Can a sole trader charge GST on total invoice amount which includes Super?

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(Newbie)Newbie

12 Dec 2023

Hello,

I recently subcontracted a job. The subcontractor who is a sole trader with ABN has sent me an invoice. Invoice consists of their hourly wages plus super and GST. However, they have charged GST on Super as well.

They are under the impression that as a sole trader working on a contract they have agreed to a total rate for the work completed. Hence, as a subcontractor if super is paid on the invoice and not directly into their super fund therefore they must charge GST on the total rate agreed upon for the work.

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ChantelleATO

(Community Support)Community Support

13 Dec 2023

Hi @Ashah

GST can only be charged on the service and not the superannuation. As an employer, you should be making the contributions on their behalf, rather than just paying it to the client.

Here is a similar post that I think you will find most helpful.

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ChantelleATO

(Community Support)Community Support

13 Dec 2023

Hi @Ashah

GST can only be charged on the service and not the superannuation. As an employer, you should be making the contributions on their behalf, rather than just paying it to the client.

Here is a similar post that I think you will find most helpful.

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Can a sole trader charge GST on total invoice amount which includes Super?

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