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nighttax
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KimC, post: 182686 wrote:
I had offered a position to this person getting close to a year ago, and in the first month or so he negotiated a higher hourly rate (more than happy to pay – was doing really well).

Since then there have been a few things I haven’t been to happy with – more attitude to me, rather than completing the job this seems to still be done at a good level.

I received his invoice for the work he completed over last weekend, with him stating he now charges GST and has included this on the invoice. I was all ok with this up until i noticed that it has just been added on top of the agreed hourly rate. Now I’m not sure where I stand with requesting the hourly rate to be inclusive of GST, which is what i want to do.

Any advice would be helpful.

Hello KimC

Sounds like you have 2 issues here. 1) A working relationship issue and 2) A GST question. I will address the GST question.

– The contractor has apparently recently registered for GST as he has started charging it. You should go to the ABN Lookup page and check to make sure he is registered and not just saying it.
– Are you registered for GST? If you are then you will be claiming the GST he charges you back as a credit on your BAS so you are not out of pocket in any way. If you are not registered for GST then it is effectively an increase in the hourly rate, so an extra cost. This then becomes up to you whether you want to pay that rate or not. This is a renegotiation issue or a time to replace the contractor issue.

regards
Evan