How to Create an Invoice in Australia: Free Guide

Invoice or tax invoice? Start with GST

In Australia, the difference between an ordinary invoice and a tax invoice comes down to one thing: whether your business is registered for GST. If you are registered, the invoices you issue for taxable work are tax invoices and must meet the ATO requirements below. Not registered for GST? Use the heading 'Invoice', not 'Tax Invoice', and do not add GST.

Before you create your first invoice, confirm your GST registration status, because every requirement that follows depends on it.

When you must provide a tax invoice

If you are registered for GST, give the customer a tax invoice for taxable sales over $82.50, including GST. If they ask for one, you have 28 days to provide it, regardless of the amount. In practice, many businesses issue an invoice for every job because it keeps records consistent and makes getting paid more straightforward.

The seven details a tax invoice needs (under $1,000)

For a taxable sale under $1,000, the ATO requires your tax invoice to include enough information to clearly determine the following seven details.

1. The document is intended to be a tax invoice.
2. The seller's identity, such as your name or business name.
3. The seller's Australian business number (ABN).
4. The date the invoice was issued.
5. A brief description of the items sold, including the quantity (if applicable) and the price.
6. The GST amount payable, shown separately or stated as 'Total price includes GST' where the GST is exactly 1/11 of the total.
7. A clear indication of which line items include GST and which do not.

Two of those details are your business identity and your ABN. If you're still setting up your business before issuing your first invoice, see our guide to getting an ABN in Australia and our guide to registering a business name.

A simple way to stay organised is to keep line items, quantities, prices and GST together on each row so every detail can be checked at a glance.

Before the invoice is created, you also need to know what you're charging for the work. If you're still working out labour, materials, costs and margins, our guide to pricing a service job without guessing explains a practical way to build your price.

Invoices of $1,000 or more need the buyer's details

For a taxable sale of $1,000 or more, your tax invoice must also show the buyer's identity or ABN. If one invoice covers multiple recipients, you must show the identity or ABN of each recipient. Invoices that meet the higher requirement can also be used for lesser amounts, so many businesses simply include buyer details on every invoice.

Show GST clearly and round it correctly

You can show the GST amount separately on each line, or state that the total price includes GST when the GST is exactly 1/11 of the price. If your invoice mixes taxable and non-taxable items, you must clearly show which items are taxable, the GST to be paid, and the total to be paid.

Your invoicing software should calculate and round GST consistently. If you are working it out manually, follow the ATO's rounding rules.

Add the practical details clients expect

The ATO requirements are the minimum, but a professional invoice also needs the practical details that help clients understand what they're paying for and how to pay: a clear invoice number, the due date, your payment terms, your contact details and the payment method.

Being consistent here makes a real difference to getting paid on time. Set clear payment terms, make the total and due date easy to spot, and keep a record of any prepayments or payments already received.

Digital invoices are fine

A tax invoice does not need to be on paper. You can email a PDF or send another digital format, as long as it contains all the required information and the client can access it. A digital copy also makes record keeping simpler when your business records live on a device rather than in a filing cabinet.

Keep invoices connected to your records

An invoice is not just a request for payment. It is a business record you may need for tax purposes, and for a service business it makes sense to keep it connected to the quote and the job that produced it.

Keep a copy of each invoice. Most Australian business records need to be kept for at least five years.

When an invoice is created from a completed job or accepted quote, the work, line items, GST details and payment status can stay connected from start to finish. This makes it easier to see what has been invoiced, what has been paid and what is still outstanding.

TREVY is designed around this workflow, allowing service businesses to keep quotes, jobs and invoices connected rather than recreating the same information at each stage.

If you only need a standalone document, use the free Australian invoice generator to enter your details directly on an invoice and download an unbranded PDF without creating an account.

A simple invoice checklist

1. Confirm your GST registration status and whether this is a tax invoice or a regular invoice.
2. Label it 'Tax Invoice' if you are registered for GST. Otherwise, label it 'Invoice' and do not add GST.
3. Include your name or business name and your ABN.
4. Add the date the invoice was issued and a unique invoice number.
5. Describe each item sold, including quantity and price.
6. Show the GST amount separately, or state that the total price includes GST.
7. For sales of $1,000 or more, include the buyer's identity or ABN.
8. Add payment terms, due date, contact details and payment method.
9. Keep a digital copy connected to the quote, job and payment record.

If you're still building the rest of your business around your invoicing process, useful next steps include getting your ABN, registering the name you'll trade under and working out how you'll price your service jobs.