REIQ Commission Query

[amy21322]

Hi,
I've always believed that, to work out REIQ commission payable on the sale of a property, that you added $18000 to the sale price, divide this by 40, then add 10% GST.
However, if you were to add the $18000 to the sale price, then divide this figure by 36.3636, this will calculate commission, including GST.
Can someone explain how/why this calculation works....I don't even know how I arrived at that 36.3636 figure.
'tis driving me crazy!
Amy

 

[auror]

Let's say something costs $X. (without GST)

With GST, this thing now costs $1.1X

Notice that $X divided by $1.1X = 10/11

And 36.363636/40 is just 10/11

Do you see now how the 36.363636 figure comes about? it's just 10/11 multiplied by 40.

 

[amy21322]

Hi, auror,
Many thanks for the explanation. Makes it all so clear now.
I can sleep easy tonight now.
Cheers
Amy

 

[auror]

no probs, glad to help