Invoicing as a sole trader in Australia turns on one question: are you registered for GST? If you are, you issue a tax invoice with seven required details. If you are not, you issue a regular invoice with no GST on it. This guide gives you both checklists, two worked invoices, and the thresholds that decide which one you send.
Search intent: you need to send a correct invoice today, with your ABN in place, the right label, and GST handled for your registration status.
Rates last reviewed: October 2026. Figures are checked against the Australian Taxation Office (ATO) tax invoices guidance and the ATO registering for GST guidance, which set the A$82.50 and A$1,000 tax invoice thresholds and the A$75,000 GST turnover threshold.
What is the difference between an invoice and a tax invoice in Australia?
A tax invoice is the document only a GST-registered seller can issue for a taxable sale, carrying the specific details the ATO requires so the buyer can claim a GST credit. A regular invoice is what you issue when you are not registered: it shows no GST and is headed Invoice.
Get the label wrong and the consequences run both ways. A non-registered trader who heads a document Tax Invoice and shows GST is charging tax they cannot collect. A registered trader who sends a plain invoice leaves a business client unable to claim their GST credit, and accounts teams will send it back.
| Feature | Regular invoice (not GST-registered) | Tax invoice (GST-registered) |
|---|---|---|
| Heading | Invoice | Tax invoice |
| GST line | None. Add the words No GST has been charged | GST amount shown, or Total price includes GST where GST is exactly one-eleventh of the total |
| Your ABN | Include it | Must include it |
| Buyer identity or ABN | Good practice, not an ATO tax invoice rule | Required when the total is A$1,000 or more including GST |
| Buyer can claim a GST credit | No, there is no GST in the price | Yes, for purchases over A$82.50 including GST, per ATO guidance |
| When it is required | For any sale where you ask for payment | For a taxable sale, and within 28 days if a customer asks for one |
For the rate and registration background behind this table, read our Australia GST guide, which covers the 10 percent rate, GST-free and input-taxed supplies, and the turnover test in full.
What must a tax invoice include in Australia?
For a taxable sale under A$1,000, an Australian tax invoice must clearly show seven things: that it is intended to be a tax invoice, your identity, your ABN, the date it was issued, a brief description of what you sold including quantity and price, the GST amount payable, and the extent to which each item is taxable.
The ATO list, in the order it appears on a well-built invoice:
- Intended to be a tax invoice. The words Tax invoice, prominently at the top.
- Your identity. Your name or registered trading name as a sole trader.
- Your ABN. The Australian Business Number of the entity that made the sale. As a sole trader that is your own ABN, tied to your name.
- Date issued. The date you issued the invoice, not just the date the work was done.
- Description, quantity and price. A brief description of each item sold, with quantity where it applies and the price for each line.
- GST amount. Shown separately per line or as a total, or replaced by the statement Total price includes GST, but only where the GST on the invoice is exactly one-eleventh of the total price.
- Extent taxable. Enough information to show which sales are taxable, which matters most on a mixed invoice with taxable and GST-free lines.
Two threshold rules sit on top of that list. For sales of A$1,000 or more including GST, add the buyer’s identity or ABN, so a template that always includes buyer details covers both cases. And if a customer asks for a tax invoice, provide one within 28 days, unless the sale is A$82.50 or less. That figure matters on the buying side too: clients generally need a tax invoice to claim a GST credit on any purchase over A$82.50, per the ATO guidance on when you can claim a GST credit.
You can build every field above in minutes with LancerBill’s invoice generator, then check any GST total with LancerBill’s GST calculator before you send it. A digital invoice, including a PDF sent by email, is valid as long as it contains all the required information, per ATO guidance.
Tip: Add your invoice number, due date, and payment details (account name, BSB, account number and the invoice reference, or your PayID) to every invoice. None of those are on the ATO’s seven-item list, but they are what actually gets you paid without a follow-up email asking how to pay.
Worked example: a GST-registered sole trader tax invoice, step by step
Assumptions: Australia, October 2026, a GST-registered sole trader electrician in Brisbane invoicing a property manager for a completed job. All figures are in Australian dollars. The total is over A$1,000, so the buyer’s identity is shown.
| Line | Working | Excl. GST | GST at 10 percent | Incl. GST |
|---|---|---|---|---|
| Labour: switchboard upgrade, 6 hours | 6 x A$110 | A$660.00 | A$66.00 | A$726.00 |
| Materials: switchboard, breakers and cable | At cost | A$540.00 | A$54.00 | A$594.00 |
| Totals | A$1,200.00 | A$120.00 | A$1,320.00 |
The arithmetic, checked line by line:
- Labour GST: 660 x 0.10 = 66. Including GST: 660 + 66 = 726.
- Materials GST: 540 x 0.10 = 54. Including GST: 540 + 54 = 594.
- Invoice GST total: 66 + 54 = 120. Invoice total: 1,200 + 120 = 1,320.
- Cross-check with the extraction rule: 1,320 / 11 = 120. The GST inside an inclusive total is always one-eleventh, which confirms the total.
On the document, the header reads Tax invoice, followed by the trader’s name and ABN, the issue date, the property manager’s name and ABN (required here because the total is A$1,320, at or above the A$1,000 line), the two lines, the GST total of A$120, and A$1,320 payable. Showing the A$120 figure is clearer for the client’s BAS than writing Total price includes GST.
That A$120 is not income. It is GST collected for the ATO, reported on the next Business Activity Statement and reduced by GST credits on business purchases. Our guide to how to write an invoice covers the layout around these tax fields.
How do you invoice if you are not registered for GST?
If you are not registered for GST, head the document Invoice, include your name and ABN, describe the work with quantities and prices, show the total with no GST added, and add the words No GST has been charged so a business client does not try to claim a credit that does not exist.
Same trade, smaller job, different document. A non-registered sole trader handyman in Perth completes a day of repairs for a homeowner:
| Line | Working | Amount |
|---|---|---|
| Labour: repairs and painting prep, 7 hours | 7 x A$65 | A$455.00 |
| Materials: filler, fixings and paint | At cost | A$85.00 |
| Total payable, no GST charged | 455 + 85 | A$540.00 |
There is no GST line, no divide-by-11 step, and no tax invoice heading. The total the client pays is A$540, and the whole A$540 is the trader’s business income for tax purposes. If this trader later registers for GST, invoices issued from the registration date change format completely: Tax invoice at the top, 10 percent added to taxable sales, and GST shown on every document.
Watch out: never leave your ABN off a business invoice to save space. Business payers who receive an invoice without an ABN may have to withhold tax from your payment under the no-ABN withholding rules, unless an exception applies, and accounts teams routinely hold payment while they chase the number. One line on the template avoids the whole problem.
Before the work starts, the same details belong on your quote, so the client agrees the price and its GST treatment in advance. Build it with our quote generator, then convert the accepted quote into the invoice without retyping it.
When must a sole trader register for GST in Australia?
You must register for GST when your GST turnover reaches A$75,000 or more, or you expect it to reach that level, and you must register within 21 days. GST turnover is your gross business income, not your profit, tested on the current month plus the previous 11 months and on the current month plus the next 11 months.
Three parts of that rule catch sole traders out:
- Turnover, not profit. A trader who bills A$80,000 and spends A$35,000 on materials and subcontractors has A$45,000 of profit but A$80,000 of turnover. Registration is required.
- Projected counts too. Signing a contract that will clearly take you past A$75,000 in the next 12 months can trigger registration before the money arrives.
- Some work has no threshold. Taxi, limousine and ride-sourcing drivers must register regardless of turnover, per ATO guidance. Non-profit organisations use a higher A$150,000 threshold.
Before you can register for GST you need an ABN, and you register once even if you run more than one business. If you register voluntarily below the threshold, you generally must stay registered for at least 12 months. Late registration does not move your start date: if you were required to register and did not, you can owe GST on sales made since the date you should have registered, even on prices that never included GST, plus penalties and interest, per ATO guidance.
Rule of thumb: once your rolling 12-month billings pass about A$6,250 a month, you are on the run rate that reaches A$75,000 in a year. Check the total every month, not just at tax time.
If registering means you will also pay staff or contractors, read our superannuation guarantee guide for Australian contractors and employers alongside this one, because those obligations run separately from your invoicing.
What mistakes do sole traders make on Australian invoices?
The mistakes that cause real damage are labelling a regular invoice as a tax invoice before you are registered, forgetting the buyer’s details on a sale of A$1,000 or more, taking 10 percent of an inclusive total as the GST instead of one-eleventh, and drifting past the registration threshold without noticing.
Use this pre-send decision framework, which is the check most template guides skip. Answer the three questions in order before any invoice leaves your outbox:
| Question | If yes | If no |
|---|---|---|
| Am I registered for GST on the issue date? | Head it Tax invoice and complete all seven ATO items | Head it Invoice, charge no GST, add No GST has been charged |
| Is the total A$1,000 or more including GST? | Add the buyer’s identity or ABN to the document | Buyer details are optional, but including them speeds up payment |
| Does the invoice mix taxable and GST-free lines? | Show which lines are taxable and the GST on those lines only | One GST total, or Total price includes GST if it is exactly one-eleventh |
- Wrong GST extraction. On an inclusive total of A$1,320, the GST is 1,320 / 11 = A$120, not 10 percent of 1,320, which would be A$132. That A$12 error flows straight into a wrong BAS.
- Mixed supplies left unclear. A tax invoice with both taxable and GST-free items must clearly show which items are taxable, plus each taxable sale, the GST payable and the total, per ATO guidance.
- Missing the 28-day duty. A client who asks for a tax invoice is entitled to one within 28 days. Build the habit of issuing at completion and the deadline never bites.
- No records kept. Keep the invoices you issue and receive for 5 years, in a form you can produce if the ATO asks. Digital copies are fine.
- Rounding drift. Where GST includes a fraction of a cent on a single taxable sale, round to the nearest cent, rounding 0.5 cents upwards, per ATO guidance.
Key takeaways
- Only GST-registered sole traders issue tax invoices. If you are not registered, head the document Invoice, charge no GST, and add the words No GST has been charged.
- A tax invoice under A$1,000 needs seven things: the tax invoice wording, your identity, your ABN, the issue date, a description with quantity and price, the GST amount, and the extent each item is taxable.
- At A$1,000 or more including GST, add the buyer’s identity or ABN. Below A$82.50, a customer cannot insist on a tax invoice, and buyers need one to claim GST credits above that line.
- The GST inside an inclusive price is one-eleventh of the total: divide by 11, never take 10 percent of the total.
- Register for GST within 21 days once GST turnover, your gross income rather than profit, reaches A$75,000 on a current or projected 12-month test.
- Keep your invoices for 5 years, and issue a requested tax invoice within 28 days.
Once the invoices are going out, the next job is the tax bill: our guide on how much tax an Australian sole trader should set aside turns PAYG instalments and the ATO rates into a percentage of profit to move aside as you go.
Frequently asked questions
Do sole traders in Australia need an ABN to invoice?
Yes, in practice. Your ABN must appear on every tax invoice, and it belongs on regular invoices too. You also need an ABN before you can register for GST. Without an ABN on a business invoice, the payer may have to withhold tax from your payment under the no-ABN withholding rules, unless an exception applies.
Can I call my invoice a tax invoice if I am not registered for GST?
No. Only GST-registered businesses issue tax invoices. If you are not registered, head the document Invoice, do not charge or show GST, and add the words No GST has been charged so your client knows there is no GST credit to claim.
What extra detail is needed on an invoice of A$1,000 or more?
The buyer’s identity or ABN. Tax invoices for sales of A$1,000 or more including GST must show who bought the goods or services, in addition to the seven standard items required on smaller tax invoices, per ATO guidance.
How long do I have to send a tax invoice when a customer asks for one?
Within 28 days of the request, unless the sale is A$82.50 or less including GST. Most sole traders issue the invoice when the work is finished, which meets the deadline automatically and gets the payment clock started sooner.
How do I work out the GST in a price that already includes GST?
Divide the total by 11. A total of A$1,320 contains A$120 of GST, leaving A$1,200 before GST. Do not take 10 percent of the inclusive total, which overstates the GST. LancerBill’s GST calculator does this extraction for you in remove mode.
How long must I keep my invoices in Australia?
Five years, starting from when you prepared or obtained the record, or completed the transaction it relates to, whichever is later. Digital copies are acceptable as long as they are clear, complete and accessible if the ATO asks to see them.
This guide is for general information only and is not financial, tax or legal advice.