Understanding taxes on tickes (QF)

[samh004]

I recently booked some flights to MKY, in different sales but with virtually identical prices, and in fact the same fare classes (E). I also booked comfort seats to capitalise on points/SC. However when it came time to pay, the prices were wildly different. Eventually I used the LAN.com e-ticket printer to examine the taxes and found an odd difference.

Fare 166.32
YR 7.00
QR 26.60
QR 26.60
WG 8.92
UO 23.84

Total 259.28


Fare 178.68
YR 7.00
QR 26.60
QR 26.60
WG 8.92
UO 58.80

Total 306.60

The Matrix Airfare Search thankfully tells me what these taxes stand for:

YR - QF YR surcharge
QR - Australian Domestic Passenger Service Charge
WG - Australian Safety & Security Surcharge
UO - Australian Goods & Services Tax

So can someone explain to me how the Australian Goods & Services Tax works (or more importantly, how these taxes work), as I thought it was 10% but it appears to be the wrong total on both of those fares. Importantly the fare went up by $12.36 but the Australian Goods & Services Tax more than doubled. All the other taxes remained the same.

I realise the fare isn’t exact as technically I have a comfort seat without takes applied in there, so I have 2 seats, but if I split the fare in two (as taxes shouldn’t be applied), it still doesn’t add up.

Someone help me out here? I mainly want to know why the massive difference on these 2 tickets, but I also want to know how to calculate this by myself so when I ring I know ahead of time what I’ll be paying, and don’t have a shock when the prices are wildly different.

Red Roo?

 

[whatmeworry]

Not sure, but I do believe a tax be applied to a tax. Eg. GST is applicable to petrol excise.

 

[elbarto]

The GST on 306.60 should only be 27.87. The fare you should be paying is 272.58 incl GST. But yes, you do pay tax on tax. Not tax on tax on tax as you seem to have been charged.

 

[samh004]

The GST on 306.60 should only be 27.87. The fare you should be paying is 272.58 incl GST. But yes, you do pay tax on tax. Not tax on tax on tax as you seem to have been charged.

So I have been overcharged?

I’m not too worried by the slight overcharging if so, it’s more confusing that the prices didn’t come out the same, despite the website giving each set of flights the same price ($84 each way). I want desperately to understand all the taxes ahead of time next time so I know what I should be paying… and not hesitate to speak up if I think a calculation has gone awry.

Anyway, thanks for the help, I think.

 

[elbarto]

Ok, so the way I worked it out was:

Fare 178.68
YR 7.00
QR 26.60
QR 26.60
WG 8.92
Sub Total 247.80 excl GST
GST = 24.78
total owed 272.58

Seems they've stuffed up. The tax amount on the first fare you listed is wrong as well, but it's wrong by a few cents.

 

[ozmille]

Sam can you clear some PM's can't send to you anymore ;-)

 

[samh004]

Sam can you clear some PM's can't send to you anymore ;-)

I’m sorry, my premium subscription hasn’t automatically renewed as usual, though is still active according to my Paypal account so I’m thinking it’s just a Sunday issue. I sent you my email, which will have to do until my account is debited again. Hopefully tomorrow.

Edit: There should be space now.