# Forum More Stuff Debate & Technical Discussion  Do allowances include GST?

## cabuckley

Our contract includes a page of 'Builders Allowance Schedule'  for things like carpets, doors, etc. There is nothing mentioned anywhere whether this includes GST or not. We thought that GST should be added onto the allowances made and not included as part of the figure as we are already paying GST on the overall contract. If we have to pay the GST component of the doors, carpet,etc doesn't that mean we're paying for the Goods and Services twice?

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## johnc

> Our contract includes a page of 'Builders Allowance Schedule' for things like carpets, doors, etc. There is nothing mentioned anywhere whether this includes GST or not. We thought that GST should be added onto the allowances made and not included as part of the figure as we are already paying GST on the overall contract. If we have to pay the GST component of the doors, carpet,etc doesn't that mean we're paying for the Goods and Services twice?

  the best advice is to never assume, actually ask if GST is included. you can only be charged GST once, but people can always sruff up numbers so it doesn't hurt to query charges.

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## Bloss

All prices must be GST inclusive - easiest is to ensure you get itemised tax invoices.

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## soundman

When you say " allowances", is the what the builder is declaring that they have "allowed" for the items listed. 
For example, when the builder is costing the job, unless otherwise specificaly specified they will "allow" a nominal figure for certain items that may not have been specificaly chosen or may be changed during the term of the contract. 
So a builder may "allow" $250  per door, which if he is smart and straight up will be a plain simple mid-range door.
When it comes time to purchase the doors for the project, you may not be happy with the generic door, or he may or may not be able to chisel a deal that allows him to supply such a door at the price listed in the "allowances" Or if he is a good bloke he may chisel a deal and supply to you at a lower price than allowed. Smart builders never under-estimate such allowances, this allows then to either pocket a profit or look like a great bloke when they come in under budjet. 
So iff the builder is being smart and straight up, his list of allowances is saying.....I recon these things will be about this much and have been included in the costings. 
SO the allowances should include GST as should the main contract price.......AND if the contract says so, the allowances should already be included in the total price. 
Sometimes, builders will give a price and list "allowances" for extras or options, or things that may occur beyond his controll. 
for example....in relation to excavations, there may be an allowance of $XXX for hitting rock.......it may never happen but it often does and the builder has no way of knowing how much, dealing with the rock will cost till the actual rock is found. 
This is a good one on pool contracts.......hitting rock is often underestimated on dodgy pool contracts and often listed as an "allowance" and extra when the contractor knows damn well they expect to encounter rock and lots of it.  
SO, you need to check the wording of the contract and confirm with your legal advisor. 
cheers

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