Im a tradesman and ,so I have been told , that some of us do the odd cashie, not me of course as I am a model citizen ,
and have people often offer to pay cash after the job is complete.
My question is, if you ask for a tradie to do a cashie for you, do you expect to pay his normal hourly rate but no GST, or
do you expect to pay less per hour and no GST as you are paying cash?
What I think a cashie is(as a tradesman) seems to differ to a few people.
Just interested what most people think/expect?
PS cashies and mates rates are 2 different things
It used to be the case before the GST that you would get a discount for cash, and given that you save a bit of money and the guy doing the work is not paying tax and saving a bit, it is/was a fair deal.
Now... it seems like guys are offering to 'do you a favor' by not making you pay GST, but are otherwise entirely avoiding tax. So how does that work? Not really fair.
Being a stubborn so and so, if someone offers me the 'pay no GST deal', I will pay for the work normally, i.e. with a tax invoice expected, or pick someone else just on principle.
On the other hand, if there is a decent discount, then who needs an invoice. Who said I can't be a hypocrite?
I should be more of a smartarse and carry a table with tax rates and work out where we can both save some money 
But if the consumer is saving coin by not paying tax,which the tradie dosent get anyway as it is passed on to the gov,
the consumer wins,
not really any difference to the tradie,he has already paid tax on the materials which have been past onto the customer.
the tax man is the only one that suffers.
So the tradie dosent really get any big savings by not charging the G,well maybe a little, but Im talking about the small 1 or 2 hour jobs,,not building a complete house.
Which avoiding tax is illegal and no one should do.
Just found it intersting as if I ever did a cashie(which I would never do...cough cough) it would have been at a slightly reduced rate and no G.
But speaking to some fellow tradies,,they say usual hourly rate but no G as a cashie means cash so no tax.They said I was crazy dropping my hourly rate as well as no G........um..if I were to ever do it.
I pretty much agree with Formula Nova...
Also depends on the size/cost of the job...
At the very least I expect to save on the GST... but will also be looking for a modest discount on the work given the tradie is not paying ANY tax.
I am looking for them to make a fair dollar profit and me to make a reasonable saving. Again - it's all about achieving the Win/Win formula.
Having said all of that, if the tradie has done me a favour by attending to the job promptly or the job has proved to be a lot more difficult than anticipated, or he's worked his nuts off in the heat, I might throw in a $50 or half a carton as a thank you... never know when you may need them again.
Yeh ,, this is interesting,,
so even though the customer is saving by not paying the G, they feel they should save more as the tradie is winning more.
I would ,if I ever did a cashie, do it as a reduced rate,,but
Isnt the tradie taking a risk being caught not charging tax so should get the better saving for taking the risk of hiding where the materials he has bought went to??The customer is still wining.
^^^That was the question bought up at the tradie meeting.....um..well...at the pub.
When they get there : offer them a coffee/tea/food
When they finish(if they clean up) : give em a beer
= they will come back
= be alot less inclined to charge you over the top
less the Gst is fair win for the client 10% saving
most tradies dont pay as much tax as you would think(compared to payg) if you get them knock thier hourly rate down whats in it for them ?
Bigger jobs should never be done for cash(without contract) anyway, no proof or recourse to who did the job.
I was a tradie for twenty years and always seemed to be how it was and everyone happy although i never did a cash job and didnt declare it(yes thats right big brother never).
Agreed formula,
Yeah,,like I said,,not talking about people trying to getting all their income tax free,,,just interested in what others thought about the 1 or 2 hour jobs...where the customer saves 10% off the job.Has gotta be better than no discount?
And for the no risk buying materials you cant account for(they may get suss when your account for the years shows heaps of the same gear,enough to reno 15 bathrooms) and the "but I dont remember the job" idea .... the ATO dont see that as a resonable answer
Thanks for your replys formula,,,is good to see the customers thoughts on the topic.
Cheers
Never mind discounts for cashies.
I'd be happy to find a tradie that charges the going tax invoice rate and in return actually turns up within a few hours of when they say they will... 
everyone has to remember that the GST that tradie get has to be passed on to
the ATO, So when doing a cash job it should be more than just 10% discount
I've never been big on doing cashies, I know I can make more on my overtime rates guilt free with less hassle.
I don't mind paying cash to others at their full rate without a receipt if I don't need one, what they do with it afterwards is up to them. I think it's just as important to be a good customer as it is a service provider. Once you find someone that does a good job treat them like royalty.
Just remember, it's not the customer who gets audited by the ATO
When being audited by the ATO you are guilty until proven innocent and still guilty after they have been dragged kicking and screaming to that admission(a rare and unlikely outcome).
If they suspect you are doing Cashies then they can make an "Assumption" on the amounts they believe you are receiving and even though this assumption may or may not resemble reality you will still have a sizable tax bill which could end up going back a few years.
With the GST only the customer wins, you're the one who cops a kicking from the ATO for tax evasion.
Regarding Hourly rates, do you think your customer would he drop his hourly rate for half a day at work?
First time I work for someone job is invoiced, no ifs buts or maybes. I dont know them yet and dont know how long there going to take to pay. If they become repeat business (and have passed the attitude test) and they want to pay cash I may knock 5% off. Only really do it for small jobs like under a grand. Other wise you end up with a heap a cash in the house that the wife finds and thats worse than the ATO finding it.
if i'm doing domestic job i often charge cash for labour but i always invoice materials on a job. you can only write so much off as 'stock'
i only ever give a 10% discount for cash (as in no gst) but domestic clients are happy with anything. its not like they can claim the gst back, they have to wear it anyway.....
Your doing the job you determine how much u want to get paid before u even start?
im a carpenter and before i even get out of my car i know how much im gettin whether its cash or not! Its very hard to bargin with someone once you have finished the work especially when there is alot of stingy narks out there
Over the years I've found a small gaggle of really good tradies of various genres whom I trust to do a good, honest job. I never ask for a discount from any of them and I ensure I pay in full at completion of the job. I have no qualms paying the proper rate to get a good job done by a reliable bloke. Once I find a good worker I stick with him. My family has used the same mechanic for over 30 years. The big problem there is that he's going to retire soon. What will we do?
Many of the million dollar mansions are built with a large CASH component in the contract. It seems if you want the cream of the tradesmen you HAVE TO pay cash. No discount!!
Its sorta on topic....
We once did some corporate video work for the ATO. After a film shoot one day, my cameraman went up to the ATO guy, and jokingly offerred to do a better rate for cash! The look on the ATO guy's face was priceless!!!
Suffice to say that the following year, we got audited.................
Pizzes me right off when tradies ask for a cashy (NOTE - they suggest it not I) and act as though they are being generous by knocking off 10%!
Yeh - right skeezbag. I save 10% (on the price no doubt already upped by 10%) and the skeez likely saves 20-30% or more. Who is getting the sweet deal exactly?
No invoice, no record or garauntee on works etc that way. Should be 20% off for customer minimum if they wanna play that way IMO.
Have knocked back a few tradies who have suggested it, as their work and attitude have sucked from the get go, then they pull the "I can do you a favour for cash and knock 10% off" (before they have told me the end figure - should be in real estate or used cars!!).
Makes me feel like reporting the fks that pull that one to the ATO. No I haven't but have been VERY tempted by some of the lazy opportunistic skeezes![}:)]
Good workers with good attitudes a differant cuppa tho.
No I'm not misinterpreting the meaning of "CASH" formula man. They are talking about the folding stuff, I know cause I have to compete against it as a builder that doesn't get those deals.
There's a whole different world out there that most never see
