Cash Jobs

Whether Owner Building, or just having some work done on your new house after handover, you may need to engage tradies to do work.

One question that frequently comes up is “Do you want the Cash Price? or do you want an Invoice?”

Before you go for the discount here are some things to consider:

  • If there is no evidence of a ‘Contract’ there will be no ‘Warranty’. How do you take legal action if there is a problem?
  • If the tradie is willing to do an illegal transaction how sure are you that the work will be done legally and to the correct specification?
  • Electricians and Plumbers should be giving you a Certificate of Compliance. how are you going to get one for an ‘Under the Counter’ job?
  • Is the tradie also ‘forgetting’ to pay his insurance premiums. If he injures himself, or others, you could find yourself liable.
  • By agreeing to pay cash you are conspiring in tax fraud.
  • If the property is an investment property you won’t be able to claim the cost as a deductible expense.
  • Tradies saving on tax means us non-tradies have to pay more tax.
  • The tradie is saving on Income Tax and GST which could add up to 40% of the total cost but probably only offers you 10-15% for cash.

As far as I am concerned I would rather have all the paperwork covered and pay a formal invoice. . . . How about you?

See Choosing a Builder for more posts