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Australian Finance Podcast

3 things to do with your $3,000 tax return

04 Jul 2022

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What should you consider when planning how to use your tax return?

0.031 - 26.345 Owen

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26.786 - 44.868 Owen

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45.469 - 63.24 Owen

Here's something worth knowing if you've been meaning to make the switch to a better broker. To celebrate their fifth birthday, Perla are offering three free trades a month for five months if you transfer your portfolio across with a minimum of $1,000. For anyone investing regularly, that's meaningful savings on brokerage that can stay invested instead.

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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. Kate, welcome to this episode of the Australian Finance Podcast. How are you?

106.999 - 110.624 Kate

It is good to be back for a wonderful episode on what to do with your tax return.

110.744 - 116.151 Owen

Yes, we've got three things you can do with your tax return. Is it finance or finance podcast?

116.519 - 119.984 Kate

finance for me, but we do like ants.

120.345 - 124.592 Owen

We do indeed. So today we're talking three things you can do with your tax return.

Chapter 2: What is the average tax return amount people receive?

891.764 - 907.664 Owen

No, it's very lovely. They've got good seafood. It's beautiful weather. Go to SeaWorld. Go to SeaWorld, yeah. You could see all the species there. I feel like if I was going to go overseas, $3,000 at the current rate is maybe enough to get you a flight.

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909.086 - 913.111 Owen

Maybe. But it could go in your travel fund. It definitely goes into trouble.

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913.191 - 928.952 Kate

And then you're giving the money a job. And I think it's really important to balance that journey along the way. We talk about paying off debt and putting their money for an emergency fund and investing and giving every dollar a job. But it's okay to give the dollars a job to sort of help you live an awesome life too.

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929.173 - 941.389 Owen

Well, so many studies have shown, Kate, that paying for experiences is worth it. Paying for things is not worth it. So TVs and jet skis, not worth it. But experiences definitely are.

941.369 - 944.172 Kate

And so I said, go on adventure, not go to Ikea.

944.812 - 947.215 Owen

Okay. Well, Ikea is a bit of an adventure. You can get caught up in there.

947.315 - 947.475 Kate

Yeah.

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So maybe you remember the Ikea, just standing in line or trying to find the thing in the aisle. Getting the meatballs at the end of the journey. That's pretty good. That's pretty good. So let's recap then. We've got payoff debts, starting with the nasty ones first. High interest, those that are due soon. Even family, you may have a debt to a family member. That's really rewarding to pay off.

Chapter 3: How can paying off debt benefit your financial situation?

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And this is real money. So make the most of it.

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1018.416 - 1028.818 Kate

Yep. Give it a job. I would highly recommend something that I wish I'd done is write down where you spend each year's tax refund, or maybe you have to pay money to the ATO.

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1028.798 - 1052.899 Owen

um which we're both going to have to do so that is not as exciting so we'll probably uh push that back a little bit yeah um because you do if you use an account that you do have a bit longer to lodge your tax return yep so you do and they can help you through that so um if you do find yourself in a situation where you are going to pay a lot of tax you may be able to do things like um you know get an agreement with the ato where you paid off in installments

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1052.879 - 1071.58 Owen

There are certain rules around that. It's better to be upfront with your accountant and let them know because the ATO does charge interest if you don't pay your tax bill or whatever. It's okay to make mistakes on your tax bill too. So if it does reverse, that's okay too. Just let your accountant know or let the ATO know. Kate, we can direct people to the RASC road trip now.

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1071.56 - 1089.743 Kate

Yes. We've got a Russ Road Trip all about tax. So your tax crash course, we'll put that in the show notes so you can get a general overview of everything going on. We've got two tax episodes on end of financial year stuff to check out. We interviewed Tim Lowe, the assistant commissioner from the Australian Taxation Office earlier this year.

1089.844 - 1097.213 Kate

I think we'll include that in the show notes, but he was really good and explained things really well and pretty much said the ATO is not there to

Chapter 4: What financial goals should you set after receiving your tax return?

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catch you they want to help you through it because they know it's not really fun for everybody involved so if you are ending up with a tax debt like get in touch with them and work out a plan and a strategy to pay it off like they'll help you manage that yeah they want to just be up front with them

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1112.195 - 1131.497 Owen

And yeah, it's okay if you end up paying tax as well. It's a good chance to reset, forge those savings goals for the year ahead. Think about how am I not going to be shocked by tax next year? Start keeping receipts, create a Google Doc to track your spending or whatever, or use Frollo or one of the apps. And next year you might get a refund.

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1131.517 - 1150.88 Kate

And even talking to your accountant, like I had a meeting with my accountant last year and I was like, how do I What should I be expecting for my taxes in the next financial year? What are some strategies to put money aside or minimize it? Or if I put this much in my super, how much would that change my tax refund? So you can workshop different scenarios with them as well.

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1151.04 - 1151.922 Kate

So that's another option.

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1151.902 - 1168.341 Owen

I like that. That's great. So, yeah, head to Rask Education for our courses. There's a course for everyone in the road trip, one of six courses, whether you're getting rich slow, you're paying tax or you just want to save or you want to set up your super, it's all in there. Rask Road Trip, it's all free. Please share it with your friends and family.

1168.681 - 1171.585 Owen

Kate, as always, thanks for joining me on the Australian Finance Podcast.

1172.906 - 1193.603 Kate

Thanks for listening. Thanks for tuning in to this episode

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You can also join our online community by following the link in the description. If you enjoyed the show, what we'd love is for you to leave us a snappy review on iTunes and you can follow us on Twitter and Instagram at Rask Australia. Kate and I are also on both of those channels.

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Finally, if you have any feedback, suggestions for episodes or guests to come on the show or you just have a question for us, shoot us an email at podcast at rask.com.au.

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