Quote templatesGST on quotes

GST on quotes: a guide for Australian tradies

Getting GST wrong on a quote either costs you 10% of the job or confuses the customer. Here's how to show it clearly, plus a calculator for adding GST or taking it out.

Make a quote with GST done for you

GST calculator

Australian GST is 10%. To add it, multiply the price excluding GST by 1.1. To find the GST inside a GST-inclusive price, divide by 11.

Do you need to charge GST?

You must register for GST once your business's GST turnover is $75,000 a year or more, and you can choose to register below that. Once registered, you charge GST on your taxable sales and can generally claim credits for the GST in your business purchases. If you aren't registered, you don't charge GST at all. Check your own situation on the ATO's GST registration page or with your accountant.

How to lay out GST on a quote

Your business name and ABN at the top, so the customer can see who is quoting.
Line items for labour, materials and any callout fee, priced excluding GST.
A subtotal excluding GST, then the GST amount on its own line.
The total including GST, shown clearly as the price the customer pays.
If you're not registered, no GST line, and a note that no GST is charged.

If you show part of a price (for example a price excluding GST), make sure the full price including GST is shown at least as prominently. The ACCC's pricing rules cover this for sales to consumers.

Materials markup and GST

If you're registered, enter materials at the price you paid excluding GST, add your markup, and then add GST once to the quote total. Here's a worked example for a GST-registered tradie with a 15% materials markup:

Labour: 6 hours at $95 = $570.00
Materials: $400.00 cost excluding GST, plus 15% markup = $460.00
Subtotal excluding GST: $1,030.00
GST (10%): $103.00
Total including GST: $1,133.00

The customer sees $460.00 for materials. Your cost and markup never appear on the quote. QuoteAce does exactly this for you: it adds your markup to materials only, never labour, then works out GST. Try the materials markup calculator to compare markup and margin.

Quotes and tax invoices are different

A quote is your offer before the job. When the work is done and you bill it, a GST-registered business issues a tax invoice, which has its own required details (including your ABN, the words "tax invoice" and the GST amount or a statement that the total includes GST). See the ATO's tax invoice rules.

Common questions

Do I add GST to my quote if I'm not registered for GST?

No. If you aren't registered for GST you can't charge it, so don't add a GST line. Many tradies write "Not registered for GST" on the quote so the customer knows the total is the full price.

Should my quote show prices including or excluding GST?

Either way can work, as long as the customer can clearly see the total they'll pay. A common layout is line items excluding GST, then a subtotal, the GST amount and the total including GST. For homeowners, make the GST-inclusive total the most prominent number.

How do I work out the GST in a GST-inclusive price?

Divide the GST-inclusive price by 11. For example, a $1,100 price includes $100 GST, and the price excluding GST is $1,000.

Is a quote the same as a tax invoice?

No. A quote is an offer before the work. A tax invoice is issued for the sale and has its own required details, such as your ABN and the words "tax invoice". Check the ATO's tax invoice rules for what yours must include.

Do I add my materials markup before or after GST?

Before. If you're registered, you generally claim the GST you paid on materials as a credit, so work from the GST-exclusive cost, add your markup, then add GST to the quote total. Adding markup on top of GST means charging margin on tax.

Quote templates for your trade

Job-by-job guides

General information only, not tax or legal advice. Check with the ATO or your accountant for your own situation.

Price excluding GST	$1,000.00
GST (10%)	$100.00
Total including GST	$1,100.00