Meaning of GST in a contractual job salary

kremitz · May 2014

What is the meaning of GST if for instance sinabi ng employer na $100 per hour (exc GST)? ang alam ko lang na gst eh yung goods and services tax.

CarlDesacola · May 2014

Kamusta po!

If your employer says they will pay you "$100 per hour (ex GST)", it means that they will pay you $100 plus 10% for GST = $110. The idea is that you are supposed to forward the extra $10 collected to the Australian Taxation Office.

But if your employer says they will pay you $100 per hour (inc GST), it means they will pay you $100. However, you will need to deduct 1/11th as the GST component. In other words, you are actually only getting paid $90.91 plus 10% (ie. $9.01) GST.

I hope that makes sense!

Kind regards,

Carl Desacola
Lawyer | Registered Migration Agent (MARN 1461661)

Winthrop Mason | Business Lawyers & Migration Agents
M 0410 492 751 P (07) 3303 0843 F (07) 3303 0842
E [email protected]

Winthrop Mason Pty Ltd ACN 168 185 886
AMP Place, Level 19, 10 Eagle Street, Brisbane, Qld 4000

www.winthropmason.com.au

Individual liability limited by a scheme approved under Professional Standards Legislation