GST - To pay or not to pay ?

Hi members,

The concreter quoted $24,500 + GST to do plain concreting & gravel rocks for my IP's back lawn, area 180sqm.
When I checked up on his ABN, it was state "not currently registered for GST".

1. Does this mean he is not supposed to collect GST from clients ?

2. He said he could only start job in first week of December, and requested for upfront payment of $6000 now for excavation. When concreting starts, another $7000. Third payment of $7000 when finish concrete. Fourth payment of $4500 + GST when complete gravel rocks work.

Is this the normal payment procedure for concreting job ? What things should I look out for ?

3. Concreter said he has many other jobs to fulfil before Christmas. He would start mine in first week of December, then proceed to his other jobs, then back to do mine, and so forth. If he can't complete by Christmas, he would definitely complete in January next year.

Again, is this acceptable ?


I would appreciate members' views on this. Thanking you.

 

It is normal to pay progressively.

If he isnt registsred then reduce your payment for the GST that he has no entitlement to. Just cut the final payment back. He can pursue it and wont get far. I suspect 100% dishonesty if he is quoting inclusive of GST and then not registsred. Perhaps a ATO report will assist their cash economy review of activity. Alternatively is he using multiple entities and quoted with the wrong ABN and merely one ABN he gave you is not the one he will use ? Seems dodgy. Turnover of $26950 is ordinarily a trigger for GST registration at that point in time. The $75K threshold isnt a "past the post" test. If he does little work to not need registration it could be a warning.

 

Have you only obtained one quote? I would get at least one more.

 

Written quote with all his details is a must.
I can't recall about Vic, but I just learned the hard way that in NSW home warranty insurance is compulsory for any home works (yes even concreting), I paid my 50% $13,000 upfront only to watch it drive away (Fairtrading notified but I don't like my chances).

I'm against paying upfront for things like this now, excavation $6,000 no problem, show up and excavate and I will Osko pay at the end of the day, same with each remaining stage....

 

Get at least two more quotes.

 

did you end-up doing it? if not then don't fall for this type of payment terms.