Whoa !!!!!!!!! How much would you pay for this one ???

[Phillbert]

Put 12mths rego and fix a few things, make for a cheap first car for someone - $2000
For that you would have a safe old car to drive in compared to the modern coke can cars. You can still have a bit of fun and cheap to add horsepower if desired.

 

[StephenM]

GST is included in the Hammered bid price, thus why the high "Buyers Premium" as that was brought in when GST came about so as to make sure that the Auction house didn't end up wearing it. The buyer pays it in the form of a passed on fee called a buyers premium.

They sure know how to turn a sale into a win win situation.

Unless the seller was registered for GST, and it was a business car, only the commission is subject to GST. That was the law when I was an ATO GST auditor.

 

[vs-lover]

How MGS do it is that they hit us with a Buyers Premium of 15% to pay their GST component for which they are responsible for. The Buyers Premium was introduced shortly after GST was brought in by the Howard Liberal Government. The original Buyers Premium was around 11% with most Auction Houses, but this has been slowly lifted over time to between 15 ~ 18%, depending on which Auction House you're dealing with.

Now in the case of this VS Commodore the end price was $4,800 for which there is a $480 component that they (MGS) pay to the ATO. The Buyers Premium is 15% which equates to $720 which they hit the buyer for. The GST component that the customer gets hit with is how you suggest is based on the fees only.

So this would have a $72 GST component, thus the end price comes out to,

$4,800 Item Bid price
$720 Buyers Premium
$72 GST on Fees
---------
$5,592 Total Balance