If you run a business in Australia and you’re registered for GST, the invoices you send have to meet specific rules set by the ATO. Get them wrong and your customers can’t claim their credits — and you can look unprofessional. Here’s what a compliant tax invoice needs, in plain English.
What a valid tax invoice must include
For sales of $82.50 (including GST) or more, a valid tax invoice needs to show a handful of specific details so your customer can claim their GST credit:
- The words “Tax Invoice” clearly displayed
- Your business name and 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 includes GST)
- The total amount payable
For invoices of $1,000 or more, you also need to include the buyer’s identity or ABN. It’s a short list, but missing any one item can hold up a payment.
When you actually need to charge GST
You must register for and charge GST once your business turns over $75,000 a year or more (or $150,000 for non-profits). Below that threshold, registration is optional. If you’re registered, you generally add 10% GST to your taxable sales and report it to the ATO on your BAS.
Common invoicing mistakes to avoid
- Leaving off your ABN — without it, buyers may have to withhold 47% of the payment
- Writing “Invoice” instead of “Tax Invoice” when you’re registered for GST
- Not showing the GST component clearly
- Forgetting payment terms and a due date, which slows down getting paid
Save time with a ready-made template
You don’t need accounting software to send a clean, compliant invoice. Our Australian invoice & quote templates come with GST fields, your ABN and auto-calculating totals already built in — just add your logo and send. It’s a one-off purchase you can reuse for every job.
This article is general information, not tax advice. For your specific situation, check with your accountant or the ATO.
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