Listen to my advice about taxation. It's going to save you

a lot of heartache. What the tax office is going to do, they're going to assume that

you're going to earn another million dollars for the next financial year. So now they're going to make

you prepay that. What? You're going to fall off the chair when I tell you this. The current

government wants to put in a tax of people fall

into this mindset where they don't want to earn more money because they're

going to have to pay more tax. Are you crazy? You don't want to cap

yourself in the beginning because at the end of the day, the more money you earn, even

if you do have to pay tax, you're still going to have more money in your pocket. It can

be quite complicated now setting up companies and operating in

the UK. The way around that is to actually... I'm Matthew

Fraser and this is Amazon Ecom Secrets.

I'll be sharing with you the secrets that helped me go from millions in

debt to an eight-figure entrepreneur. If you're ready

to escape the nine-to-five and live life on your terms, let

me show you the way. Hey, guys. Welcome to Amazon Ecom Secrets.

My name is Matthew Fraser. And in today's episode, I'm going to talk about everybody's

favorite topic, which is regulation and taxes. And

this should be something that you should definitely listen up

in. because it's something that people don't

want to know about really, but once they look at their bank balance

or see how much money has been taken out in tax, they kind of do want to know about it.

So let me tell you that some of the things that I've learned just in recent days and

in recent years about how to either minimize tax

or save yourself from going down sort of strange

alleyways with government regulation, how to avoid it basically,

Now, the first thing I want to say is I want to premise this by saying, I

pay all of my taxes. I am legal. And

I'm not saying that you should not pay tax, OK?

Particularly in the country where you live, because I tell you what, you don't want

to get handcuffed, right? So definitely follow the rules

and regulations regarding taxation. However, you

certainly want to be in a position where you either

know about how to minimize tax illegally, and

so you can put more money in your pocket. There's some of the things

right now that I'm just completely obsessed about.

One is how to pay less tax because I'm

paying a freaking fortune and it just shits

me to tears every single day. I see how much money

I have to actually pay out. And the other thing is I'm

completely focused on is accumulating Bitcoin. Just

as a side note, completely obsessed with it. But let's talk

about tax. Now, there's just certain things that come

along in your journey where you then start to

pay attention to. And once you get to the position where

you're making millions of dollars every year, this might

be something that you will certainly start to

pay attention on. And I have a

bookkeeper. I have an accounting team that

I pay like my accountant for example cost me over $2,500 a

month. For most people, that is a shitload

of money. But then you add my bookkeeping on top of that, it's over $3,000 a

month. Every single month that I have to pay in order to

mitigate the tax that I have to pay. But

it's also not even mitigating. It's just actually just following the rules of

the system by reporting on tax. So the government imposes this

regulation on me, which I then have to pay. Now,

I don't get a credit from the government because I have to pay that. You've got to pay that out of your own pocket.

Now, it is a tax deduction, but

that's it. Now, I was talking to a client the other day

and I said, look, please let me share this bit of information with you because my

client is right now about to start

making millions of dollars. And I said, when I started making millions

of dollars, this hit me hard. And that

is, I didn't put money aside for income

tax for the company. And I had just millions

of dollars pouring into my bank accounts. And I thought,

this is fantastic. And look, I knew there was going to be tax to

be paid, but I just sort of kicked the can down the road. And

then, of course, at the end of financial year, tax

financial year, I You've

got this bill, basically, from my accountant. But

my accountant informed me, hey, you're going to now be due to pay. And

I think at the time, it was nearly a million dollars in

tax. But I'd basically spent

it. I'd bought properties. bought

more stock and just did a whole bunch of things, paid off some previous

debts, if you've heard my story. You can go back to episode one if you want to hear my

full story of how I came out of a million dollars of actual debt and

then climbed my way out of that to now do over $45 million in

sales. In actual fact, I think it's now closer to, not over $45 million, it's

closer to $50 million in sales. But who's counting? Now,

I got this bill for a million dollars and I was like,

I actually went back to the account and I said, man, you've

got to be joking, right? How much do

I actually have to, is this really what I've got to pay? Like this is, you've done all the numbers,

you've written off all the expenses. And he's like, yeah, yeah, it's a million dollars.

Damn. So at that stage, I still had

millions of dollars pouring in. So from a cash flow perspective, I

simply earned some more money, went and paid my tax bill

of nearly a million dollars. But this is where it hits you. And this is

what I said to my client. What the tax office is

going to do is they're now going to make you pay the next. They're

going to assume that you're going to earn another million dollars for the next financial year. So

now they're going to make you prepay that. Ongoing right

when you're like what so not only in that first year if

you don't save up that money You're gonna have to pay the million dollars in tax and

then you're gonna have to also pay the future million dollars

in installments Generally in the quarter. So you're talking? $250,000 a

freaking quarter that you're gonna have to

pay the tax office in advance Because they expect

you to make roughly the same amount And so if

your cash flow is up shit creek by that time,

or you're not controlling the money, it could really F you up. And

so I said to my client, don't make my mistake. Look,

I was in a position where, like I said, I was still making millions, so I could simply pay for

it. However, it still did hurt the cash flow,

because I'd already forked out the million, plus now I'm going to have to spend another $250 a quarter. So

I said, Simply

put money aside from day one for income

tax. And I would put it in the vicinity of at least 20%. If

not, if you want to be even more conservative, go to

30% of all of the income coming into your bank account. Put that into a

separate bank account so that by the end of the financial year, you're just going

to have that money already put aside to pay the tax. So that

could be something that really stuffs people up if you don't play it right. So

the other thing I want to think about, too, is just

the mindset of people when it comes to taxation. Sometimes people

fall into this, I don't know, it's this weird, it's a weird mindset

where they don't want to earn more money because they're going to have to

potentially pay more tax, which to me is like, just

like, look, are you crazy? What, so you just want to start, actually,

I'll tell you a story. I did speak to someone who came to

my house. He was actually a window washer. And

he said to me, oh, look, you know, I'm keeping my business.

That's right. He didn't want to register for GST in Australia because he

didn't want to earn over $75,000 a year,

which I believe is the cap, right? $75,000 a year. After that, you've

got to then account for GST or charge GST. I

just looked at him and was like, what do you mean? You just want to earn

up to $75,000 but you don't want to earn any more because you

don't want to have to go through the hassle of then getting GST. Is

that the craziest thing that you ever thought of? Let me know in the comments if

that is totally batshit crazy. Because your idea

should be, I want to earn as much money as possible. Forget

about the tax. I just want to earn as much money as possible. And

then I'm going to hire an accountant to figure the rest out so I can minimize my

tax. You don't want to cap yourself in the beginning by

saying, I only want to earn X amount of dollars, because above that, I

might have to incur some taxes. Because at the end of the day, the

more money you earn, even if you do have to pay tax, which

I hate, you're still going to have more money in your pocket.

So think about that. Go get the right advice.

Hey guys, I just want to break away from the episode for just one moment and let you know

that I've just launched the Amazon Launchpad mini course. Now, this is

designed for people who want to get started on Amazon really,

really fast. But guess what? I can get you launched your first product on

Amazon with just five hours. You just have to click on the link below, join

my community, and the course is absolutely free. All right, thanks

guys, and back to the episode. Now, when you're thinking about tax, there's

just certain things that really irk you. And that is when political parties

bring out, or political parties are like a new government, brings

out more taxes. And we're supposed to be in this cost

of living crisis. We've got no money, splish splash

money. I don't suffer from that. I can afford to

pay the general bills. I'm very unfortunate now because I've worked

hard to get to where I am. But even

when you get to the point where you're earning hundreds of thousands

or millions of dollars, the government wants you to put more

money aside to save for your retirement. And

I was talking to my accountant the other day, as I do, every quarter we

have a sit-down meeting. And I'm going to share this information with you because it really irked

me. And it's something that you want to think about as well when you're now thinking about saving

for your retirement. Let's say you're earning money through your

Amazon business. doing quite well, you're going to think about, hey, I'm

going to put some of this money aside for the future. And

so I was accumulating money in a self-managed super fund.

And my accountant said to me, now look,

Matthew, just be careful, because above $3 million,

the current Labor federal government wants

to put in a tax, or they're putting in

a tax, it's going to need to be, and look, this is going to,

you're going to fall off the chair when I tell you this, 47% tax

on unrealized gains above $3 million. And

you're going to be like, what? Is

that totally crazy? Yeah, it is. It's freaking

bat shit crazy. So let me just give you

the example. Let's say that in

your super fund, you've put property. And Australians love to buy

property, and sometimes they put in their super fund. And

let's say that your properties have gone from a $3 million

value, which is the cap where there's no tax, And

then it went to $4 million. Let's say something

amazing happened and that property is now just worth more money, just for argument's sake. So it's

an increase now in value of $1 million in

that financial year. Under

this regulation, the government says, well, of

that million dollar increase, you're now going to have to pay us 47%, which is

$470,000. Yeah, I know, you're falling off your chair, right? And I'm just scratching my head

going, hang on a second, this can't be real. Wait for it. It's

not when you sell the property. It's on unrealized gains,

which means that if it just increases in value, you now have to

pay the tax on the increased value, even if you don't sell the property,

right? I said, yeah, but How's the average person now

supposed to pay that tax, just because the property value's gone up? And

he said, oh, well, the government is so generous, they'll

even let you pay that tax out of your personal money. So you're supposed

to now have like $470,000 just sitting in a personal account

that you can just pay the tax. No, no one's going to have that, right? you're

actually going to have to sell the property to pay

the tax. This is totally insane, but this

is the kind of people that are running our country right now.

Now, you're going to say, well, how do I get around that? Well, you're going

to have to change your whole strategy now. So if you were thinking about just

dumping money, dumping cash, dumping

property, Bitcoin, whatever it is, into your super fund, You're

now going to have to come out with a new strategy. Because very, very soon, you're

going to have over $3 million in that super fund. And then you're going to be subject to

that tax. There's going to be no incentive to do that. So

what you're going to have to do is actually now buy assets outside

of the super fund so it doesn't incur that tax. But

then what's going to happen? There's going to be other taxes that they're going to bring in.

Because the current government has this warped sense

of reality, which is, we want you to do well, but

not too well. We want you to get up to $3 million, but not over

$3 million. They've kind of just capped it out for everybody. And

I freaking hate it. I want people to be as

successful as possible. And to do that, the governments of

all persuasions need to reduce taxes and

reduced regulation. because regulation is

an impost on business. The other thing, just while I'm on a

rant, is they need to decrease the cost of energy.

Electricity production needs to

be reduced. We are living in this country that's full of energy, from coal to

potentially nuclear that we're talking about, wind

and solar. We've got just energy everywhere, but yet we

pay one of the most highest rates of energy in the world. And that's why manufacturing

is not in Australia. It's overseas where it's cheap as

chips. And that's why we need to bring jobs back to Australia, by reducing the

cost of energy. So in order to fix this problem, It's

tough, but you've actually got to vote for the party that

has less taxes and less regulation, and

that will help Australia prosper into the future. So

when we're talking about regulations, one of the things that I want to touch on

is setting up companies in other territories.

Now, for many of you, you won't be thinking about this. You'll be

just thinking about maybe setting up a company to

set up your Amazon business, say, in Australia or the US. You

can actually set up an Australian company that

operates in America. You don't have to go and set up

a USA company to have your Amazon account in USA and

sell in USA. You can use your Australian company for that. But when it

comes to places like the UK, it gets

really, really complicated. Now, in my case, I've

set up a UK-based company, but now what they've done, the

UK government has made it even tougher. So

in the olden days, you could just set up your UK company and you didn't have

to live there and you didn't have to have a person of interest that

sort of vouched for your company living in the UK. Now

you do. So you have to, if you're living in Australia, set up a UK

company, you've now got to have someone in the UK who's going to

vouch for your company. It's so that the UK government has

got someone living within their jurisdiction who they can tap on the shoulder

if shit goes bad. And so as you can appreciate, no

one really wants to do that, unless they're someone

who's like a business partner based in the UK. So it can be quite complicated

now setting up companies and operating in the UK. The

way around that is to actually use

somebody else's company in the UK,

or what I also do is use somebody else's company

in Europe. Because Europe and the UK,

the tax system is so complicated. I just

want to make my life simple. I don't want to go through all the crap. So

what I do is I outsource the product to somebody else

who's already selling potentially in Amazon who has

a European or UK company already set up

and I just utilize their framework to sell my product.

So they account for all the taxes and regulations and reporting within

those countries and I just invoice them the money. That today folks

is probably one of the biggest hacks that I could have shared with you because you

just don't know that until you've been through all the crap. Now,

what are the downsides to doing that? Well, of course, they control the

product, they're controlling your Amazon account potentially,

and so you have to make sure you've got a really, really good relationship with that person because

the money is also going to go from the sales, from the customer

into their bank account and you're going to have to retrieve

the money from their bank account by putting an invoice through them. So

in my case, I've got really, really trustworthy people

and companies in place. And of course, if you're looking

to do something like that, you can also come and sign up with

my mentoring program because one of the things I do with all

of my clients is I give them access to all of the tried and

tested services and people that I've accumulated in

my sphere. over the many, many years. And I've been through people who,

where I've been burnt too. So obviously I've now got to this

point where I've got just really, really solid people and I'm happy

to give those over to you as well. So you can make things easier and

faster by finding the right people to get you the

sales that you need and obviously getting the money in your bank account and not theirs.

Okay guys, that's the end of my educational rant.

Let's call it that. We're going to give a new term, educational rant, because As

I said in the beginning, my complete focus right now is minimizing tax. When

you're making millions, and I know you are too, it's going to be a focus that

you're going to have as well. And my other second thing

is accumulating plenty of Bitcoin as much as possible. So

look, I hope you enjoyed that. There was a few gold nuggets that I dropped in

there. particularly for those who want to expand outside of Australia or

the US, particularly going into the UK and the

UK and Europe. That being said, too, I just gave that gold nugget

about outsourcing the sales for a different person

or entity in those different countries. You could do exactly the same thing for

a place like the US as well, really. There is no limits

as to how you could expand out that particular business model. And

if you're interested in more about the business model, sure, reach out to me and I can give you

more details about that. So thanks guys, really appreciate you joining me.

Please, give me some feedback. If you want to hear some different topics,

then please let me know in the comments. Or if you want to tell me about

how much you love one political party or the other, maybe you love

the Labour Party, right? As much as I hate them. So maybe

you want to put that in the comments as well, because I know that'll probably get you riled up. Thanks for

tuning into Amazon Ecom Secrets. If you enjoyed

this episode, the best way to show your support is to give

a five-star review on Apple Podcasts and Spotify. And

make sure to subscribe on YouTube so you don't miss an

episode. You can also find more at I'm

Matthew Fraser on all social media platforms. Thanks