Speaker 2: gather on the lands of the Aboriginal people. We thank,
• 0:18
  Speaker 2: acknowledge and respect the Aboriginal people's land that we're gathering
• 0:21
  Speaker 2: on today. Take pleasure in all the land and respect
• 0:24
  Speaker 2: all that you see. She's on the Money podcast acknowledges culture, country,
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  Speaker 2: community and connections, bringing you the tools, knowledge and resources
• 0:32
  Speaker 2: for you to thrive.
• 0:32
  Speaker 1: Hello, and welcome to She's on the Money, the podcast
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  Speaker 1: where we discuss all of the issues concerning your wealth
• 0:37
  Speaker 1: goals so that you can feel more in control of
• 0:39
  Speaker 1: your financial future. I'm Victoria Divine and how are we
• 0:43
  Speaker 1: halfway through June already? I don't know about you, but
• 0:47
  Speaker 1: at this time of the year, there's only one thing
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  Speaker 1: on my mind. My birthday and tax And according to
• 0:53
  Speaker 1: a twenty twenty six Pulse survey, Henry found that tax
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  Speaker 1: obligations were the second biggest stressor for soul traders after
• 1:00
  Speaker 1: at the cost of living YEP. From preparing tax returns
• 1:03
  Speaker 1: to making claims and working out just how much we
• 1:05
  Speaker 1: owe it can get all a little low tt. So
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  Speaker 1: obviously we asked our community what they wanted to know
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  Speaker 1: about tax, including questions for investors, families, and those of
• 1:14
  Speaker 1: us who were self employed. And who better to join
• 1:16
  Speaker 1: me than fellow business women, Miss jessic.
• 1:19
  Speaker 3: Ricci business and what I like that a lot?
• 1:22
  Speaker 1: Well you are are you not?
• 1:23
  Speaker 3: It's true?
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  Speaker 1: Do you have an ABN? I sure do business wore men.
• 1:26
  Speaker 3: And I would agree that tax time is very stressful time.
• 1:30
  Speaker 1: Well, it's like twofold for us. It's like the busiest
• 1:32
  Speaker 1: month of the year. Yes, because finance content, but also
• 1:38
  Speaker 1: counting down the days to my birthday, which happens to
• 1:40
  Speaker 1: be the eofy date. Honestly, the universe the stars really
• 1:44
  Speaker 1: aligned on that day. My dad really said are you
• 1:48
  Speaker 1: going to work with that?
• 1:49
  Speaker 3: Yeah?
• 1:49
  Speaker 1: Because he's an accountant, he was not impressed. Like the
• 1:52
  Speaker 1: day that I was born, my mom was like, we're
• 1:54
  Speaker 1: having the baby on the thirtieth fifth June. You better
• 1:56
  Speaker 1: come on over because I'm in labor. And my Dad's like, girl,
• 2:00
  Speaker 1: it's eo fy not wait, And Mum was like, nobody waits.
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  Speaker 1: No anyway, it's so good to have you here because
• 2:08
  Speaker 1: now we can chat through all the stuff that you've
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  Speaker 1: been thinking about, or let's be real, probably quietly stressing
• 2:14
  Speaker 1: over ahead of tax time, plus maybe some learnings from
• 2:18
  Speaker 1: the hustle. For example, did you know that soul traders
• 2:20
  Speaker 1: are spending an average of six hours a week and
• 2:23
  Speaker 1: up to four grand a year on tax and finance admin.
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  Speaker 3: That's mind boggling, but also it kind of makes sense. Yeah,
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  Speaker 3: it's one of those things you want to get right.
• 2:31
  Speaker 3: I think, especially when you are like me and you're
• 2:34
  Speaker 3: a baby business owner, it pays to do it well.
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  Speaker 1: Literally, and so many of us in our community are like, no,
• 2:41
  Speaker 1: Like I don't have accounting software, I haven't organized anything
• 2:44
  Speaker 1: because I just got my spreadsheet. But how long is
• 2:47
  Speaker 1: that taking you to organize? At what cost? Is my
• 2:50
  Speaker 1: favorite question? At the moment everything in business. At the moment,
• 2:54
  Speaker 1: I go, that's a great idea, Jess, at what cost
• 2:56
  Speaker 1: can we implement it? And I just think that's a
• 2:58
  Speaker 1: good thing to keep in mind, and arguably that's just
• 3:01
  Speaker 1: the tip of the iceberg. When we get back from
• 3:03
  Speaker 1: this really quick break, we'll be sharing stats on just
• 3:05
  Speaker 1: how much money you might be leaving on the table
• 3:08
  Speaker 1: at tax time. My friends, welcome back to She's on
• 3:14
  Speaker 1: the Money, the podcast that's shining a light on your
• 3:16
  Speaker 1: tax time questions, both the things that you're worried about
• 3:19
  Speaker 1: out loud and the stuff that you're arguably too shy
• 3:21
  Speaker 1: to ask your accountant.
• 3:23
  Speaker 3: Speaking of which, the recent announcements around CDT and the
• 3:26
  Speaker 3: change in this year's budget have got a lot of
• 3:27
  Speaker 3: the community members reaching out and asking what that means,
• 3:30
  Speaker 3: what that might look like for them. Can you give
• 3:32
  Speaker 3: us a little bit of an update.
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  Speaker 1: Obviously, because I was there, I went to the budget
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  Speaker 1: because I am a really cool person.
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  Speaker 3: She was bits on the ground reporting for you.
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  Speaker 1: When cool people go to the budget, everybody else I
• 3:44
  Speaker 1: went to Taylor Swift. Me I went to the budget.
• 3:46
  Speaker 3: It's pretty cool.
• 3:47
  Speaker 1: But I also did go to Taylor Swift, so maybe
• 3:49
  Speaker 1: I am actually cool. And of course, so first of all,
• 3:52
  Speaker 1: we're going to cover some of the I guess, juicy
• 3:55
  Speaker 1: federal budget stuff. Then the new incentives that I really
• 3:58
  Speaker 1: want you to keep an eye out for. Soh while
• 4:00
  Speaker 1: these announcements, it's important to remember this, they are not
• 4:04
  Speaker 1: legislated yet, they aren't likely to affect your tax this
• 4:07
  Speaker 1: financial year. So the one ending on the thirtieth of
• 4:10
  Speaker 1: June twenty twenty six, they could potentially impact things like
• 4:12
  Speaker 1: capital gains claims that you have next year. So exactly so,
• 4:17
  Speaker 1: during this tax return, the current capital gains tax rules
• 4:21
  Speaker 1: still apply, which is very nice. So if you sold
• 4:24
  Speaker 1: an asset and made a profit on it before June thirty,
• 4:26
  Speaker 1: twenty twenty six, and you'd owned it for at least
• 4:29
  Speaker 1: a year, so a minimum of one year, you'd still
• 4:32
  Speaker 1: get a fifty percent CGT discount or CGT exemption. And
• 4:36
  Speaker 1: this is going to affect things like property and shares
• 4:39
  Speaker 1: and your ETFs. Now, many of you in our community
• 4:42
  Speaker 1: have asked how shares and ETFs are taxed. Good question,
• 4:45
  Speaker 1: and I'll say that if you haven't already, please go
• 4:48
  Speaker 1: back and listen to our recently released episode that is
• 4:51
  Speaker 1: entirely dedicated on how these assets are taxed. Because again
• 4:55
  Speaker 1: I told you, I'm real cool, Like the content I
• 4:57
  Speaker 1: create is for the girls, yeap. You'll learn about dividends, franking, credits,
• 5:02
  Speaker 1: we talked about distributions where basically current CGT rules apply
• 5:06
  Speaker 1: to all of those assets too. And if you've been
• 5:09
  Speaker 1: investing on platforms like Shares's, you can expect a statement
• 5:12
  Speaker 1: to be sent to you with all of the important
• 5:14
  Speaker 1: information that you need in a few months time, and
• 5:16
  Speaker 1: I say usually September, because this stuff doesn't come out immediately.
• 5:21
  Speaker 1: And if you're investing for the very first time, es,
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  Speaker 1: I think you went through this as well. You were like,
• 5:26
  Speaker 1: I'm a galie that has my ducks in a row,
• 5:28
  Speaker 1: Like I do my tax on the first of July obviously,
• 5:31
  Speaker 1: but once you start investing, you've actually got a wait
• 5:34
  Speaker 1: for your investing platform to get their ducks in a
• 5:36
  Speaker 1: row and calculate all of your earnings and stuff like
• 5:39
  Speaker 1: that and then send you a tax report, so you
• 5:42
  Speaker 1: can't do your tax until you have that piece of content.
• 5:45
  Speaker 1: But any shares or ets that you purchase after the
• 5:49
  Speaker 1: first of July this year, they actually might be affected
• 5:53
  Speaker 1: by this new budget update because they will fall into
• 5:56
  Speaker 1: next year's tax right, Like, I don't know if it's
• 6:01
  Speaker 1: confusing that it is confusing if it's new to you,
• 6:03
  Speaker 1: where the CGT exemption is going to be based on
• 6:07
  Speaker 1: inflation plus then a minimum of thirty percent tax on
• 6:11
  Speaker 1: gains from the first of July twenty twenty seven. Again,
• 6:15
  Speaker 1: that's not legislated yet, but I can't see it not
• 6:19
  Speaker 1: becoming legislated. Yeah, sadly, but.
• 6:22
  Speaker 3: You're already investing. You understand it is important to remain
• 6:25
  Speaker 3: level headed and not make any impulsive decisions just because
• 6:28
  Speaker 3: we're at the end of the TAXI now right.
• 6:30
  Speaker 1: Yeah, better said than done. Like, I still get stressy
• 6:33
  Speaker 1: about my investments, and I think that's important to talk
• 6:35
  Speaker 1: about too, But yes, we do need to remain I
• 6:38
  Speaker 1: guess quite level headed. Level Headed's not how I would
• 6:42
  Speaker 1: explain me. But remember that this is just another market
• 6:47
  Speaker 1: factor that might play into things. If your strategy is
• 6:49
  Speaker 1: to be playing the long game. Who knows what might
• 6:52
  Speaker 1: happen jess in like five or ten years. Like, it's
• 6:55
  Speaker 1: not all doom and gloom, And a lot of people
• 6:58
  Speaker 1: have been saying things like, oh, well, is it investing
• 7:00
  Speaker 1: still yes, Like, yes, the tax system is changing, Yes
• 7:04
  Speaker 1: it might be more or less beneficial for you, but
• 7:07
  Speaker 1: the premise of investing still exists, Like we are creating
• 7:12
  Speaker 1: money that will compound and create a better financial future
• 7:15
  Speaker 1: for us. And that I guess that lesson and that
• 7:18
  Speaker 1: idea still exists and is still true. Not all doom
• 7:21
  Speaker 1: and gloom. You'll also be getting some new claiming power
• 7:24
  Speaker 1: in next year's tax return, including an instant tax deduction
• 7:28
  Speaker 1: of one thousand dollars. That's so good money in.
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  Speaker 3: That sounds pretty attractive. Apparently it's meant to make tax
• 7:33
  Speaker 3: time simpler, more straightforward to the everyday person, where you
• 7:36
  Speaker 3: can just knock one thousand dollars off of your income
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  Speaker 3: without having to provide any receipts and that will be
• 7:41
  Speaker 3: for your twenty twenty six twenty twenty seven return exactly.
• 7:45
  Speaker 3: Who knows, maybe it'll chip away at those six hours
• 7:47
  Speaker 3: we're spending on financial admin every week.
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  Speaker 1: Well, hopefully people actually get their stuff together and get
• 7:52
  Speaker 1: a new system that makes sense for them so that
• 7:54
  Speaker 1: they're not spending all of that time on there. Six
• 7:57
  Speaker 1: hours is insane. Soul traders are spending that arguably and
• 8:00
  Speaker 1: some but you know you have your own business, Jess,
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  Speaker 1: So what's on your radar come tax time.
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  Speaker 3: I'm always looking a little bit ahead of time to
• 8:08
  Speaker 3: make sure that if I need to do any rejigging
• 8:11
  Speaker 3: because of tax brackets, because for someone like me, I
• 8:14
  Speaker 3: obviously have my time pyd job. Yeah big dot, I'm
• 8:17
  Speaker 3: doing right now. Hello, everybody, welcome to my full time jobs.
• 8:20
  Speaker 1: That kind of wild that both of us have quote
• 8:22
  Speaker 1: full time jobs and it's just us yapping on some
• 8:24
  Speaker 1: microphones just city on account, I mean, just does do
• 8:27
  Speaker 1: a lot more than that, but like for a few
• 8:29
  Speaker 1: hours a week, that's true.
• 8:31
  Speaker 3: We get to have fun in addition to that. Obviously,
• 8:33
  Speaker 3: within my business, I generate income there as well, which
• 8:36
  Speaker 3: means that this year, especially with my first time super Saver,
• 8:40
  Speaker 3: I'm teetering very close to the edge of a tax
• 8:42
  Speaker 3: bracket and.
• 8:43
  Speaker 1: It really nice.
• 8:44
  Speaker 3: I'm looking at, well, there may be purchases that I
• 8:47
  Speaker 3: need to make for my business that might help bring
• 8:49
  Speaker 3: my taxbill income down. Are there any contributions to super
• 8:53
  Speaker 3: or charity or things like that that might help to adjust.
• 8:56
  Speaker 3: You need to run the numbers. It's very dependent on
• 8:58
  Speaker 3: your situation. But if it's something that I planning on
• 9:00
  Speaker 3: buying anyway, I will often sit on it as long
• 9:03
  Speaker 3: as I can and nab it right before tax time. Yeah,
• 9:06
  Speaker 3: one because I can take advantage of the end of
• 9:07
  Speaker 3: financial year sales. And two because then I can run
• 9:11
  Speaker 3: the numbers and see if that can maybe put me
• 9:13
  Speaker 3: in a slightly more positive position.
• 9:15
  Speaker 1: Yeah, because I think that there's this really big misconception that,
• 9:18
  Speaker 1: oh my god, it's claimable on tax and then all
• 9:21
  Speaker 1: of a sudden. People just like have this mentality that
• 9:23
  Speaker 1: in a new laptop or the new standing desk is free,
• 9:26
  Speaker 1: and that's like not the case. You can just claim
• 9:28
  Speaker 1: back the tax on it if it's related to your business,
• 9:31
  Speaker 1: but you still have to outlay the money. It's still
• 9:33
  Speaker 1: real money that we're spending one hundred percent.
• 9:35
  Speaker 3: I need to keep in mind as well, like is
• 9:37
  Speaker 3: it claimable based on your industry too, So depending on
• 9:41
  Speaker 3: what your business is, what you're doing, you may be
• 9:43
  Speaker 3: entitled to certain things and not others. People who work
• 9:45
  Speaker 3: outdoors might be able to claim their sunscreen or theirs
• 9:48
  Speaker 3: sun protective gear.
• 9:49
  Speaker 1: Where you're a podcaster and you often spend a lot
• 9:52
  Speaker 1: of time in rooms with no windows, Yes, exactly right,
• 9:56
  Speaker 1: Probably not.
• 9:56
  Speaker 3: Right less applicable to those of us, And so it's
• 9:59
  Speaker 3: about knowing exactly what you can claim because again you
• 10:02
  Speaker 3: want to maximize it, but it's important that you're also
• 10:05
  Speaker 3: doing the right thing.
• 10:06
  Speaker 1: Did you know that if you're a gardener you can
• 10:07
  Speaker 1: claim garden gnomes?
• 10:09
  Speaker 3: That's very fun.
• 10:10
  Speaker 1: I did not know that if you're a farmer you
• 10:12
  Speaker 1: can claim your dog.
• 10:14
  Speaker 3: I'd almost become a farmer just to claim now, I rite.
• 10:16
  Speaker 1: But it's kind of crazy there are. And this is
• 10:18
  Speaker 1: why I always tell people not because of the dog content,
• 10:22
  Speaker 1: which arguably is really important, but if you are in
• 10:25
  Speaker 1: an industry where you know there are some niche things
• 10:29
  Speaker 1: going on, go to the at your website, there's very
• 10:31
  Speaker 1: likely a whole page on things you can and can't
• 10:33
  Speaker 1: claim because people ask a million questions and they actually
• 10:36
  Speaker 1: put up some really good blog posts. And I know
• 10:39
  Speaker 1: that sounds dry because their website is dry, and it
• 10:41
  Speaker 1: does look boring, but it can be really helpful, especially
• 10:45
  Speaker 1: if you're just trying to work out what's fair and
• 10:46
  Speaker 1: what's not. Let's sidetrack a little bit and just quickly,
• 10:50
  Speaker 1: can we talk about the difference between a business and
• 10:52
  Speaker 1: what the ATO class as a hobby. I think this
• 10:55
  Speaker 1: gets people a lot, Yeah, because I feel like this
• 10:58
  Speaker 1: comes up a lot and a lot of people are
• 11:00
  Speaker 1: a little bit confused. And I had a friend a
• 11:02
  Speaker 1: couple of years ago get stung by the ATO. They
• 11:05
  Speaker 1: got audited and they'd, you know, just taken up some
• 11:08
  Speaker 1: Uber for a little bit. Didn't like it. Only did
• 11:10
  Speaker 1: like two or three weeks of Uber driving, and they
• 11:13
  Speaker 1: were like, oh, I'll just claim it as as a hobby,
• 11:15
  Speaker 1: because like you know I wasn't claiming that much, but
• 11:18
  Speaker 1: it wasn't. It was genuinely income that she had derived
• 11:21
  Speaker 1: because she was trying to work anyway, so very quick refreshing,
• 11:26
  Speaker 1: my friends. A hobby is an activity that is conducted
• 11:29
  Speaker 1: in your spare time for recreation or pleasure.
• 11:32
  Speaker 3: I play ultimate frisbee. That is a hobby.
• 11:34
  Speaker 1: That is a niche piece of information about Jess as well.
• 11:38
  Speaker 3: At a niche hobby, one might say like, like, when
• 11:41
  Speaker 3: you look.
• 11:41
  Speaker 1: At Jess, you go sunshine and rainbows and really beautiful things,
• 11:46
  Speaker 1: and she's fighting you out on the frisbee field in
• 11:49
  Speaker 1: the pouring rain in the middle of a July like
• 11:51
  Speaker 1: it's crazy. It's crazy anyway. A business is something that
• 11:56
  Speaker 1: comes with tax and legal implications, and it often involves
• 12:00
  Speaker 1: the intent to make a profit or a genuine belief
• 12:03
  Speaker 1: that you are going to make a profit from that activity,
• 12:06
  Speaker 1: even if you're unlikely to do so in the short term.
• 12:09
  Speaker 3: I make content on the internet. That is a business.
• 12:12
  Speaker 1: Unfortunately it is. I would love for you to not
• 12:16
  Speaker 1: pay tax on the income that you make from that,
• 12:18
  Speaker 1: but you do, and you do it properly. But the
• 12:22
  Speaker 1: decision to start a business or operate in a business
• 12:25
  Speaker 1: like manner means that you would register a business name
• 12:28
  Speaker 1: and obtain an ABN. Now that's an interesting kind of
• 12:33
  Speaker 1: like that's what the ATO says. But a lot of
• 12:36
  Speaker 1: people are getting stung because they're doing hobbies and like
• 12:39
  Speaker 1: maybe making baby blankets and selling them on Etsy and
• 12:42
  Speaker 1: taking custom orders. And then you go, well, it's just
• 12:44
  Speaker 1: a hobby. Oh, you established a whole Etsy store. Now
• 12:48
  Speaker 1: you're selling the baby blankets and taking custom orders. Like, girl,
• 12:51
  Speaker 1: it's not really a hobby. That's a business.
• 12:53
  Speaker 3: That's where the intent comes in, right. It's like, well,
• 12:55
  Speaker 3: if you're doing something with the intention of making money,
• 12:58
  Speaker 3: even if you haven't got the ABM, Yeah, the intentions
• 13:01
  Speaker 3: still there.
• 13:01
  Speaker 1: Yeah, and it could be flagged. And nowadays with data
• 13:04
  Speaker 1: matching and honestly, I want to say how crazy AI is,
• 13:10
  Speaker 1: Like the ATO is really tapping into that and how
• 13:12
  Speaker 1: to scrape the internet for information on how Jessica Ritchie
• 13:16
  Speaker 1: like derives her income and like, I have seen cases
• 13:19
  Speaker 1: where influencers have declared a certain thing on their tax
• 13:23
  Speaker 1: return and then the ato's gone back and been like,
• 13:27
  Speaker 1: that's interesting. You had a whole trip to Disneyland that
• 13:31
  Speaker 1: was paid for. Where's that yeah, and I kid you
• 13:34
  Speaker 1: not that that has happened. So I'm obviously this isn't
• 13:38
  Speaker 1: targeted at just you know, influencers, but the everyday person
• 13:43
  Speaker 1: is being scraped by the data as well. And they
• 13:45
  Speaker 1: might highlight something, but if they audit you, jess, they're
• 13:49
  Speaker 1: not going to be like, oh, we saw the Disneyland trip,
• 13:51
  Speaker 1: where's that? That comes up later. They're just going to go, hey,
• 13:54
  Speaker 1: you're being audited proof receipts, yeah, and then that conversation
• 13:57
  Speaker 1: comes later. Anyway, it also plays into they say on
• 14:01
  Speaker 1: the website that the repetition of similar types of activities
• 14:06
  Speaker 1: and the size and or scale of your activity is
• 14:09
  Speaker 1: consistent with other businesses in your industry. So you might go, well, no,
• 14:13
  Speaker 1: it's just a hobby for me, Like it's not. But
• 14:15
  Speaker 1: you're pouring just as many candles so somebody else who's
• 14:19
  Speaker 1: going to markets? And anyway, I feel like you're picking
• 14:23
  Speaker 1: up what I'm putting down, right. And also they say
• 14:26
  Speaker 1: that the activity is planned, organized and carried out in
• 14:29
  Speaker 1: a business like manner, with records, separate bank accounts, licenses,
• 14:32
  Speaker 1: qualifications or premises, which again I think is an interesting
• 14:37
  Speaker 1: one because I see so many people being picked up
• 14:39
  Speaker 1: and like, I don't see it individually. Yeah, I mean
• 14:42
  Speaker 1: people in our community come to me and go, oh
• 14:44
  Speaker 1: my gosh, v I got picked up by the ATO
• 14:46
  Speaker 1: for this. What do I do? And I'm like, well,
• 14:47
  Speaker 1: go talk to the ATO about that. But it is
• 14:50
  Speaker 1: happening in our community, is happening around and I think
• 14:54
  Speaker 1: it's just really important to be aware of it. So
• 14:56
  Speaker 1: even if you don't have a registered business name and
• 14:58
  Speaker 1: you don't have an ABN and you're not keeping clean records,
• 15:01
  Speaker 1: but they find that you are generating a profit, they
• 15:04
  Speaker 1: might come down on you like a ton of bricks,
• 15:07
  Speaker 1: and I'm just trying to save you from that.
• 15:08
  Speaker 2: Yeah.
• 15:09
  Speaker 3: That actually reminds me of another question that we've got,
• 15:11
  Speaker 3: which I think is a really common one for those
• 15:14
  Speaker 3: of us who are in the early days of our businesses.
• 15:16
  Speaker 3: Especially Let's say you're hustling hard, you're operating at a loss,
• 15:19
  Speaker 3: and you have absolutely no idea what to do at
• 15:21
  Speaker 3: tax time. Fair you ideally probably don't want to be
• 15:24
  Speaker 3: paying for an accountant, as much as they're valuable, because
• 15:26
  Speaker 3: if you're operating at a loss, you haven't got a
• 15:28
  Speaker 3: lot of cash flow.
• 15:29
  Speaker 1: You already feel like you're bleeding money.
• 15:30
  Speaker 3: One hundred percent? Are there other things that you could
• 15:32
  Speaker 3: maybe consider.
• 15:33
  Speaker 1: So while you don't need to technically keep records for
• 15:36
  Speaker 1: the ATO, if what you're doing is more of a hobby,
• 15:38
  Speaker 1: I would say it's just good practice to keep records
• 15:41
  Speaker 1: just in case your circumstances change. So setting up systems
• 15:45
  Speaker 1: and programs can help you stay on top of business
• 15:47
  Speaker 1: admin and obviously reduce that six hours per week's stat.
• 15:51
  Speaker 1: It can help you manage invoicing and getting paid on time.
• 15:54
  Speaker 1: It can help you better manage unpredictable earning with I
• 15:57
  Speaker 1: guess clever budgeting and cash flow tools. And I would
• 16:01
  Speaker 1: say keep receipts for literally everything you might think is eligible,
• 16:05
  Speaker 1: like just track it because it might be And like
• 16:08
  Speaker 1: from little things, big things grow. I say that on
• 16:11
  Speaker 1: the podcast all the time. I know it was just
• 16:13
  Speaker 1: a quick, sneaky office works trip and you only spend
• 16:16
  Speaker 1: twenty dollars, but how often do you do that and
• 16:19
  Speaker 1: how much does that add up? Like those things do
• 16:22
  Speaker 1: genuinely make a difference come tax time. Absolutely, And besides,
• 16:26
  Speaker 1: you's being a good habit as well. It's a nice
• 16:28
  Speaker 1: way to see your progress, Like don't you want that
• 16:29
  Speaker 1: little dopamine hit. I do, like I love having and
• 16:33
  Speaker 1: I mean I've shared on the podcast before that I
• 16:35
  Speaker 1: take photos of all my receipts and I have a
• 16:37
  Speaker 1: whole album on my phone of the receipts that I have,
• 16:39
  Speaker 1: which is obviously really cool girl behavior. Yeah, like cool
• 16:43
  Speaker 1: girl behavior, but like it's a dopamine hit to see
• 16:46
  Speaker 1: that I'm organized. We also love a self employed queen.
• 16:50
  Speaker 1: But with all the freedom that you have as a
• 16:51
  Speaker 1: self employed queen, Miss jessic Ricci, comes huge responsibility as well. Unfortunately, yes, sorry,
• 16:58
  Speaker 1: So that's why it is so important to just stay organized,
• 17:01
  Speaker 1: because if it's not for the progress, it's for the
• 17:04
  Speaker 1: receipts and es. According to a twenty twenty five Pulse survey,
• 17:09
  Speaker 1: Henry also found that almost half of all sole traders
• 17:13
  Speaker 1: with business expenses don't claim them all. Almost half. That
• 17:18
  Speaker 1: is nuts to me, literally, and if you do the
• 17:21
  Speaker 1: maths on that, that's like foregoing something like three eight
• 17:25
  Speaker 1: hundred and fifty six dollars per year in expense claims alone.
• 17:29
  Speaker 3: I don't feel good about that. I know that it's
• 17:31
  Speaker 3: such so much money. That's so much money, especially again
• 17:35
  Speaker 3: in the early days of the business. If you're operating
• 17:37
  Speaker 3: on a very small profit, or you know you're looking
• 17:40
  Speaker 3: at maybe taking loss that that money is a huge
• 17:42
  Speaker 3: difference potentially, And even if it's not claimable now, if
• 17:46
  Speaker 3: you're thinking, I'm operating at a loss, what does that
• 17:47
  Speaker 3: look like for me? You might be able to offset
• 17:50
  Speaker 3: future income if it's totally now. It's all going to
• 17:54
  Speaker 3: depend on your personal circumstances. But I just think keep
• 17:57
  Speaker 3: the records because you never know, Like if you owe
• 17:59
  Speaker 3: a small business, maybe one day somebody mentions your product
• 18:03
  Speaker 3: and you sell out the next day, or maybe you
• 18:05
  Speaker 3: go to a market and you find your target audience,
• 18:07
  Speaker 3: like you just never know. You don't want to get
• 18:10
  Speaker 3: to tax time. And on Victoria Devine's birthday, this scrambling.
• 18:14
  Speaker 1: Dame, we want to have a good birthday.
• 18:16
  Speaker 3: All the receipts and the things that you all of
• 18:18
  Speaker 3: a sudden now are eligible to claim exactly.
• 18:20
  Speaker 1: And it's funny because like, our community is listening to
• 18:24
  Speaker 1: this episode, and I'm pretty sure that's not our community.
• 18:27
  Speaker 1: I'm pretty sure that's people who don't keep records and
• 18:29
  Speaker 1: don't listen to finance podcasts to put themselves in the
• 18:32
  Speaker 1: best possible position, Like our queens are listening to this
• 18:35
  Speaker 1: content to get ahead, so they're probably already doing that,
• 18:38
  Speaker 1: but it's a good reminder that the little things just
• 18:41
  Speaker 1: really do add up. All Right, We're going to take
• 18:43
  Speaker 1: a really quick break, but when we return, we're talking
• 18:45
  Speaker 1: about claims and how to make sure that you aren't
• 18:48
  Speaker 1: the one missing out come tax time. Our one thousandth
• 18:56
  Speaker 1: episode is coming up soon, and to celebrate, we're giving
• 18:59
  Speaker 1: one clever who listener a chance to win. She's stashed
• 19:02
  Speaker 1: the cash. Today's mystery word is together. Tune into episodes
• 19:08
  Speaker 1: of She's on the Money between the seventeenth of June
• 19:10
  Speaker 1: and the third of July and listen out for the
• 19:13
  Speaker 1: hidden code words. They are are five in total. The
• 19:15
  Speaker 1: first person to arrange the code words in the correct
• 19:18
  Speaker 1: order will win one thousand dollars. Entries open on Friday,
• 19:22
  Speaker 1: the third of July, with details shared live on the pod.
• 19:25
  Speaker 1: Good luck and happy hunting, my friends. We are back
• 19:28
  Speaker 1: and we are jumping straight into the juicy part, the
• 19:31
  Speaker 1: part that we honestly usually go to a professional for,
• 19:34
  Speaker 1: and that is claims. What's tax deductible and what can
• 19:37
  Speaker 1: you actually claim? Good question, It actually depends. I know
• 19:43
  Speaker 1: you hate when I say that. It all depends on
• 19:46
  Speaker 1: your total taxable income, your industry, and your occupation. And
• 19:50
  Speaker 1: there are honestly so many decent resources out there if
• 19:54
  Speaker 1: you've ever been curious about I guess what you can
• 19:56
  Speaker 1: claim in your field of work.
• 19:59
  Speaker 3: One of the this is actually recommended when we put
• 20:01
  Speaker 3: out for questions that there's some claims resources on the
• 20:04
  Speaker 3: Henry website.
• 20:05
  Speaker 1: And it's like really aesthetic. You know how I was
• 20:07
  Speaker 1: telling you that the Atio website sucks. Henry's website doesn't suck.
• 20:11
  Speaker 3: There you go, You've got that, You've got the Atier website.
• 20:13
  Speaker 3: They've got some really good examples of what you might
• 20:15
  Speaker 3: or might not be able to claim as well. And
• 20:17
  Speaker 3: I think there's a pretty active Atier community. You can
• 20:19
  Speaker 3: actually post questions forum. Yes, it's giving, that's where the
• 20:24
  Speaker 3: cool girls hang out, giving early two thousands. I'm loving it.
• 20:28
  Speaker 3: And you can hear what other people are claiming. And
• 20:30
  Speaker 3: I believe you might also be able to access experts
• 20:32
  Speaker 3: there as well.
• 20:33
  Speaker 1: Absolutely, And I want to be really juicy. I was
• 20:35
  Speaker 1: talking about this on an Instagram story a little while
• 20:38
  Speaker 1: ago because people were asking me like, oh, hey, how
• 20:41
  Speaker 1: do you get paid for that? Like you know, when
• 20:42
  Speaker 1: I do a Q and a box. Yes, And I
• 20:44
  Speaker 1: was doing a Q and a box about the food
• 20:47
  Speaker 1: that I was eating and they were like, how do
• 20:49
  Speaker 1: you get paid? And I was like, all right, sit down, queen,
• 20:51
  Speaker 1: I'll tell you, like I am an open book and
• 20:53
  Speaker 1: it's your turn. Okay, because you do a little bit
• 20:56
  Speaker 1: of like social posting, and I don't know, is it
• 20:58
  Speaker 1: rude to call people an influencer cause you're so much
• 21:00
  Speaker 1: more than just somebody who does content.
• 21:03
  Speaker 3: A content creator is my term of choice. Okay, I
• 21:05
  Speaker 3: did like business women earlier.
• 21:07
  Speaker 1: Okay, just identialize as a business woman. And because you're
• 21:10
  Speaker 1: a business woman, you post like some reels and get
• 21:12
  Speaker 1: paid for that. Can you then claim everything that you
• 21:15
  Speaker 1: buy for a shoot? I wish?
• 21:17
  Speaker 3: I know, right, It's very much dependent on again, what
• 21:21
  Speaker 3: you're doing, you know, for a real is it directly
• 21:25
  Speaker 3: related to generating the income? And more specifically, am I
• 21:29
  Speaker 3: only using it for business purposes? Yes? So for example,
• 21:32
  Speaker 3: if I was doing a cute little outfit of the
• 21:34
  Speaker 3: day video, I'm not claiming my outfit because I'm wearing
• 21:38
  Speaker 3: that outfit in my day to day life. It's not
• 21:40
  Speaker 3: really for business purposes. Whereas if I was required to
• 21:44
  Speaker 3: turn up to a shoot, and I needed a very
• 21:46
  Speaker 3: specific item. Let's say I need a bunny costume. Yeah,
• 21:50
  Speaker 3: I'm never gonna use that bunny costume again. I'm picturing
• 21:52
  Speaker 3: Elwoods in her little ears.
• 21:54
  Speaker 1: Oh I could make that happen for She's on the money.
• 21:57
  Speaker 1: If you want it, we'll talk later.
• 22:00
  Speaker 3: Yeah. But I needed this very specific item that I
• 22:02
  Speaker 3: was only going to use for this very specific shoot.
• 22:04
  Speaker 3: Then it may be claimable.
• 22:05
  Speaker 1: Yeah yeah, but only the tax of that is claimable.
• 22:09
  Speaker 1: So I think that's really important. And also I feel
• 22:11
  Speaker 1: like there's some like misconceptions floating around because people will
• 22:14
  Speaker 1: be like, oh, influencers claim everything. If you know an
• 22:18
  Speaker 1: influencer who is claiming everything, my friend, they're doing the
• 22:21
  Speaker 1: wrong thing. Yeah, So like just calling it out there.
• 22:24
  Speaker 1: I'm not talking about anybody specifically, but if you know
• 22:28
  Speaker 1: of somebody who's like, oh, I just claim everything, Actually
• 22:32
  Speaker 1: they're committing tax evasion, and that's just not how to
• 22:36
  Speaker 1: do it. That's not kosher. Like in this house, we
• 22:38
  Speaker 1: keep our claim records. We do the right thing, because
• 22:40
  Speaker 1: what goes around comes around. And I think that you know,
• 22:43
  Speaker 1: for individuals who are looking I guess for some low
• 22:46
  Speaker 1: hanging fruit, they're like Oh, but v I, you know,
• 22:49
  Speaker 1: have a payg job or you know I'm self employed,
• 22:52
  Speaker 1: Like I just I don't know what I can and
• 22:54
  Speaker 1: can't claim, like low hanging fruit sun protection if you
• 22:59
  Speaker 1: are and I'm always going to be the biggest advocate
• 23:01
  Speaker 1: for some protection, but some protection if you work outside
• 23:04
  Speaker 1: or you wear them at work to protect you from
• 23:06
  Speaker 1: the risk of sun damage. You can claim your sunscreen.
• 23:08
  Speaker 1: You can claim your hats. And if your total claim
• 23:12
  Speaker 1: for laundry expenses is one hundred and fifty dollars or
• 23:15
  Speaker 1: less excluding dry cleaning, so you're not allowed to claim
• 23:18
  Speaker 1: dry cleaning, you can actually claim a deduction without any
• 23:21
  Speaker 1: written evidence.
• 23:22
  Speaker 3: Love that.
• 23:22
  Speaker 1: Like if you're you know, laundering your uniform because you
• 23:26
  Speaker 1: work are hungry jacks.
• 23:28
  Speaker 3: Yep, claim it, claim it, get that money, that clean.
• 23:31
  Speaker 1: Exactly, and you would have to launder that because you
• 23:33
  Speaker 1: would come home every night probably like for ye exactly
• 23:37
  Speaker 1: and like that's hot, but not every day.
• 23:39
  Speaker 4: You know.
• 23:40
  Speaker 1: You could also, I think people don't know this and
• 23:43
  Speaker 1: this is a good one. Claim your accounting fees for
• 23:45
  Speaker 1: the previous year. So if you did engage an accountant
• 23:49
  Speaker 1: and you paid them next year, you can claim it.
• 23:52
  Speaker 1: So let's throw to our community, jess, what did they
• 23:55
  Speaker 1: want to know?
• 23:55
  Speaker 3: A bunch of people had questions about knowing when to
• 23:58
  Speaker 3: register a GST to avoid being fined, And we've all
• 24:01
  Speaker 3: had a bit of a giggle about this with Beck previously.
• 24:04
  Speaker 1: Yes, And I think the GST it feels so confusing
• 24:07
  Speaker 1: because they say it's voluntary, like they say on the thing,
• 24:10
  Speaker 1: like you don't have to like register for this yet,
• 24:13
  Speaker 1: and you go, okay, well I'm not going to if
• 24:15
  Speaker 1: I don't have to, but you actually have to at
• 24:18
  Speaker 1: a certain point. So when your business or your enterprise
• 24:21
  Speaker 1: has turnover, which is gross income from all business minus GST. Also,
• 24:26
  Speaker 1: do you know the easiest way? Like I always think
• 24:28
  Speaker 1: about this when I'm talking about gross or nets. I
• 24:30
  Speaker 1: can never remember which is which you can't No, okay,
• 24:33
  Speaker 1: So gross versus net. Gross income is what you would
• 24:37
  Speaker 1: have taken home if you didn't have to pay tax.
• 24:40
  Speaker 1: And it's gross to look at it because you don't
• 24:42
  Speaker 1: get it. Oh that's brilliant, right, So your gross income
• 24:46
  Speaker 1: that's gross because that's not what you get.
• 24:48
  Speaker 3: That's hilarious.
• 24:49
  Speaker 1: And net income I think of fishing and a net
• 24:52
  Speaker 1: and it's what you actually get to take home. Like, yea,
• 24:55
  Speaker 1: you know you look at the whole ocean, great, and
• 24:56
  Speaker 1: you scoop out of fish. That's the fish you get
• 24:58
  Speaker 1: to take home. What is in the net, It is
• 25:00
  Speaker 1: what is in your bank account. Oh, very clever from you,
• 25:03
  Speaker 1: whether that makes sense or not. But I just always
• 25:06
  Speaker 1: look at it. I'm like, ill, gross income is gross
• 25:08
  Speaker 1: because I don't get that because I've paid tax.
• 25:11
  Speaker 3: I could have been so much richer exactly.
• 25:13
  Speaker 1: Anyway, back on track, you do not have to register
• 25:17
  Speaker 1: for GST if your business earns under seventy five thousand dollars,
• 25:21
  Speaker 1: but if you do and you have a turnover of
• 25:24
  Speaker 1: more than seventy five thousand dollars in any twelve month period,
• 25:27
  Speaker 1: you have to consider registering. And even if you think
• 25:31
  Speaker 1: you might hit that like threshold later you're like, oh,
• 25:34
  Speaker 1: I'm not really doing that. I've been consistently doing maybe
• 25:37
  Speaker 1: sixty thousand dollars a year. I wouldn't wait. I would
• 25:40
  Speaker 1: say do it before you regret it later, because yes,
• 25:44
  Speaker 1: it may mean a little bit more admin like filing
• 25:46
  Speaker 1: a bas or business activity statement is what that is called,
• 25:49
  Speaker 1: every quarter, but it could prevent some really unwanted attention
• 25:53
  Speaker 1: from the taxman later on and also from more of
• 25:55
  Speaker 1: a is the word logistical point of view. And I've
• 25:58
  Speaker 1: always like done this myself, even if I wasn't earning
• 26:02
  Speaker 1: seventy five grand I want all my invoices it to
• 26:05
  Speaker 1: say that I'm charging GST because when I do tip
• 26:08
  Speaker 1: over that seventy five thousand dollar limit, I don't want
• 26:11
  Speaker 1: to have to go to my clients and be like
• 26:12
  Speaker 1: I'm now charging GST and like have to renegotiate things
• 26:16
  Speaker 1: because it does change what your clients have to pay,
• 26:20
  Speaker 1: Like GST is ten percent, and like when you're renegotiating invoices, Queen,
• 26:25
  Speaker 1: I want it to be because we're changing your bottom line,
• 26:28
  Speaker 1: not ah, the government wants more money. Like, let's just
• 26:31
  Speaker 1: set those expectations earlier. Also really important if you work
• 26:35
  Speaker 1: in the nonprofit sector, which very cool. We have a
• 26:37
  Speaker 1: fair few people in our community who do. If your
• 26:40
  Speaker 1: organization has a turnover of one hundred and fifty thousand
• 26:43
  Speaker 1: dollars per year or more, that's when you need to
• 26:46
  Speaker 1: register for GST. So they've got a different limit. And
• 26:49
  Speaker 1: as I mentioned earlier in this episode, I had a
• 26:51
  Speaker 1: friend who got stung for doing uber YEP.
• 26:54
  Speaker 3: So if you.
• 26:55
  Speaker 1: Provide ride share services. So if you do taxi or
• 27:00
  Speaker 1: limousines for passengers like Uber, you know, whatever you're on,
• 27:04
  Speaker 1: regardless of your turnover, whether it is a dollar or
• 27:07
  Speaker 1: a million dollars, you have to apply for GST. And
• 27:10
  Speaker 1: this applies to both owner drivers and if you lease
• 27:13
  Speaker 1: or rent a taxi. I didn't know that, which I
• 27:15
  Speaker 1: know leasing and renting a taxi isn't like that common
• 27:19
  Speaker 1: these days, no, but it's very good to know. And
• 27:22
  Speaker 1: if you're a door dasher, so like you're a dasher
• 27:25
  Speaker 1: at door Dasher, which is actually very cool side hustle,
• 27:28
  Speaker 1: and you earn less than seventy five thousand dollars per
• 27:30
  Speaker 1: year and only deliver food like you don't do the
• 27:33
  Speaker 1: other ride share components, you do not need to register
• 27:37
  Speaker 1: for GST. Oh in case you didn't know, because I
• 27:40
  Speaker 1: think that you might get a little bit confused and
• 27:42
  Speaker 1: be like, well, door dash must be the same.
• 27:45
  Speaker 2: It's not.
• 27:45
  Speaker 1: It's different. So if you've got that as a side hustle,
• 27:48
  Speaker 1: you don't have to sign up.
• 27:50
  Speaker 3: Lots of little tippits, and there are so many ways
• 27:52
  Speaker 3: to keep track of them all. For example, yes, when
• 27:54
  Speaker 3: I started, I was using the spreadsheet. It was very messy.
• 27:57
  Speaker 3: It was a little bit all over the place. You
• 27:59
  Speaker 3: can graduate. You know, there are platforms I canry out
• 28:01
  Speaker 3: there that collate everything and do a lot of the
• 28:03
  Speaker 3: work for you where you can streamline those costs and claims.
• 28:06
  Speaker 3: I believe it even does your GST stuff for you,
• 28:08
  Speaker 3: which is.
• 28:08
  Speaker 1: Very nice, actually does and low key. I've had a
• 28:12
  Speaker 1: few conversations with people at side Note. I've had a
• 28:15
  Speaker 1: few conversations with people in our community who do use
• 28:18
  Speaker 1: Henry because I was like, hey, guys, what are we doing,
• 28:20
  Speaker 1: like if we're small business owners? And they're like, oh
• 28:22
  Speaker 1: my gosh, I love Henry because I just call them
• 28:24
  Speaker 1: up and they answer like they're actual people just based
• 28:27
  Speaker 1: here in Australia who are just really passionate about small
• 28:30
  Speaker 1: business owners. So people like you just could be like, hey,
• 28:33
  Speaker 1: I don't have an accountant, but what do I do here?
• 28:35
  Speaker 1: And they're like, all right, bestie, sit down. We can't
• 28:37
  Speaker 1: give you advice, but this is what we do.
• 28:39
  Speaker 3: We love that sometimes you do just need to talk
• 28:42
  Speaker 3: to a human being, I.
• 28:43
  Speaker 1: Think exactly, And I think that that's really important because
• 28:47
  Speaker 1: like the blogs we've been recommending can only do so
• 28:50
  Speaker 1: much and sometimes as a business owner. You just want
• 28:53
  Speaker 1: someone to be like, sorry, bestie, you're not allowed to
• 28:56
  Speaker 1: do that, and you go, thank you. I've been looking
• 28:58
  Speaker 1: everywhere for that information. Anyway, it's included in their whole thing,
• 29:02
  Speaker 1: which might then be a good option for you.
• 29:04
  Speaker 3: Sounds really good. I think no matter where you're at
• 29:06
  Speaker 3: in your business journey, it pays to be organized. That's
• 29:09
  Speaker 3: the bottom line. If this episode teaches you one thing,
• 29:12
  Speaker 3: whatever that looks like for you, it doesn't matter that
• 29:14
  Speaker 3: preparation is key.
• 29:15
  Speaker 1: And also it looks really impressive, like the dopamine I
• 29:19
  Speaker 1: get from having my jucks in a row. Like Jess,
• 29:21
  Speaker 1: I reorganized my spicetraw the other day and I was like,
• 29:24
  Speaker 1: this is so good. You can do the same for
• 29:25
  Speaker 1: your tax.
• 29:26
  Speaker 3: Yeah, we want to save you that six hours a
• 29:27
  Speaker 3: week and that four thousand dollars a year.
• 29:29
  Speaker 1: Oh my goodness. Do we ever? And at the end
• 29:31
  Speaker 1: of the day, if you're still confused by the tax
• 29:33
  Speaker 1: on your earnings all your assets, it might actually be
• 29:35
  Speaker 1: time to level up your financing processes so you don't
• 29:39
  Speaker 1: get a nicety fine from the tax office or have
• 29:41
  Speaker 1: them trying to look under the hood keep out Like
• 29:44
  Speaker 1: I just want to keep my house in tip top shape. Anyway,
• 29:48
  Speaker 1: my friends, I could talk about tax forever literally and
• 29:50
  Speaker 1: I probably will because it's actually my entire career. But
• 29:53
  Speaker 1: that is for this episode all from us. We have
• 29:56
  Speaker 1: loved covering this stuff, so if you have any follow
• 29:58
  Speaker 1: up questions, comments, or reviews, please please send them our
• 30:01
  Speaker 1: way and make sure that you're subscribed so that you
• 30:03
  Speaker 1: never miss a money update. And we'll catch you on
• 30:05
  Speaker 1: Friday for another episode of Friday Drinks. Until then, take
• 30:08
  Speaker 1: care of yourselves out of each other by guys.
• 30:15
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• 30:17
  Speaker 4: in nature and does not consider your individual circumstances. She's
• 30:21
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• 30:25
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