GST collection and builder/concreters in general
Discussion
I've been getting quotes for a concrete driveway. As part of the quote assessment I'm checking ABNs etc (I work in Purchasing for a living, so force of habit 
)
One of the contractors (number 1) has an ABN (which has his name against it when I check the register) but he isn't registered for GST. He is dead keen to be paid cash (one of the first things he mentioned). So, the question is, should he be registered, and if he isn't and I insist on not paying cash, is he likely to pocket the 10%?
As far as I can tell, GST registration is required if the income (through the books presumably) is above a threshold. Is that correct? I can't believe any Aussie tradie with his own business has a turnover below a GST threshold!!
For interest (in case you are), of the others, number two has only given me a handwritten quote with no letterhead, I only have his mobile number, and if I do an ABN search based on the company name the entity name isn't his (I know it doesn't have to be but it is a blokes name).
Number 3 has an address, an ABN, is GST registered, has a facebook page, has been doing it for over 20 years, has liveried utes/trucks etc
Would you be surprised that:
- Number 1 is cheapest, but only by less than $400
- Number 2 is in the middle
- Number 3 is the most expensive, but only by $900
I'm tempted by number 3, if only for piece of mind.
)One of the contractors (number 1) has an ABN (which has his name against it when I check the register) but he isn't registered for GST. He is dead keen to be paid cash (one of the first things he mentioned). So, the question is, should he be registered, and if he isn't and I insist on not paying cash, is he likely to pocket the 10%?
As far as I can tell, GST registration is required if the income (through the books presumably) is above a threshold. Is that correct? I can't believe any Aussie tradie with his own business has a turnover below a GST threshold!!
For interest (in case you are), of the others, number two has only given me a handwritten quote with no letterhead, I only have his mobile number, and if I do an ABN search based on the company name the entity name isn't his (I know it doesn't have to be but it is a blokes name).
Number 3 has an address, an ABN, is GST registered, has a facebook page, has been doing it for over 20 years, has liveried utes/trucks etc
Would you be surprised that:
- Number 1 is cheapest, but only by less than $400
- Number 2 is in the middle
- Number 3 is the most expensive, but only by $900
I'm tempted by number 3, if only for piece of mind.
Mattt said:
Is it your problem what his tax status is? You've engaged a business as a private individual.
The issue is that he has said if I pay cash he will knock off the GST, whereas if I don't pay cash he will charge GST.I'm not keen on getting $12k in cash out the bank - so would prefer a bank transfer. If I do that he'll charge GST, which he isn't registered to collect - so where does it go? 10% extra for him?
ETA - I just found out the threshold is a turnover of $75k per year - no way he could be under that surely.
Edited by Jader1973 on Wednesday 5th February 08:52
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