How to Invoice as a Sole Trader in Australia (ABN, GST, No-GST)
Invoicing as a sole trader in Australia comes down to two questions: do you have an ABN, and are you registered for GST? The answers change what your invoice is called, what it must contain, and whether you add 10 percent to your prices. Most new sole traders are under the GST threshold and should be sending a plain invoice with no GST at all, yet many either add GST they are not entitled to collect or leave off their ABN and get 47 percent withheld from their payment. Both mistakes cost real money.
This guide covers how to invoice as an Australian sole trader: ABN requirements, when to register for GST, what an invoice looks like with and without GST, ATO tax invoice rules, and a sample invoice you can copy.
Do you need an ABN?
Effectively, yes. If you are running a business as a sole trader, you should have an Australian Business Number (ABN), and it should be on every invoice you send.
Here is why it matters in hard cash: if you do not quote an ABN on an invoice to a business customer, they are generally required to withhold 47 percent of the payment and send it to the ATO. You will eventually get it back through your tax return, but you have just handed almost half your invoice to the tax office for a year. Getting an ABN is free and takes minutes, and putting it on your invoice avoids the whole problem.
GST: register at $75,000
You must register for GST once your business turnover reaches A$75,000 in a 12-month period (or if you drive rideshare, from the first dollar). Below that, registration is optional.
This single fact decides what your invoice looks like:
| Not GST registered | GST registered | |
|---|---|---|
| Document title | Invoice | Tax Invoice |
| Add 10% GST? | No | Yes |
| Show a GST line? | No | Yes |
| ABN on invoice? | Yes | Yes |
If you are not registered, you do not charge GST, you do not show a GST line, and you should not call the document a "tax invoice". Charging GST you are not registered to collect is one of the most common and costly errors an Australian sole trader can make, a theme in our common invoice mistakes guide.
Invoicing without GST (most new sole traders)
If you are under the threshold, your invoice is simple. It should show:
- The word "Invoice" (not "Tax Invoice")
- Your name and ABN
- The customer's name
- The invoice date and a unique invoice number
- A description of the goods or services
- The amount, with no GST added
- Your payment terms and bank details
Some sole traders add a short line such as "No GST has been charged" to make it explicit, which heads off questions from a customer's bookkeeper. It is not required, but it is helpful.
Invoicing with GST: ATO tax invoice rules
Once you are GST registered, your document becomes a tax invoice and the ATO sets out what it must contain. For sales under A$1,000, a tax invoice needs:
- The words "Tax Invoice"
- Your identity and your ABN
- The date the invoice was issued
- A description of the items sold, including quantity and price
- The GST amount (or a statement that the total price includes GST)
- The extent to which each sale includes GST
For sales of A$1,000 or more, you must also include the buyer's identity or ABN. That extra field is the one people miss on larger invoices.
The simplest way to show GST is a clear line: subtotal, then GST 10%, then the total. Or, if you quote GST-inclusive prices, state "Total price includes GST". For the mechanics of applying tax, see our how to add tax to an invoice guide.
Sample Australian tax invoice
Here is a GST-registered sole trader's invoice.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Web design, homepage build | 1 | $1,200.00 | $1,200.00 |
| Content updates | 4 | $80.00 | $320.00 |
| Subtotal (excl. GST) | $1,520.00 | ||
| GST (10%) | $152.00 | ||
| Total (incl. GST) | $1,672.00 |
The document is headed Tax Invoice, carries the sole trader's ABN, and shows the GST as its own line. Because this sale is over A$1,000, the buyer's identity or ABN also belongs on it.
Exports and overseas clients
Services you supply to a client outside Australia are often GST-free (zero-rated), meaning you do not add the 10 percent even when you are registered. The rules depend on where the service is consumed, so confirm your situation, but the practical upshot is that many Australian freelancers with overseas clients invoice them without GST while still charging it to Australian clients. See our how to invoice international clients guide for the cross-border picture.
Getting paid and keeping records
Two practical habits protect an Australian sole trader:
- State clear payment terms (Net 14 or Net 30) and your bank details on every invoice. Australia's Payment Times Reporting rules push large businesses to pay small suppliers faster, but a clear due date is still your best lever. See our payment terms guide.
- Keep every invoice for five years. The ATO requires it, and your tax return and any BAS depend on those records.
For the full Australian rules alongside the tool, see our Australia invoice generator page. For other countries, see our UK and USA pages.
Common Australian sole trader invoice mistakes
- No ABN on the invoice, triggering 47% withholding.
- Charging GST when not registered.
- Calling it a "tax invoice" when you are not GST registered.
- Missing the buyer's ABN on invoices of A$1,000 or more.
- Not registering for GST after passing A$75,000.
Make an Australian invoice in 60 seconds
You do not need accounting software to invoice correctly as a sole trader. Invoicara's free invoice generator lets you add your ABN, switch GST on or off, apply the 10% rate, number invoices cleanly, and export a professional PDF that meets ATO requirements, whether you are registered or not. No sign-up, no watermark, free forever.
For the basics, see our complete guide on how to make an invoice and our freelance invoice template guide. Put your ABN on every invoice, only charge GST if you are registered, use the right document title, and keep your records, and invoicing as an Australian sole trader is genuinely simple.