The black/cash Economy- is it strong all over Oz?
#1
Forum Regular
Thread Starter
Joined: Mar 2007
Location: Huon Valley Tasmania and near Oxford UK
Posts: 47
The black/cash Economy- is it strong all over Oz?
We are surprised about how many people want cash payment or give one an offer cash vs cheque that it is impossible to refuse, here in Tasmania. Builders, tradies, gardeners, TV repair/antenna etc. Usually a 20% discount is offered for cash and we have had some biggish jobs done by people who will not work for anything but cash- if you do not pay in cash they will not do the job!
Is 20% the right discount amount when you take into account GST and the income tax they may not pay on the money?
When I pay in cash am I breaking the law/tax codes? I do not know the payee is not paying tax on the money.
Is this just Tasmania or is it the same all over Australia?
Is 20% the right discount amount when you take into account GST and the income tax they may not pay on the money?
When I pay in cash am I breaking the law/tax codes? I do not know the payee is not paying tax on the money.
Is this just Tasmania or is it the same all over Australia?
#2
Re: The black/cash Economy- is it strong all over Oz?
All over and no not breaking the law.
They are till suppose to pay tax on the money the earn no matter what discount they give but that is up to them.
Depends on whether you want a receipt or not.
They are till suppose to pay tax on the money the earn no matter what discount they give but that is up to them.
Depends on whether you want a receipt or not.
#4
Joined: Oct 2007
Posts: 9,668
Re: The black/cash Economy- is it strong all over Oz?
But saying that, if someone does cash in hand on delivery of a job, and you don't ask for that receipt, you're not breaking the law, they are if they don't declare it. I think it's pretty rife. It's probably why Aus's economy hasn't taken a total dive.
#5
Re: The black/cash Economy- is it strong all over Oz?
Seems a lot less now compared to decades ago. I live in Brissie.
#6
Forum Regular
Joined: Jun 2009
Location: Karratha WA and Northern Tasmania
Posts: 81
Re: The black/cash Economy- is it strong all over Oz?
We are surprised about how many people want cash payment or give one an offer cash vs cheque that it is impossible to refuse, here in Tasmania. Builders, tradies, gardeners, TV repair/antenna etc. Usually a 20% discount is offered for cash and we have had some biggish jobs done by people who will not work for anything but cash- if you do not pay in cash they will not do the job!
Is 20% the right discount amount when you take into account GST and the income tax they may not pay on the money?
When I pay in cash am I breaking the law/tax codes? I do not know the payee is not paying tax on the money.
Is this just Tasmania or is it the same all over Australia?
Is 20% the right discount amount when you take into account GST and the income tax they may not pay on the money?
When I pay in cash am I breaking the law/tax codes? I do not know the payee is not paying tax on the money.
Is this just Tasmania or is it the same all over Australia?
Just had a 2nd rain water tank fitted and saved ourselves the $800 by paying cash in GST.
A few cashies never hurts
#7
Re: The black/cash Economy- is it strong all over Oz?
Here in SA, I've found that plenty of businesses will give a discount for cash (especially tradies!) Saved ourselves a few hundred over the past year by paying with a handful of notes.
Having said that, we've always received a receipt (yes, even from the tradies!)
Having said that, we've always received a receipt (yes, even from the tradies!)