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  • #988284
    Kathleen Eccles
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    Hi All,

    I’m sorry if this is a simple question that’s been answered already but it’s slightly urgent because I’ve been offered a role as a consultant and have to sort it all out ASAP so I can start ASAP.

    It’s just a 2 day per week position and the woman who hired me suggested that I should charge GST on top of my quoted rate so to get the extra dollars on my hourly rate, which would actually make quite a difference to me as a current student.

    I’m just unsure if this is going to be worth it in terms of the additional paperwork that would be required, would I have to submit a BAS every quarter? I’m talking about only an approximate income of $400 per week.

    Any information or suggestions would be welcome,

    Thanks in advance,

    Kate

    #1166509
    Dave Gillen – Former FS Concierge
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    Hi Kate,

    Welcome to Flying Solo!

    Sounds a little strange to me. My understanding is that if you’re going to charge GST then: A) You must register for GST with the ATO and submit a BAS quarterly; B) You’ll be paying back the GST to the ATO so it won’t be extra income at all.

    But I’m not an accountant, so hopefully someone will drop by to overrule me or clarify things for you.

    Good luck, and welcome aboard the forums. :)

    Dave

    #1166510
    Kathleen Eccles
    Member
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    Dave,

    Thanks for that, I have pretty much figured that out in the past hour or so. The lady who recommended that I do it admitted that she didn’t really have much of an understanding of it herself but just wanted to try and help me get a few more bucks. Unless anyone else has a different answer I think it’s probably not worth it!

    Thanks,
    Kate

    #1166511
    Tiggerito
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    Also not an accountant but I do know that GST is not your money. You charge it because you have to pay it to the government.

    What it does mean is that you can offset any GST you pay out against it.

    Doing GST makes things more complex for you. You only have to do it if you are asked to by the government or you earn over a threshold ($75k me thinks???)

    If you charge GST then you send them a “Tax Invoice”. If not you just send them an “Invoice”. I clearly state that no GST is charged on my Invoices, which may be a requirement.

    Again, I’m not an accountant, so don’t believe a single thing I said.

    #1166512
    Simply Money Honey
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    Hi Kate

    I am an accountant and it sounds like this lady doesn’t really understand what she is talking about. If you register for GST, you then charge the company the GST and forward it on to the tax office each quarter.

    You don’t get to keep the extra money charged so there wouldn’t be any increase in money into your pocket just additional paperwork and possibly expenses if you have to pay someone to complete it for you.

    The only benefit in registering is that you would also get to claim back any GST you incur on business related expenses but I imagine this would be minimal and not worth the additional effort

    At $400 per week you are well under the GST threshold. I wouldn’t be registering.

    Hope this helps

    Gabrielle

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