Hi there, we have a renovation quote structured as follows:
Trade sub-costs: $120,000 (sub-contractor invoices include GST)
Prelims and margin: $50,000 (excluding GST)
GST: $17,000
Total cost: $187,000
Has the GST amount been double paid? should the builder be claiming GST credits for the sub-contractors, and I pay only 10% on the total amount?
The builder should not be invoicing you twice for GST on the subbies costs. The builder does need to charge GST on the subbies costs but on the ex GST cost, not the cost including GST.
What he should be doing is this:
Trade sub-costs (ex GST) $109,090.91 (He will claim a GST credit for $10,909.09 of GST paid to subbies when he does his BAS)
Prelims and margins (ex GST) $50,0000
Sub-total (ex GST): $159,090.91
Add GST: $15,909.09
Total: $175,000
This question has been asked previously on the forum and our GST specialist were consulted at the time. You can review the question and answer for GST rules for builders here. I'm saying the same thing using your numbers.
The builder should not be invoicing you twice for GST on the subbies costs. The builder does need to charge GST on the subbies costs but on the ex GST cost, not the cost including GST.
What he should be doing is this:
Trade sub-costs (ex GST) $109,090.91 (He will claim a GST credit for $10,909.09 of GST paid to subbies when he does his BAS)
Prelims and margins (ex GST) $50,0000
Sub-total (ex GST): $159,090.91
Add GST: $15,909.09
Total: $175,000
This question has been asked previously on the forum and our GST specialist were consulted at the time. You can review the question and answer for GST rules for builders here. I'm saying the same thing using your numbers.
15 Apr 2026 · 4 min read time
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