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Sole Trader Invoice Australia

What an Australian sole trader invoice needs to include, when it has to be a "tax invoice" instead of a plain one, and a free ABN + GST-ready template to start from.

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At A$75,000 of turnover, your invoice becomes a tax invoice.

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

Under A$75,000

Not GST-registered

  1. 01GST registration is optional - the choice is yours.
  2. 02Your invoice stays a plain invoice, not a tax invoice.
  3. 03Do not charge or show GST.

Over A$75,000

GST-registered

  1. 01Registration becomes compulsory within 21 days of reaching or expecting to reach the threshold.
  2. 02Your invoice becomes a tax invoice - it must say so, and show your ABN.
  3. 03Show the GST as its own line or a statement that the total includes it.

What is a sole trader invoice?

A sole trader invoice is a bill you send to a client for goods or services provided. As a sole trader in Australia, your invoice is how you request payment and create a record for BAS and tax purposes. New to invoicing? Read our complete step-by-step guide to invoicing as a sole trader in Australia.

Whether you can call it a "tax invoice" depends entirely on your GST registration - not on how much you charge. If you're registered (turnover of A$75,000 or more in the last twelve months, or expected in the next twelve), it becomes a tax invoice and must say so, with your ABN and the GST amount. If you're not registered, it stays a plain invoice - you must not use the words "Tax Invoice" and must not show a GST amount, no matter how large the sale.

Pro tip: get every field right the first time - check the 2026 ATO tax invoice checklist before you send.
Quick tip: even if you're not GST registered, keeping proper invoices helps you track income and prepare for tax time - and putting your ABN on every invoice means a business client has no reason to withhold tax from your payment.

What to include on your sole trader invoice

Your business details

  • Trading name or your name
  • Business address
  • Contact details (phone, email)
  • Your ABN - mandatory once you're GST-registered, and worth including even if not, so a client doesn't withhold

Client details

  • Client name or business name
  • Identity or ABN required for invoices of A$1,000 or more - regardless of the buyer's own GST registration
  • Email for delivery

Invoice details

  • A reference or invoice number - good practice, not an ATO-mandated field
  • Invoice date
  • Due date
  • Payment terms, plus BSB and account number

Line items and totals

  • Description of work/goods
  • Quantity and rate
  • GST amount (10%) - only if GST-registered
  • Total due

The fork above covers the short version - the full side-by-side comparison (title wording, ABN, GST line, who can claim it back) lives in the step-by-step invoicing guide. No ABN yet? A client paying more than A$75 (excl. GST) to a business without a quoted ABN is generally required to withhold 47% - see the ABN invoicing guide for the full rule and exceptions.

Frequently Asked Questions

Do sole traders need to charge GST on invoices in Australia?
Only once your GST turnover reaches A$75,000 - this month plus the previous 11, or likely to over this month plus the next 11 - at which point registration is mandatory and you have 21 days to register. Below that threshold, registering is optional. If you're not registered, do not charge or show GST on your invoices. See the full tax invoice requirements.
What's the difference between an invoice and a tax invoice?
In Australia this is a compliance line, not a style choice. 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. If you're not GST-registered, your document is a plain invoice - it must not say "Tax Invoice" and must not show a GST amount, even if the sale is large. Both are valid for requesting payment.
How soon should I send an invoice?
Send your invoice as soon as the work is completed or goods are delivered. Prompt invoicing improves cash flow and looks professional. With Invio, you can create and send invoices from your phone while still on site.
What payment terms should sole traders use?
Common terms are 7 days, 14 days, or "Due on Receipt" - shorter terms typically mean faster payment. If you're thinking about an upfront deposit, check your state's rules first: several states cap deposits for licensed residential trade work by statute (for example NSW limits it to 10% under the Home Building Act 1989), and it can be an offence to ask for more. The cap and the mechanism vary by state, so confirm with your own state regulator before setting a deposit percentage.

Start invoicing as a sole trader today

Invio handles GST calculations, ABN details, and BSB payment fields automatically - and takes bank transfer or card payments from your Australian clients. Free for up to 5 invoices a month, then A$19/month Pro.

Free plan available • No credit card required