DEVELOPMENT SERVER
Rules to Being Software Consultants - Dealing with Clients

Is your price:

• $100 per hour + GST (the $100 being the net amount)
• $110 per hour (the $110 being the total amount)

We say the first one. When providing quotes to prospects/clients, it is always better to display the net value + 10% GST rather than the total.

The reasons for this are:

• It avoids any confusion as to whether GST is included.
• This net amount is the REAL cost to the customer, as they get the tax back (in Australia).
• The net value is lower and appears more attractive to the client.
• The 10% GST charged to the client is not income for your company. In Australia, we collect this 10% on behalf of the Australian Taxation Office.
• The client will receive back this 10% GST from the Australian Tax Office when they do their quarterly BAS/GST Return.

The total fixed price total is $AUD 66,000 - please find quote attached.

Bad Example

The total fixed price total is $AUD 60,000 + GST (10%). Please find quote attached.

Good Example

Note : SSW and other Australian companies do not charge GST to external clients outside of Australia.