How to Write an Invoice for Building Work
Building and construction invoicing has a few extras most trades don't deal with — progress claims, retentions and variations. Here's how to invoice building work correctly in Australia, and where to grab a ready-made template.
Written by InvoiceSonic Editorial Team · Updated 5 June 2026
What to include on a building work invoice
- The words "Tax Invoice" (if GST-registered), your business name and ABN
- The client and the site/job address
- A clear description of the stage of work or materials and labour
- Quantities, rates and amounts per line
- GST at 10% (if registered) and the total due
- Payment terms and your bank/BSB or payment link
Progress claims, retentions and variations
Large jobs are usually billed in stages (progress claims) rather than one final invoice — e.g. deposit, lock-up, fit-out, completion. Each progress invoice should reference the contract and the stage being claimed.
Many building contracts hold a retention (often around 5%) until defects liability ends — show it as a deduction so the client sees the amount withheld. Bill approved variations as separate, clearly-described line items so there's no dispute.
Step by step
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1
Pick a construction invoice template
Start from a builder or construction invoice template so the layout is right.
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2
Add your ABN and the job site
Include your ABN and the site address so the claim is clear and compliant.
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3
Itemise labour, materials and the stage
List labour and materials, and reference the progress stage or variation being claimed.
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4
Apply GST and any retention
Add 10% GST if registered and show any retention held as a deduction.
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5
Send and track
Download the PDF or email it, and follow up on the due date.
Australian tax invoice requirements
A valid Australian tax invoice must show the words “Tax Invoice”, your business name and ABN, the date of issue, a description of the goods or services, the GST amount (or a statement that the total includes GST), and the total price. For sales over $1,000 you must also include the buyer’s identity or ABN.
- Register for GST once your turnover reaches $75,000 per year — see ATO: Registering for GST.
- Without an ABN, the payer must withhold 47% of the payment under PAYG rules (ATO: PAYG withholding). Apply for a free ABN at abr.gov.au.
- Full rules: ATO: Tax invoices.
Or use our create an invoice online to start from scratch.
FAQ
What is a progress claim?
A progress claim is an invoice for a completed stage of a larger building job — for example a deposit, lock-up or completion stage — rather than billing the whole project at the end. Each claim references the contract and the stage being claimed.
How do I show retention on a building invoice?
Show the retention as a deduction on the invoice (commonly around 5%) so the client can see the amount withheld and the net amount payable now. The retained amount is typically released after the defects liability period.
Do builders have to charge GST?
If your construction business is registered for GST (turnover of $75,000 or more), you charge 10% GST and issue tax invoices. Below the threshold you can invoice without GST.