The GST Calculation, Which Avoids GST

Some solar companies deliberately miscalculate the GST, allowing them to unfairly compete with honest companies, as their system prices will be lower. On the downside, the Australian taxpayer loses a lot of revenue via this “trick”. The issue is explained above.

If one now multiplies this $300 difference per job of GST under-calculation by say, 200 installations a year, this means $60,000 of GST has not been declared, and pocketed as additional profit.

So the solar industry faces a double whammy of a) quality solar installers being forced out of the market, as they cannot compete easily with rorting businesses, and b) the ATO and Australian society losing revenue.

Proposed Solution
Have the tax office proactively audit very budget price focused solar companies initially and over time educate the whole industry of their obligations to ensure compliance with the Australian taxation laws.