From: Hunter on
A phone company offered me a $10 discount if I bundled with their internet
service. I then find on the bill that I only get -$9.09 for the discount.

Is this legal?

I thought that if prices are advertised without mention of GST then it be
that GST is included. Would this apply to discounts in this case?


From: Rod Speed on
Hunter wrote:

> A phone company offered me a $10 discount if I bundled with their
> internet service. I then find on the bill that I only get -$9.09 for the discount.

> Is this legal?

Yes.

> I thought that if prices are advertised without mention of GST then it be that GST is included.

Not necessarily, most obviously with stuff on which the GST isnt due.

> Would this apply to discounts in this case?

Nope.


From: Noodle on
> > Is this legal?


***ILLEGAL***

Report them to the ACCC:

http://www.accc.gov.au/content/item.phtml%3FitemId=617265&nodeId=3d25fe0761f0a4345117ce6a43c53fdf&fn=GST%2Bbusinesses.pdf
From: Peter Deane on
"Hunter" <hunter(a)grome.zo.oct> wrote in message
news:<i08su1$20a$1(a)speranza.aioe.org>...

> A phone company offered me a $10 discount if I bundled with their internet
> service. I then find on the bill that I only get -$9.09 for the discount.
>
> Is this legal?
>
> I thought that if prices are advertised without mention of GST then it be
> that GST is included. Would this apply to discounts in this case?

The $10 as quoted there does INCLUDE GST. You'll note it's $9.09 of discount
and $0.91 of GST included.

Think about it if you BUY something for $10 (inclusive) you are spending
$9.09 on the product and giving the fed gov't 91c. This discount is the same
as that, it's just that the figures are negative instead of positive.

Regards,
-Peter!


From: SolomonW on
On Mon, 28 Jun 2010 18:22:00 +1000, Doug Jewell wrote:

> Hunter wrote:
>> A phone company offered me a $10 discount if I bundled with their internet
>> service. I then find on the bill that I only get -$9.09 for the discount.
>>
>> Is this legal?
> Yes.
>>
>> I thought that if prices are advertised without mention of GST then it be
>> that GST is included. Would this apply to discounts in this case?
> Assuming the product/service attracts GST, then a price
> stated without mention of GST is GST inc. This applies
> equally to discounts which is what you got. To put it
> another way, you pay a certain amount for your phone
> service, which is inc GST. If you pay that amount less $10,
> it is the inc GST amount which is reduced by $10.
> If you are lucky enough to be able to claim a GST input
> credit, that is a completely different transaction, and is
> irrelevant to the amount you pay the Telco.
>>
>>
>>

It depends on whether the person being supplied is a business or a person.

Business to Business transactions are often quoted in GST EXT