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Deposit invoice in Australia

A deposit invoice asks for part of the price before you start. Here is how to show it, a worked example with GST, and what to check with your accountant.

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What a deposit invoice is

A deposit invoice asks the customer for a part of the price up front, usually before materials are ordered or work starts. When the job is done, the final invoice shows the full price, the deposit already paid and the balance left to pay.

Say how much the deposit is, and when it is due, on the quote first. The quote vs invoice guide shows how one price carries from the quote to the final invoice.

What to show on it

The main tax invoice items
If you are registered for GST and the sale is taxable, the document must meet the tax invoice rules. The main items are the words "tax invoice", your ABN, the date, a description and the GST amount. The full list, including what changes at higher amounts, is on our tax invoice requirements page.
The full price
Show the whole job and its GST so the customer sees how the deposit relates to it.
The deposit
The deposit as a percentage or a fixed amount, with the amount due now.
The balance
What remains after the deposit and when it is due.
How to pay
Your BSB, account number and a reference.

Sources: ATO: tax invoices, business.gov.au: how to invoice, checked 1 November 2026.

A worked example

Sample numbers for one job, for illustration only.

Job price (ex GST)Amount$4,000.00Of which GST
GST at 10%Amount$400.00Of which GST$400.00
Job total (inc GST)Amount$4,400.00Of which GST$400.00
Deposit: 30% of the totalAmount$1,320.00Of which GST$120.00
Balance due on completionAmount$3,080.00Of which GST$280.00

The GST in a GST-inclusive amount is one eleventh of it: $1,320 divided by 11 is $120. The deposit and the balance together carry the full $400.

GST on a deposit

Ask your accountant about timing
The ATO has a ruling on deposits, GSTR 2006/2, and it treats an ordinary deposit that is part of the price differently from a security deposit held until a job is finished. When you report GST on a deposit depends on whether you account for GST on a cash basis or on an accruals basis, and on the kind of deposit. Check with your accountant or the ATO before you report it.

Sources: ATO: GSTR 2006/2 (deposits), ATO: tax invoices, checked 1 November 2026 from search excerpts only, because the ATO site refused a direct fetch.

Some states limit how much deposit you can ask for on building work. See the builder and landscaper templates.

Adding a deposit in Invio

On an invoice
On a new invoice, tick "Request a deposit (optional)" and choose a percentage or a fixed amount. The invoice shows the deposit and what is still to pay after it.
From a quote
A deposit on a quote carries over when you convert the quote to an invoice, as a draft for you to check before you send it.
Paid by card
Your customer can pay the deposit by card when you have card payments switched on.

Questions about deposit invoices

Is a deposit invoice a tax invoice?
If you are registered for GST and the sale is taxable, an invoice for the deposit should meet the tax invoice rules, because it asks for payment of part of a taxable sale. The main items are the words "tax invoice", your ABN, the date, a description and the GST amount; the full list, including what changes at higher amounts, is in the tax invoice requirements guide linked above.
How much deposit can I ask for?
For most work the deposit is whatever you and the customer agree, and you should put it on the quote. For building and some trade work, state law can limit the deposit, so check your state or territory first.
Is a deposit refundable?
That depends on what you agreed. Say in the quote or contract what happens to the deposit if the customer cancels, and get it in writing.
When do I pay the GST on a deposit?
It depends on whether you account for GST on a cash or accruals basis and on the kind of deposit. Ask your accountant, or see the ATO ruling on deposits.

Ask for the deposit. Keep the numbers straight.

Invio carries the deposit from quote to invoice and works out the balance. Start free.

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