Pittwater Life July 2018 Issue

Business Life: Money
Business Life
Good Tax Dept reason does for laundry going
‘nuts’ on simply this festive massive season scale
When This month writing marks about the start
of financial the 2018 tax innovation season one
and of with the the perspectives media I
can reaching share saturation with you point is from about the
inside the problem of a fintech of overclaiming company
which expenses in my we case revisit has a few been of the
rolling fundamentals out the about fast-growing including
Acorns clothing app. expenses Since on launching tax returns.
in According Australia in to early data 2016 from the
app ATO, now work-related resides on clothing the smart and
phones laundry claims of around have 350,000 risen 20%
Australians, over the past that’s five years, roughly with 1.5%
of something the population. like six million people
claiming If you’re nearly in the $1.8 dark billion about in
what expenses I’m talking last year about, – that’s Acorns about
is $300 a micro per head investment per year. platform What
or sticks what’s in the sometimes Commissioner’s called a
‘round-up’ craw is the fact app, that the those first one
of numbers its kind represent in Australia. around Our half
firm the workforce along with apparently our partners having
brought to wear a it uniform, out from protective the US
clothing 2015 where or occupation-specific
it had been
established clothing. for a few years.
The Commissioner app works in a may couple very
of well ways: be onto by taking something a data here
feed because from from your where spending I sit in Mona
accounts Vale it doesn’t and rounding really feel up to me the
purchases like half the you workforce make to is the getting
nearest about in dollar uniforms, and hi-vis investing or steel
these caps and accumulated we’ve had construction
balances
into going a on mix for of months exchange in the traded
funds building. listed I suspect on the the ASX, problem or,
by has you its roots debiting in two an main amount places or –
regular the first payment being the from ever-expanding your
bank compliance account industry to your and Acorns the
account. second being Most a long-standing users enjoy the tax
round up feature of Acorns as
it allows them to save while
they spend. As a parent of
teenagers I think I’ve come
to the conclusion that apps
such as Acorns using a blend
of psychology and technology
may be the only effective way
to get modern kids to save
because they sure do know
how to spend.
Acorns works because the
principles underlying its design
myth about what you can claim.
Anyone who’s ever had
anything to do with the
compliance industry, and I’m
talking work health and safety
here, knows that you can never
have enough hi-vis vests, eye
protection, hearing protection
are
or sun
firmly
protection,
rooted in
etc.
behavioural
Sun
finance:
protection
investing
is now almost
small
a
amounts on a regular basis that
universal claimable for anyone
won’t be missed combined with
who on a sustained basis is
investing over an extended
required to be in the sun for all
period of time to average
or part of the day (ATO words)
into the markets smoothing
and this item alone could easily
out peaks and troughs. Of
course
impact the
it doesn’t
returns
hurt
of millions
that it
of
does
workers.
all of
The
these
growth
things
in claims
within
the driven framework by this avenue of a highly is therefore
attractive and functional user
interface – fancy words for the
app looks and feels very cool.
While these principles have
proven to be sound over time
Acorns goes on to provide an
indirect benefit to its users
in the form of education and
improved financial literacy.
Get two or more people in the
room who have an account and
you’ll find out what I mean –
when did you start? What are
hardly surprising… just look at
a the ATO’s occupation-specific
guides and many of them will
refer to protective clothing and/
or sun protection so for the
Commissioner to be upset about
growth in claims in this regard
might well be considered an own
you goal. saving for? What returns
have The you second had? issue, It’s inherently the tax
competitive myth factor, is but really when the it’s problem
combined child. Tax like with any the other tools business and
information has a mythological that the element app –
provides every industry it’s also does. extremely Compare
informative it to that classic – as medical a regular myth: user
you “… no can’t worries, help that but become mole will be
more fine it informed has a hair about growing the out of
behaviour it”, the tax equivalent of markets is: whether “… no
you worries, are looking anyone can to or claim not for – the
with Brian Hrnjak
balance laundry of work your clothes Acorns just account keep
rises it under and $150.” falls No, in line you with can’t; the it’s
movements a myth. The other in markets myth that during goes
the hand course in glove of with the trading the laundry day.
claim One is of the the $300 challenges substantiation
any threshold finance for app work-related would have
encouraging expenses. young people to
save To and give invest you some is to examples: remain
relevant my oldest in son their is an eyes. apprentice, Over
the wears past year an employer-supplied
a number of
enhancements uniquely branded have uniform taken (shirt, place
following trousers) to user work feedback, each day. the He
headline keeps steel ones capped being: boots at
Found the workshop. Money Each partners day his – users
can uniform shop needs online to with be laundered brands
such in a separate as Bonds, wash Dan because Murphy’s, of
BCF, the grease Uber etc. and and oil. He these can claim
partners the actual usually cost of deposit laundry bonus in his
amounts return based or extra on expense round receipts, ups
into or he the can users elect account; to claim the $150
My reasonable Finance basis feature amount. – uses He can
artificial also claim intelligence the cost of his to track boots
and as protective categorise clothing spending (assuming and
calculate he could ever free find cash the flow; receipt in
Super his car). fund linkages – allows
users On the to make other deposits hand, I work to a in
range office and industry get about and public in RM
offer Williams superannuation boots and what funds; some
Emerald have kindly Portfolio described – a as socially smart
responsible casual clothing. portfolio Occasionally option I will
introduced put on a suit. following Because member what I wear
feedback; to work is regular clothing and
Little neither Acorns protective – sub nor accounts uniform,
designed I don’t get to to allow claim investment for either its
on purchase behalf cost of children or laundry. or other
dependants An architect under who the undertakes age of 18.
56 52 DECEMBER JULY 2018 2017
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