sorry SS.
I work in the bush (you know - the place they will insist on calling "Regional Victoria") so all the talk about pricing helps to keep me in touch. It's good. BUT one simple question. Are you talking prices with or without GST??
the price is the price the customer pays you in dollars, and includes or excludes gst as per what you are reg'd for.
myself, i deregistered a while ago, in our industry, GST LOSES you money. i can prove it.
UNLESS youre buying a new car and 2 new walkers every 2 years, its just not worth it.
but regardless, a price is what they pay you in dollars.
Forget about GST as far as the customer is concerned
My minum is 45 i think rices need to go up soon as the fuel has just gone up again
Tender Lovin Lawn and Garden Care
We do everything for your lawn and garden with tender loving care
find us on facebook under Tender Lovin Lawn and Garden Care
I did a lawn today and it was so small I didn't even start the mower...just pulled the cord a few times to get the blades spinning...$40.00 Thanks for coming..every 2 weeks.. so I guess $40 is my minimum.
Hunterpropertymaintenance@gmail.com
Work to live, life's too short..
Specialising in small and Large area collection mowing with Walker Mowers.
Thanks Happymowin, that's as I thought. However you do raise an interesting point about GST registration. I'd better check some figures rather that just assuming. Would save some paperwork and that's always good!!
I think gst is a good thing get back one 11th of all the money you outlay
Tender Lovin Lawn and Garden Care
We do everything for your lawn and garden with tender loving care
find us on facebook under Tender Lovin Lawn and Garden Care
okay,
two guys mow a lawn for $55.
as you say, they use $1 for fuel.
1st guy is reg'd for gst, pays the government 1/11th of $54 (his "profit") which is $4.90
he keeps 51.10 (and then pays income tax on that)
2nd guy not reg'd for gst, his profit is $54. (which he pays tax on)
the only time you get a GST credit is when you PAY MONEY to someone for something like fuel, a new car, a new mower.
if you are just starting up, and expect to spend $60,000 on equipment, then register for gst, buy all your stuff, get the credit cheque from the gov't , then deregister again so you dont have to collect tax for them.
you only HAVE to be reg'd for gst if your GROSS TURNOVER is $75,000 or more P.A.; or "if you expect it to be"
if you arent paying a lot OUT in costs, your GST registration COSTS YOU MONEY.
the customer DOES NOT CARE if your "price" includes GST or not - its just how much money they pay you - what you do with it after that is up to you.
Business i am led to believe prefer GST registered operators because they know you are a pro because your turn over warrants gst...
but you collect 1/11th tax on everything you do, to pass the difference between the 2 figures on to the givernment.
and dont get me started on BAS's - a late one, even when you dont owe them much, can cost $500 fines - they did it to me twice.
GST, you have to do your tax 4 times a year.
without it, youre back to only having to tell the b*&^%$ds once a year what you made.
sorry for the double post - GST is the most useless thing the gov't has done, and it irritates the *&^% out of me.
buy a mower for $1000
-90.91 gst=$909.09
-tax 30%($272.73)
=$636.37
without GST$1000
-tax 30%($300)
= $700
so on a $1000 mower purchase you are $63.63 better off being registered for GST
but if you turnover $1200p/w you will pay $109.09 in GST every week
Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you
exactly, so unless you are making CAPITAL purchases every week, or even every year, youre wasting money being on gst.
ask your accountant to work out how much you would have saved NOT being on GST (s'long as your declared income is less than 75k)
and all those bas's?
you dont have to be registered. its a scam.
I would guess if your getting $90 per hour you would be earning well over the $60,000 per year mark that would put you in the bracket for compulsory GST in your business?? If that is the case then GST will cost you should the tax department read your posting and decide to audit but if your earning less than that nothing to wory about I guess...