Payment terms on an Australian invoice
Payment terms say when and how a customer should pay. Put them on the quote and the invoice in plain words, and the chasing gets a lot easier.
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What payment terms are
Payment terms are your conditions for being paid: when payment is due, how the customer can pay, and what happens if they pay late. business.gov.au advises adding them to your invoices and contracts so customers know what you expect.
For a tradie or sole trader, that usually means a due date and your bank details on every invoice. Our guide to payment terms for tradies goes deeper on the trade side.
Sources: business.gov.au: payment terms, checked 1 November 2026.
Common payment terms
business.gov.au gives examples such as payment up front, instalments, on delivery, or after 30 days. These are the terms you will see most often on invoices.
| Term | What it means | Often used for |
|---|---|---|
| TermDue on receipt | What it meansPay as soon as the invoice arrives | Often used forSmall jobs, one-off customers |
| Term7 days | What it meansPay within 7 days of the invoice date | Often used forTradies, repairs, small jobs |
| Term14 days | What it meansPay within 14 days of the invoice date | Often used forThe common default for small business |
| Term30 days | What it meansPay within 30 days of the invoice date | Often used forLarger customers, businesses with accounts payable |
| TermEOM (end of month) | What it meansDue at the end of the month the invoice is issued | Often used forMonthly accounts; an invoice dated early in the month is due sooner than one dated late |
| TermDeposit then balance | What it meansPart up front, the rest on completion or at stages | Often used forLarger jobs; see deposit invoices |
Terms are what you and the customer agree. Put them in writing on the quote, the contract and the invoice, and check any rules that apply to your industry or state.
How to write them on an invoice
Sources: business.gov.au: how to invoice, business.gov.au: payment terms, checked 1 November 2026.
Late fees and interest: be careful
Sources: business.gov.au: write a letter of demand, business.gov.au: what to do when you haven't been paid, checked 1 November 2026.
When an invoice is late, the next steps are in the guide to chasing overdue invoices and the letter of demand template.