How to invoice as a sole trader in Australia

1. Get an ABN

You need an Australian Business Number to invoice properly. It's free from the Australian Business Register at abr.gov.au, usually issued on the spot, and it goes on every invoice. Without one, a business paying you more than $75 has to withhold 47% of the payment. Do I need an ABN to invoice? covers who's entitled and the exceptions.

Trading under a name other than your own? Register it as a business name with ASIC too. Your own name needs nothing extra.

2. Decide on GST

You must register for GST once your turnover reaches $75,000 in any 12 months, or you expect it to. Below that it's your choice, and the choice shapes every invoice you send. Do I need to charge GST? explains the threshold, and should I register before I have to? runs the numbers on registering early.

3. Pick the right heading

• Registered for GST: head it Tax Invoice and show the GST.
• Not registered: head it Invoice, with no GST anywhere on it.

The words "tax invoice" are reserved for registered businesses, and a client needs a tax invoice to claim the GST back. Tax invoice vs invoice has the detail.

4. Put the essentials on it

Every invoice, registered or not:

1. Your name or business name, and your ABN.
2. Your contact details.
3. The date and a unique invoice number.
4. The client's name, and their business name and address if they have them.
5. What you supplied: a line for each item, with the quantity and price.
6. The total.
7. When it's due and how to pay.

Registered for GST, add:

• the heading Tax Invoice;
• the GST amount, or GST-inclusive prices with the words "Total price includes GST";
• for a sale of $1,000 or more, the buyer's name or ABN;
• any GST-free items marked as such (GST-free items on an invoice).

Not registered, add a line such as "No GST has been charged." Invoicing when you're not registered has a free template.

5. Number it

Give every invoice its own number, one after the other: INV-0001, INV-0002. Australia doesn't require a sequence, but your accountant expects one, and it's how clients tell you what they're paying. Start at 1, or at 1001 if you'd rather your first client didn't know. Never reuse a number. Invoice numbering has formats that work.

6. Set payment terms, with a date

Seven or 14 days suits most sole traders. Write the actual date, "Payment due within 14 days, by 15 October 2026", rather than "Net 14". Agree the terms on the quote before you start the work. Payment terms has a due-date calculator.

7. Make paying easy

Give at least one way to pay, and make it the easiest one for your client:

• Bank transfer: the account name, BSB and account number.
• PayID: your email address, mobile number or ABN, registered with your bank, so clients can pay without typing a BSB.
• A payment link or QR code: card payments through Stripe, Square or PayPal, for a fee.

Ask clients to use the invoice number as the payment reference, so you can match every payment to its invoice.

8. Send it the same day, as a PDF

Export a PDF and email it the day the work finishes. A subject line such as "Invoice INV-0012 from Jo Park Photography, due 15 October" gets it found and paid. Keep the email short: what it's for, the amount, the due date and how to pay. Never send an editable file.

9. Track it and follow up

Keep a list of what you've sent, what's been paid and what's overdue. When an invoice passes its due date, follow up politely and specifically: a reminder on the day, another at 7 days, then a phone call before anything firmer. Most late payments are forgotten, not refused. What to do when an invoice is overdue has the email templates.

10. Keep records, and plan for tax

• Keep every invoice, and the receipts for your expenses, for five years. PDFs are fine.
• Your business income goes on your own tax return, with your business expenses as deductions.
• Nothing is taken out when clients pay you, so put a share of every payment aside for tax.
• Registered for GST? You also lodge a Business Activity Statement, usually every quarter.