Invoicing in Australia is not complicated once you understand the three moving parts: your ABN, whether you are registered for GST, and whether the document should say “Invoice” or “Tax Invoice.” This guide pulls the basics together for freelancers, sole traders, contractors and tradies who want to get paid without creating tax headaches later.
The short version
If you run a small business in Australia, your invoice should make three things obvious: who is asking to be paid, what the customer bought, and whether GST is included. The exact wording depends on whether you are registered for GST.
If you are registered for GST: issue a tax invoice for taxable sales over $82.50 including GST, and use the words “Tax Invoice.”
If you are not registered for GST: issue a regular invoice and do not charge GST or call the document a tax invoice.
If the sale is $1,000 or more: a tax invoice also needs the buyer’s identity or ABN.
Keep records: most business records, including invoices, need to be kept for at least 5 years.
ABN: the number every Australian invoice needs
Your Australian Business Number is the starting point. It identifies your business and helps clients, bookkeepers and the ATO connect the payment to the right supplier.
For sole traders, freelancers and tradies, including your ABN also avoids an awkward problem: if you do not quote an ABN, a business customer may need to withhold part of the payment under no-ABN withholding rules. Put the ABN clearly near your business name so it is impossible to miss.
GST: when it changes your invoice
GST registration is the line between a regular invoice and a tax invoice. The ATO says most businesses must register for GST once their GST turnover is $75,000 or more. Taxi, limousine and ride-sourcing drivers have separate rules and generally need to register regardless of turnover.
Once you are registered, you charge GST on taxable sales, issue tax invoices, and report through your BAS. If you are not registered, you do not add GST to your prices and you should not describe your invoice as a tax invoice.
Regular invoice vs tax invoice
Question | Regular invoice | Tax invoice |
|---|---|---|
Who uses it? | Businesses not registered for GST | Businesses registered for GST |
Main label | Invoice | Tax Invoice |
GST shown? | No | Yes, or a clear statement that the total includes GST |
Client uses it for GST credits? | No | Yes, if it contains the required information |
What to include on an Australian invoice
For a regular invoice
The word “Invoice”
Your business name and ABN
Your contact details
A unique invoice number
The invoice date
The customer’s name or business name
A clear description of the work, products or materials supplied
The amount due and payment instructions
Payment terms, such as due on receipt, Net 7, Net 14 or Net 30
For a tax invoice
The words “Tax Invoice”
Your business name and ABN
The date the invoice was issued
A short description of what you sold, including quantity and price
The GST amount payable or a statement that the total price includes GST
The buyer’s identity or ABN for sales of $1,000 or more
Payment terms matter more than people think
Australian invoice rules tell you what must appear on the document. They do not guarantee fast payment. That part is still on you. Put a clear due date on every invoice, include the payment methods you accept, and make the next step obvious.
For small jobs, Net 7 or Net 14 is often easier to defend than Net 30. For larger commercial clients, Net 30 may be expected, but it should still be written clearly on the invoice.
The practical system
The simplest setup is a repeatable invoice format: same numbering pattern, same line-item structure, same payment terms, same place for GST and ABN details. That consistency makes your business look more professional and makes your records easier to handle at BAS and tax time.
Clervo is built for that workflow: create invoices from your phone, keep client details in one place, track what has been sent, and follow up when payment is overdue.
This article is for general information only and is not tax, legal or accounting advice. Check the latest ATO guidance or speak with a registered tax professional for your situation.
Last updated: September 2026