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  • #988062
    stevenbowden
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    Hello, I have just started doing some contracting work and have set up a pty ltd company. I have registered for GST as I hope my first year of income will be above $75,000. I am about to send my employer the first invoice for payment. It’s for two weeks’ work so it’s more than $1,000.

    Do I need to include GST on the Tax Invoice? Does the fact that I have registered for GST force me to do this or can I just invoice for the hourly rate?

    My company is brand new and hasn’t received any income yet.

    Cheers

    Steven

    #1165434
    FalzonFinancial
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    As your business is registered for GST, most of your income will encompass GST and you must bill your client with a GST compliant invoice. Invoicing on an hourly or fixed basis does not facilitate how you charge GST once you are registered, it is determined by taxable supplies.

    Exceptions to this include GST free income items such as:
    – Healthcare
    – Fresh food
    – Some childcare

    Hope this helps.

    #1165435
    stevenbowden
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    Thanks for the reply. I think that clears it up. I think I should have quoted this client an hourly rate (+ GST) but I didn’t so assume I will need to invoice for an hourly rate including GST and absorb the loss. I won’t have many expenses which I can claim the GST to off set at this stage.

    #1165436
    Simply Money Honey
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    Hi Steven

    If your client is registered for GST they will be able to claim the GST back so they may not mind the fact you didn’t quote the GST upfront.

    Regards

    Gabrielle

    #1165437
    stevenbowden
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    Thanks Gabrielle.

    For now I’ve decided to cancel my GST Registration to make it simple. I can always re-register in the future.

    Steven

    #1165438
    bb1
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    Simply Money Honey, post: 191539 wrote:
    Hi Steven

    If your client is registered for GST they will be able to claim the GST back so they may not mind the fact you didn’t quote the GST upfront.

    Regards

    Gabrielle

    This is technically incorrect. Under ACCC guidelines you need to quote your price inclusive of all taxes. As I would have assumed that the quoted price includes GSt (Unless specified). So say i was quoted $44.00 I would assume $40 cost of goods and Claim the $4.00 GSt. Under your scenario Steven would have quoted $44.00, than when invoicing it under your scenario he would invoice for 44 plus $4.40 GSt. thus a total of 48.40, but the customer could only claim $4.40, so would effectively be paying a higher price than quoted.

    Steven cannot add GST just because he registered since he quoted. Unless he specifically stated in his quote that GST was not included.

    #1165439
    Luth6322
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    This is technically incorrect. Under ACCC guidelines you need to quote your price inclusive of all taxes.

    That’s interesting, nearly all quotes and/contracts I receive from suppliers are GST exclusive. Do you have something specific from the ACCC that mentions this requirements?

    Thanks

    Carrie

    #1165440
    bb1
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    Luth6322, post: 191579 wrote:
    That’s interesting, nearly all quotes and/contracts I receive from suppliers are GST exclusive. Do you have something specific from the ACCC that mentions this requirements?

    Thanks

    Carrie

    Component pricing

    When you present prices to your customers, you must state the total price of the good or service as a single figure, which is the minimum total cost that is able to be calculated. This should include any tax, duty, fee, levy or other additional charges (e.g. GST or airport tax). You do not need to include optional charges or extras or delivery charges – unless you are aware of a minimum delivery charge that must be paid in which case you can chose whether to include it in the total price or as a separate component.

    If you promote a price that is only part of the total price, the total price must also be displayed at least as prominently as the part price. This means that customers should be able to identify the total price in the advertisement just as easily as prices for all the other aspects.

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