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Australian Finance Podcast

10 expert tax rules & tips you should know

27 Jun 2022

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What are the essential tax rules for individuals in Australia?

0.031 - 26.345 Jacob Fenech

Property investors often talk about using debt to build wealth. In the share market, that's called gearing. With the BetaShares WealthBuilder range, investors can access moderate gearing into shares, and with the newly launched GG-BL, That means exposure to a diversified portfolio of around 1,300 global companies excluding Australia, all with no loan applications, credit checks, or margin calls.

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26.786 - 44.868 Jacob Fenech

Gearing magnifies both gains and losses, so it's only suitable for investors with a very high tolerance for risk. You can learn more about the WealthBuilder range of ETFs at the BetaShares website. And don't forget to read the PDS and TMD to decide if it's right for you. BetaShares Capital Limited is the issuer.

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45.469 - 63.24 Jacob Fenech

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63.721 - 84.363 Jacob Fenech

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Chapter 2: How can I effectively keep my tax records up to date?

84.925 - 101.134 Jacob Fenech

Hey there, here's a quick note. This podcast contains general financial advice only. That means it's not specific to you, your needs, goals, or objectives. So don't act on the information until you've spoken with your financial advisor. You'll find our full disclosure, disclaimer, and link to our financial services guide in the show notes.

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103.397 - 106.983 Jacob Fenech

Jacob Fetig, welcome back to the Australian Finance Podcast, mate. It's great to have you with me.

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107.944 - 111.51 Owen Rask

No, cheers, Owen. The last one was fun. And yeah, pumped to be a part of this one as well.

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112.334 - 133.767 Jacob Fenech

Yeah, great. Today we're talking about 10 ways you can make a tax saving or you can understand the rules better here in Australia for when you're doing your tax return. Just some, I guess, tips and tricks from a professional accountant. For those who don't know, Jake's from AirTax.com. a specialist in all things tax.

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Chapter 3: What are the benefits of home office deductions for employees?

134.007 - 155.04 Jacob Fenech

You can learn more about your own tax situation. You can do your own tax returns, your BAS statements, all that sort of stuff with AirTax. You'll find all the links in the show notes. We've got some fantastic resources that we'll also include there for things like logbooks and anything that Jake mentions throughout this episode. So, mate, I'm basically going to be your student for this episode.

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155.14 - 175.753 Jacob Fenech

I've asked you to prepare 10 things, some things for small business, many things for individuals as well. And we have some investors who listen to this show quite regularly. So, mate, I'm going to hand it over to you and just ask follow-up questions. Maybe I'll be the, I guess, the eyes and ears of the person that needs to ask those silly little questions and just confirm things along the way.

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175.833 - 182.925 Jacob Fenech

So, mate, over to you. Enough of me talking. Let's go through these 10 things that our listeners should be aware of.

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183.833 - 184.636 Owen Rask

Cool. Thanks, Owen.

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Chapter 4: How do concessional super contributions work?

185.098 - 206.112 Owen Rask

So I wanted to start with some easy ones. So it's a little bit of a rinse and repeat of potentially what you may already know, but I think it's important just to cover them off And then we can go as complex as you want. If you're my student, you can fire away questions. But a couple of quick ones that we spoke about earlier is definitely keeping your records up to date is just so important.

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206.172 - 224.218 Owen Rask

So when we're talking about what is deductible and what isn't, if you don't even know what you've paid, you're going to really battle to actually come to terms with that. So having your records, waiting for your statements to be ready, like we said in the previous podcast, is so, so important because it really does confuse things

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224.384 - 240.722 Owen Rask

when you are kind of coming to your end, looking to actually complete your tax return, it's the easiest way to kind of get lost is to not have kind of track of your records and you're kind of just siphoning through what you think your capital gains might be, whether that's on an Excel spreadsheet that you've

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240.905 - 253.537 Owen Rask

You're kind of tracking whenever you've got time, but it's not necessarily full coverage. All that sort of stuff can make it more confusing than it needs to be. So have oversight of your statements. To drill down on... Can I ask a question? Go for it.

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253.557 - 256.42 Jacob Fenech

Can I ask a quick question? Sorry, I've raised my hand for those people that are watching.

Chapter 5: What are the implications of negative gearing on investment properties?

257.621 - 270.574 Jacob Fenech

So you said Excel. Two questions around that. Do you have any templates or are there apps as well that can do this? I'm just thinking about how can this be made easier?

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271.735 - 288.09 Owen Rask

Definitely. So there are, I mean, there's heaps of templates online, not necessarily for free via AirTags, but we've got like say a logbook template that definitely is free. That's an Excel template. It helps you calculate your business travel portions.

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289.331 - 311.418 Owen Rask

I would say there's heaps of free apps that you can download, similar to even like your Splitwise and all that sort of stuff that helps track general expenses. You can actually set up like a business version of that as well, even with yourself if you wanted to, to help track it. We spoke about... even like having a corporate, say, credit card that you're using to help track those expenses too.

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311.478 - 330.977 Owen Rask

So it may not necessarily need to be in Excel if it's just simple additions that you wanted to keep track of, even if there's a lot of expenses. But I would, yeah, I would have a look online. I'd have a look on a favorite one of mine, even looking at your tax rate, which I have to mention is paycalculator.com as well, which I just think is cool for people to work out.

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Chapter 6: How do capital gains and losses affect my tax return?

331.877 - 333.019 Jacob Fenech

Paycalculator.com.

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333.339 - 352.494 Owen Rask

Yeah, I think there is an AU on the back of there. No link to air tax as well, but it's just helpful when you're looking at your net pay and trying to work out if you get a pay rise, say, from June 30, what that should be next. I know that's a little bit off the track of investments, but it's so relevant for employees. Even a bonus, what that looks like in terms of take home.

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353.095 - 371.299 Owen Rask

So I think that one's cool. But yeah, there's a heap out there. I think, I mean, even going back to your traditional account to say, hey, I'm thinking of investing in X. Can you give me like a brief overview or can we have like a 10-minute chat, which I mean we could definitely do on AirTax as well for free to help walk through that investment.

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371.339 - 388.383 Owen Rask

We can't give you direct financial advice to say yes or no, go ahead with it, but we can say what it looks like from a tax perspective and that helps you make, I suppose, more informed decisions as well, which is pretty relevant. So, yeah, I think, I mean, it doesn't give you a direct answer, but there's a lot out there. Pick one.

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388.543 - 397.5 Owen Rask

Don't have a lot going because you just won't do any of them is my other rule. So pick one that you like and that's easy to use and go for your life.

398.642 - 399.083 Jacob Fenech

Yep.

Chapter 7: What is the Medicare levy surcharge and who needs to pay it?

399.103 - 405.034 Jacob Fenech

I like it, mate. That's great. Keep those records. Wait for the statements. Keep track of them. I like it.

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405.487 - 422.564 Owen Rask

The other easy one is the 80 cent per hour for employees. I think that's still my biggest. That's my favorite. What that is, is you're effectively working out how much time you spent working from home. So at an hourly rate, you can calculate per week.

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423.805 - 440.725 Owen Rask

You can then basically either average that over the year or total your hours up to work out how much you've done for the year in terms of working actually physically from home. and then use that 80 cents per hour to determine how much you can claim as a working from home deduction. Really easy.

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441.413 - 450.202 Jacob Fenech

So if I work from home all the time, so full-time like 37 and a half hours, 80 cents, would I then claim it by 48 weeks of the year or 52?

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Chapter 8: How can income protection insurance be claimed on my tax return?

450.242 - 453.905 Jacob Fenech

Sorry, I know I'm getting into numbers. Numbers aren't good on podcasts, but is that what I would do?

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453.945 - 456.208 Owen Rask

Exactly. Yep. That's what you do.

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456.468 - 459.591 Jacob Fenech

So that's like $1,400. So that's pretty good if I work from home full-time.

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459.991 - 479.279 Owen Rask

Completely. And that's no real cash out of your pocket that you're able to claim that deduction for. So I think that one's an awesome one. So they're kind of the high-level companies. We'd call them the easy pieces to kind of... They're not... I mean, they can still... lead to a pretty good, pretty substantial tax deduction and less headaches in terms of keeping records and everything else.

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479.379 - 502.993 Owen Rask

So I don't want to kind of make them less important. They are really important, but they're high level, what we'd kind of suggest in the first instance. If you're then more tax keen, I wanted to have a few that are more kind of deeper dive, more sophisticated around potentially relevant to say your higher income earners that are joining as well. Not that, I mean, say if it's, yep, go for it. Yeah.

503.125 - 519.08 Jacob Fenech

I've just got one question, just raising my hand again. So have we done two or three? So far I've got records and like keeping records and then I've got home office expenses. Was the seeking advice on investments a second tip or is that, I'm keeping track here. Let's call it a second tip.

519.461 - 520.162 Owen Rask

Yep.

520.182 - 521.263 Jacob Fenech

Okay, cool. I got it.

521.344 - 544.438 Owen Rask

Let's get on with these advanced ones. Sorry, man. All good. So, concessional super contributions and superannuation, I shouldn't use short terms. Concessional superannuation contributions is a really fun slash can be pretty kind of neat in terms of reducing your tax overall. So, superannuation is obviously your...

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