Hi all,
I have had a company and am now down sizing to lower my overheads. I am in the building industry and will close my company and go back to a sole trader. I have my new abn and am thinking of not registering for gst as its probable that my turnover will be less than $ 75 k this year.
Now i realise that i will still pay gst on materials I use on the job and will pass the total cost for materials + gst + my labour cost , without gst. So i.e.
Cost of materials $ 6000
gst on them $ 600
My labour cost $ 5000
total for the job $ 11600
Now i cant claim back the gst on the materials of $ 600, but i can claim back $ 6600 of material cost at end of financial year.
Also I will appear more competative if I don't charge gst on my labour, this case $500.As my jobs are approx. 50/50 materials/ labour I am thinking this may be the way to go.
Also it costs me around $ 250-300 per quarter to get BAS done.
I Have looked up ATO web site but they don't really go into example showing labour/ material break down. Also i suspect they want everyone to be gst reg. as it brings more money in , more often.
Can someone explain there thoughts to me.
- Forums
- General
- not registering for gst
not registering for gst
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, CEO
Anthony Noble
CEO
SPONSORED BY The Market Online