Proposals · Glossary
Do quotes need to include GST in Australia?
If you are registered for GST, your quote should make clear whether prices include the 10 percent GST, and prices to consumers should generally show the total including GST. A quote is not a tax invoice, so it has no required GST fields, but an unclear quote causes disputes at invoice time. If you are not registered, do not add GST.
A quote does not have to follow the tax invoice rules, but the GST question still decides what the customer thinks they agreed to pay. Getting it right on the quote saves an awkward conversation when the invoice arrives.
Nuwan Madhusanka · Co-founder
4 min read · Published
A quote is not a tax invoice
The ATO sets out what a tax invoice must contain: that it is intended to be a tax invoice, the seller's identity and ABN, the date, a description of what was sold, the GST amount or a statement that the total includes GST, and for sales of 1,000 dollars or more the buyer's identity or ABN. Those rules apply to the invoice, not the quote. A quote can be laid out however you like. What matters is that the customer can tell exactly what they will pay, because that becomes the contract price when they accept.
Inclusive or exclusive
Two conventions exist. Business to business quotes are often written exclusive of GST, with GST added as a separate line, because the buyer will claim the GST back as a credit and thinks in exclusive figures. Quotes to consumers should generally show the total including GST, since consumers cannot claim credits and the Australian Consumer Law requires the total price to be stated prominently in many situations. Either way, say which it is. Plus GST in small print beside a large number invites a dispute.
Worked example
A painter quotes 4,000 dollars of labour and 600 dollars of paint, exclusive of GST. The subtotal is 4,600 dollars, GST at 10 percent is 460 dollars, and the total is 5,060 dollars. Written inclusive, the same quote shows a total of 5,060 dollars and notes that it includes 460 dollars of GST. Both are correct. What is not correct is showing 4,600 dollars to a homeowner and adding 460 dollars on the invoice without the quote saying so.
Not registered for GST
You must register for GST once your GST turnover reaches 75,000 dollars a year, or 150,000 dollars for a non profit, and taxi and ride sourcing drivers must register regardless of turnover. Below the threshold registration is optional. If you are not registered, you cannot charge GST, so your quote should not show it, and your invoice will not be a tax invoice. Saying no GST charged as not registered is a helpful line for business buyers.
Where it shows up in the product
The default currency is AUD, and the tax label is GST for AUD and NZD. Each item can carry a tax rate, and the pricing table's summary shows the tax line, which reads Includes GST when the proposal is set as tax inclusive, followed by the Total. The Tax column shows only when an item has a rate and the toggle is on. The AI chat can set the tax rate as one of its pricing operations, and the invoices created at acceptance carry the same items and tax.
Questions people ask
Is it illegal to quote prices without GST?
Not in itself, particularly between businesses. But when you quote a consumer, the Australian Consumer Law generally requires the total price, including taxes, to be shown prominently if you show part of a price. Quoting a consumer an exclusive figure and adding GST later risks a misleading pricing complaint. State clearly whether GST is included.
Do I need my ABN on a quote?
It is not required on a quote, but including it helps business buyers check that you are registered and makes the later invoice consistent. Your ABN is required on a tax invoice. Many businesses put their business name, ABN and contact details in the header of every quote, proposal and invoice for that reason.
How do I show GST on a quote with optional items?
Apply GST to each item, including optional ones, so the total stays correct whichever extras the client chooses. Show the GST amount on the summary, recalculated from the selected items. Inconsistent handling, such as optional items quoted exclusive while the core is inclusive, is a common source of mismatched invoices.
What if I register for GST after sending a quote?
If the quote did not include GST and the client accepted it, adding GST later is effectively a price increase, and the client may not agree. If your registration is imminent, say in the quote that GST will be added from the registration date, or price it inclusive. Talk to your accountant about the timing.
Are all goods and services subject to GST?
No. Some supplies are GST free, such as most basic food, some medical and health services, and some education courses, and others are input taxed, such as residential rent and many financial supplies. The ATO lists the categories. If part of your quote is GST free, show it as a separate item without GST.
Make one with proposals
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Create a proposal with OneCraftRelated questions
- Do I need an ABN on my invoice?Do I need an ABN on my invoice? Tax invoices must show it, and business clients may withhold 47 percent from payments without one. When and where to show it.
- How to price a proposalHow to price a proposal step by step: cost the work, add margin, choose fixed or itemised pricing, offer options, and set tax, deposit and validity correctly.
- What is a tax invoice?An Australian tax invoice must carry seven specific details, and more above one thousand dollars. What the ATO requires, and the thresholds that decide it.
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