How to invoice in Australia

Are you registered for GST?

You must register for GST once your GST turnover reaches $75,000 a year ($150,000 for non-profits). Taxi and ride-share drivers must register from day one. GST is 10%.

• If you are registered, you issue tax invoices that show GST.
• If you are not registered, you must not charge GST, must not show a GST amount and must not call the document a "tax invoice". Issue a regular invoice headed "Invoice".

Always include your ABN

When you invoice another business for work, include your Australian Business Number. If you do not quote an ABN, the business paying you may have to withhold 47% of the payment and send it to the ATO under the no-ABN withholding rules. Put your ABN under your business details and save it as a template so it appears on every invoice.

What a tax invoice must show

If a customer asks for a tax invoice, you must give one within 28 days, unless the sale is $82.50 or less including GST. A tax invoice for a sale under $1,000 must show:

1. that it is intended to be a tax invoice (title it "Tax invoice");
2. your identity (business or trading name);
3. your ABN;
4. the date it was issued;
5. a brief description of the items sold, including quantity and price;
6. the GST amount, or, if GST is exactly one-eleventh of the total, the statement "Total price includes GST";
7. the extent to which each sale is taxable.

For sales of $1,000 or more, the tax invoice must also show the buyer's identity or ABN. An invoice that meets the $1,000 rules works for smaller sales too, so it is simplest to always include your customer's details.

In the generator, click the title and change it to "Tax invoice", rename the tax line to "GST" and set it to 10%.

Keeping records

Keep tax invoices and other business records for five years. Export a backup from My invoices regularly and keep the PDFs with your books.

Late payments

Australia has no general statutory interest on late business payments. Agree payment terms and any late fee in writing, and state them on the invoice. Large businesses report their payment times under the Payment Times Reporting Scheme, which can help when chasing them.

Official sources

• Australian Taxation Office – Tax invoices
• Australian Taxation Office
• business.gov.au – Australian Government business portal