Could someone please tell me if this is correct?
If I have a ABN number and I don't register for Gst as I will earn under the 75 k do I charge the business Gst in my invoice .... Eg $30 per hour plus Gst = $33 on invoice ?

If you are not registered for GST, you can't legally or ethically charge it. It would be fraud.

I understand that but I have been told I need to add the 10% to the invoice eg $500 invoice and the Gst is $45.45 ...my invoice total would not be $545.45 it would be only a total of $500 but I need to add the $45.45 Gst which is the 10% of the $500 just for accounting records?

No you do not charge GST, nor are you allowed or entitled to. In fact I would make a point of stating GST free on invoice so that clients can't dick with your invoices by adding 'inc GST'

id recommend taking up gst if looking to expand and grow a business from day 1.in the past, and from where i sit, non registration makes you look like a small entity which many businesses are a little stand offish to work with.

If your not registered for Gst then you don't charge it.

On your Invoice under the Amount it's your responsibility to clearly show that it doesn't include Gst.

There are a few ways that I have seen this done:

- Total Amount = $.......
No Gst has been charged

- Total price = $.......
Gst excluded

- Total price excluding Gst = $........

- Total amount payable = $........
Gst not applicable



http://www.ato.gov.au/businesses/content.aspx?doc=/content/20724.htm&page=9

Check out example four

Being in business for 40 years doesn't make him (me) an expert. If he insists you show it then the figure you would show would be $0.00.

He is trying to get you to incorrectly write your invoice, so that he can claim a 10% discount via the government.

Don't do it, you would be the one in trouble if it were to be discovered by the ATO.

BTW. In my experience it's not uncommon for business owners to put pressure on contractors/labourer's to write a Invoice that is vague or wrong.

'Just cross out the word Gst' or 'just leave it blank' are a couple I have come across.

Understandably a labourer on the bones of his arse may comply as he may not be worried about much other than scraping through the week.

The business owner claims back 10% of a vaguely written Tax Invoice that he/she is not entitled to and it won't come and bite them back on the bum.

It becomes the contractor/labourer's problem if the Business owner ever gets questioned by the ATO in the future about vaguely written Tax Invoice.

Don't be bullied and write your Tax Invoice correctly.

Hats off for having a go and putting yourself out there Southace.

When setting your rate, mark up your time to account for superannuation (9%), workers comp' (2.5%?), indemnity insurance (?%) and down time/leave (0% in China, ?% in your market). If you can cover all that and still win work, all is sweet for you. If you can't cover it all, walk away.

It sounds a bit fishy to me.

ATO has been right through the building construction industry here in Perth and Irish 'contractors' are now off ABN and on TFN. With abolition (1 July 2012) of entrepreneurs tax offset, there is less incentive to be on ABN.

If your charging by the hour, it is unlikely you are a bona-fide contractor/business. If your charging a piece rate or charging for a result then OK. If most of your work (80%) comes from one source, you are unlikely to be a business. Effect of this is you are limited to the deductions of an ordinary PAYG employee. That is motor vehicle deductions will probably have to be substantiated by a log book. Also, it is unlikely you can claim a deduction for money you contribute to super. Also depreciation allowances on any equipment are less generous.

Where a contract is predominantly for labour, super guarantee is applicable.

Anyone who engages you as a contractor does so at financial risk to themselves. If you feel you are being compensated fairly and you want the work, well and good...................

I got an ABN Number so I can withdraw cash from an ATM Machine without paying GST Tax.

/ not having a go, I do it too

Turns out that cause we are working in kind of a business partnership we do share the Gst and I should place it on my invoices somewhere.

southace said..

Turns out that cause we are working in kind of a business partnership we do share the Gst and I should place it on my invoices somewhere.

FFS!!!!! If your ABN is not registered for GST you CAN NOT charge GST. It's that simple.

If you and your "partner" are issuing invoices to the same client, then the invoice you issue does NOT have any GST component, nor are you responsible for any portion of GST that your "partner" is liable to pay.

Just the same as you are unable to claim GST on any expenses that your business may accrue, like fuel or tools or travel or.....

All the things that your "partner" claims against his ABN.

If you are issuing your "partner" an invoice then it is illegal for you to charge GST on your invoice.

Get it?

#edit
Your "partner" is a wanker and is trying to rort the system and line you up as the fall guy.

is there a face palm motif?