Commission on GST

Katrina asks:
(updated on Wednesday, August 07th 2019)

I'm just wondering is it legal for a property manager to charge commision on the GST part of an invoice? I understand it is normal practice but I am concerned about the legality of charging commision on GST.

Our Experts Answer:

Yes, it is legal for a property manager to charge commission on the GST portion of an invoice. If GST is charged separately it is still part of the total charge that the property manager has paid. Alternatively, if the price includes GST, the property manager does not have to recalculate what the charge would have been and charge commission only on the net charge. In short, if your contract specifies that the property manager can charge a commission on bills paid, it is chargeable on the whole bill.

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