NSW Bond Claim

I am in the middle of a bond claim situation - The agent has organised for a gardener to mow lawns, weed gardens. However the invoice I have received there is no ABN or register business name.

I have found out the person who did the lawns only does cash jobs, based on this information would I be liable for paying the invoice as I had assumed that tax invoices at least had to include the ABN number?

The agent has advise she is taking this matter to NCAT

Would like to hear your opinions. I thought that tax invoices had to include the ABN?

Also the agent had us complete the entry condition report for her as it was easier for her to get us to do it when we moved in. When I completed the entry condition report I did not record any conditions relating to outside only inside. And the agent took photos on her phone which were not date stamped.

I don't mind paying for the gardener however I want to make sure that all invoices are genuine

 

Tax Invoice signifies that the person is registered for gst (no requirement to register if turnover is below $75k).

An ABN is their business identifier, everyone operating a business enterprise is required to hold an ABN (it's free).

Why is the agent using a cashie?

 

No name and no abn means you need to withhold PAYG from the payment and forward it to the ATO on behalf of the payee if the invoice is for more than $75. No name means that it can't be matched with the payee and so a windfall for the ato. It may also cause problems should you claim the expense.

Withholding if ABN not provided

 

Not sure, the person she had do the yard maintenance is a pensioner which is why he does cash work only.

 

The agent is actively engaging in a scheme to avoid tax, tell them the refund your money as you will not be a party to defrauding the ATO and social services.

The likelihood is that they are uninsured as well.

 

Pay 51.5% of the bill and tell them the other 48.5% will be paid to the tax office and they will need to claim it back from the tax office.
Be nice and polite and maybe drop a line or two that you have been in contact with them if they dont want to give you all your money back.
They cant write out another invoice it you have sent the remainder to the tax office. .

 

Update: agent has applied to NCAT and has confirmed in the NCAT application that the gardener does not have an ABN or a computer and that she created the invoice herself.

So it sounds like she paid the gardener cash for the job, as had a family member call the gardener and he said he only does cash jobs.

Question is it legal to do this from the agents side?

 

Did the work get done or is the agent just pocketing your bond?

@Paul@PFI - creative at the very least IMHO.

 

It is a small country town so she doesn't have a good name around town.

She did say verbally the day we gave notice that she did have a gardener who could do the work and it would probably do $50-60 and the invoice amount was $150

Unsure if work has been completed. If it has been done unsure of how much the Gardner actually charged.

She also wanted some additional yard stuff done which I disagreed to.

Also the day after she did an inspection the RSPCA received a complaint from a local business and which RSPCA had no issue with the condition of our animals.

Agent also has been rather unprofessional with her email replies when we don't agree with her and also had been speaking to other people (our) friends about our tenancy information without our permission or knowledge.

 

Another point that is not so much related the the garden work but more so her conduct is the when we applied for the property she gave us an tenancy application form which another real estate agency had created and she had wrote her business name and mobile number on the very top of the application form but none of the other real estate agency information was crossed or blocked out.

 

Question - was the invoice for more than $75? If so the cost may not be tax deductible to you which is a fairly serious situation as an investor.
Removing tax deductibility of non-compliant payments

 

Invoice was $150

 

Sounds like a scam.

Report it at Unreported 'cash in hand' payments to workers no longer tax deductible

and then, if you are so inclined, send a copy of your email to her, and let her know that you will be using it in your NCAT proceedings in relation to her application, and that you are concerned that the cash contractor may not be appropriately insured, causing unnecessary risk and exposure to the owner of the property.

Further, you should check your lease agreement to see if you are supposed to pay for this stuff, and the owner, not that it's your concern, might have exclusion issues in their landlord insurance policy, in relation to uninsured contractors performing work on the property, which has been expressly implied and endorsed, or not, by the PM.

This would possibly be something that the PM's own insurer, on their claims phone number, might also be letting go through to voicemail, should any unfortunateness occur...

Just imagine if a piano fell out of the sky at the wrong moment, the contractor being toast, the music abruptly stopping, and all the stakeholders trying to grab a chair.

Doesn't sound ideal.

 

There are 2 issues here and you should not mix them IMO.

The first is your duty to pay for / or do yourself, items that relate to your tenancy. ie cleaning, gardening - mowing & weeding etc. The in-going condition report is first filled in by the agent and then you get your copy to fill in witch either agrees or disagrees with the agents. This is an important document as it goes to what needs to be done or not done at the end of the tenancy. Just because there is no mention of the outside does not mean you can escape your responsibilities and not return the outside areas in the same (or better) condition when you return the property, fair wear & tear excluded.

Second is the tax invoice issues. You have already received good advice on this so far.

If you attend NCAT then it will be interesting to see how it goes. Cheers.

 

Agent had us complete the agent side of the condition report for her Which was gone three months after we moved in.

Certainly not trying to get out of paying for gardening however want to make sure the invoice is both legal and genuine.

 

*Done not gone

 

How would you like to be the Land Lord? The tenant could note damage (which did not exist at move-in) to cover themselves if damage is present on move-out. The entry condition report is time critical - and a 3 month one would not be work the paper it is written on.

I'd be reporting this agent too. Normally Fair Trading in your state.

 

Withholding rules only affect business to business withholding and a rental is not an exception. You have no lawful reason to refuse and withhold however you can report the concerns to the ATO as potential evasion. A receipt should show an ABN and may indicate a unregulated provider. The ATO would also have concerns that the REA has assisted by raising a invoice / receipt document. Penalties can be imposed on each of them for failing to maintain records of supplies. Old mate could be done for evasion as well if he doesnt kep records of all work performed and the income.

You do have the right to refuse to allow uninsured and poorly indentified providers to your premises. And you can choose to refuse to allow the costs to be incurred and paid by this dodgy PM.

Time to find a professional real estate agent PM.

 

Update had NCAT telephone hearing today, decided not to mention the taxation aspect of the invoice as wanted a quick hearing and wanted a decision quickly as it has been over 8 weeks.

NCAT ruled in the agent's favour, not overly disappointed as was only $150 deducted from bond + $45 water issue (which I agreed to).