How to Create an Invoice in Australia: GST, ABN and What to Include

Getting your invoices right means fewer questions from customers, fewer headaches at tax time and, most importantly, getting paid faster. Here’s what to include, when the tax invoice rules apply and how to set payment terms that work.

What every invoice should include

• Your business name and ABN. Use the name customers know you by.
• Your contact details. Phone, email and address make it easy for customers to get in touch.
• A unique invoice number. Number invoices in order, such as INV-0001, INV-0002.
• The date of the invoice and the due date.
• The customer’s name and contact details.
• A clear description of what you supplied, with quantities and prices.
• The total amount owing, including any GST.
• How to pay, such as bank details, PayID or a card payment link.

When does it need to be a tax invoice?

If you’re registered for GST, your invoices for taxable sales should be tax invoices. A tax invoice needs a few extra details:

• The words “Tax invoice”, shown clearly at the top.
• Your business name and ABN.
• The date it was issued.
• A brief description of what you sold, including the quantity and price.
• The GST amount, or a statement that the total includes GST.
• For sales of $1,000 or more, the customer’s name or ABN.

If a customer asks for a tax invoice for a taxable sale over $82.50 (including GST), you need to provide one within 28 days.

Not registered for GST?

You can still send invoices. Just don’t add GST and don’t call it a tax invoice. Many sole traders add the line “No GST has been charged” to make this clear. You must register for GST once your GST turnover reaches $75,000 a year. Our sole trader invoice template is set up for businesses that aren’t registered.

Why your ABN matters

Always put your ABN on your invoices. If you don’t, a business customer may have to withhold 47% of your payment and send it to the ATO, unless an exception applies. That’s a big hit to your cash flow for a small oversight.

How to create an invoice, step by step

1. Pick a template or tool. Use a free template or invoicing software, rather than starting from a blank document each time.
2. Add your business details and logo once, so they appear on every invoice.
3. Enter the customer and what you supplied, with quantities, prices and GST if it applies.
4. Set the due date and payment options. The easier it is to pay, the faster you’ll be paid.
5. Send it promptly, ideally the same day the work is done, and keep a copy.

Payment terms that get you paid faster

• Keep terms short and clear. 7 or 14 days are common for small businesses. Put the due date on the invoice, not just “14 days”.
• Make paying easy. A pay-by-card link in a text message is much quicker for customers than copying bank details.
• Send reminders. A polite reminder just before and after the due date catches most late payers.
• Take deposits on bigger jobs, so you’re not out of pocket for materials.

Keep good records

Keep copies of the invoices you send for at least five years, along with your other business records. Invoicing software does this automatically, and makes it easy to see who still owes you money.

This guide is general information, not tax advice. Check the ATO website or talk to your accountant about your situation.

Frequently asked questions