Australian Invoice Template — ABN, GST, Tax Invoice

An Australian invoice has very specific ATO requirements depending on whether you're a sole trader, registered for GST, and whether the invoice is over $1,000. The generator produces any of the four; read on for what actually changes as you move between them.

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Tax invoice vs ordinary invoice — what the ATO actually requires

Australia distinguishes between an 'ordinary invoice' (for non-GST suppliers) and a 'tax invoice' (for GST-registered suppliers). The difference matters because only a valid tax invoice lets your customer claim GST credits — which is the entire point of issuing one if you're registered.

For GST-registered suppliers (tax invoice):

  • The words 'Tax invoice' clearly displayed.

  • Your business name and ABN.

  • Your customer's name and address (or ABN if a business customer) — required for invoices $1,000+.

  • The date of issue.

  • A brief description of items, including quantity and price.

  • The GST amount, either separately stated per line or in total with the words 'Total price includes GST'.

  • The extent of GST treatment if it's mixed (some items GST-free, some taxable).

For non-GST suppliers (ordinary invoice): Same as above but no 'Tax invoice' wording, no GST amount. Must still show ABN if you have one. Sole traders without an ABN can still invoice — but must include the 'Statement by a supplier' form so the customer doesn't withhold 47% PAYG.

ABN: Australian Business Number

The ABN is the spine of Australian invoicing. Three scenarios:

  • You have an ABN, you're GST-registered. Standard tax invoice format. GST charged. Quarterly BAS reporting.

  • You have an ABN, you're not GST-registered (turnover under $75k threshold). Issue ordinary invoices with ABN. No GST charged. No BAS reporting; income reported on annual tax return.

  • You don't have an ABN. The customer is required by ATO rules to withhold 47% PAYG (top marginal rate) from your invoice unless you supply a completed 'Statement by a supplier' form claiming the supply is private/hobby. Almost always worth getting an ABN — it's free and takes 15 minutes.

ABN registration is free at ABR.gov.au. The same registration also gives you a TFN (Tax File Number) for tax purposes if you don't have one.

GST: when to register and what to charge

GST in Australia is 10% on most goods and services. Registration is required if turnover is $75,000 or more in a 12-month period ($150k for non-profits). Below the threshold, registration is voluntary.

Practical considerations on whether to register voluntarily:

  • Register if your customers are GST-registered businesses. They claim the GST back, so it's no cost to them. You get to claim GST credits on your business purchases.

  • Don't register if your customers are individuals. The GST adds 10% to your price with no offset for the customer. Below the threshold, staying unregistered is simpler.

  • BAS reporting. Once registered, you file a Business Activity Statement quarterly (monthly for some). Income, GST collected, GST paid on business expenses, PAYG installments — all on one form.

GST-free supplies: most basic foods, medical services, education, exports, financial services. Mixed-supply invoices (some lines GST-taxable, some GST-free) need to clearly show which lines have GST applied.

Payment terms: Australian conventions

Australian B2B payment terms are shorter than UK/US norms in many sectors:

  • Trades and small business clients. Net 7-14 is common. 'EOM' (end of month) is common in older businesses — invoice issued in May is due end of June.

  • Mid-market and corporate. Net 30 is the default. Net 45-60 from large clients with formal procurement.

  • Government and council. Most state governments have a 30-day payment policy. Federal agencies similar. Local councils vary.

The Payment Times Reporting Scheme requires Australian businesses with turnover over $100M to report their payment times publicly. Small businesses can name and shame slow-paying large customers via the Payment Times Register. Quote the scheme on overdue invoices to large clients — it surprisingly often resolves them.

Currency: AUD, USD, EUR, GBP

Plenty of Australian freelancers bill overseas clients in something other than AUD. The ATO rules that matter:

  • GST must be calculated in AUD even on a non-AUD invoice. Use the ATO daily exchange rate or the agreed contract rate (must be documented).

  • FX risk on long engagements. Standard hedging via Wise, OFX, or Australian bank forward contracts.

  • Wise Business multi-currency accounts are popular for Australian freelancers with international clients — much cheaper than traditional bank wires.

Common Australian invoice mistakes

  • Issuing a tax invoice without an ABN. Without an ABN, you cannot issue a tax invoice. The customer must withhold 47% PAYG unless the 'Statement by a supplier' form covers the supply.

  • Forgetting the 'Tax invoice' label. A GST-registered supplier issuing an invoice without the words 'Tax invoice' produces a document that doesn't qualify as a tax invoice for the customer's GST claim. Annoying for the customer; ATO compliance issue for you.

  • Not handling mixed supplies (some GST, some GST-free) on one invoice. Each line needs to show whether GST applies. Lumping them confuses the customer and the ATO.

  • Issuing a tax invoice over $1,000 without the customer's name and address. Required for tax invoices over the $1,000 threshold.

  • Forgetting to register for PAYG installments after crossing the BAS reporting threshold. Once GST-registered, PAYG installments often apply automatically. Don't ignore the ATO letters.

Frequently asked questions

Do I need an ABN to issue invoices in Australia?

Technically no, but practically yes. Without an ABN, the customer must withhold 47% PAYG from your invoice unless you supply a 'Statement by a supplier' form (only applicable for hobby/private supplies). Almost every freelance or business arrangement needs an ABN. Registration is free at ABR.gov.au and takes 15 minutes.

When does GST registration become mandatory?

When your turnover reaches $75,000 in a 12-month period ($150,000 for non-profits). Voluntary registration is allowed at any turnover level. Below the threshold, registration is optional — most small operations stay unregistered to avoid BAS reporting complexity.

Can I issue tax invoices in USD or other foreign currencies?

Yes — but if you're GST-registered, the GST component must be calculated in AUD. Use the ATO daily exchange rate or a documented agreed contract rate. The invoice can show the line totals in the foreign currency with the GST amount in AUD.

How do I handle a customer who doesn't pay an Australian invoice?

First, send a written reminder citing your terms and any statutory interest (varies by state). Then, for amounts under $10k, the Small Claims tribunal in each state is fast and cheap. Above $10k, the Magistrates Court. For large companies, the Payment Times Reporting Scheme creates reputational pressure. Most Australian disputes resolve at the first written reminder.