Browse Forums General Discussion Re: Builder's margin & GST on provisional items 7Sep 12, 2019 9:15 am The builder's profit margin is the difference between the cost price and the sell price + the difference for claiming and then reapplying GST. I believe that it is fair to say that this is the reasonable understanding that most customers would have. The cost price is often a tradies invoice, the reason why it is invariably cheaper to have items like driveways done after handover due to there being no builder's margin. Your builder's true profit margin is 25%, not 20% because + 20% on $780 is $936, not $975 which would make the final cost with GST $1,029.60, not $1,072.50. If it is stated in the contract that the margin is based on the sell price, then you have to accept it unfortunately but it is unsavoury accountancy. 3in1 Supadiverta. Rainwater Harvesting Best Practice using syphonic drainage. Cleaner Neater Smarter Cheaper Supa Gutter Pumper. A low cost syphonic eaves gutter overflow solution. Re: Builder's margin & GST on provisional items 8Mar 29, 2022 7:52 pm Hi all, I was wondering if my builder did not charge us his 20% builder's margin for building a new home ( as I am working in his company), do I have still pay for the 10% GST included in my quote? Thank you, Josh The best advice is for you to get a competent building consultant to guide you through your build 7 4647 The significant date is when receive final payment invoice Check that section of contract Bit of fluff by builders prior to that 1 15835 |