Adam Jacobson - Accountant

Don’t quit before using your annual leave

A lot of people assume their annual leave gets paid out when they leave a job, and while that’s true, there’s an important catch.

Annual leave paid out after you quit generally doesn’t attract superannuation. To receive super on it, you need to take the leave or cash it out before leaving your job.

Another reason to consider taking your leave is timing. If you’re expecting a pay rise, waiting could mean your leave is paid out at a higher rate.

P.S. If you’re planning a career change and want to understand the financial impact, send me a DM and let’s chat.

Disclaimer: This video is not for financial or tax advice and for educational purposes only. Liability limited by a scheme approved under Professional Standards Legislation.

Does a beggar have to pay tax?

Believe it or not, in some circumstances, money received from begging could potentially be treated as business income.

The key question is whether the activity has commercial characteristics, such as operating regularly, using strategies to maximise income, having a consistent location, or treating it as a source of income.

Tax law looks at the overall circumstances to determine whether an activity is considered a business.

P.S. Tax rules can apply in unexpected ways. Reach out if you need help understanding your tax obligations.

Disclaimer: This video is not for financial or tax advice and for educational purposes only. Liability limited by a scheme approved under Professional Standards Legislation.

Can your Pokémon cards trigger capital gains tax?

Believe it or not, your old Pokémon cards could have tax implications.

Pokémon cards are considered collectibles, which means they can be treated as capital assets.

The good news is if you bought the collectible for less than $500, CGT generally doesn’t apply.

So, your childhood card collection is probably safe, but serious collectors with high-value cards need to be aware.

P.S. Reach out if you want help understanding how capital gains tax could apply to your investments or assets.

Disclaimer: This video is not for financial or tax advice and for educational purposes only. Liability limited by a scheme approved under Professional Standards Legislation.

Do you lose long service leave if you go part-time?

No, you can still receive long service leave if you move from full-time to part-time or casual work.

However, the calculation can become more complicated because it’s based on your working hours over different periods of employment.

Generally, your entitlement is calculated using the highest average hours across your one-year, five-year, and total employment periods.

If you’re thinking about reducing your hours, it’s worth understanding how it could affect your future long service leave payout.

P.S. Reach out if you want help understanding the financial impact before making a career change.

Disclaimer: This video is not for financial or tax advice and for educational purposes only. Liability limited by a scheme approved under Professional Standards Legislation.

Don’t quit before checking your long service leave

Before leaving your job, make sure you know when you become eligible for long service leave.

The rules vary across Australia. In Victoria and the ACT, it’s generally after seven years, while most other states and territories require 10 years of service.

Interestingly, the Northern Territory offers up to 13 weeks of long service leave, compared to the standard 8.67 weeks in many other regions.

A few extra years could make a big difference before you move on.

P.S. Reach out if you want help understanding the financial impacts before making a career change.

Disclaimer: This video is not for financial or tax advice and for educational purposes only. Liability limited by a scheme approved under Professional Standards Legislation.

Should you buy commercial property through your super?

Buying commercial property through an SMSF can be an effective strategy for some business owners.

Unlike residential property, SMSFs can still borrow to purchase commercial property in certain circumstances. One common example is using your SMSF to purchase your business premises and having your business lease it back.

This can provide potential tax benefits and allow you to build an asset inside your super fund.

However, it’s important to understand the rules and whether it fits your overall strategy before making a decision.

P.S. Reach out if you want to understand whether an SMSF commercial property strategy could suit you.

Disclaimer: This video is not for financial or tax advice and for educational purposes only. Liability limited by a scheme approved under Professional Standards Legislation.

Weird tax rules you probably didn’t know

Some of Australia’s tax rules are stranger than you might think.

Did you know collectibles like Pokemon cards can potentially trigger capital gains tax? Or that your employer could face fringe benefits tax if they spend too much on your Christmas party?

Even everyday things like vegetables can have different GST treatment depending on where you buy them.

Tax has plenty of unusual rules hiding in plain sight.

P.S. Reach out if you want help understanding the tax rules that apply to your situation.

Disclaimer: This video is not for financial or tax advice and for educational purposes only. Liability limited by a scheme approved under Professional Standards Legislation.

Why a tax bill isn’t always a bad thing

A lot of people celebrate getting a tax refund, but a tax bill can actually mean you had more money in your pocket throughout the year.

A refund means you likely paid more tax than needed during the year, while a tax payable amount can mean less tax was withheld from your income and you kept more take-home pay.

The goal isn’t always to get a refund, it’s making sure your tax position is managed correctly.

P.S. Reach out if you want to understand how to better manage your tax throughout the year.

Disclaimer: This video is not for financial or tax advice and for educational purposes only. Liability limited by a scheme approved under Professional Standards Legislation.

Your super could leave your adult children with a tax bill that you’d never expected.

If your super goes to an adult child who isn’t considered a dependant for tax purposes, the taxable component can generally be hit with 15% tax plus the Medicare levy.

That can mean thousands disappearing from the super you spent your entire life building.

This is where planning who receives your super, and potentially looking at a recontribution strategy, can make a huge difference.

P.S. If you haven’t reviewed who gets your super when you die, now might be a good time to check.

Disclaimer: This content is for educational purposes only and does not constitute financial or tax advice. Liability limited by a scheme approved under Professional Standards Legislation.