Cashie?

Had a tradesman quote $1,000.00 cash to do some work on the kitchen renovation

He's come back saying that was a cash job, otherwise its $1180.00 +GST

What the..
 
Because the legit method attracts tax - so he bumps it up to get it closer to the net amount that he quoted for the cash job.

Cheers

Jamie
 
Cash job means no invoice, no invoice means no evidence of work done. Consider for yourself whether you're going to start claiming deductions or depreciation for work done without any evidence.

I don't deal with cash operators anymore. I pay my tax, they can pay theirs too.
 
Had a tradesman quote $1,000.00 cash to do some work on the kitchen renovation

He's come back saying that was a cash job, otherwise its $1180.00 +GST

What the..

Yeah, I know some people who have been caught by this. The tradie has left it to the end to advise you of the real deal.

Tradie should have told you right at the start. He should have cleared it up then and there but instead he has added the BS technique.

Pay him by cheque, even a bank cheque if you have to and demand a receipt, otherwise its off to Fair Trading (and the ATO) and you got the evidence that tradie was paid.

Don't get me wrong, I'm all for a cash job, as long as its made clear from the start.
 
My cousin is an electrician and a guy kept trying to talk him into doing a cash job. My cousin kept insisting he worked "invoice only". The guy apparently told him he was lucky, because he works for ATO and would have reported my cousin if he did a cash job. Sounds sus to me.

I just finished renovating a house and the lawnmower, asbestos removal business, paving guy and sparkie all offered two prices... cash only (no invoice) or a higher price + GST (invoice provided). I went the invoice option for all as there is no tax deduction otherwise. And yes, I am aware of the difference between allowable deductions, capital improvements and depreciating assets etc. I use the term "tax deduction" in the generic sense to cover all these ;)
 
Cash jobs in the building industry.....no that doesnt happen!:D

Cost v benefit.

You save $300, if its IP you cant claim. In terms of defects, pretty clear look at the job before you pay him. What can go wrong? a hinge falls off and you get a new one.

No issue from my perspective and it happens all the time.

99% of tradies offer cash jobs.

With us, we develop so we have our own tradies, so if they job is not up to standard, they come back and fix it otherwise, they will not be employed by us or as important 'recommended' by us. It usually the plumbers that mess up.

Cheers Ivan
 
My cousin is an electrician and a guy kept trying to talk him into doing a cash job. My cousin kept insisting he worked "invoice only". The guy apparently told him he was lucky, because he works for ATO and would have reported my cousin if he did a cash job. Sounds sus to me.

I just finished renovating a house and the lawnmower, asbestos removal business, paving guy and sparkie all offered two prices... cash only (no invoice) or a higher price + GST (invoice provided). I went the invoice option for all as there is no tax deduction otherwise. And yes, I am aware of the difference between allowable deductions, capital improvements and depreciating assets etc. I use the term "tax deduction" in the generic sense to cover all these ;)

Almost entrapment, tell the guy from the ATO to go to the local Chinese grocery or $2 shop with the signs that say 'cash only'.
 
There are several legal issues
1. No evidence - oral contract with terms hard to prove. So when things go wrong how do you sue?

2. No warranty - same as above

3. Tax fraud.

4. Insurance issues.

5. Less tax revenue means the non tradies have to pay more tax.
 
Almost entrapment, tell the guy from the ATO to go to the local Chinese grocery or $2 shop with the signs that say 'cash only'.

There is no evidence he was from the ATO. Aside from that, I'm not sure 'entrapment' is a valid defense when breaking the law. My cousin ended up saying something along the lines of: I don't care whether you want an invoice or not, I will write one up and if you don't take it I will throw it in the bin (he keeps a duplicate for tax purposes). Pretty simple really. You either comply with tax legislation or not. If you choose 'not' and get caught, that's on you really.
 
Cashies can be great depending on the circumstances though.

You need to have some faith in the guy or be low risk type work. For our ppor I figured cash was great but once becomes IP I figure there's a better"return" by getting an invoice

Also things "off the back of a truck" can be good deals too...
 
Also things "off the back of a truck" can be good deals too...

Please no, remember what goes around comes around. My friends house was burgled. He is a tradie, 2 days later a truck rolled up to the job .... opened the back and there was his plasma and surround sound system. Lets say he dished out the punishment required.

I would never buy stolen goods....ever.

Cheers, Ivan
 
Almost entrapment, tell the guy from the ATO to go to the local Chinese grocery or $2 shop with the signs that say 'cash only'.

Why Chinese local shop?

I went to one of the most famous Caucasian cafes on Thursday in Melbourne - an absolute institution recommended by Tourism Melbourne and City of Melbourne - and it said "cash only"
 
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