James said..FormulaNova , Let me explain more clearly : Cap value $180.00 per month . Cost per month $29.00 . Intuitively, you would not foresee a GST amount of $16.36 when signing up for this deal but as you point out , it is there stashed away in the fine print . Highly creative, equally deceptive and a flawed application of GST. The GST component of a $29.00 GST inclusive payment is $2.63.
This is the only GST amount that should have been applied in this contract had the contracted customer stayed within the cap amount of $180.00 as this is the true GST amount Optus would hand over to the tax man , not the inflated amount of $16.36 they have so creatively used to gouge their customers . As soon you creep over $163.60 service you are slugged full rates. Edit : No big deal for me in a monetary sense , but it will catch out some who can't afford it . Does this make sense ?
Sigh

, not even a nibble from Cauncey , must be busy creating the 2016 Winter Ensemble for his pooch to wear down at the beach while he kites the winter fronts
James, I am trying to understand what happened here. If there is a genuine ripoff then its easy to challenge it.
My understanding is that they have a call charge that includes GST. Right? They have to, the government insists on everything have a GST component and if there is no mention of 'GST' it is assumed to be included. (Telstra's doco seems to leave it out, which implies its already included)
They then "charge" you based on that call rate, until you reach your cap. Correct? So, you have paid $29.
Once you reach that cap, and then go over it, they will charge you full price for those calls. So you pay your $29 which includes your $2.63 of GST and for the extra calls you are paying $1 a minute (or something like that) which includes GST. Make 100 minutes of calls and you pay $100 of which $9.09 is the GST. So, you have used your cap, made another 100 minutes of calls and you are still paying less than $12 in GST.
I don't see how you are paying $16.36 of GST unless your calls over the cap are somehow rounding up to have a GST of $16.36.
Everyone does it that way. Telstra, Optus, and Vodafone bill that way.
Can you imagine what would happen if they said 'calls are $1 a minute (without GST)'. No problem. You pay just your $29 and all is good. Once you go over the cap, you would then be charged $1 a minute and then by law they have to add the GST, so you end up with $1.10 a minute. Imagine explaining that to customers.
If I've got this wrong, put up some example numbers of when you went over the cap and I will see if I can work it out.
I think capped plans are stupid. You pay what you think is a cheap amount, but if you go over the cap, you are screwed on call rates. Imagine if you were told that for $50 you could get $10000 worth of credit, but calls were $50 a minute. In the cap you can make 200 minutes of calls, and all included. The minute you go over, you get slugged $50 a minute and there is no recourse. Its a scam,... and as far as I know, Vodafone were the first telco to introduce this idea to the market. Unfortunately due to human nature it looks like a fantastic deal, unless....