Tax invoice requirements in Australia

The seven things every tax invoice must show

The ATO lists what a tax invoice needs for a sale under A$1,000. In plain terms:

• That it is a tax invoice. In practice, put the words “Tax invoice” at the top.
• Your identity. Your business name, or your legal name and trading name.
• Your ABN. The ABN of the business making the sale.
• The date it was issued.
• What you sold. A short description of the work or goods, with the quantity (if it applies) and the price.
• The GST. Either as a separate amount, or, only when the GST is exactly one eleventh of the total, a line such as “Total price includes GST”.
• How much of each item is taxable. This matters when one invoice mixes taxable and GST-free lines, so the customer can see which lines carry GST.

If every line on the invoice carries GST, the “Total price includes GST” wording is enough. The moment one line is GST-free, show the GST as an amount and mark which lines it applies to.

Sales of A$1,000 or more: add the buyer

For a sale with a total of A$1,000 or more, including GST, the tax invoice must also show the buyer’s identity or the buyer’s ABN. For a homeowner that is their name. For a business customer it can be their business name or ABN.

The ATO also says an invoice that meets the A$1,000-and-over standard can be used for smaller sales. So the simplest habit is to put the customer’s name, and their ABN if they are a business, on every invoice. Then you never have to think about the threshold.

When you have to give a tax invoice

You do not have to send a tax invoice for every sale unless the customer asks. If a customer asks for a tax invoice for a sale over A$82.50 (including GST), you must give it to them within 28 days.

In practice most service businesses send a tax invoice with every job. Your business customers need one: the ATO says a buyer needs a valid tax invoice to claim a GST credit on a purchase over A$82.50, and a GST credit can only be claimed within four years. An invoice with a missing ABN or a missing GST figure is not a valid tax invoice, and if the buyer asks, you must replace an incorrect one. That is a second round of paperwork and usually a slower payment.

Not registered for GST? Call it an invoice

If your business is not registered for GST, the ATO says your invoices should not include the words “tax invoice”. Title the document “Invoice”, do not add 10%, and show no GST line. A business that is not registered cannot charge GST or claim GST credits.

No law sets out what goes on an ordinary invoice, but business.gov.au recommends the basics anyway: your business name and ABN, an invoice number, the date, a description of the work, the customer’s name, the amount due, and how and when to pay. Some businesses add a line such as “No GST has been charged” so the customer is not left wondering.

If you are getting close to the registration threshold, read GST for tradies for when you must register and what changes on your invoices.

Details that are not required but help you get paid

These are good practice rather than law. business.gov.au recommends them, and each one removes a reason for a customer to delay:

• A unique invoice number, so a payment can be matched to the right job.
• Your phone number and email, so a question does not turn into silence.
• The due date and your payment terms, written plainly.
• Every way the customer can pay, such as bank transfer details, PayID or a card payment link.
• The job or site address, so a business customer knows which job it is for.

Your ABN matters for another reason. If a supplier does not quote an ABN and no exception applies, the ATO says the business paying them generally must withhold 47% of the payment and send it to the ATO. Leaving your ABN off an invoice to a business customer can mean almost half the bill arrives late, through your tax return.

More ideas are in our guide on how to get paid faster.

Working out the GST on an invoice

GST is 10% of the price before GST. In a price that already includes GST, the GST part is one eleventh of the total. Some examples:

Round GST to the nearest cent, with half a cent rounded up. When an invoice has several taxable items, the ATO allows two methods. You can add up the unrounded GST for every item and round once at the end (the total invoice rule), or work out and round the GST on each item, then add those amounts (the taxable supply rule). Xero, QuickBooks and Karya Falak work line by line, so their totals agree to the cent. Pick one method and use it every time; a customer using the other method may see a one-cent difference, which the ATO accepts.

Because a supplier and a customer can use different methods, a one-cent difference between your invoice and their records can happen, and is not a mistake.

If the price changes after you invoice

If you have reported GST on a sale and the price later changes, because of a refund, discount or cancellation, the ATO calls that an adjustment. You must issue an adjustment note within 28 days of the customer asking, or of you becoming aware of the change. The note shows the reason, the price difference and the GST adjustment (or a statement that the difference includes GST). A credit note together with a new invoice that refers to it can count as the adjustment note.

If the change happens in the same reporting period as the original sale, no adjustment is needed. You report the final price.

Karya Falak does not issue adjustment notes or credit notes. If you need one, raise it in your accounting software or ask your bookkeeper.

Recipient-created tax invoices (RCTIs)

Some head contractors, builders and platforms pay subcontractors with a recipient-created tax invoice. The buyer writes the tax invoice instead of the seller. It is allowed only when both parties are registered for GST, there is a current written agreement, and the supply is a kind the ATO allows. The RCTI must show both parties’ ABNs and be given to the supplier within 28 days.

If you agree to RCTIs with a client, you do not send your own tax invoice for that work. You must stay registered for GST and tell them if that changes.

Keep copies for five years

Keep every tax invoice, purchase invoice and adjustment note for five years. The ATO says the five years start from when you prepared or obtained the record, or completed the transaction, whichever is later. Records can be kept electronically, so a PDF stored with the job is fine.

A tax invoice checklist

Before you press send, check the invoice shows, in this order:

• “Tax invoice” at the top (or “Invoice” if you are not registered for GST)
• Your business name and ABN
• An invoice number and the issue date
• The customer’s name, and their ABN if they are a business
• Each line with a description, quantity, unit price and amount
• Which lines include GST, if some do not
• The subtotal, GST and total, or “Total price includes GST” when every line is taxable
• The due date, payment terms and how to pay
• Your contact details

Our free tax invoice template is laid out in this order, with versions for each trade.

How Karya Falak handles these rules

Karya Falak invoicing was built around the ATO list above:

• The document is titled “Tax invoice” if your business is registered for GST, and “Invoice” if it is not.
• Your ABN is checked with the ATO’s check-digit rule when you enter it, and printed in the ATO’s format.
• A tax invoice of A$1,000 or more cannot be issued until the customer’s name or ABN is filled in.
• Each line can be GST, GST-free or input-taxed, and the GST is worked out to the cent.
• Your bank details and PayID print on the invoice, and you can add an Australian payment slip at the foot.
• Issued invoices, customers and payments go to Xero or QuickBooks.
• The GST on sales report gives you the G1 and 1A figures for your BAS.

General information, not tax advice

Rules checked 30 October 2026 against ato.gov.au, business.gov.au, ACCC and state regulator guidance. General information only, not tax or legal advice. If you are unsure whether a particular invoice meets the rules, ask your accountant or BAS agent before you send it.