June 23, 2026 • 31 mins
Tax. You’ll do it “later”, right? Famous last words, my friends. This week’s Deep Dive is here to save your EOFY by giving you a laundry list of things to consider ahead of June 30.
Whether you’re employed, a side-hustler or a sole trader, Victoria and Jess have gathered their recommendations for approaching the new financial year with confidence – and they’ve got the receipts to prove it.
They’ll cover the latest changes to CGT, including how and when it might impact your investments, as well as immediate considerations if you’ve been worried about your accounting habits.
From claims, offsets, salary sacrificing, BAS, GST, and tax brackets to defining what really makes your hobby a business, tune in for answers to those tax questions that you were too embarrassed to ask your accountant (again).
This episode is brought to you by Hnry, Australia’s largest tax automation and accounting service, just for sole traders. Head to hnry.com.au to never think about tax again.
READ THE BUSINESS BIBLE: Have questions about starting or running your business? VD wrote a whole (award-winning) book on this topic called The Business Bible: How to build a successful business – and a life you love.
CONSIDERING A PIVOT: Grab a copy of our Career Pivot Guide over here.
MAX YOUR TAX: Want more ways to maximise your tax return? Tune into this playlist.
ASK THE ATO COMMUNITY: Have a specific tax question or need something niche explained by someone who’s been there before? Check out the ATO Community (https://community.ato.gov.au/s/).
New here? Follow us on Instagram (@shesonthemoneyaus) for Q&As, bite-sized advice, daily money inspo... and relatable money memes that just get you.
Acknowledgement of Country By Nartarsha Bamblett aka Queen Acknowledgements (nartarshabamblett.com.au)
The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 4451289
See omnystudio.com/listener for privacy information.
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Speaker 1 (00:00):
She's on the Money. She's on the Money.
Speaker 2 (00:10):
My name's Tatasha Bamblet. I'm a proud First Nations woman
and I'm here to acknowledge country. Hello, beautiful friends, we
gather on the lands of the Aboriginal people. We thank,
acknowledge and respect the Aboriginal people's land that we're gathering
on today. Take pleasure in all the land and respect
all that you see. She's on the Money podcast acknowledges culture, country,
community and connections, bringing you the tools, knowledge and resources
(00:32):
for you to thrive.
Speaker 1 (00:32):
Hello, and welcome to She's on the Money, the podcast
where we discuss all of the issues concerning your wealth
goals so that you can feel more in control of
your financial future. I'm Victoria Divine and how are we
halfway through June already? I don't know about you, but
at this time of the year, there's only one thing
on my mind. My birthday and tax And according to
(00:53):
a twenty twenty six Pulse survey, Henry found that tax
obligations were the second biggest stressor for soul traders after
at the cost of living YEP. From preparing tax returns
to making claims and working out just how much we
owe it can get all a little low tt. So
obviously we asked our community what they wanted to know
about tax, including questions for investors, families, and those of
(01:14):
us who were self employed. And who better to join
me than fellow business women, Miss jessic.
Speaker 3 (01:19):
Ricci business and what I like that a lot?
Speaker 1 (01:22):
Well you are are you not?
Speaker 3 (01:23):
It's true?
Speaker 1 (01:23):
Do you have an ABN? I sure do business wore men.
Speaker 3 (01:26):
And I would agree that tax time is very stressful time.
Speaker 1 (01:30):
Well, it's like twofold for us. It's like the busiest
month of the year. Yes, because finance content, but also
counting down the days to my birthday, which happens to
be the eofy date. Honestly, the universe the stars really
aligned on that day. My dad really said are you
going to work with that?
Speaker 3 (01:49):
Yeah?
Speaker 1 (01:49):
Because he's an accountant, he was not impressed. Like the
day that I was born, my mom was like, we're
having the baby on the thirtieth fifth June. You better
come on over because I'm in labor. And my Dad's like, girl,
it's eo fy not wait, And Mum was like, nobody waits.
No anyway, it's so good to have you here because
now we can chat through all the stuff that you've
(02:10):
been thinking about, or let's be real, probably quietly stressing
over ahead of tax time, plus maybe some learnings from
the hustle. For example, did you know that soul traders
are spending an average of six hours a week and
up to four grand a year on tax and finance admin.
Speaker 3 (02:26):
That's mind boggling, but also it kind of makes sense. Yeah,
it's one of those things you want to get right.
I think, especially when you are like me and you're
a baby business owner, it pays to do it well.
Speaker 1 (02:37):
Literally, and so many of us in our community are like, no,
Like I don't have accounting software, I haven't organized anything
because I just got my spreadsheet. But how long is
that taking you to organize? At what cost? Is my
favorite question? At the moment everything in business. At the moment,
I go, that's a great idea, Jess, at what cost
can we implement it? And I just think that's a
(02:58):
good thing to keep in mind, and arguably that's just
the tip of the iceberg. When we get back from
this really quick break, we'll be sharing stats on just
how much money you might be leaving on the table
at tax time. My friends, welcome back to She's on
the Money, the podcast that's shining a light on your
tax time questions, both the things that you're worried about
(03:19):
out loud and the stuff that you're arguably too shy
to ask your accountant.
Speaker 3 (03:23):
Speaking of which, the recent announcements around CDT and the
change in this year's budget have got a lot of
the community members reaching out and asking what that means,
what that might look like for them. Can you give
us a little bit of an update.
Speaker 1 (03:33):
Obviously, because I was there, I went to the budget
because I am a really cool person.
Speaker 3 (03:39):
She was bits on the ground reporting for you.
Speaker 1 (03:40):
When cool people go to the budget, everybody else I
went to Taylor Swift. Me I went to the budget.
Speaker 3 (03:46):
It's pretty cool.
Speaker 1 (03:47):
But I also did go to Taylor Swift, so maybe
I am actually cool. And of course, so first of all,
we're going to cover some of the I guess, juicy
federal budget stuff. Then the new incentives that I really
want you to keep an eye out for. Soh while
these announcements, it's important to remember this, they are not
legislated yet, they aren't likely to affect your tax this
(04:07):
financial year. So the one ending on the thirtieth of
June twenty twenty six, they could potentially impact things like
capital gains claims that you have next year. So exactly so,
during this tax return, the current capital gains tax rules
still apply, which is very nice. So if you sold
an asset and made a profit on it before June thirty,
twenty twenty six, and you'd owned it for at least
(04:29):
a year, so a minimum of one year, you'd still
get a fifty percent CGT discount or CGT exemption. And
this is going to affect things like property and shares
and your ETFs. Now, many of you in our community
have asked how shares and ETFs are taxed. Good question,
and I'll say that if you haven't already, please go
back and listen to our recently released episode that is
(04:51):
entirely dedicated on how these assets are taxed. Because again
I told you, I'm real cool, Like the content I
create is for the girls, yeap. You'll learn about dividends, franking, credits,
we talked about distributions where basically current CGT rules apply
to all of those assets too. And if you've been
investing on platforms like Shares's, you can expect a statement
(05:12):
to be sent to you with all of the important
information that you need in a few months time, and
I say usually September, because this stuff doesn't come out immediately.
And if you're investing for the very first time, es,
I think you went through this as well. You were like,
I'm a galie that has my ducks in a row,
Like I do my tax on the first of July obviously,
but once you start investing, you've actually got a wait
(05:34):
for your investing platform to get their ducks in a
row and calculate all of your earnings and stuff like
that and then send you a tax report, so you
can't do your tax until you have that piece of content.
But any shares or ets that you purchase after the
first of July this year, they actually might be affected
by this new budget update because they will fall into
(05:56):
next year's tax right, Like, I don't know if it's
confusing that it is confusing if it's new to you,
where the CGT exemption is going to be based on
inflation plus then a minimum of thirty percent tax on
gains from the first of July twenty twenty seven. Again,
that's not legislated yet, but I can't see it not
(06:19):
becoming legislated. Yeah, sadly, but.
Speaker 3 (06:22):
You're already investing. You understand it is important to remain
level headed and not make any impulsive decisions just because
we're at the end of the TAXI now right.
Speaker 1 (06:30):
Yeah, better said than done. Like, I still get stressy
about my investments, and I think that's important to talk
about too, But yes, we do need to remain I
guess quite level headed. Level Headed's not how I would
explain me. But remember that this is just another market
factor that might play into things. If your strategy is
to be playing the long game. Who knows what might
(06:52):
happen jess in like five or ten years. Like, it's
not all doom and gloom, And a lot of people
have been saying things like, oh, well, is it investing
still yes, Like, yes, the tax system is changing, Yes
it might be more or less beneficial for you, but
the premise of investing still exists, Like we are creating
money that will compound and create a better financial future
(07:15):
for us. And that I guess that lesson and that
idea still exists and is still true. Not all doom
and gloom. You'll also be getting some new claiming power
in next year's tax return, including an instant tax deduction
of one thousand dollars. That's so good money in.
Speaker 3 (07:31):
That sounds pretty attractive. Apparently it's meant to make tax
time simpler, more straightforward to the everyday person, where you
can just knock one thousand dollars off of your income
without having to provide any receipts and that will be
for your twenty twenty six twenty twenty seven return exactly.
Who knows, maybe it'll chip away at those six hours
we're spending on financial admin every week.
Speaker 1 (07:49):
Well, hopefully people actually get their stuff together and get
a new system that makes sense for them so that
they're not spending all of that time on there. Six
hours is insane. Soul traders are spending that arguably and
some but you know you have your own business, Jess,
So what's on your radar come tax time.
Speaker 3 (08:05):
I'm always looking a little bit ahead of time to
make sure that if I need to do any rejigging
because of tax brackets, because for someone like me, I
obviously have my time pyd job. Yeah big dot, I'm
doing right now. Hello, everybody, welcome to my full time jobs.
Speaker 1 (08:20):
That kind of wild that both of us have quote
full time jobs and it's just us yapping on some
microphones just city on account, I mean, just does do
a lot more than that, but like for a few
hours a week, that's true.
Speaker 3 (08:31):
We get to have fun in addition to that. Obviously,
within my business, I generate income there as well, which
means that this year, especially with my first time super Saver,
I'm teetering very close to the edge of a tax
bracket and.
Speaker 1 (08:43):
It really nice.
Speaker 3 (08:44):
I'm looking at, well, there may be purchases that I
need to make for my business that might help bring
my taxbill income down. Are there any contributions to super
or charity or things like that that might help to adjust.
You need to run the numbers. It's very dependent on
your situation. But if it's something that I planning on
buying anyway, I will often sit on it as long
as I can and nab it right before tax time. Yeah,
(09:06):
one because I can take advantage of the end of
financial year sales. And two because then I can run
the numbers and see if that can maybe put me
in a slightly more positive position.
Speaker 1 (09:15):
Yeah, because I think that there's this really big misconception that,
oh my god, it's claimable on tax and then all
of a sudden. People just like have this mentality that
in a new laptop or the new standing desk is free,
and that's like not the case. You can just claim
back the tax on it if it's related to your business,
but you still have to outlay the money. It's still
real money that we're spending one hundred percent.
Speaker 3 (09:35):
I need to keep in mind as well, like is
it claimable based on your industry too, So depending on
what your business is, what you're doing, you may be
entitled to certain things and not others. People who work
outdoors might be able to claim their sunscreen or theirs
sun protective gear.
Speaker 1 (09:49):
Where you're a podcaster and you often spend a lot
of time in rooms with no windows, Yes, exactly right,
Probably not.
Speaker 3 (09:56):
Right less applicable to those of us, And so it's
about knowing exactly what you can claim because again you
want to maximize it, but it's important that you're also
doing the right thing.
Speaker 1 (10:06):
Did you know that if you're a gardener you can
claim garden gnomes?
Speaker 3 (10:09):
That's very fun.
Speaker 1 (10:10):
I did not know that if you're a farmer you
can claim your dog.
Speaker 3 (10:14):
I'd almost become a farmer just to claim now, I rite.
Speaker 1 (10:16):
But it's kind of crazy there are. And this is
why I always tell people not because of the dog content,
which arguably is really important, but if you are in
an industry where you know there are some niche things
going on, go to the at your website, there's very
likely a whole page on things you can and can't
claim because people ask a million questions and they actually
(10:36):
put up some really good blog posts. And I know
that sounds dry because their website is dry, and it
does look boring, but it can be really helpful, especially
if you're just trying to work out what's fair and
what's not. Let's sidetrack a little bit and just quickly,
can we talk about the difference between a business and
what the ATO class as a hobby. I think this
gets people a lot, Yeah, because I feel like this
(10:58):
comes up a lot and a lot of people are
a little bit confused. And I had a friend a
couple of years ago get stung by the ATO. They
got audited and they'd, you know, just taken up some
Uber for a little bit. Didn't like it. Only did
like two or three weeks of Uber driving, and they
were like, oh, I'll just claim it as as a hobby,
because like you know I wasn't claiming that much, but
it wasn't. It was genuinely income that she had derived
(11:21):
because she was trying to work anyway, so very quick refreshing,
my friends. A hobby is an activity that is conducted
in your spare time for recreation or pleasure.
Speaker 3 (11:32):
I play ultimate frisbee. That is a hobby.
Speaker 1 (11:34):
That is a niche piece of information about Jess as well.
Speaker 3 (11:38):
At a niche hobby, one might say like, like, when
you look.
Speaker 1 (11:41):
At Jess, you go sunshine and rainbows and really beautiful things,
and she's fighting you out on the frisbee field in
the pouring rain in the middle of a July like
it's crazy. It's crazy anyway. A business is something that
comes with tax and legal implications, and it often involves
the intent to make a profit or a genuine belief
(12:03):
that you are going to make a profit from that activity,
even if you're unlikely to do so in the short term.
Speaker 3 (12:09):
I make content on the internet. That is a business.
Speaker 1 (12:12):
Unfortunately it is. I would love for you to not
pay tax on the income that you make from that,
but you do, and you do it properly. But the
decision to start a business or operate in a business
like manner means that you would register a business name
and obtain an ABN. Now that's an interesting kind of
(12:33):
like that's what the ATO says. But a lot of
people are getting stung because they're doing hobbies and like
maybe making baby blankets and selling them on Etsy and
taking custom orders. And then you go, well, it's just
a hobby. Oh, you established a whole Etsy store. Now
you're selling the baby blankets and taking custom orders. Like, girl,
it's not really a hobby. That's a business.
Speaker 3 (12:53):
That's where the intent comes in, right. It's like, well,
if you're doing something with the intention of making money,
even if you haven't got the ABM, Yeah, the intentions
still there.
Speaker 1 (13:01):
Yeah, and it could be flagged. And nowadays with data
matching and honestly, I want to say how crazy AI is,
Like the ATO is really tapping into that and how
to scrape the internet for information on how Jessica Ritchie
like derives her income and like, I have seen cases
where influencers have declared a certain thing on their tax
(13:23):
return and then the ato's gone back and been like,
that's interesting. You had a whole trip to Disneyland that
was paid for. Where's that yeah, and I kid you
not that that has happened. So I'm obviously this isn't
targeted at just you know, influencers, but the everyday person
is being scraped by the data as well. And they
(13:45):
might highlight something, but if they audit you, jess, they're
not going to be like, oh, we saw the Disneyland trip,
where's that? That comes up later. They're just going to go, hey,
you're being audited proof receipts, yeah, and then that conversation
comes later. Anyway, it also plays into they say on
the website that the repetition of similar types of activities
(14:06):
and the size and or scale of your activity is
consistent with other businesses in your industry. So you might go, well, no,
it's just a hobby for me, Like it's not. But
you're pouring just as many candles so somebody else who's
going to markets? And anyway, I feel like you're picking
up what I'm putting down, right. And also they say
(14:26):
that the activity is planned, organized and carried out in
a business like manner, with records, separate bank accounts, licenses,
qualifications or premises, which again I think is an interesting
one because I see so many people being picked up
and like, I don't see it individually. Yeah, I mean
people in our community come to me and go, oh
my gosh, v I got picked up by the ATO
for this. What do I do? And I'm like, well,
(14:47):
go talk to the ATO about that. But it is
happening in our community, is happening around and I think
it's just really important to be aware of it. So
even if you don't have a registered business name and
you don't have an ABN and you're not keeping clean records,
but they find that you are generating a profit, they
might come down on you like a ton of bricks,
and I'm just trying to save you from that.
Speaker 2 (15:08):
Yeah.
Speaker 3 (15:09):
That actually reminds me of another question that we've got,
which I think is a really common one for those
of us who are in the early days of our businesses.
Especially Let's say you're hustling hard, you're operating at a loss,
and you have absolutely no idea what to do at
tax time. Fair you ideally probably don't want to be
paying for an accountant, as much as they're valuable, because
if you're operating at a loss, you haven't got a
lot of cash flow.
Speaker 1 (15:29):
You already feel like you're bleeding money.
Speaker 3 (15:30):
One hundred percent? Are there other things that you could
maybe consider.
Speaker 1 (15:33):
So while you don't need to technically keep records for
the ATO, if what you're doing is more of a hobby,
I would say it's just good practice to keep records
just in case your circumstances change. So setting up systems
and programs can help you stay on top of business
admin and obviously reduce that six hours per week's stat.
It can help you manage invoicing and getting paid on time.
(15:54):
It can help you better manage unpredictable earning with I
guess clever budgeting and cash flow tools. And I would
say keep receipts for literally everything you might think is eligible,
like just track it because it might be And like
from little things, big things grow. I say that on
the podcast all the time. I know it was just
a quick, sneaky office works trip and you only spend
(16:16):
twenty dollars, but how often do you do that and
how much does that add up? Like those things do
genuinely make a difference come tax time. Absolutely, And besides,
you's being a good habit as well. It's a nice
way to see your progress, Like don't you want that
little dopamine hit. I do, like I love having and
I mean I've shared on the podcast before that I
take photos of all my receipts and I have a
(16:37):
whole album on my phone of the receipts that I have,
which is obviously really cool girl behavior. Yeah, like cool
girl behavior, but like it's a dopamine hit to see
that I'm organized. We also love a self employed queen.
But with all the freedom that you have as a
self employed queen, Miss jessic Ricci, comes huge responsibility as well. Unfortunately, yes, sorry,
(16:58):
So that's why it is so important to just stay organized,
because if it's not for the progress, it's for the
receipts and es. According to a twenty twenty five Pulse survey,
Henry also found that almost half of all sole traders
with business expenses don't claim them all. Almost half. That
(17:18):
is nuts to me, literally, and if you do the
maths on that, that's like foregoing something like three eight
hundred and fifty six dollars per year in expense claims alone.
Speaker 3 (17:29):
I don't feel good about that. I know that it's
such so much money. That's so much money, especially again
in the early days of the business. If you're operating
on a very small profit, or you know you're looking
at maybe taking loss that that money is a huge
difference potentially, And even if it's not claimable now, if
you're thinking, I'm operating at a loss, what does that
look like for me? You might be able to offset
(17:50):
future income if it's totally now. It's all going to
depend on your personal circumstances. But I just think keep
the records because you never know, Like if you owe
a small business, maybe one day somebody mentions your product
and you sell out the next day, or maybe you
go to a market and you find your target audience,
like you just never know. You don't want to get
to tax time. And on Victoria Devine's birthday, this scrambling.
Speaker 1 (18:14):
Dame, we want to have a good birthday.
Speaker 3 (18:16):
All the receipts and the things that you all of
a sudden now are eligible to claim exactly.
Speaker 1 (18:20):
And it's funny because like, our community is listening to
this episode, and I'm pretty sure that's not our community.
I'm pretty sure that's people who don't keep records and
don't listen to finance podcasts to put themselves in the
best possible position, Like our queens are listening to this
content to get ahead, so they're probably already doing that,
but it's a good reminder that the little things just
(18:41):
really do add up. All Right, We're going to take
a really quick break, but when we return, we're talking
about claims and how to make sure that you aren't
the one missing out come tax time. Our one thousandth
episode is coming up soon, and to celebrate, we're giving
one clever who listener a chance to win. She's stashed
(19:02):
the cash. Today's mystery word is together. Tune into episodes
of She's on the Money between the seventeenth of June
and the third of July and listen out for the
hidden code words. They are are five in total. The
first person to arrange the code words in the correct
order will win one thousand dollars. Entries open on Friday,
the third of July, with details shared live on the pod.
(19:25):
Good luck and happy hunting, my friends. We are back
and we are jumping straight into the juicy part, the
part that we honestly usually go to a professional for,
and that is claims. What's tax deductible and what can
you actually claim? Good question, It actually depends. I know
you hate when I say that. It all depends on
(19:46):
your total taxable income, your industry, and your occupation. And
there are honestly so many decent resources out there if
you've ever been curious about I guess what you can
claim in your field of work.
Speaker 3 (19:59):
One of the this is actually recommended when we put
out for questions that there's some claims resources on the
Henry website.
Speaker 1 (20:05):
And it's like really aesthetic. You know how I was
telling you that the Atio website sucks. Henry's website doesn't suck.
Speaker 3 (20:11):
There you go, You've got that, You've got the Atier website.
They've got some really good examples of what you might
or might not be able to claim as well. And
I think there's a pretty active Atier community. You can
actually post questions forum. Yes, it's giving, that's where the
cool girls hang out, giving early two thousands. I'm loving it.
And you can hear what other people are claiming. And
I believe you might also be able to access experts
(20:32):
there as well.
Speaker 1 (20:33):
Absolutely, And I want to be really juicy. I was
talking about this on an Instagram story a little while
ago because people were asking me like, oh, hey, how
do you get paid for that? Like you know, when
I do a Q and a box. Yes, And I
was doing a Q and a box about the food
that I was eating and they were like, how do
you get paid? And I was like, all right, sit down, queen,
I'll tell you, like I am an open book and
(20:53):
it's your turn. Okay, because you do a little bit
of like social posting, and I don't know, is it
rude to call people an influencer cause you're so much
more than just somebody who does content.
Speaker 3 (21:03):
A content creator is my term of choice. Okay, I
did like business women earlier.
Speaker 1 (21:07):
Okay, just identialize as a business woman. And because you're
a business woman, you post like some reels and get
paid for that. Can you then claim everything that you
buy for a shoot? I wish?
Speaker 3 (21:17):
I know, right, It's very much dependent on again, what
you're doing, you know, for a real is it directly
related to generating the income? And more specifically, am I
only using it for business purposes? Yes? So for example,
if I was doing a cute little outfit of the
day video, I'm not claiming my outfit because I'm wearing
(21:38):
that outfit in my day to day life. It's not
really for business purposes. Whereas if I was required to
turn up to a shoot, and I needed a very
specific item. Let's say I need a bunny costume. Yeah,
I'm never gonna use that bunny costume again. I'm picturing
Elwoods in her little ears.
Speaker 1 (21:54):
Oh I could make that happen for She's on the money.
If you want it, we'll talk later.
Speaker 3 (22:00):
Yeah. But I needed this very specific item that I
was only going to use for this very specific shoot.
Then it may be claimable.
Speaker 1 (22:05):
Yeah yeah, but only the tax of that is claimable.
So I think that's really important. And also I feel
like there's some like misconceptions floating around because people will
be like, oh, influencers claim everything. If you know an
influencer who is claiming everything, my friend, they're doing the
wrong thing. Yeah, So like just calling it out there.
I'm not talking about anybody specifically, but if you know
(22:28):
of somebody who's like, oh, I just claim everything, Actually
they're committing tax evasion, and that's just not how to
do it. That's not kosher. Like in this house, we
keep our claim records. We do the right thing, because
what goes around comes around. And I think that you know,
for individuals who are looking I guess for some low
hanging fruit, they're like Oh, but v I, you know,
(22:49):
have a payg job or you know I'm self employed,
Like I just I don't know what I can and
can't claim, like low hanging fruit sun protection if you
are and I'm always going to be the biggest advocate
for some protection, but some protection if you work outside
or you wear them at work to protect you from
the risk of sun damage. You can claim your sunscreen.
You can claim your hats. And if your total claim
(23:12):
for laundry expenses is one hundred and fifty dollars or
less excluding dry cleaning, so you're not allowed to claim
dry cleaning, you can actually claim a deduction without any
written evidence.
Speaker 3 (23:22):
Love that.
Speaker 1 (23:22):
Like if you're you know, laundering your uniform because you
work are hungry jacks.
Speaker 3 (23:28):
Yep, claim it, claim it, get that money, that clean.
Speaker 1 (23:31):
Exactly, and you would have to launder that because you
would come home every night probably like for ye exactly
and like that's hot, but not every day.
Speaker 4 (23:39):
You know.
Speaker 1 (23:40):
You could also, I think people don't know this and
this is a good one. Claim your accounting fees for
the previous year. So if you did engage an accountant
and you paid them next year, you can claim it.
So let's throw to our community, jess, what did they
want to know?
Speaker 3 (23:55):
A bunch of people had questions about knowing when to
register a GST to avoid being fined, And we've all
had a bit of a giggle about this with Beck previously.
Speaker 1 (24:04):
Yes, And I think the GST it feels so confusing
because they say it's voluntary, like they say on the thing,
like you don't have to like register for this yet,
and you go, okay, well I'm not going to if
I don't have to, but you actually have to at
a certain point. So when your business or your enterprise
has turnover, which is gross income from all business minus GST. Also,
(24:26):
do you know the easiest way? Like I always think
about this when I'm talking about gross or nets. I
can never remember which is which you can't No, okay,
So gross versus net. Gross income is what you would
have taken home if you didn't have to pay tax.
And it's gross to look at it because you don't
get it. Oh that's brilliant, right, So your gross income
that's gross because that's not what you get.
Speaker 3 (24:48):
That's hilarious.
Speaker 1 (24:49):
And net income I think of fishing and a net
and it's what you actually get to take home. Like, yea,
you know you look at the whole ocean, great, and
you scoop out of fish. That's the fish you get
to take home. What is in the net, It is
what is in your bank account. Oh, very clever from you,
whether that makes sense or not. But I just always
look at it. I'm like, ill, gross income is gross
because I don't get that because I've paid tax.
Speaker 3 (25:11):
I could have been so much richer exactly.
Speaker 1 (25:13):
Anyway, back on track, you do not have to register
for GST if your business earns under seventy five thousand dollars,
but if you do and you have a turnover of
more than seventy five thousand dollars in any twelve month period,
you have to consider registering. And even if you think
you might hit that like threshold later you're like, oh,
(25:34):
I'm not really doing that. I've been consistently doing maybe
sixty thousand dollars a year. I wouldn't wait. I would
say do it before you regret it later, because yes,
it may mean a little bit more admin like filing
a bas or business activity statement is what that is called,
every quarter, but it could prevent some really unwanted attention
from the taxman later on and also from more of
(25:55):
a is the word logistical point of view. And I've
always like done this myself, even if I wasn't earning
seventy five grand I want all my invoices it to
say that I'm charging GST because when I do tip
over that seventy five thousand dollar limit, I don't want
to have to go to my clients and be like
I'm now charging GST and like have to renegotiate things
(26:16):
because it does change what your clients have to pay,
Like GST is ten percent, and like when you're renegotiating invoices, Queen,
I want it to be because we're changing your bottom line,
not ah, the government wants more money. Like, let's just
set those expectations earlier. Also really important if you work
in the nonprofit sector, which very cool. We have a
(26:37):
fair few people in our community who do. If your
organization has a turnover of one hundred and fifty thousand
dollars per year or more, that's when you need to
register for GST. So they've got a different limit. And
as I mentioned earlier in this episode, I had a
friend who got stung for doing uber YEP.
Speaker 3 (26:54):
So if you.
Speaker 1 (26:55):
Provide ride share services. So if you do taxi or
limousines for passengers like Uber, you know, whatever you're on,
regardless of your turnover, whether it is a dollar or
a million dollars, you have to apply for GST. And
this applies to both owner drivers and if you lease
or rent a taxi. I didn't know that, which I
(27:15):
know leasing and renting a taxi isn't like that common
these days, no, but it's very good to know. And
if you're a door dasher, so like you're a dasher
at door Dasher, which is actually very cool side hustle,
and you earn less than seventy five thousand dollars per
year and only deliver food like you don't do the
other ride share components, you do not need to register
(27:37):
for GST. Oh in case you didn't know, because I
think that you might get a little bit confused and
be like, well, door dash must be the same.
Speaker 2 (27:45):
It's not.
Speaker 1 (27:45):
It's different. So if you've got that as a side hustle,
you don't have to sign up.
Speaker 3 (27:50):
Lots of little tippits, and there are so many ways
to keep track of them all. For example, yes, when
I started, I was using the spreadsheet. It was very messy.
It was a little bit all over the place. You
can graduate. You know, there are platforms I canry out
there that collate everything and do a lot of the
work for you where you can streamline those costs and claims.
I believe it even does your GST stuff for you,
which is.
Speaker 1 (28:08):
Very nice, actually does and low key. I've had a
few conversations with people at side Note. I've had a
few conversations with people in our community who do use
Henry because I was like, hey, guys, what are we doing,
like if we're small business owners? And they're like, oh
my gosh, I love Henry because I just call them
up and they answer like they're actual people just based
here in Australia who are just really passionate about small
(28:30):
business owners. So people like you just could be like, hey,
I don't have an accountant, but what do I do here?
And they're like, all right, bestie, sit down. We can't
give you advice, but this is what we do.
Speaker 3 (28:39):
We love that sometimes you do just need to talk
to a human being, I.
Speaker 1 (28:43):
Think exactly, And I think that that's really important because
like the blogs we've been recommending can only do so
much and sometimes as a business owner. You just want
someone to be like, sorry, bestie, you're not allowed to
do that, and you go, thank you. I've been looking
everywhere for that information. Anyway, it's included in their whole thing,
which might then be a good option for you.
Speaker 3 (29:04):
Sounds really good. I think no matter where you're at
in your business journey, it pays to be organized. That's
the bottom line. If this episode teaches you one thing,
whatever that looks like for you, it doesn't matter that
preparation is key.
Speaker 1 (29:15):
And also it looks really impressive, like the dopamine I
get from having my jucks in a row. Like Jess,
I reorganized my spicetraw the other day and I was like,
this is so good. You can do the same for
your tax.
Speaker 3 (29:26):
Yeah, we want to save you that six hours a
week and that four thousand dollars a year.
Speaker 1 (29:29):
Oh my goodness. Do we ever? And at the end
of the day, if you're still confused by the tax
on your earnings all your assets, it might actually be
time to level up your financing processes so you don't
get a nicety fine from the tax office or have
them trying to look under the hood keep out Like
I just want to keep my house in tip top shape. Anyway,
my friends, I could talk about tax forever literally and
(29:50):
I probably will because it's actually my entire career. But
that is for this episode all from us. We have
loved covering this stuff, so if you have any follow
up questions, comments, or reviews, please please send them our
way and make sure that you're subscribed so that you
never miss a money update. And we'll catch you on
Friday for another episode of Friday Drinks. Until then, take
care of yourselves out of each other by guys.
Speaker 4 (30:15):
The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
on the Money exists purely for educational purposes and should
not be relied upon to make an investment or financial decision.
Speaker 1 (30:28):
If you do choose to buy a financial product.
Speaker 4 (30:30):
Read the PDS TMD and obtain appropriate financial.
Speaker 1 (30:33):
Advice tailored towards your needs.
Speaker 4 (30:36):
Victoria Divine and She's on the Money are authorized representatives
of Money sheirper Pty Ltd ABN three two one six
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one two eight nine
She's on the Money. She's on the Money.
Speaker 2 (00:10):
My name's Tatasha Bamblet. I'm a proud First Nations woman
and I'm here to acknowledge country. Hello, beautiful friends, we
gather on the lands of the Aboriginal people. We thank,
acknowledge and respect the Aboriginal people's land that we're gathering
on today. Take pleasure in all the land and respect
all that you see. She's on the Money podcast acknowledges culture, country,
community and connections, bringing you the tools, knowledge and resources
(00:32):
for you to thrive.
Speaker 1 (00:32):
Hello, and welcome to She's on the Money, the podcast
where we discuss all of the issues concerning your wealth
goals so that you can feel more in control of
your financial future. I'm Victoria Divine and how are we
halfway through June already? I don't know about you, but
at this time of the year, there's only one thing
on my mind. My birthday and tax And according to
(00:53):
a twenty twenty six Pulse survey, Henry found that tax
obligations were the second biggest stressor for soul traders after
at the cost of living YEP. From preparing tax returns
to making claims and working out just how much we
owe it can get all a little low tt. So
obviously we asked our community what they wanted to know
about tax, including questions for investors, families, and those of
(01:14):
us who were self employed. And who better to join
me than fellow business women, Miss jessic.
Speaker 3 (01:19):
Ricci business and what I like that a lot?
Speaker 1 (01:22):
Well you are are you not?
Speaker 3 (01:23):
It's true?
Speaker 1 (01:23):
Do you have an ABN? I sure do business wore men.
Speaker 3 (01:26):
And I would agree that tax time is very stressful time.
Speaker 1 (01:30):
Well, it's like twofold for us. It's like the busiest
month of the year. Yes, because finance content, but also
counting down the days to my birthday, which happens to
be the eofy date. Honestly, the universe the stars really
aligned on that day. My dad really said are you
going to work with that?
Speaker 3 (01:49):
Yeah?
Speaker 1 (01:49):
Because he's an accountant, he was not impressed. Like the
day that I was born, my mom was like, we're
having the baby on the thirtieth fifth June. You better
come on over because I'm in labor. And my Dad's like, girl,
it's eo fy not wait, And Mum was like, nobody waits.
No anyway, it's so good to have you here because
now we can chat through all the stuff that you've
(02:10):
been thinking about, or let's be real, probably quietly stressing
over ahead of tax time, plus maybe some learnings from
the hustle. For example, did you know that soul traders
are spending an average of six hours a week and
up to four grand a year on tax and finance admin.
Speaker 3 (02:26):
That's mind boggling, but also it kind of makes sense. Yeah,
it's one of those things you want to get right.
I think, especially when you are like me and you're
a baby business owner, it pays to do it well.
Speaker 1 (02:37):
Literally, and so many of us in our community are like, no,
Like I don't have accounting software, I haven't organized anything
because I just got my spreadsheet. But how long is
that taking you to organize? At what cost? Is my
favorite question? At the moment everything in business. At the moment,
I go, that's a great idea, Jess, at what cost
can we implement it? And I just think that's a
(02:58):
good thing to keep in mind, and arguably that's just
the tip of the iceberg. When we get back from
this really quick break, we'll be sharing stats on just
how much money you might be leaving on the table
at tax time. My friends, welcome back to She's on
the Money, the podcast that's shining a light on your
tax time questions, both the things that you're worried about
(03:19):
out loud and the stuff that you're arguably too shy
to ask your accountant.
Speaker 3 (03:23):
Speaking of which, the recent announcements around CDT and the
change in this year's budget have got a lot of
the community members reaching out and asking what that means,
what that might look like for them. Can you give
us a little bit of an update.
Speaker 1 (03:33):
Obviously, because I was there, I went to the budget
because I am a really cool person.
Speaker 3 (03:39):
She was bits on the ground reporting for you.
Speaker 1 (03:40):
When cool people go to the budget, everybody else I
went to Taylor Swift. Me I went to the budget.
Speaker 3 (03:46):
It's pretty cool.
Speaker 1 (03:47):
But I also did go to Taylor Swift, so maybe
I am actually cool. And of course, so first of all,
we're going to cover some of the I guess, juicy
federal budget stuff. Then the new incentives that I really
want you to keep an eye out for. Soh while
these announcements, it's important to remember this, they are not
legislated yet, they aren't likely to affect your tax this
(04:07):
financial year. So the one ending on the thirtieth of
June twenty twenty six, they could potentially impact things like
capital gains claims that you have next year. So exactly so,
during this tax return, the current capital gains tax rules
still apply, which is very nice. So if you sold
an asset and made a profit on it before June thirty,
twenty twenty six, and you'd owned it for at least
(04:29):
a year, so a minimum of one year, you'd still
get a fifty percent CGT discount or CGT exemption. And
this is going to affect things like property and shares
and your ETFs. Now, many of you in our community
have asked how shares and ETFs are taxed. Good question,
and I'll say that if you haven't already, please go
back and listen to our recently released episode that is
(04:51):
entirely dedicated on how these assets are taxed. Because again
I told you, I'm real cool, Like the content I
create is for the girls, yeap. You'll learn about dividends, franking, credits,
we talked about distributions where basically current CGT rules apply
to all of those assets too. And if you've been
investing on platforms like Shares's, you can expect a statement
(05:12):
to be sent to you with all of the important
information that you need in a few months time, and
I say usually September, because this stuff doesn't come out immediately.
And if you're investing for the very first time, es,
I think you went through this as well. You were like,
I'm a galie that has my ducks in a row,
Like I do my tax on the first of July obviously,
but once you start investing, you've actually got a wait
(05:34):
for your investing platform to get their ducks in a
row and calculate all of your earnings and stuff like
that and then send you a tax report, so you
can't do your tax until you have that piece of content.
But any shares or ets that you purchase after the
first of July this year, they actually might be affected
by this new budget update because they will fall into
(05:56):
next year's tax right, Like, I don't know if it's
confusing that it is confusing if it's new to you,
where the CGT exemption is going to be based on
inflation plus then a minimum of thirty percent tax on
gains from the first of July twenty twenty seven. Again,
that's not legislated yet, but I can't see it not
(06:19):
becoming legislated. Yeah, sadly, but.
Speaker 3 (06:22):
You're already investing. You understand it is important to remain
level headed and not make any impulsive decisions just because
we're at the end of the TAXI now right.
Speaker 1 (06:30):
Yeah, better said than done. Like, I still get stressy
about my investments, and I think that's important to talk
about too, But yes, we do need to remain I
guess quite level headed. Level Headed's not how I would
explain me. But remember that this is just another market
factor that might play into things. If your strategy is
to be playing the long game. Who knows what might
(06:52):
happen jess in like five or ten years. Like, it's
not all doom and gloom, And a lot of people
have been saying things like, oh, well, is it investing
still yes, Like, yes, the tax system is changing, Yes
it might be more or less beneficial for you, but
the premise of investing still exists, Like we are creating
money that will compound and create a better financial future
(07:15):
for us. And that I guess that lesson and that
idea still exists and is still true. Not all doom
and gloom. You'll also be getting some new claiming power
in next year's tax return, including an instant tax deduction
of one thousand dollars. That's so good money in.
Speaker 3 (07:31):
That sounds pretty attractive. Apparently it's meant to make tax
time simpler, more straightforward to the everyday person, where you
can just knock one thousand dollars off of your income
without having to provide any receipts and that will be
for your twenty twenty six twenty twenty seven return exactly.
Who knows, maybe it'll chip away at those six hours
we're spending on financial admin every week.
Speaker 1 (07:49):
Well, hopefully people actually get their stuff together and get
a new system that makes sense for them so that
they're not spending all of that time on there. Six
hours is insane. Soul traders are spending that arguably and
some but you know you have your own business, Jess,
So what's on your radar come tax time.
Speaker 3 (08:05):
I'm always looking a little bit ahead of time to
make sure that if I need to do any rejigging
because of tax brackets, because for someone like me, I
obviously have my time pyd job. Yeah big dot, I'm
doing right now. Hello, everybody, welcome to my full time jobs.
Speaker 1 (08:20):
That kind of wild that both of us have quote
full time jobs and it's just us yapping on some
microphones just city on account, I mean, just does do
a lot more than that, but like for a few
hours a week, that's true.
Speaker 3 (08:31):
We get to have fun in addition to that. Obviously,
within my business, I generate income there as well, which
means that this year, especially with my first time super Saver,
I'm teetering very close to the edge of a tax
bracket and.
Speaker 1 (08:43):
It really nice.
Speaker 3 (08:44):
I'm looking at, well, there may be purchases that I
need to make for my business that might help bring
my taxbill income down. Are there any contributions to super
or charity or things like that that might help to adjust.
You need to run the numbers. It's very dependent on
your situation. But if it's something that I planning on
buying anyway, I will often sit on it as long
as I can and nab it right before tax time. Yeah,
(09:06):
one because I can take advantage of the end of
financial year sales. And two because then I can run
the numbers and see if that can maybe put me
in a slightly more positive position.
Speaker 1 (09:15):
Yeah, because I think that there's this really big misconception that,
oh my god, it's claimable on tax and then all
of a sudden. People just like have this mentality that
in a new laptop or the new standing desk is free,
and that's like not the case. You can just claim
back the tax on it if it's related to your business,
but you still have to outlay the money. It's still
real money that we're spending one hundred percent.
Speaker 3 (09:35):
I need to keep in mind as well, like is
it claimable based on your industry too, So depending on
what your business is, what you're doing, you may be
entitled to certain things and not others. People who work
outdoors might be able to claim their sunscreen or theirs
sun protective gear.
Speaker 1 (09:49):
Where you're a podcaster and you often spend a lot
of time in rooms with no windows, Yes, exactly right,
Probably not.
Speaker 3 (09:56):
Right less applicable to those of us, And so it's
about knowing exactly what you can claim because again you
want to maximize it, but it's important that you're also
doing the right thing.
Speaker 1 (10:06):
Did you know that if you're a gardener you can
claim garden gnomes?
Speaker 3 (10:09):
That's very fun.
Speaker 1 (10:10):
I did not know that if you're a farmer you
can claim your dog.
Speaker 3 (10:14):
I'd almost become a farmer just to claim now, I rite.
Speaker 1 (10:16):
But it's kind of crazy there are. And this is
why I always tell people not because of the dog content,
which arguably is really important, but if you are in
an industry where you know there are some niche things
going on, go to the at your website, there's very
likely a whole page on things you can and can't
claim because people ask a million questions and they actually
(10:36):
put up some really good blog posts. And I know
that sounds dry because their website is dry, and it
does look boring, but it can be really helpful, especially
if you're just trying to work out what's fair and
what's not. Let's sidetrack a little bit and just quickly,
can we talk about the difference between a business and
what the ATO class as a hobby. I think this
gets people a lot, Yeah, because I feel like this
(10:58):
comes up a lot and a lot of people are
a little bit confused. And I had a friend a
couple of years ago get stung by the ATO. They
got audited and they'd, you know, just taken up some
Uber for a little bit. Didn't like it. Only did
like two or three weeks of Uber driving, and they
were like, oh, I'll just claim it as as a hobby,
because like you know I wasn't claiming that much, but
it wasn't. It was genuinely income that she had derived
(11:21):
because she was trying to work anyway, so very quick refreshing,
my friends. A hobby is an activity that is conducted
in your spare time for recreation or pleasure.
Speaker 3 (11:32):
I play ultimate frisbee. That is a hobby.
Speaker 1 (11:34):
That is a niche piece of information about Jess as well.
Speaker 3 (11:38):
At a niche hobby, one might say like, like, when
you look.
Speaker 1 (11:41):
At Jess, you go sunshine and rainbows and really beautiful things,
and she's fighting you out on the frisbee field in
the pouring rain in the middle of a July like
it's crazy. It's crazy anyway. A business is something that
comes with tax and legal implications, and it often involves
the intent to make a profit or a genuine belief
(12:03):
that you are going to make a profit from that activity,
even if you're unlikely to do so in the short term.
Speaker 3 (12:09):
I make content on the internet. That is a business.
Speaker 1 (12:12):
Unfortunately it is. I would love for you to not
pay tax on the income that you make from that,
but you do, and you do it properly. But the
decision to start a business or operate in a business
like manner means that you would register a business name
and obtain an ABN. Now that's an interesting kind of
(12:33):
like that's what the ATO says. But a lot of
people are getting stung because they're doing hobbies and like
maybe making baby blankets and selling them on Etsy and
taking custom orders. And then you go, well, it's just
a hobby. Oh, you established a whole Etsy store. Now
you're selling the baby blankets and taking custom orders. Like, girl,
it's not really a hobby. That's a business.
Speaker 3 (12:53):
That's where the intent comes in, right. It's like, well,
if you're doing something with the intention of making money,
even if you haven't got the ABM, Yeah, the intentions
still there.
Speaker 1 (13:01):
Yeah, and it could be flagged. And nowadays with data
matching and honestly, I want to say how crazy AI is,
Like the ATO is really tapping into that and how
to scrape the internet for information on how Jessica Ritchie
like derives her income and like, I have seen cases
where influencers have declared a certain thing on their tax
(13:23):
return and then the ato's gone back and been like,
that's interesting. You had a whole trip to Disneyland that
was paid for. Where's that yeah, and I kid you
not that that has happened. So I'm obviously this isn't
targeted at just you know, influencers, but the everyday person
is being scraped by the data as well. And they
(13:45):
might highlight something, but if they audit you, jess, they're
not going to be like, oh, we saw the Disneyland trip,
where's that? That comes up later. They're just going to go, hey,
you're being audited proof receipts, yeah, and then that conversation
comes later. Anyway, it also plays into they say on
the website that the repetition of similar types of activities
(14:06):
and the size and or scale of your activity is
consistent with other businesses in your industry. So you might go, well, no,
it's just a hobby for me, Like it's not. But
you're pouring just as many candles so somebody else who's
going to markets? And anyway, I feel like you're picking
up what I'm putting down, right. And also they say
(14:26):
that the activity is planned, organized and carried out in
a business like manner, with records, separate bank accounts, licenses,
qualifications or premises, which again I think is an interesting
one because I see so many people being picked up
and like, I don't see it individually. Yeah, I mean
people in our community come to me and go, oh
my gosh, v I got picked up by the ATO
for this. What do I do? And I'm like, well,
(14:47):
go talk to the ATO about that. But it is
happening in our community, is happening around and I think
it's just really important to be aware of it. So
even if you don't have a registered business name and
you don't have an ABN and you're not keeping clean records,
but they find that you are generating a profit, they
might come down on you like a ton of bricks,
and I'm just trying to save you from that.
Speaker 2 (15:08):
Yeah.
Speaker 3 (15:09):
That actually reminds me of another question that we've got,
which I think is a really common one for those
of us who are in the early days of our businesses.
Especially Let's say you're hustling hard, you're operating at a loss,
and you have absolutely no idea what to do at
tax time. Fair you ideally probably don't want to be
paying for an accountant, as much as they're valuable, because
if you're operating at a loss, you haven't got a
lot of cash flow.
Speaker 1 (15:29):
You already feel like you're bleeding money.
Speaker 3 (15:30):
One hundred percent? Are there other things that you could
maybe consider.
Speaker 1 (15:33):
So while you don't need to technically keep records for
the ATO, if what you're doing is more of a hobby,
I would say it's just good practice to keep records
just in case your circumstances change. So setting up systems
and programs can help you stay on top of business
admin and obviously reduce that six hours per week's stat.
It can help you manage invoicing and getting paid on time.
(15:54):
It can help you better manage unpredictable earning with I
guess clever budgeting and cash flow tools. And I would
say keep receipts for literally everything you might think is eligible,
like just track it because it might be And like
from little things, big things grow. I say that on
the podcast all the time. I know it was just
a quick, sneaky office works trip and you only spend
(16:16):
twenty dollars, but how often do you do that and
how much does that add up? Like those things do
genuinely make a difference come tax time. Absolutely, And besides,
you's being a good habit as well. It's a nice
way to see your progress, Like don't you want that
little dopamine hit. I do, like I love having and
I mean I've shared on the podcast before that I
take photos of all my receipts and I have a
(16:37):
whole album on my phone of the receipts that I have,
which is obviously really cool girl behavior. Yeah, like cool
girl behavior, but like it's a dopamine hit to see
that I'm organized. We also love a self employed queen.
But with all the freedom that you have as a
self employed queen, Miss jessic Ricci, comes huge responsibility as well. Unfortunately, yes, sorry,
(16:58):
So that's why it is so important to just stay organized,
because if it's not for the progress, it's for the
receipts and es. According to a twenty twenty five Pulse survey,
Henry also found that almost half of all sole traders
with business expenses don't claim them all. Almost half. That
(17:18):
is nuts to me, literally, and if you do the
maths on that, that's like foregoing something like three eight
hundred and fifty six dollars per year in expense claims alone.
Speaker 3 (17:29):
I don't feel good about that. I know that it's
such so much money. That's so much money, especially again
in the early days of the business. If you're operating
on a very small profit, or you know you're looking
at maybe taking loss that that money is a huge
difference potentially, And even if it's not claimable now, if
you're thinking, I'm operating at a loss, what does that
look like for me? You might be able to offset
(17:50):
future income if it's totally now. It's all going to
depend on your personal circumstances. But I just think keep
the records because you never know, Like if you owe
a small business, maybe one day somebody mentions your product
and you sell out the next day, or maybe you
go to a market and you find your target audience,
like you just never know. You don't want to get
to tax time. And on Victoria Devine's birthday, this scrambling.
Speaker 1 (18:14):
Dame, we want to have a good birthday.
Speaker 3 (18:16):
All the receipts and the things that you all of
a sudden now are eligible to claim exactly.
Speaker 1 (18:20):
And it's funny because like, our community is listening to
this episode, and I'm pretty sure that's not our community.
I'm pretty sure that's people who don't keep records and
don't listen to finance podcasts to put themselves in the
best possible position, Like our queens are listening to this
content to get ahead, so they're probably already doing that,
but it's a good reminder that the little things just
(18:41):
really do add up. All Right, We're going to take
a really quick break, but when we return, we're talking
about claims and how to make sure that you aren't
the one missing out come tax time. Our one thousandth
episode is coming up soon, and to celebrate, we're giving
one clever who listener a chance to win. She's stashed
(19:02):
the cash. Today's mystery word is together. Tune into episodes
of She's on the Money between the seventeenth of June
and the third of July and listen out for the
hidden code words. They are are five in total. The
first person to arrange the code words in the correct
order will win one thousand dollars. Entries open on Friday,
the third of July, with details shared live on the pod.
(19:25):
Good luck and happy hunting, my friends. We are back
and we are jumping straight into the juicy part, the
part that we honestly usually go to a professional for,
and that is claims. What's tax deductible and what can
you actually claim? Good question, It actually depends. I know
you hate when I say that. It all depends on
(19:46):
your total taxable income, your industry, and your occupation. And
there are honestly so many decent resources out there if
you've ever been curious about I guess what you can
claim in your field of work.
Speaker 3 (19:59):
One of the this is actually recommended when we put
out for questions that there's some claims resources on the
Henry website.
Speaker 1 (20:05):
And it's like really aesthetic. You know how I was
telling you that the Atio website sucks. Henry's website doesn't suck.
Speaker 3 (20:11):
There you go, You've got that, You've got the Atier website.
They've got some really good examples of what you might
or might not be able to claim as well. And
I think there's a pretty active Atier community. You can
actually post questions forum. Yes, it's giving, that's where the
cool girls hang out, giving early two thousands. I'm loving it.
And you can hear what other people are claiming. And
I believe you might also be able to access experts
(20:32):
there as well.
Speaker 1 (20:33):
Absolutely, And I want to be really juicy. I was
talking about this on an Instagram story a little while
ago because people were asking me like, oh, hey, how
do you get paid for that? Like you know, when
I do a Q and a box. Yes, And I
was doing a Q and a box about the food
that I was eating and they were like, how do
you get paid? And I was like, all right, sit down, queen,
I'll tell you, like I am an open book and
(20:53):
it's your turn. Okay, because you do a little bit
of like social posting, and I don't know, is it
rude to call people an influencer cause you're so much
more than just somebody who does content.
Speaker 3 (21:03):
A content creator is my term of choice. Okay, I
did like business women earlier.
Speaker 1 (21:07):
Okay, just identialize as a business woman. And because you're
a business woman, you post like some reels and get
paid for that. Can you then claim everything that you
buy for a shoot? I wish?
Speaker 3 (21:17):
I know, right, It's very much dependent on again, what
you're doing, you know, for a real is it directly
related to generating the income? And more specifically, am I
only using it for business purposes? Yes? So for example,
if I was doing a cute little outfit of the
day video, I'm not claiming my outfit because I'm wearing
(21:38):
that outfit in my day to day life. It's not
really for business purposes. Whereas if I was required to
turn up to a shoot, and I needed a very
specific item. Let's say I need a bunny costume. Yeah,
I'm never gonna use that bunny costume again. I'm picturing
Elwoods in her little ears.
Speaker 1 (21:54):
Oh I could make that happen for She's on the money.
If you want it, we'll talk later.
Speaker 3 (22:00):
Yeah. But I needed this very specific item that I
was only going to use for this very specific shoot.
Then it may be claimable.
Speaker 1 (22:05):
Yeah yeah, but only the tax of that is claimable.
So I think that's really important. And also I feel
like there's some like misconceptions floating around because people will
be like, oh, influencers claim everything. If you know an
influencer who is claiming everything, my friend, they're doing the
wrong thing. Yeah, So like just calling it out there.
I'm not talking about anybody specifically, but if you know
(22:28):
of somebody who's like, oh, I just claim everything, Actually
they're committing tax evasion, and that's just not how to
do it. That's not kosher. Like in this house, we
keep our claim records. We do the right thing, because
what goes around comes around. And I think that you know,
for individuals who are looking I guess for some low
hanging fruit, they're like Oh, but v I, you know,
(22:49):
have a payg job or you know I'm self employed,
Like I just I don't know what I can and
can't claim, like low hanging fruit sun protection if you
are and I'm always going to be the biggest advocate
for some protection, but some protection if you work outside
or you wear them at work to protect you from
the risk of sun damage. You can claim your sunscreen.
You can claim your hats. And if your total claim
(23:12):
for laundry expenses is one hundred and fifty dollars or
less excluding dry cleaning, so you're not allowed to claim
dry cleaning, you can actually claim a deduction without any
written evidence.
Speaker 3 (23:22):
Love that.
Speaker 1 (23:22):
Like if you're you know, laundering your uniform because you
work are hungry jacks.
Speaker 3 (23:28):
Yep, claim it, claim it, get that money, that clean.
Speaker 1 (23:31):
Exactly, and you would have to launder that because you
would come home every night probably like for ye exactly
and like that's hot, but not every day.
Speaker 4 (23:39):
You know.
Speaker 1 (23:40):
You could also, I think people don't know this and
this is a good one. Claim your accounting fees for
the previous year. So if you did engage an accountant
and you paid them next year, you can claim it.
So let's throw to our community, jess, what did they
want to know?
Speaker 3 (23:55):
A bunch of people had questions about knowing when to
register a GST to avoid being fined, And we've all
had a bit of a giggle about this with Beck previously.
Speaker 1 (24:04):
Yes, And I think the GST it feels so confusing
because they say it's voluntary, like they say on the thing,
like you don't have to like register for this yet,
and you go, okay, well I'm not going to if
I don't have to, but you actually have to at
a certain point. So when your business or your enterprise
has turnover, which is gross income from all business minus GST. Also,
(24:26):
do you know the easiest way? Like I always think
about this when I'm talking about gross or nets. I
can never remember which is which you can't No, okay,
So gross versus net. Gross income is what you would
have taken home if you didn't have to pay tax.
And it's gross to look at it because you don't
get it. Oh that's brilliant, right, So your gross income
that's gross because that's not what you get.
Speaker 3 (24:48):
That's hilarious.
Speaker 1 (24:49):
And net income I think of fishing and a net
and it's what you actually get to take home. Like, yea,
you know you look at the whole ocean, great, and
you scoop out of fish. That's the fish you get
to take home. What is in the net, It is
what is in your bank account. Oh, very clever from you,
whether that makes sense or not. But I just always
look at it. I'm like, ill, gross income is gross
because I don't get that because I've paid tax.
Speaker 3 (25:11):
I could have been so much richer exactly.
Speaker 1 (25:13):
Anyway, back on track, you do not have to register
for GST if your business earns under seventy five thousand dollars,
but if you do and you have a turnover of
more than seventy five thousand dollars in any twelve month period,
you have to consider registering. And even if you think
you might hit that like threshold later you're like, oh,
(25:34):
I'm not really doing that. I've been consistently doing maybe
sixty thousand dollars a year. I wouldn't wait. I would
say do it before you regret it later, because yes,
it may mean a little bit more admin like filing
a bas or business activity statement is what that is called,
every quarter, but it could prevent some really unwanted attention
from the taxman later on and also from more of
(25:55):
a is the word logistical point of view. And I've
always like done this myself, even if I wasn't earning
seventy five grand I want all my invoices it to
say that I'm charging GST because when I do tip
over that seventy five thousand dollar limit, I don't want
to have to go to my clients and be like
I'm now charging GST and like have to renegotiate things
(26:16):
because it does change what your clients have to pay,
Like GST is ten percent, and like when you're renegotiating invoices, Queen,
I want it to be because we're changing your bottom line,
not ah, the government wants more money. Like, let's just
set those expectations earlier. Also really important if you work
in the nonprofit sector, which very cool. We have a
(26:37):
fair few people in our community who do. If your
organization has a turnover of one hundred and fifty thousand
dollars per year or more, that's when you need to
register for GST. So they've got a different limit. And
as I mentioned earlier in this episode, I had a
friend who got stung for doing uber YEP.
Speaker 3 (26:54):
So if you.
Speaker 1 (26:55):
Provide ride share services. So if you do taxi or
limousines for passengers like Uber, you know, whatever you're on,
regardless of your turnover, whether it is a dollar or
a million dollars, you have to apply for GST. And
this applies to both owner drivers and if you lease
or rent a taxi. I didn't know that, which I
(27:15):
know leasing and renting a taxi isn't like that common
these days, no, but it's very good to know. And
if you're a door dasher, so like you're a dasher
at door Dasher, which is actually very cool side hustle,
and you earn less than seventy five thousand dollars per
year and only deliver food like you don't do the
other ride share components, you do not need to register
(27:37):
for GST. Oh in case you didn't know, because I
think that you might get a little bit confused and
be like, well, door dash must be the same.
Speaker 2 (27:45):
It's not.
Speaker 1 (27:45):
It's different. So if you've got that as a side hustle,
you don't have to sign up.
Speaker 3 (27:50):
Lots of little tippits, and there are so many ways
to keep track of them all. For example, yes, when
I started, I was using the spreadsheet. It was very messy.
It was a little bit all over the place. You
can graduate. You know, there are platforms I canry out
there that collate everything and do a lot of the
work for you where you can streamline those costs and claims.
I believe it even does your GST stuff for you,
which is.
Speaker 1 (28:08):
Very nice, actually does and low key. I've had a
few conversations with people at side Note. I've had a
few conversations with people in our community who do use
Henry because I was like, hey, guys, what are we doing,
like if we're small business owners? And they're like, oh
my gosh, I love Henry because I just call them
up and they answer like they're actual people just based
here in Australia who are just really passionate about small
(28:30):
business owners. So people like you just could be like, hey,
I don't have an accountant, but what do I do here?
And they're like, all right, bestie, sit down. We can't
give you advice, but this is what we do.
Speaker 3 (28:39):
We love that sometimes you do just need to talk
to a human being, I.
Speaker 1 (28:43):
Think exactly, And I think that that's really important because
like the blogs we've been recommending can only do so
much and sometimes as a business owner. You just want
someone to be like, sorry, bestie, you're not allowed to
do that, and you go, thank you. I've been looking
everywhere for that information. Anyway, it's included in their whole thing,
which might then be a good option for you.
Speaker 3 (29:04):
Sounds really good. I think no matter where you're at
in your business journey, it pays to be organized. That's
the bottom line. If this episode teaches you one thing,
whatever that looks like for you, it doesn't matter that
preparation is key.
Speaker 1 (29:15):
And also it looks really impressive, like the dopamine I
get from having my jucks in a row. Like Jess,
I reorganized my spicetraw the other day and I was like,
this is so good. You can do the same for
your tax.
Speaker 3 (29:26):
Yeah, we want to save you that six hours a
week and that four thousand dollars a year.
Speaker 1 (29:29):
Oh my goodness. Do we ever? And at the end
of the day, if you're still confused by the tax
on your earnings all your assets, it might actually be
time to level up your financing processes so you don't
get a nicety fine from the tax office or have
them trying to look under the hood keep out Like
I just want to keep my house in tip top shape. Anyway,
my friends, I could talk about tax forever literally and
(29:50):
I probably will because it's actually my entire career. But
that is for this episode all from us. We have
loved covering this stuff, so if you have any follow
up questions, comments, or reviews, please please send them our
way and make sure that you're subscribed so that you
never miss a money update. And we'll catch you on
Friday for another episode of Friday Drinks. Until then, take
care of yourselves out of each other by guys.
Speaker 4 (30:15):
The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
on the Money exists purely for educational purposes and should
not be relied upon to make an investment or financial decision.
Speaker 1 (30:28):
If you do choose to buy a financial product.
Speaker 4 (30:30):
Read the PDS TMD and obtain appropriate financial.
Speaker 1 (30:33):
Advice tailored towards your needs.
Speaker 4 (30:36):
Victoria Divine and She's on the Money are authorized representatives
of Money sheirper Pty Ltd ABN three two one six
four nine two seven seven zero eight AFSL four five
one two eight nine
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