Add 10% GST to an ex-GST quote and check the GST-inclusive figure you will actually pay.
Australian builders and trades registered for GST must charge 10% GST on their work. Some quotes, especially from trades who mostly work for other builders, are written excluding GST ("+ GST" or "ex GST"). If you compare an ex-GST quote with a GST-inclusive one you will think the first is 10% cheaper than it really is.
How to use it. Enter the ex-GST figure from the quote. Leave the rate at 10% unless you are checking something else. The result is the price you would pay.
Formula. GST = amount x 10 / 100. Price including GST = amount + GST. To go the other way, a GST-inclusive price divided by 11 gives the GST component.
Worked example (illustrative). A kitchen quote of $45,000 + GST carries $4,500 of GST, so the price is $49,500. A competing quote of $48,000 including GST is therefore $1,500 cheaper, not $3,000 dearer.
Limits. A business with turnover below the GST registration threshold does not charge GST, so its price is the full price. Ask for the ABN and check whether the business is registered for GST on the Australian Business Register. Homeowners renovating their own home generally cannot claim GST back. Consumer contract laws in some states require the contract price to be stated including GST, so ask for a GST-inclusive figure in writing. This is general information, not tax advice.
Worked Estimates and Checklists
How 10% GST applies to renovation quotes in Australia, how to convert ex-GST prices, when a builder does not charge GST, and why homeowners usually cannot claim it back.
