Hi, we are about to engage a builder for renovations and the quote has come in at $600,000. The builder is buying the materials on our behalf and we assume paying GST on the costs so if we breakdown the quotes should we then be paying further GST based on the builders overall quote?
I would have thought the quote is the quote........and i would presume the gst paid by the builder would also get claimed back by the builder in his BAS.....so net cost to builder =$0
......but perhaps the simple thing to do is ask the builder to clarify this point
The average builder either doesn’t understand GST or pretends not to so that they can charge you more. In theory, if they pay $220 for timber, there is $20 GST and the cost is $200. This cost should be passed on to you and when he adds $100 labour he charges $300 plus GST or $330.
He then claims the $20 input credit and sends the ATO $10
Just a silly question, have you considered a knockdown rebuild? Often when the quote is $600k the final cost becomes $750k and you may have been able to build a brand new home for $680k - just food to thought.