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How to Invoice as a Sole Trader in Australia

A practical, step-by-step guide to creating professional invoices - whether you're GST registered or not. Updated for 2026.

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Everything on this page changes at A$75,000.

The last twelve months or the next twelve, not a financial year.

Under A$75,000

Not registered

  1. 01GST registration is optional - the choice is yours.
  2. 02Do not charge or show GST on any invoice.
  3. 03Your document is a plain invoice - leave off the words "Tax Invoice".

Over A$75,000

Registration compulsory

  1. 01Register with the ATO within 21 days of reaching or expecting to reach the threshold.
  2. 02Charge 10% GST on your taxable sales.
  3. 03Show "Tax Invoice" and your ABN, with the GST as its own line or a statement that the total includes it.

What your invoice should carry

Fourteen fields, in four groups. The last group only applies once you are GST registered.

Your business details

  • Trading name or legal name
  • Physical or postal address
  • Phone number and email
  • Your ABN - mandatory once you're GST-registered, and worth including even if not, so a client doesn't withhold

Invoice identifiers

  • Invoice number or reference - good practice, not an ATO-mandated field
  • Invoice date
  • Payment due date
  • BSB and account number for payment

The work you did

  • Description of the work - specific enough to identify it
  • Quantity and rate, on their own line
  • Line total for each item
  • Date the work was completed

GST and buyer details

  • The GST at 10%, as its own line or a statement that the total includes it - only once you are registered
  • Buyer's identity or ABN, for invoices of A$1,000 or more - regardless of the buyer's own GST registration

For invoices of A$1,000 or more, you need the buyer's identity or ABN - regardless of whether the buyer is GST registered. That one line - the fourth group above - is the field people most often get wrong.

Not GST-registered yet?
If your GST turnover is under A$75,000 you do not have to register for GST. Leave off the words "Tax Invoice" and the GST line - just show your total. Once you reach or expect to reach the threshold, registration is compulsory within 21 days. Check the full Australian tax invoice requirements guide if you are unsure.

Creating your first sole trader invoice

Follow these steps for a professional invoice that meets ATO requirements, GST registered or not.

1

Choose your invoice format

You have three options: invoicing software (recommended), a spreadsheet template, or a paper-based system. Dedicated invoicing software for sole traders handles saved clients, numbering, GST calculations, and payment follow-up more cleanly than a one-off template. Tip: even if you start with a template, switch to software early - it saves hours at tax time when you need to lodge your BAS or report income to the ATO.

2

Add your business details

Put your trading name or legal name at the top, with an address, phone number and email so the customer can reach you and pay you. Once you are GST registered, the ATO also expects your ABN on the invoice.

3

Add client details

Include the client's name and business name. For invoices of A$1,000 or more, you need their identity or ABN - regardless of whether they are GST registered. See the full Australian tax invoice requirements for details.

4

Describe the work or products

List each service or product as a separate line item: a clear description of the goods or services, quantity and unit rate, the line total for each item, and the date the work was completed.

5

Calculate GST, if registered

If you're GST registered, you must add 10% GST and show it clearly on the invoice - either its own line or a statement that the total includes it. If you're not GST registered, do not charge GST and your invoice must not say "Tax Invoice" - registration only becomes mandatory once your turnover reaches A$75,000, current or projected over twelve months.

6

Set payment terms and send

Clearly state when and how you expect payment. Common terms in Australia: due on receipt for immediate payment, due in 7 days for small jobs, or due in 14-20 days as a common term for larger jobs. Include your BSB and account number for direct deposit - the most common payment method in Australia.

5 common invoicing mistakes to avoid

These mistakes slow payment, create disputes, or put you offside with the ATO. Easy to fix once you know them.

NO

Charging GST when not registered

e.g. "Subtotal $500 + GST $50" from an unregistered sole trader

YES

If you're not GST registered, adding GST to your invoice is against the law. Your client cannot claim it, and the ATO may penalise you.

NO

No invoice number

e.g. An invoice with no reference at all

YES

The ATO does not require one, but give every invoice a unique, sequential number anyway. Without it, matching a payment to the right job and resolving a dispute both get harder.

NO

Vague descriptions

e.g. "Services rendered - $450"

YES

Describe what you did clearly - this protects you in disputes and satisfies the ATO's description requirement.

NO

No payment terms

e.g. An invoice with a total but no due date

YES

Without clear payment terms, clients have no deadline. Always state when payment is due and your BSB and account number for direct deposit.

NO

Not keeping copies

e.g. PDFs emailed out and never backed up

YES

The ATO requires you to keep records for at least 5 years. If you are emailing invoices as PDFs, make sure you have backups. Invoicing software solves this automatically.

GST registered vs non-GST invoices

The biggest source of confusion for Australian sole traders. Here is exactly what changes depending on your GST status.

FeatureInvoice titleGST Registered"Tax Invoice"Not GST Registered"Invoice" only
FeatureABNGST RegisteredRequired (mandatory field)Not GST RegisteredRecommended - avoids the payer withholding 47%
FeatureGST amountGST RegisteredMust be shown (10%)Not GST RegisteredMust NOT be charged
FeaturePrice displayGST RegisteredGST-inclusive or show GST separatelyNot GST RegisteredTotal only (no GST breakdown)
FeatureClient can claim GST credit?GST RegisteredYesNot GST RegisteredNo
FeatureGST turnover thresholdGST RegisteredA$75,000 or more in 12 months (mandatory)Not GST RegisteredUnder A$75,000 in 12 months

One thing worth remembering: the words "Tax Invoice" only belong on a document from a GST-registered supplier. If you're not registered, calling your document a tax invoice - even by habit - is the mistake worth avoiding.

Not sure which rules apply to you? Read the full Tax invoice requirements AU guide for more on GST registration thresholds.

Invoice vs quote: when to use each

Two different documents, sent at two different points in the job.

After the job

Invoice

Sent after the work is done - a request for payment, and a legal document. Legally binding, includes payment terms, and required for tax records.

Before the job

Quote

Sent before the work begins - a non-binding estimate, not a demand for payment. Helps win the job, and can be converted to an invoice once accepted.

The full comparison, with what goes on each and how a deposit carries across, is in quote vs invoice.

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Sole Trader Invoicing FAQs

Common questions from Australian sole traders about invoicing, GST, and ABNs.

Do I need to charge GST on my invoices as a sole trader?
Only once your GST turnover reaches A$75,000 in the last twelve months, or you expect it to in the next twelve - at that point GST registration is mandatory and you have 21 days to register. Below that threshold, it's optional. If not registered, do not charge or show GST on your invoices.
What is the difference between an invoice and a tax invoice?
A regular invoice is a request for payment. A tax invoice can only be issued by a GST-registered supplier, for taxable sales over A$82.50, and must show your ABN and the GST amount so the buyer can claim a GST credit. See the full tax invoice requirements.
Can I handwrite my invoices?
Legally, yes. Practically, no. Handwritten invoices are difficult to track, look unprofessional, and create problems at tax time. Free tools like Invio's tax invoice template take less time than handwriting and keep records automatically.
How long should I keep copies of my invoices?
The ATO requires you to keep most business records - including invoices - for a minimum of 5 years from whichever is later of when the record was made or the transaction completed. Digital invoicing software stores these automatically and makes them searchable.
Do I need an ABN to invoice as a sole trader in Australia?
You can technically invoice without one, but if you supply more than A$75 (excluding GST) of goods or services to a business and don't quote an ABN, the payer is generally required to withhold 47% of the payment and send it to the ATO. In practice, get an ABN before you invoice anyone.

Your ABN is not the same as your TFN (Tax File Number) - a TFN is your personal or entity income-tax identifier and should never appear on a customer-facing invoice. Your ABN is the public business identifier that belongs on invoices, quotes, and business correspondence. See our ABN invoicing guide for the full format and withholding rules, or check ato.gov.au for guidance specific to your situation.