Your ABN: The Starting Point

An Australian Business Number (ABN) is an 11-digit identifier issued by the Australian Business Register. If you're running any kind of business in Australia — sole trader, freelancer, tradie, contractor — you should have one.

You must include your ABN on every invoice you send. If you don't, your client is legally required to withhold 47% of the payment and remit it to the ATO. That's not a scenario either party wants.

Getting an ABN is free and takes about 15 minutes through the Australian Business Register website (abr.gov.au). There's no turnover threshold — you can apply as soon as you start operating.

GST: Do You Need to Register?

GST — Goods and Services Tax — is a 10% tax on most goods and services sold in Australia. You must register for GST if your annual turnover is AUD $75,000 or more (or $150,000 for non-profit organisations).

Below $75,000, registration is voluntary. Whether it makes sense depends on your clients:

• If your clients are GST-registered businesses, they can claim back the GST you charge — so your prices don't effectively become 10% more expensive to them

• If your clients are individuals or non-registered businesses, they can't reclaim it — so charging GST makes you more expensive

Once registered, you must charge GST on all taxable supplies, issue tax invoices, and lodge BAS (Business Activity Statements) — usually quarterly.

Tax Invoice vs Regular Invoice

In Australia, invoices come in two types:

Tax invoice

Required when you're GST-registered and charging GST. Your client needs it to claim their GST credit. A tax invoice must include:

• The words "Tax Invoice" clearly displayed

• Your business name

• Your ABN

• The date of issue

• A description of the goods or services

• The GST amount — either shown separately or a statement that the total includes GST

• The total price

For invoices of AUD $1,000 or more, you must also include the buyer's identity or ABN.

Regular invoice

If you're not GST-registered, you still issue invoices — but they don't need to be labelled "Tax Invoice" and you don't charge or show GST. Include your ABN, a description of work, and your payment details.

What Every Australian Invoice Should Include

Regardless of GST status, a professional Australian invoice should contain:

• Your business name (or your own name if trading as a sole trader)

• Your ABN

• The invoice date

• A unique invoice number

• Your client's name and address

• A clear description of the goods or services

• The amount charged

• GST amount (if registered) — or a statement that no GST is included

• The total amount due

• Payment terms and methods

PAYG Withholding for Contractors

If you're a contractor working for a business that has voluntarily withheld tax from your payments (PAYG withholding), your invoices need to account for this. The withheld amount is paid to the ATO on your behalf and credited against your annual tax liability.

Most sole traders invoicing businesses aren't subject to PAYG withholding — but it can apply in certain labour hire arrangements. If you're unsure, check with the ATO or your accountant.

Fuel Tax Credits

If you use fuel in your business — particularly relevant for tradespeople, landscapers, and anyone who operates machinery — you may be eligible to claim fuel tax credits on your BAS. Keep records of fuel purchases and the business use of each vehicle or piece of equipment.

Record Keeping Requirements

The ATO requires you to keep business records — including all invoices issued and received — for a minimum of 5 years. Records must be in English (or easily converted to English) and accessible if the ATO requests them.

Digital records are fine — in fact, the ATO encourages them. A good invoicing tool keeps everything organised automatically. Clervo handles the invoice structure for Australian users — ABN field, GST calculation, and a clean digital record of every job you've billed.