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POD
11th May 2015, 12:38 PM
I was having a gripe to someone the other day about businesses quoting prices as '$75 plus GST' instead of just telling me the price I have to pay.
Well today it has been taken to a whole new level; I have just had my driveway refurbished, i.e. couple of truckloads of stone, graded, rolled etc. The contractor and myself verbally agreed on a price of $3.000.00.
Today his bill was in the letter box, you guessed it, $3,000.00 plus GST = $3,300.00.
I'm inclined to just pay the $3,000.00 we agreed on, especially as he kept me waiting 3 months (we did re-establish the $3,000.00 price after he finally got back in touch).
What do those of you who are contractors do with GST when quoting?

p38arover
11th May 2015, 12:43 PM
I didn't think they were allowed to do that for domestic quotes.

Then maybe not (unfortunately an undated article): http://www.findlaw.com.au/articles/1321/the-price-the-whole-price-and-nothing-but-the-pric.aspx

But then: http://www.hwlebsworth.com.au/latest-news-a-publications/publications/competition-and-consumer/item/495-%E2%80%9Call-inclusive%E2%80%9D-pricing-to-become-mandatory.html

incisor
11th May 2015, 12:48 PM
any thing retail is supposed to include gst in any pricing

J RAD
11th May 2015, 01:16 PM
I know from my job, selling shipping containers. By law we must quote the price then say plus gst. Or just say gst inclusive....

cjc_td5
11th May 2015, 01:17 PM
As said, to my knowledge any retail sale is obliged to include GST unless otherwise specified.

Business to business sales are quite often ex GST but I am always careful to confirm this.

If there was no business to business inference during your agreement, I would just pay the $3000 and stick to that was what was agreed to!

Have fun.

Tombie
11th May 2015, 03:24 PM
Rule #1 - If it aint in writing, its not worth the paper its written on...

POD
11th May 2015, 03:57 PM
Thanks for the replies, the links p38arover posted I have already had a look at, it seems that it is unlawful to conceal any part of the total cost when stating a price.
It's disheartening when this sort of thing happens, I don't like to make bad friends with local businesses and I'm happy with the job, but straight away we have a dispute brewing. I certainly don't plan to make a gift of $300 to the fella, it's not that easy come.

NavyDiver
11th May 2015, 04:41 PM
It can be tricky for business who usually deal business. GST is only paid by us at the end user point.

Just got told a quote for $$$$$$$$ was NOT including GST. :eek::eek:

1/11 of the price paid is GST so you only paid the 3k he would still need to pay GST. Discussing it sounds more reasonable. perhaps agree 1/2 way given it wasn't the actual quote at 3.3k?

Homestar
11th May 2015, 07:19 PM
We quote all our prices ' + GST', but it's always on a formal written quote with our T's & C's attached.

No written quote, no GST. Give him the $3K and move on IMO. He hasn't a leg to stand on trying to claim the other $300

Roverlord off road spares
11th May 2015, 08:14 PM
When we give our customers a price on a part, it has the gst inc.
We do not turn around and ask for more than we quoted.
Sound like bad practice to me. Heather

loneranger
11th May 2015, 11:06 PM
First of all check on the ABN Lookup that he's registered for GST. If he isn't he can't charge it.

Also check the ATO website regarding prices and GST.

Of course if the quote isn't in writing then you may have a problem.

Eevo
11th May 2015, 11:42 PM
When we give our customers a price on a part, it has the gst inc.
We do not turn around and ask for more than we quoted.
Sound like bad practice to me. Heather

spot on.

Toxic_Avenger
12th May 2015, 05:23 PM
I deal mainly with other business (industrial sales), and always quote price "ex GST". If you want it 'including' then it's no bother for me to give you that price... but irrespective GST is still billed (its tax law).
Every formal, written quotation has the GST breakdown at the bottom.

Good point on being registered for GST.

ATH
12th May 2015, 06:39 PM
When I worked for the finance section of one of our TAFEs here in WA quite often we got small suppliers (usually lecturers trying to make a bit extra) who either didn't want to give an invoice or if they did it was something out of a cash receipt book with no ABN or any other identifying number.
They got paid less 50% tax. And did they scream but we were a government agency and they were the rules.
I believe the ATO endorses that approach as well.
A few years ago I had a bloke round quoting for new kitchen cupboards etc. and when I asked him for a written quote including GST he disappeared so fast......:o
The building industry is rife with cash jobs.
AlanH.

Basil135
12th May 2015, 11:53 PM
I have my own business, with an ABN, but I am not registered for GST.

It has gotten to the point where I have actually put a note on my invoices, stating GST is not payable on this invoice.

Got sick of the email ping pong that was happening, and delaying the processing of the invoices.

But yes, any invoice or quote should state the price including GST, or plus GST.