Ever wondered if you should borrow back the money you've already paid off your home loan? Ben McEachen admits he's never heard of debt recycling, so accountant Pete Burrows breaks it down: what it is, who it suits, and why the investment matters more than the tax deduction. They weigh up rental property against shares, keeping a separate loan and knowing your money temperature, plus the stewardship question most people skip. You'll learn when debt recycling makes sense, when to leave it alone, and the simple test to apply first.

Key Takeaways:

• What It Actually Is: Debt recycling means reborrowing money you've already paid off your home loan and putting it into investments that produce income, such as shares or property.
• Investing, Not Renovating: Reborrowing to renovate or buy things just lifts your loan balance, while an investment can produce income that helps cover the interest.
• Return Before Deduction: Interest on money borrowed to invest is generally tax deductible, but the investment itself still has to be sound because it is what pays the loan back.
• Keep It Separate: A clearly separate loan keeps investment borrowing clean and avoids a messy mix of personal and investment debt.
• Know Your Money Temperature: Your age, time frame and comfort with risk all matter, and wanting your home loan fully paid off is a perfectly reasonable choice.
• Stewardship Over Tax Breaks: Pete argues that chasing a tax deduction shifts part of the load to fellow taxpayers, so check your motivation before you borrow.

Notable Quotes:

1. “Debt recycling, consider it, but don't do it unless you could explain it to your spouse or your friends.” — Pete Burrows
2. “I'm basically just saying I want to pay less tax to help me fund something that's gonna benefit solely me.” — Pete Burrows
3. “We talk about the provision that God has given to us and how we well use that.” — Ben McEachen
4. “You borrowed this to buy that. If that's no good, well then what's paying off the loan?” — Pete Burrows
5. “Consider your motivation behind your money, not just what's going on in your bank account and your spreadsheets” — Ben McEachen

Got a question, comment or personal story to share? Send it through at hopepodcasts.com.au. Ben and Pete will get stuck into it on a future episode.

Pete Burrows is an accountant for small business and individuals with Lower Russell and Farr in Penrith, Western Sydney, Australia.

Ben McEachen hosts Hope Mornings on Hope 103.2FM in Sydney, Australia.

Support the show, a product of Hope Media: https://hope1032.com.au/donate/2211A-pod/

See omnystudio.com/listener for privacy information.

Should small business owners just suck it up when tax changes hit? After listener feedback, Ben McEachen from Hope Mornings and accountant Pete Burrows from Lower Russell and Farr take a fresh look at what working for yourself really costs. Pete shares the tight early years, the unpaid admin nobody sees, and how uncertainty taught him to lean on his faith. You’ll learn how to test a business idea against your current wage, when it’s time to walk away, and why no small business owner should go it alone.

Key Takeaways:

• Absorbing Change Without Support: Small business owners often have to absorb tax and policy changes they didn’t ask for, usually without any help to adapt.
• Benchmark Against Your Wage: A business idea is worth testing against the salary, leave and entitlements it would replace, not just against whether it sounds good.
• The Hidden Workload: Much of running a small business is unpaid work done behind the scenes, from BAS and bookkeeping to paying staff properly.
• Know Your Exit Before You Start: A time frame or dollar target for getting out helps owners avoid throwing good money after bad as industries change.
• Small Business Can Be Lonely: Mentors, networking groups and contemporaries matter, because owners carry pressures that people on wages rarely see.
• Faith in the Lean Seasons: The uncertainty of self-employment can push owners to lean on faith and trust when the bills are due and the money isn’t in yet.

Notable Quotes:

1. “You need to know your way out of a room when you walk into it.” — Pete Burrows
2. “It does make you lean a bit on your faith and just trust in the sense that, you know, I don’t know how I’m gonna pay the bills this month.” — Pete Burrows
3. “The benchmark should be what your job is now.” — Pete Burrows
4. “You as a small business operator, more than me as an employee, might actually be more painfully, sometimes joyfully aware that you’re not in control as much as you’d like to be.” — Ben McEachen
5. “Just like in life, you’d probably need more friends than you think you need in business.” — Pete Burrows

Got a question, comment or personal story to share? Send it through at hopepodcasts.com.au. Ben and Pete will get stuck into it on a future episode.

Pete Burrows is an accountant for small business and individuals with Lower Russell and Farr in Penrith, Western Sydney, Australia.

Ben McEachen hosts Hope Mornings on Hope 103.2FM in Sydney, Australia.

Support the show, a product of Hope Media: https://hope1032.com.au/donate/2211A-pod/

See omnystudio.com/listener for privacy information.

Should Australia raise the GST? It has sat at 10% since July 2000, and the Grattan Institute has made the case for 15%. Ben McEachen from Hope Mornings asks accountant Pete Burrows from Lower Russell and Farr what a higher GST would mean at the checkout, why it can hit lower income households hardest, and what loving your neighbour has to do with tax. You'll learn how a rate rise flows through to your shopping, where you'd feel it most, and the questions worth asking before saying yes or no.

Key Takeaways:

• Spend Tax, Not Earn Tax: A GST taxes people when they spend rather than when they earn, which is why a higher rate is usually paired with income tax cuts.
• Smaller Than It Sounds: Because shelf prices already include GST, lifting the rate from 10% to 15% adds a little under 5% to items that already carry it.
• Exemptions Are the Big Shift: Households would feel it most if GST were extended to things that are GST free today, such as fresh food, health and education.
• Who Carries the Cost: The GST is a regressive tax, so lower income households feel price rises more unless welfare or income tax changes offset them.
• A Faith Lens on Tax: Loving your neighbour and caring for the vulnerable turn the GST debate into a question of who can absorb extra costs and whether public money is used well.
• Spending Matters Too: More tax is no excuse for poor spending, yet the states fund hospitals, schools and roads with very few ways of their own to raise money.

Notable Quotes:

1. "The theory with the GST or a consumption tax is you tax people when they spend, not when they earn." — Pete Burrows
2. "Increasing taxes isn't an excuse to have poor spending habits." — Pete Burrows
3. "It's always easy to ask for more tax. It's probably harder to justify what it's spent on." — Pete Burrows
4. "When it comes to talking about GST, Pete, it raises issues around is public money being used well and who can absorb extra costs?" — Ben McEachen
5. "You can't just say no. But if you want to say yes, you need to explain how it's going to be best for the country and everybody in it overall." — Pete Burrows

Got a question, comment or personal story to share? Send it through at hopepodcasts.com.au. Ben and Pete will get stuck into it on a future episode.

Pete Burrows is an accountant for small business and individuals with Lower Russell and Farr in Penrith, Western Sydney, Australia.

Ben McEachen hosts Hope Mornings on Hope 103.2FM in Sydney, Australia.

Support the show, a product of Hope Media: https://hope1032.com.au/donate/2211A-pod/

See omnystudio.com/listener for privacy information.