Do you charge GST on tradie quotes?
If your business turns over $75,000 or more per year, you must register for GST and charge it on every quote and invoice. This isn't optional — it's an ATO requirement.
If you're under $75k, registration is optional. But many tradies register anyway because:
- It looks more professional
- You can claim GST back on tools and materials
- Bigger customers (builders, councils) usually require GST-registered contractors
How to calculate GST on a quote
Australian GST is 10%. So if your labour and materials add up to $1,000, you add $100 GST, and the total is $1,100.
The standard quote breakdown looks like this:
Subtotal: $1,000.00
GST (10%): $100.00
Total: $1,100.00
How to display GST on a quote (the right way)
Your quote should always show:
1. Subtotal (your price excluding GST)
2. GST amount (10% of subtotal)
3. Total including GST
4. Your ABN prominently at the top
If your prices are GST-inclusive, write "All prices include GST" clearly. Don't make customers do the maths — it creates disputes.
Common GST mistakes tradies make
Mistake 1: Quoting GST-inclusive without saying so
If you write "$5,500 to repaint the deck" without specifying, the customer assumes that's the total. If you later try to add GST, you'll lose the job (or eat the cost).
Mistake 2: Forgetting GST on materials passed through
If you buy $500 of paint and charge it to the customer, you still charge GST on that $500. The fact that you already paid GST when buying it doesn't change what you charge the customer. You claim back what you paid as a business expense.
Mistake 3: Not registering when required
The $75k threshold is cumulative across a rolling 12-month period, not financial year. If you hit it mid-year, you need to register within 21 days. Penalties for late registration are nasty.
Tax invoice vs quote
A quote is an offer. A tax invoice is what you send AFTER the job to collect payment. Tax invoices have stricter requirements:
- The words "Tax Invoice"
- Your ABN
- Date of issue
- Description of goods/services
- GST amount (or statement that it's GST-inclusive)
- Total amount
For quotes, the requirements are looser — but including all of the above future-proofs your quotes when they convert to invoices.
Make GST handling automatic
SmokoHQ automatically calculates and displays GST on every quote, with your ABN at the top. No maths, no formatting headaches. Try it free.
Got specific GST questions?
If your situation is unusual (margin scheme, going concern, partial registration), talk to a registered tax agent. The ATO website also has solid resources at ato.gov.au/gst.
The 10% rule covers 95% of tradie situations. Get that right, and you're sorted.