How hard can it be to give a quote stating the price you expect to be paid? How hard can it be to follow the really simple law on GST in quoting? Apparently very hard in Agnes Water! More than two out of three (don't ya love the math?) Agnes Water contractors seem unaware that if they quote a price of $80 per hour then that is what they will be paid - $80.00 per hour. Der? Not $88.00 per hour when an invoice is required. Not $80.00 per hour when they offer a 10% cash discount on their $80 per hour quote. So for the record:
Step One: If you want to be paid $80 per hour then quote $80 per hour and understand that it includes GST or actually state '$80 including $7.25 GST'.
Step Two: Alternatively, quote $72.75 + $7.25 GST per hour.
For a longer version, then read on below direct from ACCC and Trades Practices Act; click here ACCC link for more.
Advertisements, price lists, or quotes that specify prices without referring to an additional, payable GST component risk contravening ss. 52 and 53(e) of the Trade Practices Act, which prohibit conduct or representations that mislead or deceive. Advertisements etc. that state '$X plus GST' risk contravening s. 53C of the Act, which prohibits promotion of part of the price without also specifying the cash price of the product.
Price representations or quotes that are likely to be unlawful are:
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'$X plus GST' (e.g. $295 plus GST)
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'$X*' when, in a place that is not prominent, the asterisk qualifier details an additional amount for GST
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'$X' when X is not the total price as an additional $Y GST is not stated (e.g. $295 without reference to an additional $29.50 payable as a result of the GST).
Price representations or quotes that are likely to be lawful are:
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'$X' when X is the full price including GST (e.g. $324.50 inclusive of GST)
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'$X including $Y' (e.g. $324.50 including $29.50 GST)
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'$X + $Y = $Z' (e.g. $295 + $29.50 GST = $324.50)
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'$X + $Y' ($295 + $29.50 GST).
More information about ss. 52 and 53 of the Act can be found on pages 27–29 of the Summary of the Trade Practices Act.
I've found 3 GST-correct Guys in Agnes Water so far
After the first disastrous and unlawful GST quoting episode at Agnes Water, I now advise every contractor of their legal obligation to me regarding GST, prior to allowing them to provide us with a quote.
I have found only three (3) out of over 13 who have known their obligations and have adhered to them.
Interestingly enough, those three have delivered on time, to estimate, done competent work and not tried to hit me up for 'hidden extras'. They are all rather good looking too - is there a correlation there? |