Free Template

Sole Trader Invoice Template

Create professional invoices for your sole trader business. Simple, compliant, and ready to use.

Common services billed with this template

Typical use cases for the sole trader invoice template:

  • ✓ Trades (plumbing, electrical, carpentry, painting)
  • ✓ Mobile services (car detailing, mobile mechanic, pet grooming)
  • ✓ Health and wellness (massage, personal training, yoga)
  • ✓ Creative freelancing (writer, designer, photographer)
  • ✓ Consulting and bookkeeping
  • ✓ Cleaning, gardening and handyman work

Typical line items

Fields you'll usually include on this invoice:

  • ✓ Your trading name (or legal name if no trading name)
  • ✓ Your ABN — always required for sole traders
  • ✓ Service description with date performed
  • ✓ Hourly rate × hours, or flat fee per job
  • ✓ GST (if registered) on a separate line
  • ✓ Total in AUD plus payment details

Standard Payment Terms

Net 7 or Net 14 — sole traders are typically smaller operations so shorter terms protect cash flow.

Invoicing Tips

  • ✓ Use your personal name or registered business name — sole traders don't need a separate company
  • ✓ Register for GST voluntarily before hitting $75,000 if your clients are GST-registered (they can claim back the GST)
  • ✓ Issue invoices the day work is completed — long delays make follow-up awkward
  • ✓ Set up PayID against your business account for instant payments
  • ✓ Track everything in one place to make tax-time easier

Common Mistakes to Avoid

  • ✓ Mixing sole-trader income with personal payments in the same bank account
  • ✓ Forgetting that you're personally liable — there's no company shield for sole traders
  • ✓ Not setting aside ~30% of each invoice for income tax and GST
  • ✓ Issuing handwritten or unprofessional invoices that delay payment
  • ✓ Skipping invoice numbering — required for ATO record-keeping

Frequently Asked Questions

What's the difference between a sole trader and a company invoice?

A sole trader invoices under their personal name (or registered trading name) using their personal ABN. A company invoices under the company name with the company ABN (and ACN). Sole traders have unlimited personal liability; companies don't.

Do I need a separate business bank account?

It's not legally required for sole traders, but strongly recommended. It makes BAS, GST and tax much easier and looks more professional to clients.

How much tax should I set aside per invoice?

A rough rule for Australian sole traders: 30% of every invoice (covers ~25-30% income tax + 10% GST if registered). Adjust based on your tax bracket. Use the ATO's PAYG instalment system to smooth payments.

Can I invoice in another currency?

Yes — for overseas clients you can invoice in USD, EUR, etc. Convert to AUD using the ATO's daily rate for your BAS and tax return. Exports are generally GST-free.

What if a client doesn't pay?

Send a reminder at 7 days overdue, a follow-up at 14 days, and a final notice with mention of debt collection at 30 days. Small-claims tribunals in each state handle disputes under ~$10k cheaply.

Related Invoice Templates

Skip the template and build it live with our free invoice maker — free PDF, ABN & GST included.