double post.....
"I have a mowing job, can u look at it ? no one lives there but go and have a look at it and call me about the quote,
NO, if your not going to be there so i can explain to you what needs to be done, Get some other puppet
Sooo...................I am new to the game, and havnt "officially" started my buisness yet, but as an accountant, wouldnt you know that as a business owner you need to pay around 40% in income tax, and then 10% GST, which now adds up to 50% of that $20 in tax leaving you $10. Then take away the cost of fuel and wear and tear, by my calculations this clown expected you to work for around $6 an hour???????????? I would not even be able to be polite at this point. I dunno how you guys tolerate the old $20 mow challenge by people. I never even question the price. If I dont like it, I simply call another for a quote rather than insulting a preson by asking them to work for $6 an hour.
I do these sorts of jobs all the time. For a long time the "experts" recond towsville was the place to buy investment properties so i often get calls that i have investment property at this address can you have a look and let me know what needs doing often they dont even ask how much Depending on how busy i am and what the place is like i can often make a nice bit of coin out of it.
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
Hey Tender. Do you try to get some up front payment for these sorts of jobs?
I've done quite a few for absent owners and been lucky getting paid so far, but I'm looking at an apparently big clean up on Saturday and all I know of the owner so far is he's Joe on a mobile. I've knocked back a couple that just seemed too risky, but how can you pick them?
That was the thing that annoyed me the most. As an accountant she would have known the costs involved in running a business. She actually said "I looked up the award rate which is $14 an hour and I know you have expenses, so I am willing to pay $20 an hour".
Don't go near those people!
I have been bitten here and there if there the owners I dont mind at all but was once told they where the owners and where actually tennants moving out. If i go to a place and there is no furniture and i havent been told its move out move in or maintain between tenants i get on the phone if they say yeah where moving out i say yeah well unfortantly i need cash pr a deposit tonight and do it tomorrow for you. If there the owners they will pay.
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
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
Sending them a bill.
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
umm your heart is in the right place,
but . . .
your costs come off your income BEFORE your tax is worked out
and your gst isnt a straight 10%, you only pay to the government 1/11th of your "profit" on a job (the value you added to your costs)
and unless youre TURNING OVER more than 75k a year, you DONT have to even be on GST or charge it, you then get to "keep" all the money, whereas gst contractors DO have to pass on some to the govt
and youd have to be making a HELL of a lot of money to pay 40%
more to the point $20 an hour may be right for fully employed persons (working for council for example) with sick leave holidays tools and vehicle supplied, theyre not taking wate to the dump at their expense etc.
but for a contractor $65 to $90 an hour is closer the going rate these days (depending on what work youre doing, and what the weather is doing to our ability to do the work)
cheers
Thanks happymowin. I must be misreading the stuff on the ato website, or reading in the wrong place. You would still need to pay income tax though on your income up to 75k wouldnt you? If thats the case, then isnt it 30 somthing cents in every dollare and "x" amount for every dollar over 50k you earn?
Hence why I will be paying someone to do my books......................Im not very smart, but can lift heavy things. Computers, tax, paperwork.....bbbrrr.....gives me the jitters
to work out your income tax, you first subtract your COSTS from your Billing; eg
Billed $55,000
costs $20,000
"income" is 35,000
the first 8,000 (i think) is NO TAX
the next x,000 is eg 8 %
the next y,000 is 15 %
then 30 % then 40 % (again dont know details)
and so on, so its only when youre making LOTS of profit that your "marginal rate" is higher than eg 30%
so if you TURN OVER eg 60,000 a year, and claim deductions (expenses) of 20,000 a year, your INCOME is 40,000, of which you prolly only pay 10,000 tax (or less, again im only pulling figs out my ^^%)
it is in "BRACKETS" of income, there are severalk brackets, i dont know what they are lol
and the amount where you HAVE TO be on GST is when you TURN OVER (total charges to cusomters) 75,000 per year,
if youre UNDER that, then you DONT HAVE TO charge gst and can "keep" all the money you can squeeze out of a customer.
for resi customers, if you can say to them "im on GST now and want to charge you 10% extra"; if they WILL PAY IT, you could NOT register (if under 75k t/o) and just keep that price rise anyway, so imo, you have to absorb the gst cost; or "pay it yourself"
if they WONT cop raising the price 10 %; again, you have to absorb it or lose that customer.
business customers (commercial) look at it differently, depending how much they know about GST, cos in truth, they dot "pay" the gst you charge, and if youre not registered, in fact, it is like youre charging an extra 10% and not showing it (when they claim a non gst payment they dont get the gst credit.)
fully confused?
just concentrate on MOWING and let your accountant worry about the figures.
but simply, you DONT HAVE TO BE ON GST till your t/o is 75k a year.
(and i keep mine BELOW that for that and other reasons)
if youre a mowing millionaire, with 3 crews, you got no choice, you have to be on gst and just suck it.
damned liberals and their gst - "the tax we will never bring in" - until theyre in power, and they bring it in.
john howards an a$$ imo
Taxable income
Tax on this income
$1 - $6,000
Nil
$6,001 - $35,000
15c for each $1 over $6,000
$35,001 - $80,000
$4,350 plus 30c for each $1 over $35,000
$80,001 - $180,000
$17,850 plus 38c for each $1 over $80,000
$180,001 and over
$55,850 plus 45c for each $1 over $180,000
off ato website;