Summary
Today, my guest is none other than my accountant, Clayton!
Clayton and I have talked about doing this podcast for a while. I pay him thousands of dollars each year to help with tax planning, structuring our investments and businesses and other strategic decisions that ultimately help me reach FIRE sooner.
I thought it would be interesting to chat to him about what role an accountant can play when someone is trying to reach FIRE, and explore why certain decisions were recommended for our family in terms of tax advice and planning.
Some of the topics we cover in today’s episode are:
- The difference between an accountant, a tax advisor and a financial planner (00:05:36)
- The role an account can play in someone’s journey to financial independence? (00:09:08)
- Common financial structures for people wanting to improve their situation (00:11:56)
- Some of the advantages of a financial trust structure (00:14:13)
- The difference between tax minimisation and tax evasion (00:16:52)
- How can people get the most out of their accountant? (00:22:30)
- Easy things you can do to help you at tax time (00:26:58)
- How do you find a good accountant who’ll work with you to build wealth? (00:34:33)
- What are the main things to consider when starting a sole trader/freelancer business? (00:36:54)
- How often does the ATO actually audit people? (00:49:10)
Links
- Website – McMillans
5 Eyes is a thing mate. I’m sure when it comes to information, they’ll get it easily.
Another great ep – quite a few useful points of discussion in there for me. Does anyone recall the amount of bucket donations Clayton mentioned as being able to be claimed without receipts?
I’ve always claimed the big stuff that I have receipts for but never knew I could also claim for bucket donations. Unfortunately I’ve forgotten the actual amount that Clayton mentioned.
$10
Re: HECS debt and being overseas, it is true it is a self assessment system. But be aware, if you go overseas and dont repay per the rules, you can face penalties (quoted as $3600) when you return.
https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/overseas-repayments
https://www.etax.com.au/overseas-help-debt/
As expats, we found by declaring ourselves as non-residents for Australia tax, this triggered the ATO sending a letter asking for Overseas HELP assessment lodgment (note this was back in 2017 when the rules changed, not sure if they still do this).
Hope that helps! Chloe
Just wondering where the link it to the Terry War structuring podcast?