Auctioneers must make it clear to all bidders if bids are being taken on a GST-exclusive basis, Australian Competition and Consumer Commission Chairman, Professor Allan Fels, has warned.
"Auctioneers and vendors who fail to ensure this may face significant consequences under the Trade Practices Act 1974.
"The ACCC GST Price Line [1300 302 502] continues to receive complaints from consumers attending auctions who have been confused about the way in which bids are being taken and the total price they must pay.
"By not including the GST component in the bid prices, consumers only receive part of the price information. If additional information is not provided it is likely that consumers will be misled as to the full price they are expected to pay on the fall of the hammer.
"Conduct that misleads a consumer as to exactly how much he or she will be required to pay is likely to breach the misleading conduct provisions of the Act.
"Although the ACCC has prepared guidelines that give flexibility to auctioneers to use either GST-inclusive or exclusive bid prices, this flexibility should be exercised with caution. For auctioneers that want to avoid the risk of breaching the Act, the ACCC's advice is to use GST-inclusive prices.
"I encourage any consumer who believes that they may have been misled as to the total amount they had to pay at an auction because they were not informed that the bid price was exclusive of the GST to contact the ACCC GST Price Line".
Any business needing more information about price display or how the ACCC can help it comply with the New Tax System, should call the GST Price Line on 1300 302 502, at the cost of a local call.