How to Invoice as a Sole Trader in Australia (2026 Guide)
Last updated 26 May 2026 · By InvoiceSonic Team · 8 minute read
Quick answer
To invoice as a sole trader in Australia: register a free ABN at abr.gov.au, then issue invoices showing your name (or "trading as" business name), your ABN, a unique invoice number, the issue date, line items with quantity and price, and the total. Only charge GST if you're registered (mandatory once turnover hits $75,000). Use Net 7 payment terms, send as PDF, and invoice within 24 hours of finishing the work.
Try the sole trader invoice generator
Built specifically for Australian sole traders — ABN/GST-ready, no signup, downloads a professional PDF.
Free. No card. PDF in under a minute.
7-step sole trader invoicing guide
Follow these in order. Each step is what the ATO expects from a sole trader plus the practical details that get you paid faster.
-
1
Get an ABN before you issue any invoice
Apply at abr.gov.au — it's free and usually takes minutes. Without an ABN on your invoice, the buyer must withhold 47% PAYG tax. As a sole trader, your ABN is tied to your TFN, not a separate business entity.
-
2
Decide whether to register for GST
Mandatory once your annual turnover hits $75,000. Below that, registration is optional. Register voluntarily only if your clients are GST-registered (then they can claim back your GST) — otherwise voluntary registration creates BAS overhead with no benefit.
-
3
Use the right name on your invoice
If you trade under your own legal name, that's what goes on the invoice. If you registered a business name with ASIC, use "Your Name trading as Business Name". The ABN sits on the line below.
-
4
Set Net 7 or Net 14 payment terms
Sole traders carry the cash-flow risk personally. Net 7 is now the recommended baseline — long terms (Net 30+) are corporate norms, not sole-trader norms. Most clients will accept Net 7 if you state it on the quote up front.
-
5
List the work specifically
Spell out what you did, with quantity. "Web design — homepage and 5 inner pages" beats "Design work". Specificity protects you in disputes and reads as professional.
-
6
Add bank or payment-link details
Include BSB, account number, account name, and a reference (the invoice number). Add a PayID, BPAY biller code, or Stripe/PayPal payment link if you offer them. The more payment paths, the faster you get paid.
-
7
Send as PDF within 24 hours of completion
Never as a Word doc — the buyer can edit it. PDF, sent by email, the same day you finish or within 24 hours. Sole traders who invoice within 24 hours get paid roughly 1.5× faster than those who wait a week.
Do sole traders need an ABN?
Technically you can invoice without one. Practically you cannot — without an ABN on your invoice, the buyer is required by law to withhold 47% PAYG tax. You can claim it back at tax time, but the cash-flow hit makes invoicing without an ABN a non-starter.
An ABN is free, applied for at abr.gov.au, and approval usually takes minutes. As a sole trader, your ABN is tied to your Tax File Number — you're not creating a separate business entity, just registering for business identification.
Exception: a one-off hobby sale can use the "Statement by a Supplier" form instead of an ABN. But if you're invoicing repeatedly, the ATO considers it carrying on a business — and an ABN is required.
GST registration for sole traders
Mandatory threshold: $75,000 in annual turnover. Once your sole trader business turns over $75K in a 12-month period (current or projected), you must register for GST within 21 days.
Voluntary registration: available at any turnover level. Worth doing if your clients are GST-registered businesses (they can claim back the GST you charge, so it's net-neutral for them). Worth avoiding if your clients are individual consumers (they pay 10% more and can't claim it back).
If you register, you must:
- Charge 10% GST on all taxable supplies
- Issue tax invoices (with "Tax Invoice" title) for sales of $82.50+
- Lodge a Business Activity Statement (BAS) quarterly or monthly
- Remit the GST collected to the ATO
If you don't register, you must not charge GST. Adding GST to an invoice when you're not registered is illegal and the ATO can penalise it.
Your name vs trading name
Sole traders have three options for what name appears on the invoice:
Under Australian Consumer Law, if you trade under any name other than your registered legal name, the registered legal name must appear on the invoice with "trading as".
Common invoicing scenarios for sole traders
One-off jobs
Invoice on completion. Net 7 terms. PDF by email within 24 hours of finishing.
Ongoing or retained clients
Invoice monthly on the same date. Group all work for the month into one invoice with dated line items. Net 14 is fine for established relationships.
Deposits and progress payments
For larger jobs (over ~$2,000), invoice a deposit upfront — 30-50% is standard. Mark the invoice "Deposit Invoice" so it's clear from a balance perspective. Final invoice on completion.
Recurring services
Set up recurring invoices that go out automatically on a fixed cadence — InvoiceSonic supports this. State the billing period clearly: "Web hosting — June 2026".
Tax implications
As a sole trader, all invoiced income (less deductible business expenses) is included in your personal income tax return. Your business income is taxed at individual income tax rates — there's no separate business tax return.
Three things to track from day one:
- Income: total of all invoices issued (whether paid or not — accrual basis is the default)
- Expenses: anything related to earning the income (tools, software, vehicle use, home office)
- GST collected and paid: only if registered — these flow into your BAS
PAYG instalments: once you've lodged a tax return showing business income, the ATO may require you to pay quarterly PAYG instalments toward your next year's tax bill. This is to prevent a year-end shock when the tax becomes due.
Record-keeping: all invoices issued must be kept for 5 years. Cloud-backed digital records are accepted by the ATO and recommended over paper.
Payment methods to accept
More payment paths = faster payment. The four worth setting up:
Free sole trader invoice template
Pre-built for Australian sole traders — ABN field included, GST optional, professional layout, downloads as PDF.
Frequently asked questions
Do sole traders need an ABN to invoice in Australia?
Practically yes. You can technically invoice without an ABN, but the buyer is legally required to withhold 47% PAYG tax from your payment. An ABN is free to register at abr.gov.au and tied to your TFN — there is no real reason not to have one as a sole trader.
Do sole traders need to register for GST?
Only if your annual turnover is $75,000 or more. Below that, GST registration is optional. If you do not register, you must not charge GST on your invoices. If you cross $75K, you have 21 days to register.
How do I write my business name on a sole trader invoice?
If you trade under your own legal name (e.g. "John Smith"), that's your business name on the invoice. If you registered a business name with ASIC (e.g. "Smith Plumbing"), use "John Smith trading as Smith Plumbing". The ABN goes on the line below either way.
What information must be on a sole trader invoice in Australia?
Your name and ABN, the buyer's name (and ABN if the sale is $1,000+), a unique invoice number, the issue date, a description of each item with quantity and price, the total payable, and your payment details. If you're GST-registered, also add "Tax Invoice" and a separate GST line.
What payment terms should I set as a sole trader?
Net 7 days is recommended for sole traders — corporate Net 30 terms put too much cash-flow risk on a one-person business. State it explicitly: "Payment due 7 days from issue date". Add a late-fee clause ("1.5% per month on overdue amounts") for clients with a history of slow payment.
How do sole traders handle income tax on invoiced income?
Sole traders include all invoiced income (less business expenses) in their personal tax return at the end of the year — it's taxed at individual income tax rates. The ATO can also require you to pay quarterly PAYG instalments if your previous-year income was over a threshold (around $4,000 of tax owing).
Can a sole trader invoice another sole trader?
Yes — sole traders can invoice individuals, other sole traders, partnerships, companies, or anyone else. The invoice format is the same regardless of who the buyer is. The only adjustment is for sales over $1,000, where you must include the buyer's identity (name or ABN).
Can I invoice without registering a business name?
Yes, if you trade under your own legal name (e.g. "John Smith" rather than "Smith Plumbing"). Australian law only requires a registered business name if you're trading under a name different from your legal name. Sole traders trading under their own name skip this requirement entirely.
How do I invoice for a deposit as a sole trader?
Title it "Deposit Invoice" or "Invoice — Deposit", state what the deposit is for (e.g. "50% deposit for kitchen renovation"), and note that the final invoice will follow on completion. If you're GST-registered, GST applies to the deposit amount on the day you receive it.
Can I send invoices from my phone?
Yes — modern invoice generators like InvoiceSonic are fully mobile, so you can issue an invoice from a job site within minutes of finishing the work. Sole traders who invoice from their phone within an hour of completion get paid markedly faster than those who wait to get back to a desk.
Do I need separate invoices for each client meeting or job?
It depends on your billing cadence. Ongoing or recurring clients are usually invoiced monthly with all services for the month grouped on one invoice. One-off jobs get their own invoice on completion. Either approach is ATO-compliant — pick the one that matches how the client wants to pay.
What's the easiest invoicing tool for an Australian sole trader?
InvoiceSonic is free for unlimited invoices, ABN/GST-ready by default, and built specifically for Australian sole traders. No card required, no setup, generates a compliant PDF in under a minute. Try the sole trader template →
Create your sole trader invoice now
ABN-ready, GST optional, Net 7 terms preset. Free, no signup, PDF in under a minute.
Open sole trader template →