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Let's talk about TAX baby! · She's On The Money

0:00
Speaker 1: She's on the Money.
0:02
Speaker 2: She's on the Money. Hello, and welcome to She's on
0:15
Speaker 2: the Money, the podcast for millennials who want financial freedom.
0:19
Speaker 2: Tax time is almost upon us, friends, and if you're
0:22
Speaker 2: anything like me, that means you have lots of questions
0:24
Speaker 2: that you want answered. By the end of today's episode,
0:27
Speaker 2: you'll know what you can and can't claim, what the
0:29
Speaker 2: go is with tax on side, hustles, second jobs, and
0:32
Speaker 2: your investments, plus plenty more. My name is Jessica Ricky,
0:36
Speaker 2: and I'm so excited to be joined for today's episode
0:39
Speaker 2: by financial advisor and all around queen Victoria Devine.
0:42
Speaker 1: You are too kind.
0:43
Speaker 3: I feel like it's not as She's on the Money
0:45
Speaker 3: episode unless someone unnecessarily strokes my ego to begin it.
0:49
Speaker 2: Absolutely, I love to lay it on you, but they
0:51
Speaker 2: let's rip into it. Tax time is just a couple
0:54
Speaker 2: of weeks away now, So where on earth do we
0:57
Speaker 2: start in terms of getting our finances sorted?
0:59
Speaker 3: Where we even start? I think we need to start
1:01
Speaker 3: by taking a massive deep breath, because for too many
1:05
Speaker 3: of us, tax time is a stressful time and it
1:08
Speaker 3: shouldn't be that way. I mean, it's June thirty, it
1:10
Speaker 3: is the end of financial year, which is your birthday?
1:13
Speaker 1: I was about to say, which is also my birthday?
1:15
Speaker 3: And on the thirtieth I turn thirty, And I think
1:17
Speaker 3: that's pretty cool. I don't know, I don't think anybody
1:20
Speaker 3: else cares, but like thirty on the thirtieth.
1:22
Speaker 2: It's like a magical alignment of numbers. It's called a
1:25
Speaker 2: golden birthday. I'm pretty sure. Is that right? Yeah? I
1:27
Speaker 2: believe it. So like your agent birth date? Aline?
1:30
Speaker 1: Oh, is that what that means?
1:32
Speaker 2: I think? So.
1:33
Speaker 3: Tony's sitting in the room and she's not meant to
1:35
Speaker 3: be in this podcast, but she just got really excited
1:38
Speaker 3: because her birthday is on the twenty eighth of November,
1:41
Speaker 3: and on that date, she turns twenty eighth, So like,
1:43
Speaker 3: is that her golden birthday too?
1:45
Speaker 2: Absolutely? Is? That's kind of fun?
1:47
Speaker 3: Gosh, I'm so excited about that. Anyway, I'm very excited
1:50
Speaker 3: about my birthday. I'm not one of those people that
1:53
Speaker 3: do birthday months or anything like that. I'm just excited
1:55
Speaker 3: because it's also tax time. So there's that For.
1:59
Speaker 2: Those of us who aren't so tax minded, me, what
2:02
Speaker 2: is really what should we be excited for? Why do
2:04
Speaker 2: we love tax so much?
2:05
Speaker 1: So?
2:06
Speaker 3: Tax time actually means a few different things for a
2:08
Speaker 3: few different people. So it's pretty exciting if you're a
2:11
Speaker 3: casual worker because usually you expect a little bit of
2:14
Speaker 3: a return in your bank account. But it can actually
2:16
Speaker 3: be really stressful for people like me who are small
2:19
Speaker 3: business owners who potentially have tax owing, and it's a
2:22
Speaker 3: total drainer for freelancers who maybe haven't stayed on top
2:25
Speaker 3: of their tax throughout the year. So it's different for everybody.
2:29
Speaker 3: But I think that what we need to understand about
2:32
Speaker 3: tax time is one what we can claim and what
2:34
Speaker 3: we can't claim, and maybe what we need to do
2:36
Speaker 3: in the lead up, because unfortunately, when it comes to tax,
2:41
Speaker 3: once the thirtieth of June passes.
2:43
Speaker 1: You can't actually do anything in arrears.
2:45
Speaker 3: You can't actually go and be like, okay, cool, well
2:48
Speaker 3: I actually did need a new laptop.
2:49
Speaker 1: I'm going to buy it now.
2:51
Speaker 3: The dates actually have to be before the end of
2:54
Speaker 3: financial year for you to actually claim any benefit in
2:57
Speaker 3: that financial year. Like, of course you can do it
2:59
Speaker 3: the next year, but that's not what it's about. That's
3:01
Speaker 3: not why you're buying it right You want to make
3:03
Speaker 3: the most of right now and make hay while the
3:05
Speaker 3: sun is shining, and the sun isn't shining twelve months
3:07
Speaker 3: from now, because that's just too far away to even
3:09
Speaker 3: think about, right.
3:11
Speaker 2: So it sounds like staying organized is going to be
3:14
Speaker 2: really beneficial to anyone in prepping for tax time, especially
3:17
Speaker 2: those freelancers and small buzoners.
3:19
Speaker 3: I am going to be biased and just say in general,
3:21
Speaker 3: it's quite helpful to be organized, but I wouldn't know.
3:23
Speaker 3: That's why I have a bookkeeper, Jess, And that's why
3:26
Speaker 3: you often run the content on somebody because I genuinely
3:29
Speaker 3: cannot be trusted, but essentially to make sure that we
3:32
Speaker 3: are ready for when July one rolls around. You can
3:35
Speaker 3: do a number of different things. So you can prepare
3:38
Speaker 3: by making sure that you have all your receipts and
3:40
Speaker 3: sorting them out and organizing them by category. So say
3:43
Speaker 3: you have a whole heap of different receipts, put them
3:45
Speaker 3: all together and make sure that you've got them in
3:47
Speaker 3: different categories so that you can give them to your
3:49
Speaker 3: accountant to claim properly. The second thing I'd say there
3:53
Speaker 3: is I actually have a folder on my phone, and
3:56
Speaker 3: I know that the ATO tax app actually allows you
3:59
Speaker 3: to take photos and audidically upload it to save it
4:01
Speaker 3: for later. I don't use that just because I like
4:03
Speaker 3: having them on my phone so I can share them
4:06
Speaker 3: personally with my bookkeeper or reference them, because I think
4:09
Speaker 3: that I wouldn't be alone when I say that we've
4:12
Speaker 3: all lost a receipt. So I think making a habit
4:15
Speaker 3: of actually just snapping a quick pick of it and
4:17
Speaker 3: putting it into a folder right then and there actually
4:19
Speaker 3: really helps because you don't need the actual original, You
4:23
Speaker 3: just need proof of the actual receipt And so for me,
4:27
Speaker 3: making sure that you've got the receipts is really helpful.
4:29
Speaker 3: But then also just having photos. I promise you that
4:32
Speaker 3: by having photos instead of a shoe box full of
4:34
Speaker 3: dirty receipts that have gum wrappers stuck to them, is
4:38
Speaker 3: going to make your accountant much happier or you much
4:40
Speaker 3: happier when it comes to doing your tax.
4:42
Speaker 2: And it is worth noting just to throw in there
4:45
Speaker 2: because I did not know this. You want to make
4:47
Speaker 2: sure that you're keeping those receipts or your records of
4:50
Speaker 2: their receipts for five years because minimum, yeah, at a minimum,
4:53
Speaker 2: because you can be audited. And I feel like, as
4:57
Speaker 2: you were saying, having that digital copy makes it really
4:59
Speaker 2: easy for people to file them away on your computer,
5:01
Speaker 2: and if for whatever reason, you have to come back
5:03
Speaker 2: and reference those, it's all there and really simple for you.
5:06
Speaker 3: I'm crazy when it comes to tax and making sure
5:09
Speaker 3: I keep track of them. I actually upload them all
5:12
Speaker 3: to drop box at the end of financial year when
5:14
Speaker 3: I don't need them anymore, and just label it like
5:16
Speaker 3: tax receipts for twenty seventeen or twenty eighteen or twenty
5:19
Speaker 3: nineteen or whatever you're doing, and then I delete them
5:22
Speaker 3: all from the album on my phone so that I
5:24
Speaker 3: don't get confused the next year. So because I do
5:27
Speaker 3: get confused. Yeah, Like, this hasn't come from me being smart.
5:30
Speaker 3: It has come from me not understanding what the hell
5:33
Speaker 3: I'm doing.
5:33
Speaker 2: Tax is definitely like it can be so overwhelming, and
5:36
Speaker 2: I think a lot of people want to know should
5:38
Speaker 2: they do it themselves or should they be getting an
5:40
Speaker 2: accountant to help out.
5:41
Speaker 3: Well, that is a question that I legitimately cannot answer
5:44
Speaker 3: for you, because you genuinely need to work that out yourself.
5:48
Speaker 3: But if your tax is relatively straightforward and you just
5:51
Speaker 3: are a single employee, you don't have any investments, no
5:54
Speaker 3: side huzzles and you're feeling pretty confident, then yeah, absolutely,
5:57
Speaker 3: it's something you could consider doing yourself. Saying that some
6:00
Speaker 3: people just prefer to have less stress and prefer to
6:03
Speaker 3: have the stress taken off them so that they can
6:06
Speaker 3: go and get someone else do it, and that is
6:08
Speaker 3: absolutely fine. The important thing here, though, is if you
6:12
Speaker 3: have an accountant do your tax for you as much
6:15
Speaker 3: as they will do it and lodge it, and you
6:18
Speaker 3: know it's to the best of their ability. They aren't
6:20
Speaker 3: taking responsibility for your tax. So if you then end
6:24
Speaker 3: up being audited, that's on you.
6:26
Speaker 1: That's not on the.
6:27
Speaker 3: Accountant that you had, because they'll make you signed to
6:29
Speaker 3: say no, I agree that everything is true and correct.
6:32
Speaker 3: So if you went and said to your accountant, like,
6:35
Speaker 3: oh my gosh, I spent three hundred dollars on you know,
6:38
Speaker 3: suncream products, so I really want to claim those like,
6:41
Speaker 3: they'll go, yeah, okay, no problems. If you're saying that
6:44
Speaker 3: you can claim them as a part of your job.
6:46
Speaker 3: More often than not, an account will absolutely believe you.
6:48
Speaker 3: They'll have a conversation about whether it's relevant or not.
6:51
Speaker 3: Like jes I'm pretty sure if you tried to claim
6:53
Speaker 3: sun cream and you were like, oh, it has SBF.
6:55
Speaker 1: They're gonna be like.
6:56
Speaker 3: Don't you like working an office environment in a studio
6:59
Speaker 3: that it really has no windows?
7:01
Speaker 1: Like, probably not.
7:03
Speaker 3: But sometimes they will let you claim it and then
7:06
Speaker 3: the ATO come back and audit it and it's not
7:08
Speaker 3: true and correct, and so many people will say like, oh,
7:11
Speaker 3: but my accountant said it's fine, Like that's not going
7:13
Speaker 3: to fly with the ATO.
7:14
Speaker 1: It is up to you. It is your responsibility.
7:16
Speaker 2: Yeah, okay, I'm so scary. It sounds like a good accountant,
7:19
Speaker 2: if you do want to see one, is going to
7:22
Speaker 2: be pretty helpful. How do we figure out or find
7:25
Speaker 2: a good accountant? How do we find someone who's going
7:27
Speaker 2: to be able to help us out?
7:28
Speaker 3: So making sure that you do actually have a registered
7:31
Speaker 3: tax accountant is very helpful if you're going to be
7:33
Speaker 3: paying for them. And tax advice can sit from anywhere
7:37
Speaker 3: between like one hundred dollars to get your tax return
7:39
Speaker 3: all the way up to like thousands of dollars depending
7:41
Speaker 3: on your structure. So I think it's important to just
7:43
Speaker 3: find someone that.
7:44
Speaker 1: Works for you.
7:45
Speaker 3: I always say that the best way to find someone
7:48
Speaker 3: is just by referral. So if you're looking for an
7:50
Speaker 3: accountant and your mate has one, ask them do you
7:53
Speaker 3: like that person? Because more often than not, they'll be
7:55
Speaker 3: hopefully local to you and actually understand your area, or
7:58
Speaker 3: maybe if your friend and you have similar jobs, they'll
8:01
Speaker 3: understand your industry. But if you work in a more
8:04
Speaker 3: complex industry, or you're looking for someone who's a little
8:07
Speaker 3: bit more hands on, especially if you have a small
8:10
Speaker 3: business or you've started investing and you really need help
8:13
Speaker 3: above and beyond just the tax statements that your micro
8:15
Speaker 3: investing platform gives you access to. I think it's important
8:19
Speaker 3: to do a little bit of research and just ask them, like, hey, cool, Like,
8:22
Speaker 3: for example, an Instagram influencer, right, like, they have to
8:25
Speaker 3: do tax in a very different way to other people
8:28
Speaker 3: because obviously they can claim things that your I just
8:30
Speaker 3: couldn't claim hope, not yet.
8:32
Speaker 1: Anyway, maybe one.
8:33
Speaker 3: Day, one day they can claim different things. So sometimes
8:36
Speaker 3: it's just really nice to have someone who has experience
8:39
Speaker 3: with your type of work, and like that happens often
8:42
Speaker 3: with sex workers as well, so they can claim different things,
8:46
Speaker 3: and more often than not, it's just helpful to have
8:48
Speaker 3: somebody who already understands that and gets you and gets
8:51
Speaker 3: your work. So for me, finding a good accountant that
8:54
Speaker 3: is actually aligned to your role is important. But yeah,
8:59
Speaker 3: it's about referral, it's about understanding where it is. But
9:02
Speaker 3: to be honest, all accountants, if they're registered, should be
9:05
Speaker 3: able to do the job pretty.
9:07
Speaker 2: Well amazing, And that kind of lead into my next question,
9:10
Speaker 2: which is what can we actually claim? So generally you
9:14
Speaker 2: can claim any work related expenses including working from home expenses,
9:19
Speaker 2: and then any uniform cost, vehicle expenses, self education costs,
9:23
Speaker 2: and then there are other deductions that you can make.
9:26
Speaker 2: So say, if you made a donation during the year,
9:28
Speaker 2: you could claim that your personal superanuation contributions, which I
9:32
Speaker 2: think is important to talk about because if you're planning
9:35
Speaker 2: on making a superanuation contribution prior to the end of
9:39
Speaker 2: financial year this year, So like, let's just absolutely go
9:42
Speaker 2: off in a tangent here right now. So you guys
9:45
Speaker 2: would have heard of the first home super Savior scheme
9:47
Speaker 2: if you're planning on making use of that in the
9:49
Speaker 2: near future, but you haven't contributed to it already, you
9:53
Speaker 2: can at this point, and I know legislation is about
9:56
Speaker 2: to change. You can contribute fifteen thousand dollars in one
9:59
Speaker 2: financi year and then another fifteen thousand dollars in the
10:02
Speaker 2: next financial year. So hypothetically, you could drop in fifteen
10:07
Speaker 2: grand today and have that claimed on thirty June tax
10:11
Speaker 2: and then drop in the second fifteen grand on like
10:13
Speaker 2: the second of July or something, and then you've got
10:15
Speaker 2: your thirty grand in there ready to purchase by the
10:18
Speaker 2: end of the year.
10:19
Speaker 1: If that is your plan, I.
10:20
Speaker 3: Think it's then important to understand why you might want
10:23
Speaker 3: to do that, because if you have been thinking about
10:26
Speaker 3: the first home super Savor scheme and then you're like, yeah,
10:28
Speaker 3: but i'll buy by the end of the year, I'll
10:29
Speaker 3: make a decision, Well, you'll only be able to put
10:31
Speaker 3: in fifteen thousand dollars because you'd have to wait until
10:34
Speaker 3: the twenty twenty one financial year is over for you
10:37
Speaker 3: to put the second fifteen thousand dollars in. So that's
10:40
Speaker 3: why I'm bringing stuff like that up, because you know,
10:43
Speaker 3: with superannuation, obviously you've got your caps as well, so
10:46
Speaker 3: if you're wanting to make an additional contribution, it's kind
10:50
Speaker 3: of like a user or lose it kind of situation.
10:52
Speaker 3: Otherwise you're going to have to wait a significant period
10:55
Speaker 3: of time before you.
10:56
Speaker 1: Can use it again.
10:57
Speaker 2: Yeah, and in regards to SUPA, you have done a
10:59
Speaker 2: whole making additional contributions to Super. It's available on YouTube
11:03
Speaker 2: and we always suggest. We know it can be a
11:05
Speaker 2: little bit confusing, So if you want some help and
11:08
Speaker 2: an't sure how it works, give you Super a call.
11:10
Speaker 2: They're super helpful. They should have a dedicated in house
11:13
Speaker 2: team who can give you a hand and answer anytase
11:15
Speaker 2: if you might have.
11:16
Speaker 3: They absolutely will make use of their call centers. Call
11:19
Speaker 3: them up and say how much can I contribute? You know,
11:21
Speaker 3: how might this impact my tax? They can talk you
11:24
Speaker 3: through all of that. Like, use those people because they
11:27
Speaker 3: can be really helpful. The one thing they can't do free.
11:31
Speaker 1: They're free.
11:31
Speaker 3: But one thing they can't do is give you personal advice.
11:35
Speaker 3: But if you've got a whole heap of questions, they'll
11:37
Speaker 3: be able to answer those for you and your specific circumstance.
11:41
Speaker 3: So Jess, hypothetically, if you called them and said, hey,
11:44
Speaker 3: I've paid X amount of Super this year, how much
11:46
Speaker 3: more can I contribute without having, you know, any ramifications,
11:50
Speaker 3: they'll be able to tell you. And you know, I
11:52
Speaker 3: earn X and I want to contribute, why will that
11:55
Speaker 3: reduce my personal tax rates, they'll be able to answer
11:59
Speaker 3: that it's not advice. So I think that it's actually
12:01
Speaker 3: really underrated. Like call your super fun to have a chat,
12:04
Speaker 3: because I guarantee the people on the phone love talking
12:06
Speaker 3: about it because that's their jobs, that's what they've chosen
12:09
Speaker 3: to do.
12:09
Speaker 2: There you go, and you're paying fees on your super.
12:12
Speaker 2: Chances are anyway, so you might as well get the
12:13
Speaker 2: extra mileage.
12:14
Speaker 1: Make the most of it.
12:15
Speaker 2: Absolutely so. And there are, as you said, a whole
12:18
Speaker 2: range of things that you can claim. And the Atier
12:20
Speaker 2: has a really extensive guide which we're going to get
12:23
Speaker 2: Tony to pop in the show notes because it varies
12:25
Speaker 2: industry to industry and person to person, and if you
12:28
Speaker 2: don't speak to an accountant, that guide is a really
12:30
Speaker 2: great way to get an overview of what you may
12:32
Speaker 2: and may not be able to claim. It's really good.
12:34
Speaker 2: That's what I use every years. I get on the
12:36
Speaker 2: AHO website, I go, okay, cool, like, what can my
12:38
Speaker 2: current job category claim? Really, how does that work? I
12:41
Speaker 2: don't think I've seen it so on the ATO, Like
12:43
Speaker 2: when you go to what can I claim? You can
12:45
Speaker 2: google like and buy industry. More often than not it'll
12:48
Speaker 2: it won't list everything, but generally they'll have an overview
12:51
Speaker 2: of like you can claim X, Y and z, you
12:53
Speaker 2: can't claim X, y and z. And it just for
12:55
Speaker 2: me because I've never had my tax done, I've always
12:57
Speaker 2: done it myself. It makes it really easy to kind
12:59
Speaker 2: of go, Okay, well, I have this many things that
13:03
Speaker 2: fit into that category that I am.
13:04
Speaker 3: Going to claim and cool, so you can kind of
13:06
Speaker 3: just do a bit more research. We'll drop that link
13:09
Speaker 3: in the show notes because I think that'll actually be
13:11
Speaker 3: really helpful. Yeah. I think it's also worth touching on
13:14
Speaker 3: the fact that so many of us in this financial
13:17
Speaker 3: year worked from home, and when you work from home,
13:20
Speaker 3: you actually are able to claim your work from home.
13:23
Speaker 3: So I've done some of the maths and essentially they
13:27
Speaker 3: have two different methods, right. They've got the eighty cent method,
13:30
Speaker 3: which would essentially, you know, if you work it out
13:32
Speaker 3: and you work forty eight work weeks a year by
13:35
Speaker 3: forty hours a week, you could get a fifteen hundred
13:38
Speaker 3: dollars deduction, which is I think a pretty good money win.
13:41
Speaker 3: And if you're not claiming that and you did work
13:43
Speaker 3: from home, genuinely we need to talk about it. But
13:46
Speaker 3: they have the fixed rate method or the eighty cent methods.
13:49
Speaker 3: So just explain the eighty cent one. But if you
13:51
Speaker 3: use the fixed rate method and you're in like middle
13:54
Speaker 3: tax brackets, you'd end up getting fifty two cents per
13:57
Speaker 3: hour to cover running costs, which could potentially be like
14:01
Speaker 3: one thousand dollars. And then you might also be able
14:05
Speaker 3: to claim a percentage of your phone bill and your internet,
14:07
Speaker 3: which could be up to another seven hundred dollars, and
14:10
Speaker 3: in that case, the fixed rate might work better for
14:13
Speaker 3: you than the eighty cent rule. So I think my
14:15
Speaker 3: hot tip there is to just do the numbers and
14:18
Speaker 3: work out what works for you best, because you might
14:21
Speaker 3: see that you know the fixed rate method is like
14:23
Speaker 3: fifty two cents on the dollar, whereas the other rate,
14:27
Speaker 3: which is the eighty cent method, where you can't claim
14:29
Speaker 3: anything more. You might go, oh, well that's more, I
14:31
Speaker 3: want that, but you can't claim things like your internet
14:33
Speaker 3: you see, or your phone bill that you used in relation.
14:36
Speaker 3: So definitely do a little comparison and work out what
14:39
Speaker 3: actually works out better for you personally, rather than just going, oh,
14:43
Speaker 3: eighty cents is more than fifty two cents, like that
14:45
Speaker 3: makes sense.
14:46
Speaker 2: And don't just plug in random numbers, because if you
14:48
Speaker 2: do get audited, the atier will ask you to justify
14:51
Speaker 2: your numbers, so they'll expect you to be able to
14:53
Speaker 2: present them with a calculation of how you came up
14:55
Speaker 2: with that amount. So exactly, don't just pull it out
14:57
Speaker 2: of the air, but like make sure you're doing the
14:59
Speaker 2: right thing, because they are cracking down. We've heard on
15:01
Speaker 2: auditing and we don't want that to happen.
15:03
Speaker 3: That you absolutely are, and we're not meaning to scare you, guys.
15:05
Speaker 3: I think it's just important to only claim the things
15:08
Speaker 3: that you genuinely can claim, because one we're trying not
15:11
Speaker 3: to do the wrong thing, but two, it will come
15:13
Speaker 3: back to bite you because not only will the ATO
15:16
Speaker 3: then ask for the money back, but they'll also ask
15:18
Speaker 3: for interest on that money, which is essentially a fine.
15:21
Speaker 3: I mean, they don't call it a fine, but they
15:23
Speaker 3: will ask you for interest on that money and you'll
15:26
Speaker 3: end up paying oh oh he more back and it
15:28
Speaker 3: won't be worth it. I promise you.
15:29
Speaker 2: That's so interesting. Addendem. I got ordered last.
15:32
Speaker 3: Year, Oh did you actually?
15:33
Speaker 2: I did? Because I claimed because I worked multiple jobs
15:36
Speaker 2: and my claim was like higher than like the average
15:38
Speaker 2: person in my role, and obviously it was fine, like
15:41
Speaker 2: I did all the right thing like I had. Of
15:43
Speaker 2: course you did.
15:43
Speaker 3: Jessica Ricci would have been like, hey, well here are
15:46
Speaker 3: my receipts.
15:46
Speaker 2: Well it's a filed folder. I think I was missing
15:49
Speaker 2: like three receipts. It was like one hundred dollars or something,
15:51
Speaker 2: and they're like, yeah, pay it back. And thankfully the
15:53
Speaker 2: guy was really nice because he was like, normally we
15:55
Speaker 2: would find you, but like, I can see that you've
15:57
Speaker 2: done all the right thing, it's just you the error.
16:00
Speaker 2: He was like, yeah, like normal, we will usually hit
16:02
Speaker 2: people with fine and I was like, oh, well that's scarcary.
16:05
Speaker 1: So it's scary.
16:06
Speaker 3: But in saying that, they're just trying to do the
16:08
Speaker 3: right thing and make sure people aren't abusing the system. Absolutely,
16:11
Speaker 3: you kind of go, yeah, all right, I can understand
16:13
Speaker 3: why you might do that.
16:14
Speaker 2: And that's why I'm saying to be really good about it.
16:16
Speaker 2: Because it happened to me, it can happen to you.
16:18
Speaker 2: They just make sure don't do the wrong thing, keep
16:21
Speaker 2: your receipts, keep your sums and everything. So if you
16:23
Speaker 2: are audited, it's really easy for you to be like no,
16:26
Speaker 2: like actually that's just what I'm able to claim.
16:28
Speaker 3: Yeah, and I think that that's important as well, because
16:30
Speaker 3: auditing is happening more often now. Everything is so much
16:33
Speaker 3: more automated for the AT They can automatically just flag
16:37
Speaker 3: people and go, yep, great, we'll audit all of these people,
16:40
Speaker 3: and more often than not it'll be automatic, so you
16:43
Speaker 3: will then resubmit and then they'll re analyze it or
16:46
Speaker 3: whatever and check it out. So more often than not,
16:49
Speaker 3: people are being audited because it's less manual for them nowadays.
16:53
Speaker 2: Yeah. Cool. So we've kind of covered off on what
16:54
Speaker 2: you may be able to claim what can't we claim.
16:58
Speaker 3: I mean, you can't claim things like you gin remember
17:00
Speaker 3: year POL, like sup all, like self maintenance even though
17:03
Speaker 3: I was doing face masks during work hours during COVID,
17:07
Speaker 3: but it's not the point. You also can't claim your membership.
17:10
Speaker 3: But like fancy golf clubs, even if you're networking and
17:13
Speaker 3: doing quote business there, these aren't tax deductible. And while
17:17
Speaker 3: none of those are relatable, what you can't claim is
17:20
Speaker 3: actually petrol or public transport expenses getting to and from work.
17:24
Speaker 3: Of course, if your job actually involves a whole heap
17:26
Speaker 3: of driving during business hours. Once you arrive at work,
17:29
Speaker 3: you can claim that, Like if you're a trades person
17:32
Speaker 3: or a real estate agent, then you'd potentially be able
17:35
Speaker 3: to claim that. But it's more around I think I've
17:38
Speaker 3: had this conversation before in our DMS. So people are like,
17:40
Speaker 3: oh my gosh, I drive to and from work and
17:42
Speaker 3: I've been keeping a log book. I'm like, okay, but
17:44
Speaker 3: you can't claim that because that was your choice. That's
17:47
Speaker 3: actually not to generate profit. But if from work, you
17:50
Speaker 3: drive to see a client and back, you can potentially
17:53
Speaker 3: claim that. So I think it's just important to understand
17:57
Speaker 3: the differences between what we can and can't claim. And
18:00
Speaker 3: that's where I sometimes see an accountant as a really
18:03
Speaker 3: helpful tool to go, hey, can I claim that? And
18:05
Speaker 3: they'll say yes or no, and sometimes they'll highlight things
18:08
Speaker 3: that you didn't even know you could claim. But Jess,
18:10
Speaker 3: it sounds like that ATIO website that you were talking
18:12
Speaker 3: about could and so all those questions for you anyway,
18:15
Speaker 3: super helpful. Definitely check it out. Like we said, we'll
18:17
Speaker 3: be in the show notes. The ATO does everything they
18:19
Speaker 3: can to make it really easy for people to get
18:21
Speaker 3: the information they need. Their website super clean cut, it's
18:24
Speaker 3: really searchable. I've been doing my own tax for the
18:26
Speaker 3: last decade. I cannot recommend it enough.
18:28
Speaker 1: How much of the OTO paying you to say that?
18:30
Speaker 2: Oh? I wish ato please sponsor me. I know you
18:32
Speaker 2: have a lot of money because I am paying it
18:34
Speaker 2: to you every year. On the other side of this,
18:36
Speaker 2: we'll be back to chat tax brackets, what tax means
18:39
Speaker 2: for all of our slide hustlers, and how we can
18:41
Speaker 2: sort ourselves out for the next financial year if we're
18:44
Speaker 2: maybe realizing now that we aren't as organized as we
18:47
Speaker 2: could have been for this one. Don't go anywhere, all right?
18:58
Speaker 2: So tax brackets? What are they?
19:00
Speaker 1: Super sexy?
19:02
Speaker 2: We love it?
19:03
Speaker 1: Oh you want more? I love avation.
19:05
Speaker 3: Okay, I'm so sorry. Do you want me to actually
19:07
Speaker 3: explain what each bracket is and then we can test?
19:10
Speaker 1: I was hoping you would say, no, don't worry.
19:11
Speaker 3: We'll put a blogger up or something or so if
19:14
Speaker 3: you earn under eighteen thousand, two hundred dollars, you don't
19:17
Speaker 3: pay any tax money.
19:19
Speaker 2: Win. We should note before we get into this, this
19:22
Speaker 2: is for the twenty twenty to twenty one financial we
19:24
Speaker 2: are It is subject to change. If you're listening to
19:25
Speaker 2: us in the future again, you can check the tax
19:28
Speaker 2: brackets on the eightieer website.
19:29
Speaker 3: I think Jess will also chuck up a little text
19:31
Speaker 3: post of what the tax brackets are and what they
19:34
Speaker 3: actually mean on Instagram, just because I've already got that
19:38
Speaker 3: text post ready to go, because I'm a genius, amazing. Yeah,
19:41
Speaker 3: you're welcome anyway. Then, if you earn between eighteen thousand,
19:44
Speaker 3: two hundred and one dollars and forty five thousand dollars,
19:47
Speaker 3: you will incur a tax rate of nineteen cents for
19:50
Speaker 3: every one dollar that you earn above and beyond that
19:53
Speaker 3: eighteen thousand, two hundred dollars. So, Jess, you know, when
19:56
Speaker 3: you start a new job and they get you to
19:58
Speaker 3: fill in that form that says claim the tax free threshold,
20:02
Speaker 3: and you have to remember that if you have a
20:04
Speaker 3: second job, not to tick that because obviously the first
20:06
Speaker 3: eighteen thousand, two hundred dollars that you earn is not
20:09
Speaker 3: tax that is where that comes from. So if you
20:12
Speaker 3: then accidentally tick the box that says yeah, I do
20:15
Speaker 3: want to claim the tax free threshold for this job,
20:17
Speaker 3: you end up claiming the eighteen thousand, two hundred dollars
20:20
Speaker 3: of tax free money, twice, and then at tax time
20:24
Speaker 3: that's when you get bitten in the bottom because you
20:26
Speaker 3: have to pay tax back on all the money you
20:28
Speaker 3: earn above and beyond that, so that's important to note there. Then,
20:32
Speaker 3: if you earn between forty five thousand and one dollar
20:35
Speaker 3: and one hundred and twenty thousand dollars, you'll pay five
20:38
Speaker 3: thousand and ninety two dollars plus thirty two cents in
20:42
Speaker 3: the dollar for every one dollar over forty five thousand dollars. Then,
20:47
Speaker 3: if you're lucky enough to earn between one hundred and
20:49
Speaker 3: twenty thousand and one dollars and one hundred and eighty
20:52
Speaker 3: thousand dollars, which would be wild, you would pay twenty
20:55
Speaker 3: nine thousand, four hundred and sixty seven dollars in tax.
20:59
Speaker 3: And then in a addition, you'd also pay thirty seven
21:02
Speaker 3: cents for every one dollar that you earn over one
21:05
Speaker 3: hundred and twenty thousand dollars. And then if you're in
21:09
Speaker 3: the bucket where you earn more than one hundred and
21:11
Speaker 3: eighty thousand and one dollars, I'm caealous. Imagine if you
21:14
Speaker 3: earned that much and then you're worried about that additional
21:17
Speaker 3: one dollar. I mean you probably would be because it
21:18
Speaker 3: changes your tax bracket. It does, But before I explain
21:23
Speaker 3: what this means, that's what we mean when we talk
21:25
Speaker 3: about additional super contributions to drop you a tax bracket down.
21:29
Speaker 3: So say you were earning one hundred and eighty thousand
21:31
Speaker 3: and one dollar and you had to pay fifty one thousand,
21:35
Speaker 3: six hundred and sixty seven dollars plus forty five cents
21:39
Speaker 3: for every one dollar over one hundred and eighty thousand
21:42
Speaker 3: dollars that you earn.
21:43
Speaker 1: Hypothetically, if you.
21:45
Speaker 3: Went and made an additional super contribution from your post
21:49
Speaker 3: tax income and then you were able to claim it,
21:52
Speaker 3: it could potentially put you back into the other tax bracket,
21:56
Speaker 3: which means that you're paying thirty seven cents to every
21:58
Speaker 3: dollar over one hundred and twenty eight thousand dollars instead
22:01
Speaker 3: of jumping up to that forty five cent bracket.
22:03
Speaker 2: And a few cents doesn't sound like a lot, but
22:04
Speaker 2: when you're paying on every dollar that adds up super quickly.
22:08
Speaker 1: It really really adds up.
22:09
Speaker 3: And that's why so many people who are in those
22:11
Speaker 3: higher tax brackets often really prioritize making sure that they're
22:16
Speaker 3: making additional superannuation contributions because it could potentially change their
22:20
Speaker 3: tax bracket if they're sitting on the cusps. So obviously,
22:23
Speaker 3: if they're earning like three hundred thousand dollars a year,
22:25
Speaker 3: like a super contribution is not going to change which
22:27
Speaker 3: tax bracket they get. But when you're like on the
22:29
Speaker 3: cusp of something, sometimes it's really helpful to actually look
22:33
Speaker 3: at it and be like, oh, my gosh, if I
22:34
Speaker 3: just made an additional super contribution, I could potentially drop
22:37
Speaker 3: my tax bracket, and therefore it would be really equitable
22:40
Speaker 3: and you might end up with more in super while
22:42
Speaker 3: still not significantly impacting your take home pay, which is
22:45
Speaker 3: something that I always recommend you talk to your accountant
22:48
Speaker 3: about because they can actually be really crafty with it
22:51
Speaker 3: and you know, actually give you the numbers and give
22:53
Speaker 3: you the example instead of me saying, oh, it's a
22:55
Speaker 3: potential when we talk about it. So that's why we
22:58
Speaker 3: make sure that we talk to our account before June
23:01
Speaker 3: thirty about things like this and actually do a little
23:03
Speaker 3: bit of what we call tax planning, because if you go,
23:06
Speaker 3: oh my gosh, it's the third of July, I should
23:09
Speaker 3: really dump some more cash into my super to bring
23:12
Speaker 3: down my taxbile income. You can't do it. It has
23:14
Speaker 3: to be done. It's too late, my friend. So that's
23:16
Speaker 3: why we want to do a little bit of tax planning,
23:18
Speaker 3: and that's why we're dropping the episode now. So if
23:20
Speaker 3: you want to think about it, now's the time, my friends.
23:23
Speaker 2: Amazing, and we want to remind you. We know that
23:25
Speaker 2: tax kind of has a bit of a bad reputation
23:27
Speaker 2: because no one likes to feel like they're giving their
23:30
Speaker 2: hard earned dollars away. But it's part of being in
23:33
Speaker 2: a community and you need to remember that you're paying
23:35
Speaker 2: tax because you're earning money, and that is a great thing.
23:39
Speaker 3: Genuinely, the more tax that you can pay, the more
23:41
Speaker 3: money you are taking home, and it is always a
23:44
Speaker 3: good thing. And you know, I've said this on the
23:46
Speaker 3: podcast probably a million times now, probably a million times
23:50
Speaker 3: too many, But I'm a genuine believer of changing our
23:53
Speaker 3: mindset around quote have to pay tax to we get
23:57
Speaker 3: to pay tax. We get to live in this country
23:59
Speaker 3: that provides us with all of these really great infrastructure options,
24:03
Speaker 3: a really great healthcare system, really great roads that we
24:06
Speaker 3: can drive on, and you know, a police force that
24:08
Speaker 3: look after us. And you know, it's one of those
24:11
Speaker 3: things that I genuinely want our community to just be
24:14
Speaker 3: more grateful for, because too often I see people complaining
24:17
Speaker 3: about how much tax they have to pay, and I'm like, wow,
24:20
Speaker 3: like that's of such benefit to you and I that
24:23
Speaker 3: you are paying tax, and we should just be more
24:25
Speaker 3: grateful for these things, because as much as you know,
24:28
Speaker 3: sometimes people go, yeah, but it sucks it's my money,
24:31
Speaker 3: Like it's not a surprise, Like tax was never a
24:33
Speaker 3: surprise when you got your first job. Tax rates existed. Yeah,
24:36
Speaker 3: they change and shift every single year, but it was
24:39
Speaker 3: actually never your money to begin with. It was always
24:41
Speaker 3: the plan that you would pay tax. It's not actually
24:44
Speaker 3: some surprise where now people are like, oh, Jess, by
24:46
Speaker 3: the way, you know how you've got that great job,
24:48
Speaker 3: I now want to take thirty seven cents from every
24:50
Speaker 3: dollar that you earn. Like that wasn't a surprise. We
24:52
Speaker 3: should have always been planning for that. And that's why
24:54
Speaker 3: often I just want people when we're talking about budget
24:57
Speaker 3: and cash flow, like, let's not talk about tax. Let's
25:00
Speaker 3: just talk about your post tax income and what actually
25:02
Speaker 3: comes into your bank account and what we can actually
25:04
Speaker 3: have a tangible impact on because sometimes we see our
25:07
Speaker 3: you know, total remuneration package from a business and you're like, whoa,
25:11
Speaker 3: Like it's seventy thousand dollars. That's so much money, and
25:14
Speaker 3: then you are really upset with what you actually end
25:16
Speaker 3: up taking home. It's like, no, like, let's actually just
25:18
Speaker 3: look at take home. How much are you actually taking home?
25:21
Speaker 3: And what can we do to increase that or you know,
25:23
Speaker 3: benefit that. And then that's where tax planning comes into it.
25:26
Speaker 3: So I don't mean to be negative, and I know
25:28
Speaker 3: that as you were saying, tax can have a bad reputation,
25:31
Speaker 3: but I just genuinely believe it shouldn't.
25:33
Speaker 2: Very interesting through the thought. Now, we have a really
25:37
Speaker 2: good amount of people in our community who love a
25:39
Speaker 2: side hustle and we love to see it, But how
25:41
Speaker 2: do tax work for those people?
25:43
Speaker 3: So wouldn't it be so nice if we didn't have
25:45
Speaker 3: to tax side hustlers, Like they could just like make
25:48
Speaker 3: a whole heap of extra bank on the side and
25:50
Speaker 3: then just go on good holidays and not have to
25:52
Speaker 3: pay additional tax.
25:53
Speaker 2: Everyone would have side hustle.
25:54
Speaker 1: Yeah.
25:54
Speaker 3: Unfortunately, when you have a side hustle, you do have
25:57
Speaker 3: to declare any income that you've made from that side hustle.
26:00
Speaker 3: No matter if it is like one hundred thousand dollars
26:02
Speaker 3: or one thousand dollars, you're still going to have to
26:04
Speaker 3: declare it. So if you're a sole trader with an ABN,
26:07
Speaker 3: as most side hustlers actually tend to be, all you
26:10
Speaker 3: need to do is declare your income at tax time
26:12
Speaker 3: along with your individual tax return. If it's a little
26:14
Speaker 3: more than a side hustle and you're running a business,
26:17
Speaker 3: or you have your business set up as a partnership
26:19
Speaker 3: or a company or a trust, then you will have
26:20
Speaker 3: to do an additional tax return. So any money that
26:24
Speaker 3: you earn when you're a sole trader will just be
26:26
Speaker 3: added to your marginal tax income. So it's worth talking
26:29
Speaker 3: about this in a little bit more depth.
26:31
Speaker 1: So say you.
26:32
Speaker 3: Earn right now one hundred thousand dollars from your main
26:34
Speaker 3: source of income because you're a full time employee, but
26:37
Speaker 3: you do some kind of side hustle on the side,
26:39
Speaker 3: and you actually earn thirty thousand dollars a year from that,
26:41
Speaker 3: wouldn't that be great? Like money win. The important thing
26:44
Speaker 3: you need to remember there is it will actually increase
26:47
Speaker 3: your taxable income and take you up another tax bracket,
26:51
Speaker 3: so you'll go from paying thirty two cents for every
26:53
Speaker 3: dollar over forty five thousand dollars to paying thirty seven
26:56
Speaker 3: cents for every dollar over one twenty. So it's not
27:00
Speaker 3: change it massively. And I think that this is such
27:02
Speaker 3: a misconception because whether you're a side hustler or you've
27:05
Speaker 3: just got you know, two casual jobs, so many people
27:08
Speaker 3: say things like, oh my gosh, like, is it even
27:10
Speaker 3: worth having another job if you're ending up paying more
27:13
Speaker 3: tax more often than not, yes, absolutely, Like there's no
27:16
Speaker 3: situation where you're going to end up paying a whole
27:19
Speaker 3: heap more for something just because you have another job. Yes,
27:23
Speaker 3: you are increasing your taxable income, and yes you might
27:26
Speaker 3: jump up another tax bracket, but that's where we just
27:29
Speaker 3: need to be smart about. Okay, is that going to change?
27:32
Speaker 3: What tax planning can I do to make sure that
27:34
Speaker 3: I may be stay in that old tax bracket if
27:37
Speaker 3: I can and actually make some plans around that, as
27:40
Speaker 3: opposed to going, oh my gosh, like I'm never going
27:42
Speaker 3: to get a second job or do something else because
27:44
Speaker 3: like they'll just tax me through the nose.
27:46
Speaker 2: There's a really big misconception I've seen a lot and
27:49
Speaker 2: heard even just from friends, where people say, oh, like,
27:51
Speaker 2: I don't want to have a second job because my
27:54
Speaker 2: tax will be doubled as though you go from paying
27:57
Speaker 2: let's say thirty percent to sixty percent. Yeah, which is
28:00
Speaker 2: a case. It just gets, as you said, added on to.
28:02
Speaker 3: Your current taxable income. And I think it's yeah, people
28:06
Speaker 3: aren't going to charge you double tax. And often if
28:08
Speaker 3: you're feeling like that is the case, have a chat
28:11
Speaker 3: with an account and actually understand the semantics of it,
28:13
Speaker 3: because sometimes if you do have a second income, you
28:17
Speaker 3: are taxed at a higher rate because they're just trying
28:19
Speaker 3: to make sure they're taking enough tax so that you
28:22
Speaker 3: don't end up with a massive tax bill come June thirty.
28:25
Speaker 3: So have a chat about how you can manage that.
28:27
Speaker 3: And more often than not, when I see clients who
28:30
Speaker 3: do have a number of side hustles and have been
28:32
Speaker 3: quote overpaying tax, they end up with a really nice refund,
28:36
Speaker 3: which sometimes we really luck absolutely so.
28:39
Speaker 2: Jackie from our community was asking, if you have to
28:42
Speaker 2: pay tax on your investments, how does that work?
28:45
Speaker 3: Yes, you do because your investments are hopefully increasing your income, right, Yes,
28:50
Speaker 3: so you definitely have to pay tax on any income
28:53
Speaker 3: that you make from your investments, and that includes the
28:55
Speaker 3: interest that is paid, the dividends, any rent, if it's
28:58
Speaker 3: an investment property, any capital gains. So in terms of
29:02
Speaker 3: how much you need to pay, it's just going to
29:03
Speaker 3: be taxed in accordance with your marginal tax right, And
29:07
Speaker 3: it's one of those things where it is but it isn't.
29:10
Speaker 3: So if you've incurred that income, then great, you will
29:13
Speaker 3: be taxed on it. But hypothetically, if you owned a
29:15
Speaker 3: property and increased massively in value, you're not going to
29:19
Speaker 3: be taxed on that because you haven't actually realized that increase.
29:24
Speaker 3: So when I say realized or I say I think,
29:27
Speaker 3: I say this a lot on the podcast, I'll say, like,
29:29
Speaker 3: you haven't realized that gain, or you haven't crystallized that gain.
29:33
Speaker 3: What I'm talking about is actually that money is not
29:35
Speaker 3: in your bank account. You didn't actually receive that. That's
29:38
Speaker 3: just a hypothetical. If you sold that asset, it would
29:41
Speaker 3: be worth more money. So you're not paying tax on
29:43
Speaker 3: it now, but you will pay tax on it if.
29:46
Speaker 1: You sell it.
29:46
Speaker 3: And if you sell any of your assets within a
29:49
Speaker 3: financial year, you will have to make sure that there
29:52
Speaker 3: isn't any capital gains tax to pay on that, and
29:54
Speaker 3: you'll have to declare it. And my friends who have
29:57
Speaker 3: been investing in cryptocurrenceries, you absolutely have to pay tax.
30:02
Speaker 1: On that as well.
30:03
Speaker 2: So what about dividends.
30:05
Speaker 3: So dividends are going to be a part of your income,
30:08
Speaker 3: So your income is going to be taxed in line
30:10
Speaker 3: with your marginal tax rate.
30:12
Speaker 2: And when we say it marginal tax rate, just to clarify,
30:15
Speaker 2: is that coming back to the tax brackets that we were.
30:17
Speaker 3: Talking So your marginal tax rate is that graph that
30:19
Speaker 3: essentially says, hey, if you earn between X and y,
30:23
Speaker 3: you have to pay x on tax. I think we
30:25
Speaker 3: say this a lot, but.
30:26
Speaker 1: People always like, well, what's my marginal tax rate?
30:28
Speaker 3: Like, that's what bucket you fall into for how much
30:31
Speaker 3: tax you have to pay. And if you end up
30:32
Speaker 3: with this massive epic investment portfolio, which we obviously all
30:36
Speaker 3: dream of, and you're making one hundred grand a year
30:38
Speaker 3: in dividends, then that is going to become part of
30:41
Speaker 3: your marginal tax bracket unless you have it in a trust.
30:44
Speaker 3: All there's a completely separate structure at play there. So
30:48
Speaker 3: I just want to say that. But if you own
30:50
Speaker 3: them in your own name, then yes, it will become
30:54
Speaker 3: part of your own income, because you've essentially purchased an
30:57
Speaker 3: income for yourself and you have to pay tax on that. Obviously,
31:00
Speaker 3: this is going to be really dependent on your age
31:02
Speaker 3: and what stage of life you're at and how all
31:04
Speaker 3: of that works as well, but for ninety nine point
31:07
Speaker 3: ninety five percent of our listeners, it is going to
31:09
Speaker 3: mean that you will pay tax on it. So also,
31:12
Speaker 3: while we're talking about marginal tax brackets, and I mentioned CGT,
31:16
Speaker 3: so CGT is capital gains tax, and that's essentially a
31:19
Speaker 3: tax that you need to pay when the asset that
31:22
Speaker 3: you have just sold increased significantly in price. So say
31:25
Speaker 3: you bought a cryptocurrency asset for like five dollars and
31:29
Speaker 3: then it's worth five million, you're going to have to
31:31
Speaker 3: pay tax on the amount that is increased by You
31:34
Speaker 3: don't just get to take the profit and run away.
31:36
Speaker 1: But something that people.
31:38
Speaker 3: Don't seem to have comprehended, because I feel like this
31:41
Speaker 3: whole cryptocurrency investor world is very online at the moment
31:45
Speaker 3: and very topical to talk about. And whilst I think
31:47
Speaker 3: I need to be incredibly clear about the fact that
31:50
Speaker 3: I don't support our community purchasing crypto.
31:53
Speaker 1: Like you do.
31:53
Speaker 3: You boo boo, like, go and buy it if that
31:55
Speaker 3: aligns to your values. I just want to be really
31:58
Speaker 3: clear that I don't think it is this safe as
32:00
Speaker 3: asset to be purchasing, especially as a first asset. But
32:04
Speaker 3: if you're classed as a crypto investor, I feel like
32:07
Speaker 3: so many of us have forgotten to take tax into consideration.
32:10
Speaker 3: But you will be taxed on any capital gains that
32:13
Speaker 3: are a result of your crypto investing, And if you
32:16
Speaker 3: hold any asset for more than twelve months, you could
32:19
Speaker 3: be eligible for a fifty percent CGT discount. And that
32:22
Speaker 3: is something that people are forgetting at the moment they're,
32:25
Speaker 3: you know, buying and selling these cryptocurrency assets, like within
32:28
Speaker 3: a month, you're going to have massive CGT issues. Potentially,
32:32
Speaker 3: if you've bought an asset one month and then sold
32:34
Speaker 3: it two months later, you're gonna end up having to
32:35
Speaker 3: pay a lot of CGT on it because the government
32:38
Speaker 3: actually wants you to buy assets for the long term
32:41
Speaker 3: to support retirement, so they will give you discounts on
32:44
Speaker 3: holding it for a longer period of time. So if
32:47
Speaker 3: you've been doing that this year, I definitely recommend jumping online.
32:51
Speaker 3: There is actually an entire blog on it from last
32:53
Speaker 3: year on the Atier website.
32:55
Speaker 2: Super helpful. Already last thing to touch on in terms
32:58
Speaker 2: of getting organized for the next financial yart, especially for
33:01
Speaker 2: outside hustlers and freelancers. How can we stay on top
33:05
Speaker 2: of things? How do you manage it? What would you suggest?
33:07
Speaker 3: I would suggest keeping track of all of your receipts
33:09
Speaker 3: and all of the things that you might forget about.
33:12
Speaker 3: It might be really easy to go, oh, great, I
33:14
Speaker 3: incurred this laundry fee for my uniform and you forget
33:18
Speaker 3: about it six months later when tax time comes. So
33:21
Speaker 3: I definitely recommend having that album on your phone of
33:23
Speaker 3: all the pictures of the receipts that you've been taking
33:25
Speaker 3: photos of. If you want, you can download the Ato app,
33:29
Speaker 3: which will really help you actually keep track of what's
33:32
Speaker 3: going on and they're a little bit more clear. As
33:34
Speaker 3: I said, I like to have it on my phone
33:36
Speaker 3: because I like a little bit more flexibility, and to
33:38
Speaker 3: be honest, I didn't want another app, but keeping track
33:41
Speaker 3: of it's really helpful. Keeping a spreadsheet is also really
33:44
Speaker 3: helpful because it's one of those things where you can
33:46
Speaker 3: kind of put in your income and all of the
33:48
Speaker 3: things that you want to claim so when tax time comes,
33:50
Speaker 3: you've got everything in one location. But at the end
33:53
Speaker 3: of the day, whatever works for you. To be honest,
33:56
Speaker 3: everyone does it differently, Like you do it differently to me.
33:58
Speaker 3: I'm sure Tony does it differently, is well, and we
34:00
Speaker 3: aren't all one size fits all. And while we're on it,
34:03
Speaker 3: if you do have multiple income streams, it's really important
34:06
Speaker 3: to keep track of all of those. One of the
34:08
Speaker 3: easiest ways to keep track of your income in total
34:11
Speaker 3: is actually just to wait till your group certificates come out.
34:14
Speaker 3: I think the people have this mad dash on June thirties,
34:17
Speaker 3: that's July one. They're like, oh my gosh, I have
34:19
Speaker 3: to get my tax in right now, because either they
34:22
Speaker 3: feel stressed about it or they just really want their discount.
34:25
Speaker 3: But more often than not, it's not the priority. Like
34:28
Speaker 3: and I'm not saying don't do your tax. Absolutely do
34:30
Speaker 3: your tax, but wait until you've got your group certificates
34:33
Speaker 3: from your employer, because they'll tell you exactly how much
34:36
Speaker 3: income they paid you. And if you've got multiple employers,
34:39
Speaker 3: wait until you have all of those group certificates so
34:41
Speaker 3: that you can actually submit your tax return and know
34:44
Speaker 3: with clarity that's what it is, and given the ato
34:47
Speaker 3: has I would say, you know, progressed with leaps and
34:49
Speaker 3: bounds over the last few years. Those group certificates are
34:52
Speaker 3: actually usually visible already on your tax platform, so more
34:56
Speaker 3: often than not you can just log into your tax
34:58
Speaker 3: platform online and see where they're at and make sure
35:00
Speaker 3: that they're right. But the biggest tip I would have
35:03
Speaker 3: is just keep track of all those incomes and make
35:05
Speaker 3: sure that when you do get a group certificate, just
35:08
Speaker 3: don't take it as gospel. Just double check it and
35:10
Speaker 3: be like, Okay, cool, is this actually what I earned?
35:12
Speaker 3: Do I feel comfortable with this? Does this make sense?
35:14
Speaker 3: Because you don't want to have a mistake come up
35:16
Speaker 3: and you had just accepted your group certificate for what
35:19
Speaker 3: it was.
35:19
Speaker 2: And if you're a sole trader or side hustler, maybe
35:22
Speaker 2: keep track of it in a spreadsheet, keep a hold
35:24
Speaker 2: of any invoices you send out because you're not going
35:26
Speaker 2: to have a group certificate sent to you.
35:28
Speaker 3: That's your job, absolutely, And if you're a sole trader
35:31
Speaker 3: or a side hustler, you usually have something like moob
35:34
Speaker 3: that keeps track of it for you, so definitely keep
35:37
Speaker 3: on top of that. But you know, different horses for
35:39
Speaker 3: different courses, but at the end of the day, the
35:41
Speaker 3: summary of this is keep track of it, don't stress
35:44
Speaker 3: too much, and make sure that when you are claiming things,
35:46
Speaker 3: you are only claiming things that you are actually eligible
35:49
Speaker 3: to claim.
35:49
Speaker 2: My friends, awesome, so thank you for wrapping the key
35:52
Speaker 2: takeaways for me. One thing that I wanted to point
35:55
Speaker 2: out was not only a our accountants helpful, but they
35:57
Speaker 2: are also tax deductible money exactly right. If you use
36:01
Speaker 2: an accountant this financial year, you'll be able to claim
36:03
Speaker 2: their fee in your following tax return the next financially.
36:06
Speaker 1: Absolute money win huge.
36:08
Speaker 3: But that is all we have time for today, So
36:11
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37:28
Speaker 2: Bye