How to Make an Invoice in Australia (2026 Guide)

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7 steps to a compliant invoice

Follow these in order. Each step matches what the Australian Taxation Office (ATO) requires for a valid tax invoice, plus the practical details that get you paid faster.

1. 1

   Add your business details

   Start with your business name, ABN (if registered), trading address, contact email, and phone. If you are GST-registered you must include "Tax Invoice" in the document title — otherwise just call it "Invoice".

2. 2

   Add your client's details

   For invoices over $1,000 (GST-inclusive), the ATO requires the buyer's identity or ABN. For invoices under $1,000 the buyer's name is sufficient. Always include their billing email so payment chasing is easy.

3. 3

   Assign a unique invoice number

   Each invoice needs a unique sequential number, e.g. INV-0001, INV-0002. Sequential numbering protects you in an ATO audit and helps you reconcile payments. Never reuse a number — even for amended invoices use a credit note plus new invoice.

4. 4

   Set the invoice date and due date

   Issue date is the day you send the invoice; due date is when payment is owed. The Australian default for B2B is 14 or 30 days. For sole traders, 7 days net is increasingly common to protect cash flow. State your terms explicitly: "Due within 14 days".

5. 5

   List the line items

   Each line: description of the goods or service, quantity, unit price, line total. Be specific — "Plumbing labour, 3 hours @ $120/hr" reads better than "Services". If you supply both GST-free and taxable items, mark each clearly.

6. 6

   Calculate the totals and GST

   Subtotal first, then GST (10% on taxable supplies in Australia), then the total amount payable. If you are not GST-registered, you must NOT show or charge GST — state "No GST has been charged" in the notes. If you are GST-registered, the GST line must be shown separately.

7. 7

   Add payment details and send

   Include BSB, account number, account name, and a payment reference (often the invoice number). PayID, BPAY, Stripe, or PayPal links work too. Send by email as a PDF attachment — never as an editable Word doc, which clients can modify.

What an Australian invoice must include

The ATO has specific requirements for what counts as a valid invoice (or tax invoice). Missing any of these on a tax invoice means the buyer cannot claim a GST credit — and they will come back to you to re-issue.

Source: Australian Taxation Office — Tax invoices

Tax invoice vs regular invoice

The two terms get used interchangeably but they are legally different.

See our free tax invoice template if you need a pre-built tax-invoice format.

GST: when and how to charge it

Goods and Services Tax (GST) is 10% on most goods and services in Australia. You must register for GST once your annual turnover hits $75,000 ($150,000 for not-for-profits). Below that threshold, registration is optional.

If you are GST-registered

• Add 10% GST to the price of every taxable supply
• Show the GST amount as a separate line on the invoice
• Title the document "Tax Invoice" if the sale is $82.50+
• Lodge the GST collected with the ATO via BAS (quarterly or monthly)

If you are not GST-registered

• Do not charge GST. Doing so when not registered is illegal
• Title the document "Invoice" (not "Tax Invoice")
• Add a note: "No GST has been charged"
• If you cross $75,000 turnover, register within 21 days

Need an invoice without GST? Use our no-GST invoice template.

ABN: when you need one to invoice

An Australian Business Number (ABN) is free to register and unlocks the ability to invoice without 47% being withheld. The general rule: if you are running a business, even part-time, you need an ABN before you start issuing invoices.

Without an ABN on your invoice, the buyer is legally required to withhold 47% PAYG tax from your payment and remit it to the ATO. You can claim it back at tax time, but the cash-flow hit is brutal.

Exception: hobbyists making a one-off sale can use a "Statement by a Supplier" form instead of an ABN. But the ATO views regular invoicing — even small jobs — as carrying on a business, and an ABN is required.

See our ABN invoice template for the correct format.

Common mistakes that cost money

The mistakes below are the ones that come up repeatedly in ATO audits and small-claims disputes. Each one is preventable.

• ✕ Forgetting to include the words "Tax Invoice" when you are GST-registered (it must appear if the sale is $82.50 or more)
• ✕ Showing GST when you are not GST-registered — this is illegal and can trigger ATO penalties
• ✕ Reusing invoice numbers, or leaving gaps in the sequence after deleting a draft
• ✕ Sending Word documents instead of PDFs — buyers can edit them, and you lose the audit trail
• ✕ Not stating payment terms ("Due 14 days") — defaults to "reasonable time" in court, which is much weaker than a stated term
• ✕ Listing only "Services" with no description — the ATO can reject vague invoices in an audit
• ✕ Forgetting the buyer's ABN on invoices over $1,000 — required by GST law
• ✕ Sending invoices a week after the work is done — payment lag compounds with invoice lag

Free downloadable invoice templates

If you want to download a template rather than use the live generator, we have pre-built formats in Word, Excel, and PDF for 30+ industries.

Frequently asked questions