Hello.
My name's Santasha Nabananga Bamblet. I'm a proud yr the
Order Kerni Whoalbury and a waddery woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on a wondery country, acknowledging the elders, the ancestors and the next generation coming through as this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow.
Let's get into it.
She's on the Money. She's on the Money.
Hello, and welcome Money the podcast for millennials who want financial freedom. My name is Georgia King, and joining me as she always does, is Victoria Define. Actually, you weren't here last week, so I can't say that you can't. I was so sick last week. Laryng Idis really throws you under a bus. Are you feeling better? I'm feeling so much better. Can you hear my voice? I feel
like there's like a slight pang of illness still. Okay, you know that kind where you like, here's someone and you just don't want to be in the same room as them that you are. They're locked in for the day already, guys. It is officially reporting season. So today we're going to discuss how to read a dividend statement, how to report any income from shares, and what exactly you should be looking for in a company's financials. That's overwhelming,
g it is overwhelming, straight into the hard stuff. But before we get there, what the devil is reporting season?
Oh you don't know?
Well, I feel like I get the gist, But for anyone who's listening, it is like g in Layman's terms, it's basically when companies let all of their investors know how their business is going. Let's comeanes who outperform do a little bit of a victory lap around the office. Well, CEOs that miss expectations, they have to face the music. So it's a time of the year where everything kind of just like comes to a peak.
We're talking about it.
It does coincide with end of financial year because all of the finances have come through, and it's basically a time when a lot of financial advisors having a relook at people's portfolios to see if we should be rebalancing or taking some stuff out or putting some stuff in.
It's just it's a time where you just have a lot of fresh data.
Really obviously, you could do that at any point during the year and go, oh, well, I'll read their annual report. But it's basically when all the information is super fresh and super new and it's been a lot of people are making a lot of decisions. So is this when they put out their annual reports? That is that what it is?
Yes, it is.
Obviously companies can put out their annual reports whenever they want to, but end of financial year is pretty traditional when it comes to you know, reporting on business financials kind of makes sense. So when exactly is reporting season, V's like a week at the end of the financial year? Is it a day?
Look like? So it's kind of like a whole season.
So almost every company that is on the ASX is going to report they're half year financials. Keeping in mind half year is in of half financial year, not in a real year. So that's actually late January early February, and then their full year results are going to come out late August. And that's basically because in June thirty they have all of July and August to do some reporting and some analysis and then get it out to investors. So I think a lot of people actually expect it
on June thirty. They're like, well, where's my income statement or where's my dividend statement, or you know, when can I download the tax report from my investor portal? And they're offended that it's not available on July the first, and it's like, well, actually, they need time to pull this stuff together and actually have those end of financial year numbers so that then they can run their report.
So it does take a little bit longer than you would anticipate, which is why we're talking about it now, because people's expectations might be, Hey, I want it, it's going to be July really soon, and it's not actually that common to get your financial report. What's on the thirtieth of June, Okay if that makes sense, Yeah, yeah, because that's when the numbers are finally cut, right, Like that's the last day of reporting.
And they need to analyze it.
It's kind of like you're not able to do the union assignment until you have all the information, and you only get the information on the thirty of the June g A perfect analogy. But now we have covered this before, but we're gonna start with the basics today. Can you please run us through once again what a dividend is. A dividend g is sexy. It's sexy, it's a sexy thing. It's essentially when a company gives you a small portion
of their profit. Like if you're a shareholder and you own a share you are entitled to one that tiny portion of that company, but also that tiny portion of that company's profit. So that's when you get your little profit. On the side, you get paid for being a little share owner. Stunning.
I think it's stunning.
So common shareholders of dividend paying companies are typically eligible as long as they own the stock before the ex dividend date. So you could technically go and purchase a dividend stock tomorrow G and have it pay a dividend for the next day, which is a bit of a
money win. And why some people really I won't call it timing the market, because we all know we can't time the market, but some people time their purchasers with when dividend payouts are going to be, so you don't really want to go, oh, a dividend payout is going to happen in July, and then you're buying the share in August and have to wait nearly a full twelve months to get another dividend payout like that wouldn't make a lot of sense in the grand scheme of things.
We don't often time it that way, but some people do want to take it into consideration. And dividends can either be paid out in cash, so it would be money that ends up back in your trading account, or it could be paid out in extra stock. So if you've got a dividend reinvestment plan ticked when you signed up, it would automatically mean that you would just be reissued a small amount of stock instead of some cash. And not all shares paid dividends, so right, no, so gee,
they are not all created equal. And that's why when we are putting together an investing strategy, we really need to think that whether we want dividends or we're after capital growth, there are lots of different reasons why we would pick a particular shit, and actually, you know progress that into our portfolios. Some of us actually really want dividend shares more often than not. If you're a really conservative investor, that's probably what you're chasing, and dividend shares are.
They're kind of like the Holy Grail, right, like you own something, it increases in value over time and it pays you like what a money win.
So a lot of people want that.
But you'll note that those good, consistent, trusty dividend shares are usually relatively expensive. So you're looking at a suite of shares that are usually referred to as blue chip stocks. So you've probably heard this before, and a blue chip stock is basically just a very conservative stock.
It is tried and true in the market.
It is a very large business that is very unlikely to go under, and they are usually commodities or banks or things like iron ore where you're going to you know what doesn't matter when this isn't an ethical argument. If you want to go and listen to one of
our ethical podcasts, absolutely do. But we know Australia is going to continue to produce that because it's a very big commodity that comes out of Australia, and we know that that share is going to consistently perform because we know that that resource is not limited here in Australia. So for me, when I look at the portfolio, or I look at what I'm doing with a client's share portfolio and whether I want capital growth or dividend yield.
It actually goes back to risk profile. And you know when we were talking ages ago on another episode about risk profile, it's really like, gee, do you want to take more risk or do you just want the tried and true and steady steed that like it's going to pay their dividend. Like if you look at a NAB share, I'm not saying go and buy NAB. This is not
a recommendation. It's just an example because I was writing another chapter of my book last week and I was talking about dividend yield and I was talking about how it works, and I was like, how can I do this?
I'm just going to pick NAB YEP. It was the first one that came to mind.
And they have not not paid a dividend since like nineteen sixty four or something.
That's ridiculous.
So every single quarter they are paying their investors a dividend, whether it is big or small. They are just consistent. And that's why a lot of people just want to hold things like NAB and like Blue Scope Steel in their portfolios.
Because they're like, do you know what.
It might not rise in value significantly over time, but what I will do is start to generate an income. And a lot of people will really value income in a portfolio because they're like, well, that is the thing that I'm chasing anyway, Does that make sense? It does make sense. But you said that in your hypothetical that NAB might pay them quarterly their dividends. Is that like the standard if you are no, okay, So everybody does it differently. NAB pays once every six months or so.
Sometimes they'll have a special dividend distribution, like if they've had a really big profit or there's been a really big event in the world and they want to distribute money to some investors, they will do what's called a special dividend run and they will then pay that out. Not very common, but important to know it exists. But usually it's either every six months or every year. Some
companies do pay quarterly. That's why it's important to keep an eye on your share trading account and just see what's coming in and what's coming out, and if you are an individual share investor, knowing when that's going to happen is important. Because in the long run, that's actually going to become your income, like in the future. That's the point of investing. It's not to save up two million dollars George and go, oh my gosh, now I
have a portfolio worth two million dollars. I'm going to start spending it and drawing it down, Like, that's not the point. The point is to keep that money invested. And if you have two million dollars invested and you are going off a five percent yield, and you go, I would hope to get five percent every year, you actually have one hundred thousand dollars in dividends coming in every single year. So like that sounds like the dream.
Obviously that's a very large example, and that's not achievable for a lot of people. But if you created a two million dollar investment portfolio, you'd have one hundred grand a year coming in in dividends, and that would become your income, so you didn't have to go to work anymore, your passive income. You're learning on a little bit here Via it's tax time. I'm a new investor and I've just received my first ever dividend statement.
Congratulations, Thank you so much.
Break it down for me though, what does it tell me? What does it mean?
Talk me through it.
So, if an Australian company pays or credits you with a dividend or a non shared dividend, the company must also send you a dividend statement or a distribution statement.
This is going to tell you a number of things.
So it could tell you the name of the entity that is making the distribution, the date, the amount of the distribution, any amount of franking credits.
So franking credits we can dive.
Into a little bit later, but they are a massive money win and one of my favorite things about the super environment.
We'll come back to that. They will tell you where the distribution.
Is unfranked and a statement to that effect, and they will tell you the amount of tax that was withheld if you didn't give them your TFN. So it look there's a lot of information on these statements and regardless of whether you have been issued with a profit or not, you will get one to let you know how your
shares are performing. I also think it's important to point out here because I'm talking a lot about distribution of dividends that's not a given like a lot of companies, and as we said before, NAB was a good example of a consistent dividend yielding share that's expensive to buy. That doesn't mean that every single other share that is classified as a dividend share is always going to pay you a dividend. Like if the company's not doing well, like you're not going to get some of their profit
g because there's no profit to be shared. If they've just broken even, they might go, well, we don't have, you know, enough leftover to give to shareholders. Sometimes in smaller, like more growing companies, So you think about shares like, you know how last year our community were going wild for after pay. They were like, oh my god, after pay shares are so good. They've increased by xyz. Great, But they never paid a dividend and they didn't pay
a dividend because that company is relatively new. And because they are relatively new, every single dollar in profit that they were making they were reinvesting back into the business to grow the business, which is why they had such good capital growth, both because they were able to reinvest in the business. So you've got to know the underlying strategy of the business that you're putting in your portfolio.
Because a lot of people made a mistake when they looked at it and said, oh my god, but I'll put after paying my portfolio because they're performing so much better than something else. But they didn't take into consideration the dividend yield or the amount of passive income they'd make from that share all they got with an after pay share, not to throw them under of us, like we're not talking about the actual business here. No, no, no,
we're not talking about the actual business here. We're talking about the share they would buy it. It would increase in value, but you only actually get to crystallize that value if you sell your share. And if we are you know, shees on the money investors and we are long term investors, why are you selling your share so
quickly after buying it? So I think it's about buy and hold strategies from my perspective, because, as you guys know, I don't ever want you to invest for a short period of time because it's just too risky and a lot of things could happen. And do you know what did happen during that period of time where people were going a bit ham on after they were like, oh my god, I bought it and then I sold it for X they didn't take into consideration capital gains tax,
and you get taxed at fifty percent. If you sell your share or your asset within the first twelve months, you have to hold it longer than twelve months to get your CGT discount. And if you didn't do that and you bought it and then you sold it and you thought you made this big profit, come June thirty, when tax time comes, the taxman comes knocking on your door and says, hey, gee, you actually bought and sold an asset, didn't hold it more than twelve months. You
actually owe us some additional tax. And you go, what that's not thought you've been clever.
You thought you'd being clever, but we got you.
Yeah.
And in the same thing happened with bitcoin because so many people burned and churned through bitcoin that they were like, oh my god, I made so much money and then they had to like lose half of their profit to tax. Yeah, so people forget about TAT sucks.
That sucks. That's why we're talking about it. That's why we're like, oh, let's talk about reporting season.
That's why we're here.
Because Victoria thinks it's really sexy.
So on the tax theme. B I think I know the answer to this. But when it comes to dividends, they're technically a form of income. They are a form of income, So I'm assuming we need to pay tax on them. Yes, you do so, magical cotes. So it depends on how you're holding your shares. Let's just say you're a salary and way journing employee. You have a few thousand dollars worth of shares. You are going to pay tax on that income at your marginal tax rate. So are they's thirty two and a half cents on
the dollar or not, It doesn't matter. It will just be at your marginal tax rate. In saying that, that's a good thing. Like a lot of people are like, oh my god, I don't know if I want to invest because I just don't want the tax implications. My friends, if you are paying tax, you are making money. We just need to plan for it. Yeah, we just need
to plan for it. And I get a bit frustrated about tax And I've been having this conversation with a few people in our community recently because they're so quote frustrated or annoyed by the tax system and how much money they lose like that money was never yours, Like the entire time you have ever worked here in Australia, if you are listening to this podcast, you have paid some form of tax, and we have note about it. Like if you say, G, I earn eighty grand a year,
No you don't. That is your pre tax income. Let's just look at post tax, because I think too many times people get so caught up on oh but I had to pay this, No, like that was a given. We've always had to pay tax. It is a privilege to live in a country where we pay tax and have the support system and the infrastructure around us that enables us to live in such a free country. I'm a bit triggered by it this week, G because I do genuinely want to change people's mindsets around paying tax
and see it as a privilege. We just need to full plan for it. And that just means having a good banking system in place. That just means putting money aside when it comes in and not going, oh my gosh, I got paid twenty dollars in dividends and then twenty dollars go straight out, Like we do need to make sure that we're putting some money aside for tax and being smart about it, because I think we get the most frustrated with tax when it pops up at tax
time and you just forgotten. It's really exaustrating, and we can actually avoid that with some good planning. Yeah, so when you have to pay that bulk sum, it's much more intimidating. Yeah, plugging away as you go exactly. But you mentioned before Franked difends. They're the sexiest kind of dividends. G Tell me why, because every time it comes up for some reason, I just I never remember. All I can think of is like a frankfurt That's literally what is in my brain is like a mini sausage. That's
all any sausage. I never remember what they are.
Growing up, my mum used to call them little boys. Yeah, okay, I just should we put that on the podcast? I don't know.
Now I think about that, and it's twenty twenty two, I'm like, that's suspicious.
That is not okay. Also, what are they made of?
I don't think we want to know.
I don't think, like, how are they so read on the outside?
I don't at I don't know nothing like a frank dividend, though, tell me about those. So, a franked dividend is an arrangement that was introduced into Australia to eliminate double tax. It means that you're not g going to have to
pay double tax. It means it's kind of like you get given you a dividend and it has a little flag on it that says, hey, ge, I've already paid tax, Please don't tax me again, and you get to put that on your tax return so that you don't end up having to pay the tax that was paid on that share. And that tax is paid at thirty percent usually because that is business tax.
So you get a.
Little bit of a refund, which is a bit of a money in. And as I said before, I love it in Super. And do you know why I love it in Super? Because Gee, stop looking at me like you have no idea what I'm talking about.
I talk about Super all the time. What's the tax rate in Super?
I don't know the exifteen. I'm going to say that it's just comparis myself, but I should.
Have back no no, no self gift.
You have been listening to my rants for so long, arguably longer than anybody else on the podcast. So the tax rate inside superannuation is fifteen percent. But if a company has paid tax on a particular share at thirty percent, that's a different rate.
You should have only been paid fifteen. So what do you get.
You get a fifteen percent tax rebate, which means that share is already profiting more and above and beyond what it would have been profiting if it went into your back pocket at your marginal tax.
Right.
So that's why I think that the power of franked dividends is actually in superinuation because it kind of compounds over time, and it's kind of like even if that company only returned like one or two percent, it instantly goes even higher because you actually get franking credits back and you end up making money that way as well. So I think it's important to know those things. But
essentially it is a bit of a money win. It is a really good system to make sure that you don't pay tax on a share that's already had its tax paid for it. So what then is an unfranked dividend fee? And how do we handle that at tax time? My friend, an unfranked dividend is a dividend that doesn't have a tax credit attached to it, so it doesn't come with its little flag, and unfranked dividends mean that you are possibly going to have to pay some tax on it and make sure you declare it on your
tax return. So it's not actually a bad thing. It's just about doing the right thing and knowing whether you're getting franked or unfranked dividends and how that actually plays into your portfolio and how you do your tax And it sounds very confusing, but when you have a good investing platform, that'll all be on yours so it's really clear.
Yeah, it is really clear.
It sounds not clear, and it sounds like you're going to have to do some backflips and work out what's franked and what's unfranked and how that works. But essentially, when you're putting your portfolio together and you're actually constructing it for the first time, that's when I'd be like, oh, let's have a look, gee, have you got a good amount of unfranked and frank dividends? Like are we actually really comfy with this?
Yes or no?
And then it'll all be on your reports. Like, honestly, it's twenty twenty two. Everything is super easy. All we have to do is make sure we know in the background what our obligations are. And you don't have to stress about your superannuation either because it will all be done inside super. Anyway, last question here v before we head to a little break cute, I need a coffee. What happens if I sell my shares? Do I pay tax? Then?
Yes?
Yes, yes, because if you own an asset, I mean you'll only have to pay tax on something you made money on. Let's remember that, like, there's not going to be some kind of tax consequence if you are losing money. Well, actually there will be. It'll mean that you probably get a bit of a refund. Nice. But it's called capital gains tax, and that's the tax you pay on profits from selling an asset. So it could be property or shares, hot tip or not hot tip, but interesting points complete
tangent here. I was talking to somebody the other day and we were talking about CGT and what it means. So essentially, capital gains tax is a tax you pay when you make money on an asset. So you can't just go all right, well I just bought this house. It increased in value by five hundred thousand dollars I'm going to sell it, and that five hundred thousand dollars is clean mine. No, it is not, because you earned money from that, so therefore you need to pay tax because it was like your income.
Right.
I got a new client the other day. Shout out to my new client. Not going to call you by name because that would be wildly inappropriate. But they collect vintage and like, you know, quite expensive cars.
Do you know what?
You don't pay capital gains tax on cars?
Are you joking?
Yeah?
So he is buying and selling cars and they just don't have capital gains tax associated with them. It's not me saying go and invest in cars, because you do actually have to get to a level where you're buying very expensive cars that then increase significantly in value. And you know, he is like a professional at what he does, because he actually is like in Automtori of engineering, and like he buys these cars and flips them and updates them and then sells them.
But like CGT exempt.
What because I actually don't know about that. No, so I'm only talking about it because it's you know, just interesting hot tip and something to take away.
But cars are exempt.
And I was like, what I did know that, but I'd never run into someone who, you know, was at a wealth status where they were buying and selling like half a million dollar cars and walking away clean of the profits. That's weird. It's kind of weird, but it's also kind of interesting how all of that works and how wealth seems to start benefiting the wealthy ex that level. Yeah, like I'm mad about that. Look, females are flipping cars. Not many, I bit, not many many for me.
Yeah, you're a bit salted. Let's move on from that, because I just thought it was a hot tip.
But essentially, if you have a capital gain, it will increase the tax that you need to pay. You'll also need to pay it if you have, like I've got a laundry list, they'll go through. Because like I'm still caught on how triggered I am by the car thing.
But if you redeem units in a managed fund by switching them from one fund to another, if you make an n species transfer, so if you transfer your shareholding from one holding to another holding, it's kind of like a selldown, like you sold it and then you reborught it.
So you need to be really careful around that. So that's where I always suggest, you know, talking to your share trading platform or talking to your financial advisor when you're going to make any serious changes to your portfolio, especially if you've owned it for a few years, because you don't want to end up going, oh, my gosh, this makes so much sense. I'm going to transfer all
my shares over to this brand new platform. This sounds really fun, this sounds really sexy, and then you end up with a tax obligation because of it, and you just didn't know that's what was going to happen. There are a number of them, but essentially, if you sell your shares or you have some kind of CGT event occur, you need to calculate your CGT and they're on your tax return. And then remember you might be able to reduce your CGT by literally fifty percent if you hold
your shares more than twelve months. It's just why we always talk about long term investing strategies. Well, it's not actually why we talk about it. I obviously believe very vehemently in long term investing, but it's just not smart to buy and sell shares within twelve months, which is really important to remember as well. G Because I think so many of us have been buying and selling and
you know, playing on like micro investing platforms. In a twelve month period, you're like, you know, go and raise or go on Spaceship or go on Clover or whatever you're downloading. Go oh my god, my money is not doing anything and rip it straight out within three or four months because a quote wasn't performing.
Like, guys, don't do that. Yeah, I just want to shake you.
Okay, interesting, let's pop a pin in it their VD. But on the other side of the break, we're going to be talking about how to actually read these documents, which I think will hopefully I help these And we're also going to chat about what happens if you muck up your tax return? Will you go to jail? We find out on the other side of.
The probably don't know, you won't know, you won't.
Alright, ev we are back. As we mentioned before, as a shareholder, I am entitled sure for information from the company. I feel like the little shareholders are entitled like well, right, you know, just like telling people that their shareholders. Let's talk about how to pick apart these documents because it can get dense, especially for newbies like my good self let's start with a profit and loss statement. Look, not all of you are into spreadsheets in the way that
I am into spreadsheets. Surprise.
You know what most people do.
They just look at their profit and lost statement that gets emailed to them as a PDF, and they don't open the PDF.
Me.
I'm like, oh, can that be converted to EXCEL? I wonder if I could have a look at XYS.
Like I'm a psycho, but I don't expect other people to be as psychotic as I am when looking at profit and loss statements. But essentially, the profit and loss statement is a financial statement that summarizes the revenue and how much money they've made in the cop and expenses incurred during a specific period of time. That could be a couple of months if it was generated for that, It could be an entire financial year. It could be
the entire history of the company. The profit and loss statement, which is sometimes just called the P and L, is one of three financial statements that every single public company issues quarterly and annually, along with the balance sheet and the cash flow statement. So these are three separate documents that all work together, but all tell you different things. And if you put them side by side, and you are not a finance person, you'll be like, what on
earth and why am I looking at these? But it's a super helpful financial statement in a business plan that basically shows how much profit and loss was generated by a business. And that's basically the P and L. Look that sounds pretty simple. P and L is profit and lost. Look it is, and it's always broken down into two sections, just assets and liabilities and what's outstanding. So basically it is just literally the profit of the business and how
much it's potentially lost. Beautiful. Okay, let's move on now to balance sheets. Soft What are they?
What is a balance sheet? Yes, think of it like a balancing act.
It's kind of like two sides of a company where it has its assets, so the things that it owns, and then its liabilities, so the things that it owes and the things that it might have outstanding. So it might have a number of different things. And you might think liabilities is that just debt?
Yes? But did you know and a.
Liability on a balance sheet in a company's suite of financial reports actually includes all of their outstanding annual leave for all of their employees.
Really, yeah, because they've got to pay it back if you leave me.
Yeah, So if you leave me, ge, I've got to pay out all of your anual leave and that sits as a liability on my balance sheet because at some point I'm going to have to pay that, so we keep track of it.
So it's actually quite nitty gritty.
It essentially provides a snapshot of what a company owns and owes, as well as the amount that is currently
infested by shareholders. So you can essentially get a snapshot of this company's well being by using a number of ratios that can be derived from the balance sheet, including a formula called the debt to equity ratio and the acid tests ratio, among a number of other things, and I won't go into them, but essentially debt to equity ratio sounds confusing when you say it really quickly, but it's basically how much debt to how much stuff do you own? And what does that ratio look like like?
Is it positive? Is it negative?
What does that look like? How does that impact me? I get really into this just because I'm really excited, But move on to the next one so we don't get too confused. Perfect, let's chat about cash flow statements. What are they?
What do you reckon? A cashlow statement?
Is ja a statement of a company is cash flow?
Right?
Well, you don't even need me, But what does it look like?
What does it tell us?
All Right?
So, the cashlow statement, or the CFS if you want to be a fancy lady, summarizes the movement of cash and cash equivalents that come in and out of a company. So the CFS measures how well a company manages its cash position, meaning how well a company generates cash to
pay its debt obligations and fund its operating expenses. So if we break that down a little bit more, let's look at she's on the money, Like, am I making enough money each month to pay all of my rent and to pay for this very fancy studio and to pay YUG and to pay JEF and to pay everybody?
Or am I cutting it real fine? Does that make sense?
So like, do we have enough money in the bank to make sure that things are consistently moving and we can invest in the business and we can grow, Like this is what's going to show you its ability to you know, fund new purchases or make new investments. So essentially, the main components of the cfs are cash from three different areas, so operating activities, investing activities, and financing activities. Does the CFO of a company put this together?
Yes?
Actually, or an accountant so for me, we want to know about the finances if she's on the money. We have a bookkeeper, Hi, Helen, love you. She does everything for us every single month to make sure that I'm on top of what's going on. And then we have Louis who is our accountant, and he makes sure that every single year all of my reporting comes in so that I can look at the business as a whole.
So we do that on a monthly basis with a bookkeeper, and then we do it with an accountant, and then I would basically be the CFO because we're not big enough to be able to afford that yet. George Kiss okay, very good. We were talking about different levels of investing a little while back. What sort of reporting do the different methods and platforms actually provide me? At tax? Oh my gosh, guys, I've said it before. It's twenty twenty two.
We can expect a lot, and when it comes to picking a platform, I do think reporting really should come into it because that's actually quite a heavy task if you're not into it. So we've talked about our friends from Sharess. They basically provide you everything like they will just send you a statement. I know Rays do the same thing. I know Spaceship, which are both micro investing
platforms that are very popular in our community. They will send you your tax statement to make sure that you've got everything you need to submit to the ATO to make sure that you're doing your tax properly. Six Park, which is the robo advice platform we talk about a lot, and I have a very big affiliation with Obviously, I need to disclaim it that every time I talk about it, it's because I'm biased because I love them, But that's okay.
But they will send you absolutely everything as well. And then if you're an individual share investor across a number of different platforms, it's very likely you're going to have to do that yourself. So if you own a number different shares on a lot of different smaller platforms, you're probably going to have to pull it together. But most platforms these days have some form of very clear tax reporting that you would then take and input into your
tax return. The other thing that is, I believe got sexy. George is data feeds. So these days, if you have provided your TFN to your investing platform, example here, you've given your TFN to Sharz's Shares, is then able to share that information with the ATO. So it's very likely that you will be able to log into your tax
return portal. Then information's already there. All you have to do is cross check it with the financial reports that came into your email or came into your mailbox, and you can go, all right, well that's good, I'm going to submit that.
So it makes your life even easier.
We love that v I've loved today's chat.
Have you no doubt? Oh you're a liar. Well, it's been I'm just calling you for what it is. A distance. It's made me feel a little bit dry.
But I guess what I wanted to ask you is if there's a way that we can kind of simplify all of this when it comes to tax time and reporting my shares because I don't know, today's been a lot. Look, if you have a shared trading platform, you are going to be sent reports. I think it's important to understand that it is as easy or as hard as you want to make it. Understanding the report and where it goes is probably the most important thing.
Nowadays doing your own.
Tax is quite step by step, so it's quite easy for you to do. I'm not saying go and do it. Obviously, there are accountants that can do it for you, so if you are overwhelmed by this, I would be just going to your accountant and saying, what do you need from me, and they will literally collect all the information. But it's quite clear nowadays. I feel like reporting has progressed significantly, even in the last five years, from what I used to get and what I used to have
to calculate and workout. Now it's basically spoon fed, and a lot of companies have blogs and resources that you can go to. So let's say Chazy sends out their reports and you haven't understood it. It's very likely that there's an associated blog or website or something that goes alongside that, so you can go I don't get it like and have a bit of a look. So it's quite easy
in comparison to how hard it used to be. Finally, V my last question for you today, what are the implications if we do stuff this up?
Oh, you're going to jail.
No, I feel like I will go to jail.
You're not going to go to jail. You're not going to go to jail.
There's obviously a fair bit riding on it when it comes to tax and if you do stuff it up, there could be fines involved, like you could have a penalty to pay. In saying that, I think it's always about being open and honest and transparent and getting advice where you need it. If you do have a more complex tax situation, I would be reaching out to an accountant and finding someone that you trust that can give you some advice, and remembering that usually advice pays for
itself in dividends. Nice. Well, that's probably the perfect place to finish today's episode. B. Although it does say play it VI's TikTok video about the ATO on our little shared dock here? Does that mean? Oh, I did a ATO video a couple of years ago, A couple years maybe twelve years ago, maybe last year? Sure, not even a couple of years ago. And it was just like me being a past Do you want me to play it for you? Here? Go on, Hey, guys, I'm here to pay my taxes.
How much do I owe Oh, I don't know. You'll have to figure it out yourself. Like you don't know or you don't want to tell me.
Oh, we don't know. Okay, but what if I just don't pay my taxes this year and we'll just issue you with a fine.
It's fine, But how would you know how much I owe? If you just told me that you don't know what I owe? Oh, we know how much you are? Oh so you know how much I owe? Can you tell me?
No?
What that was? It was like a piece of art, mate. I love the language. Brilliant, She's a genius.
Yeah, I am the paid actor, all right.
I think that is enough from me and my very bland TikTok Like I am definitely too old to be on TikTok, But I'm not leaving. I came to that party and I am staying for the dream. I support you, doll. The advice sheed 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 per and should not be relied upon to make an investment or a
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