There was a thread on this a while back, but didn't answer my question satisfactorily, plus I have some additional questions.
I got a quote from a builder to build a new house with a fixed price contract which lists a bunch of items including labour, materials, council fees, geotech fees, etc., and then he's added GST to the whole lot. This seems wrong to me.
First: I get that when a builder buys materials, he may or may not add on a markup and if he does then he is required to charge GST on them. That's fine, although surely he should only be charging GST on the markup, not the ((Materials + GST) + Markup) + GST? Otherwise, the government is making a killing off this and the end consumer pays a heap of extra tax.
Second: I don't believe the builder should be charging GST on council fees or geotech fees as he's not onselling them or adding a markup. Is this correct?
Thirdly: If the builder agrees that I should buy some of the materials myself (i.e. kitchen appliances) he should deduct those from his quote, correct?
Any info appreciated. Thanks.
I got a quote from a builder to build a new house with a fixed price contract which lists a bunch of items including labour, materials, council fees, geotech fees, etc., and then he's added GST to the whole lot. This seems wrong to me.
First: I get that when a builder buys materials, he may or may not add on a markup and if he does then he is required to charge GST on them. That's fine, although surely he should only be charging GST on the markup, not the ((Materials + GST) + Markup) + GST? Otherwise, the government is making a killing off this and the end consumer pays a heap of extra tax.
Second: I don't believe the builder should be charging GST on council fees or geotech fees as he's not onselling them or adding a markup. Is this correct?
Thirdly: If the builder agrees that I should buy some of the materials myself (i.e. kitchen appliances) he should deduct those from his quote, correct?
Any info appreciated. Thanks.
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