I understand salaries and wages are GST exempt, but I have recently received a trade invoice from an electrician and he is charging me GST on top of his hourly rate and also the hourly rate of his apprentice. Is this OK? Or are salaries and wages only exempt when paid directly to the wage earner?
Standard practice. Only employees receive a salary or wage. Your electrician is not your employee. (and neither is his apprentice). He is supplying a service (GST is a goods and services tax).
The electrician must remit 1/11th of the total invoice to the ATO (as GST).
Standard practice. Only employees receive a salary or wage. Your electrician is not your employee. (and neither is his apprentice). He is supplying a service (GST is a goods and services tax).
The electrician must remit 1/11th of the total invoice to the ATO (as GST).
15 Apr 2026 · 4 min read time
22 Apr 2024 · 6 min read time
15 Apr 2026 · 4 min read time
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