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?

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.

Slip me a quiet $50 under the counter, and I'll happily answer that question.

I accept cash payments/transfers into my bank account... This way, they are logged on my business statement and that payment corresponds to the invoice number. And I always give a receipt. Dodging tax is probably an attractive idea but not if the ATO decide to come and audit you!

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.

Seems a lot less now compared to decades ago. I live in Brissie.

I live in Tasmania and never had anyone ask me for cash... I am the one who generally asks "how much for cash".. it has never been an issue for us.

Just had a 2nd rain water tank fitted and saved ourselves the $800 by paying cash in GST.

A few cashies never hurts

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!)