topic Re: GST on Billing with Solar credits in Energy Accounts & Plans

GST on Billing with Solar credits

Oldrico — Tue, 05 Feb 2019 01:45:08 GMT

My recent Bill and the 3 previous show a GST amount that is greater than 10% of the sum of the goods and services provided by AGL. The total pre GST takes into account usage, supply, discounts and the feed in from my solar. Total cost $296.39 - GST $ 38.82 BUT this should be $29.64!!

However I fed in $91.83 of energy from my Solar system which is GST exempt

COULD this be the difference between the actual GST charged and what the law states I should be charged??

Guys please if you have a solar system check your bill

Re: GST on Billing with Solar credits

jayden_AGL — Tue, 05 Feb 2019 02:17:04 GMT

Hi Oldrico,

Thank you for bringing this to our attention!

Can I double check how you're calculating your GST? To your point, exported solar power is GST-exempt so this shouldn't factor in. The correct formula is as follows:

Total usage and supply charges - Total discounts x 0.1 = Total GST amount

Kind regards,

Jayden

Re: GST on Billing with Solar credits

Oldrico — Tue, 05 Feb 2019 02:26:45 GMT

Exactly so - New and Total charges should incur a GST amount of 10%.

So WHY do Total Charges of $296.39 incur a GST of $38.82

??????

Re: GST on Billing with Solar credits

jayden_AGL — Tue, 05 Feb 2019 02:35:12 GMT

Hi Oldrico,

Are you sure you're not including your Solar feed-in tariff in this calculation? I'd recommend double checking the 'Credits' section as the total amount of this listed in your bill will include your feed-in tariff which again, shouldn't be included in this calculation.

Feel free to post a screenshot of this portion of your bill, omitting any personal details.

Kind regards,

Jayden

Re: GST on Billing with Solar credits

Oldrico — Tue, 05 Feb 2019 02:47:08 GMT

THIS Is the BILL!!!

New charges and credits.
Usage and supply charges Units Price Amount $383.281 321.653kWh $0.29G General Usage $116.109 0 days $1.29S Supply charge Total charges + $499.38 Credits $91.83cr8 12.689kWh $0.113S Standard Feed-in Tariff* $103.49cr2 7% Direct Debit Discount $7.67cr2 % Double Up Discount $202.99cr-Total credits
Total new charges and credits = $296.39 Total GST + $38.82
Direct Debit amount = $335.21 (includes GST)

To Formatting is also stuffed up

Re: GST on Billing with Solar credits

jayden_AGL — Tue, 05 Feb 2019 03:17:52 GMT

Thanks Oldrico.

To clarify again, this figure of $296.39 includes your solar feed-in tariff which is not what we want.

To correctly calculate your GST, you need to first ascertain your total charges and total credits:

General usage - $383.28

Supply charge - $116.10

- Total charges - $499.38

27% Direct Debit Discount - $103.49cr

2% Double Up Discount - $7.67cr

- Total discounts - $111.16cr

With these figures confirmed, you then follow the above formula: Total usage and supply charges - Total discounts x 0.1 = Total GST amount. Or, in this case:

499.38 - 111.16 x 0.1 = 38.82

Hopefully this clears things up and I apologise if our bills aren't making things clearer.

Kind regards,

Jayden

Re: GST on Billing with Solar credits

Oldrico — Tue, 05 Feb 2019 03:30:15 GMT

I can count!!!

The bottom line of your bill states clearly Total new Charges - $296.39

GST by law is charged for the services that you deliver so GST of 10% for these services applies

And by the way I get a credit for the energy that I sell to you!!

The fact that I reduce the cost of your services by selling my energy too you does not give you the right to charge me for the total amount of energy that I use since some of it is sold to you GST free. so no GST should be payable on this amount.

Now what??

Re: GST on Billing with Solar credits

Oldrico — Tue, 05 Feb 2019 20:33:40 GMT

Now referred to EWOV Not Happy

Re: GST on Billing with Solar credits

jayden_AGL — Tue, 05 Feb 2019 22:32:30 GMT

Hi Oldrico,

Thanks for getting back to me.

Again, I apologise for the fact that things haven't been made clearer but your bill has been calculated correctly. To address your points:

At no point on your bill will it state the the 'Total new charges and credits' amount of $296.39 is the amount used to calculate your GST amount
You'll notice an asterisk next to your Feed-in Tariff, which denotes the fact that this item is not subject to GST
To your point, you have only been charged GST for the goods and services provided to you - your energy usage and supply less your discounts

You're well within your rights to address this with the Energy and Water Ombudsman should you have any outstanding concerns.

Kind regards,

Jayden

Re: GST on Billing with Solar credits

Oldrico — Wed, 06 Feb 2019 23:50:36 GMT

NOT solved

Re: GST on Billing with Solar credits

MervB — Wed, 17 Apr 2019 01:09:38 GMT

I agree, NOT SOLVED

Re: GST on Billing with Solar credits

JonBE — Wed, 27 Nov 2019 06:44:22 GMT

So it would seem the ATO is to blame - https://www.solarquotes.com.au/blog/why-are-solar-owners-charged-gst-on-money-they-never-spent/

That said we do not have to include the solar feed-in tariff as income - https://www.solarchoice.net.au/blog/tax-implications-of-going-solar/.

Swings and roundabouts?

Jon

Re: GST on Billing with Solar credits

Sjbiles — Fri, 28 May 2021 07:38:47 GMT

Hi guys,

similar question on why gst is charged on the value of service pre any discounts or solar tariffs.

one would think (I’ll check with ATO) that’s gst is charged on the total cost less Tarif?

can you please explain and happy for you to direct me to get tax rules?

regards

steve

Re: GST on Billing with Solar credits

Sjbiles — Fri, 28 May 2021 07:41:45 GMT

Oldrico

whats was the outcome as I have similar questions around gst?

Re: GST on Billing with Solar credits

BarryO — Thu, 30 Sep 2021 04:26:35 GMT

Calculation of GST on electricity account allowing for solar feed in?