Good afternoon.
I’ve worked for a company as a contractor for 2 years earning @$35k pa
In 3 weeks time they are changing to a new company name, ABN etc. nothings changed though. My boss asked me to register for GST and claim GST myself, in turn he will pay me a slightly higher rate (5%). As his GST bill is so high. He said we can offset GST with claiming car expenses etc where as he can’t. I’m confused why he just can’t pay the GST instead of increasing my rate.
Basically he gets paid a set $$ per task completed to the business he’s contracted to, and employs a bunch of contractors paying them less than what he’s paid to complete the tasks. So he takes a cut.
From what I can see I don’t need to pay GST as I earn well under the threshold and there is no way I would go close in the future. So do I take the increase and just not claim? But then wouldn’t he still get a bill?
How does it work that he pays me extra to claim GST? How would ATO know?
thankyou.
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