RECEiPTS AnD inVOiCES

At the completion of a job plumbers will be keen to make sure the customer pays for the plumbing parts and services provided. Did you know the law requires you to give the customer a proof of transaction? This proof – which is usually a receipt or GST tax invoice – provides a record of the work done by your business and the price paid by the customer, and it also helps customers to keep track of their home maintenance expenses.

When and how to provide a proof of transaction

The Australian Consumer Law (ACL) requires that a proof of transaction must be provided for anything that costs over $75, and so this requirement would apply to the vast majority of plumbing jobs. If the plumbing products or services provided are less than $75, the consumer can ask for a receipt, and the business must provide it within 7 days. Often contracts, invoices and payments are arranged electronically these days, with documents provided via email. As long as all the required details are provided to the customer in writing –either digitally or in hard copy - then you will have met your obligation to provide a proof of transaction. Merely showing a customer the details of the plumbing job on your computer or tablet screen is not considered providing proof of transaction. The customer must be given a copy for their own records.

Required details

The details you must provide in a proof of transaction are:

• the name of your business

• your business’s ABN or ACN

• the products and services provided to the customer

• the date the plumbing job was done

• the price of the job.

The invoice or receipt generally does not need to list in great detail every single component of the job or the parts supplied. As long as it provides an accurate and clear description of the plumbing job, then this will usually suffice.

However, if the customer asks for an itemised bill then you must provide it within seven days. Consumers have the legal right to ask for an itemised bill within 30 days of supply of the services or receiving the original bill, whichever is later. An itemised bill must show:

• how the price was worked out

• the number of labour hours and hourly rate, if relevant

• a list of materials used and the amount charged for them, if relevant. The bill must be in plain language, legible and clear. you cannot charge the customer for providing the itemised bill.

Penalties

The maximum civil penalties under the ACL are $15,000 for a company or $3,000 for an individual for:

• not providing a proof of transaction, or not providing it within the required time

• not providing an itemised bill, or not providing it within the required time

• charging a customer for an itemised bill.

Issues for customers

When consumers contact Consumer and Business Services (CBS) for advice about concerns with a plumbing job, the information provided in an invoice or receipt can be a key part of considerations about the matter. It is often in the plumber’s best interest as well as consumers’ to make sure that any paperwork relating to a job is clear about the nature of the plumbing job and the price paid.

More information

For more information about requirements for invoices and receipts and other general advice about running a business please visit sa.gov. au/topics/business-and-trade.