10 must-know ATO tax rules for 2021 | How to save on tax (businesses & PAYG!)

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Australian Finance Podcast 1h 0m 3 speakers 8 chapters transcribed 4 months ago
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What are the must-know ATO tax rules for 2021?

Jacob Fenech 0:00
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Jacob Fenech 0:45
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Jacob Fenech 1:27
Please remember that all of the information in this podcast episode is limited to general information only. That means the information is not specific to you, your needs, goals, or objectives. So you should seek the advice of a licensed and trusted financial professional before acting on the information. And before you acquire or apply for a financial product, please read the PDS or product disclosure statement, which should be available on the issuer's website. Lastly, please keep in mind that past performance is not indicative of future performance.
Jacob Fenech 2:04
Jacob, thanks for taking some time to join me on the podcast, mate. This is going to be really informative for our listeners. Yeah, thanks for having me on. I'm pumped. Is this your first podcast? Other than stuff that you've done in webinars, is this your first podcast?
Unknown 2:18
Yeah, first official recorded podcast, I would say. I've really enjoyed the webinar series that we've been doing with AirTax. But yeah, definitely first official podcast.
Jacob Fenech 2:26
Yeah, cool. I like it. So a bit of a background. Jacob and I have worked together on some financial wellness webinars that we've done for some... customers and it's been heaps of fun talking about the finance plus tax side of things. And I'm always remarking over you, mate, everyone in the office, I'm saying how good Jacob is and explaining things and just how much energy you bring to the conversation around tax. So super stoked you could be here and share some of your wisdom with our listeners. And also, you'll be back for another episode talking about some tips around tax time. This episode is around about what are some of the changes that people should be aware of, not just from this year and not just in the year coming, and by that I mean tax year, but all the things that have kind of happened in recent times that people should be aware of.
Jacob Fenech 3:12
But to kick things off, what I might do is just provide a very basic explainer of kind of how the tax system works. Jacob, if I get this wrong, please correct me. So in very, very simple terms, You earn income, typically most people earn a salary or they earn, say, dividends from their shares or ETFs. They might earn rental income, and that all goes into this pot that we call assessable income. From that pot, we then take out things called deductions, which are common things that you would be able to claim under certain rules and legislation, and we'll talk more about that in just a moment. But then we take the deductions from that initial pot of money and then we have what's called the taxable income.
Jacob Fenech 3:53
And so the income that you effectively get taxed on.

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