How to Make an Invoice in Australia

Before You Start

Before creating your first Australian invoice, gather the following:

• Your business details — your name or trading name, ABN, and contact information
• Your client's details — their name, business name, and billing address
• A description of the work — what you delivered, including quantities and rates
• Your bank details — BSB, account number, and account name for payment

Step 1: Choose Invoice or Tax Invoice

The first decision is whether your document should be headed "Invoice" or "Tax Invoice".

• Tax Invoice — use this heading if you are registered for GST. A tax invoice must meet specific ATO requirements.
• Invoice — use this heading if you are not registered for GST. Do not mention GST anywhere on the document.

If your annual GST turnover is below $75,000 ($150,000 for non-profits) and you have not voluntarily registered, you are not GST-registered and should use a plain "Invoice".

Step 2: Add Your Business Details

At the top of the invoice, include:

• Your business name or your full name if you trade as an individual
• Your ABN (Australian Business Number) — without this, the payer may need to withhold 47%
• Your address, email, and phone number

If you are GST-registered, your ABN is mandatory on every tax invoice. Even if you are not registered, quoting your ABN avoids the no-ABN withholding rules.

Step 3: Add the Client's Details

Include your client's full name or company name and their billing address. For tax invoices of $1,000 or more (including GST), you must also include the buyer's ABN or enough information to identify them.

Step 4: Set the Invoice Number and Date

Every invoice needs a unique number. Use a consistent format such as INV-001, 2026-0001, or a prefix based on the client. Sequential numbering helps you stay organised and satisfies ATO record-keeping rules.

Add the invoice date (the date you issue it) and a due date. Common payment terms in Australia include "Due on receipt", "Net 7", "Net 14", or "Net 30".

Step 5: List Your Line Items

Break down the goods or services you provided. For each line item, include:

• A clear description of what was supplied
• The quantity or hours worked
• The unit price
• The line total

Be specific. "Web development — March 2026" is far more useful than "Services rendered".

Step 6: Add GST (If Applicable)

If you are GST-registered, you must show the GST on your tax invoice. There are two approaches:

1. Show GST per line item — list the GST-exclusive price, the GST amount, and the GST-inclusive price for each item
2. Show GST as a summary — list a subtotal (ex-GST), a GST line (10%), and the total (inc-GST)

For GST-free items (such as basic food or certain medical supplies), mark them separately so the buyer knows which items attract GST.

If you are not GST-registered, skip this step entirely. Do not show a GST line of $0.00.

Step 7: Include Payment Details

Tell your client exactly how to pay. For Australian bank transfers, include:

• BSB (Bank-State-Branch number)
• Account number
• Account name

You can also include alternative payment methods such as PayID, BPAY, or a payment link.

Step 8: Review and Send

Before sending, check that:

• The heading is correct ("Invoice" or "Tax Invoice")
• Your ABN is present and accurate
• The invoice number is unique and sequential
• All line items are clearly described
• GST is shown correctly (or omitted if not registered)
• The total is correct
• Your bank details are accurate

Send the invoice as a PDF — it preserves your layout across devices and cannot be easily edited by the recipient.

Common Mistakes to Avoid

• Wrong heading — using "Tax Invoice" when not GST-registered, or omitting it when you are
• Missing ABN — triggers the 47% no-ABN withholding
• Vague descriptions — "Consulting" is not enough; describe the actual work
• Incorrect GST calculation — always verify the 10% calculation before sending
• Forgetting payment details — if the client does not know where to send money, payment will be delayed

Create Your Australian Invoice Online

You do not need to build invoices from scratch. Our free Australian invoice generator includes all the fields the ATO expects — ABN, GST calculation, BSB and account number — and produces a professional PDF in minutes.