How to invoice as a sole trader in Australia
To invoice as a sole trader in Australia: get an ABN, check whether you need to register for GST, then send each client an invoice showing your name and ABN, the date, a unique invoice number, what you did, the amount owed, the due date and how to pay. If you're GST-registered, it must be a tax invoice.
That's the short version. Below is the complete, step-by-step process — including the mistakes that cost new sole traders money (like invoicing without an ABN) and simple habits that get you paid faster.
Key takeaways
- Get your ABN before you send your first invoice.
- You must register for GST once your GST turnover hits $75,000 — and within 21 days.
- Not GST-registered? Issue an 'invoice', not a 'tax invoice', and don't add GST.
- Without an ABN, business clients generally must withhold tax at the top rate from payments over $75.
- Short payment terms, clear due dates and reminders are the easiest ways to get paid faster.
Step 1: Get your ABN
An Australian Business Number (ABN) identifies your business to the government and to clients. As a sole trader, you'll use it on every invoice. Your clients can verify it on ABN Lookup, so make sure the name on your invoices matches your registration.
Why it matters: if you don't quote an ABN, business clients generally have to withhold tax from your payment. More on that below.
Step 2: Work out your GST status
According to the ATO, you must register for GST if:
- your business has a GST turnover of $75,000 or more (current or projected), or
- you provide taxi or ride-sourcing services (regardless of turnover).
Once you're required to register, you have 21 days to do it. Below the threshold, registering is optional — but if you register voluntarily you generally need to stay registered for at least 12 months.
| GST-registered | Not GST-registered | |
|---|---|---|
| Document title | Tax invoice | Invoice |
| Charge GST? | Yes (10% on taxable sales) | No |
| Show GST on invoice? | Yes | No |
| Lodge BAS? | Yes | No (for GST) |
Still unsure? Our full guide answers it: Do I need to charge GST? A plain-English guide.
Step 3: Set up your invoice template
Every sole trader invoice should include:
- The word "Invoice" — or "Tax invoice" if you're GST-registered
- Your name or business name, and your ABN
- Your contact details
- Your client's name (and ABN for tax invoices of $1,000 or more)
- A unique invoice number
- The date issued and the due date
- A clear description of the work, with quantity/hours and rate
- The total (and GST amount, if registered)
- How to pay — bank details and/or a card payment link
If you're GST-registered, there are specific rules about what a tax invoice must contain. We cover them line-by-line (with a free template) in What must a tax invoice include?.
Step 4: Number your invoices
business.gov.au recommends a unique number on every invoice. Keep it simple and sequential:
INV-0001,INV-0002,INV-0003…- Or add the year:
2026-001,2026-002…
Never reuse or skip around. If you make a mistake, issue a new invoice (or a credit note) rather than editing an old one after it's been sent.
Step 5: Set clear payment terms
Payment terms tell your client when and how to pay. business.gov.au suggests putting them on your invoices and in your contracts. Common choices for sole traders:
- Due on receipt — good for small, one-off jobs
- 7 days — popular with tradies and freelancers
- 14 days — a common middle ground
- 30 days — often requested by larger clients
Always write the actual due date ("Due 5 November 2026"), not just "14 days". For a deeper look, read Payment terms explained: Net 7, Net 14, Net 30.
Step 6: Send it — fast
The sooner you invoice, the sooner you're paid. business.gov.au notes that sending invoices at the time of sale can encourage on-time payment. Good habits:
- Invoice the same day you finish the work (or on an agreed schedule for ongoing work).
- Email a PDF or a payment link — not a photo of a paper invoice.
- Use a clear subject line: "Invoice INV-0042 from [Your Business] — due 5 Nov".
- Offer more than one way to pay. Every extra step is an excuse to delay.
Step 7: Follow up and keep records
Track which invoices are paid, due and overdue. If one goes past its due date, follow up promptly and politely — we've written 5 ready-to-send reminder emails you can use.
Keep copies of all invoices and records for at least five years. You'll need them for your tax return (and BAS, if you're GST-registered).
What happens if you invoice without an ABN?
You can technically send an invoice without an ABN, but it can cost you. According to the ATO, if a supplier doesn't quote an ABN, the business paying them generally must withhold tax at the top rate from the payment and send it to the ATO. This applies when the total for goods and services is over $75 (excluding GST).
There are some exceptions — for example, certain private or hobby arrangements — and the ATO has a Statement by a supplier form for those situations. But if you're running a business, the simple fix is: get your ABN first, then invoice.
Sole trader invoicing checklist
- ABN registered and on every invoice
- GST status confirmed ("Invoice" vs "Tax invoice")
- Template with all required details
- Sequential invoice numbers
- Clear due date and payment methods
- Invoice sent the day the work is done
- Reminders scheduled for overdue invoices
- Records kept for five years
Frequently asked questions
Do sole traders need to charge GST?
Only if you're registered for GST. You must register once your GST turnover reaches $75,000 or more (or if you provide taxi or ride-sourcing services). Below that, registration is optional — and if you're not registered, you don't charge GST.
Can I invoice without an ABN?
You can send an invoice without an ABN, but if you're supplying a business, it will generally have to withhold tax at the top rate from payments over $75 (excluding GST) and send it to the ATO. Getting an ABN before you invoice avoids this.
What should a sole trader invoice include?
At a minimum: the word 'invoice' (or 'tax invoice' if you're GST-registered), your name or business name, your ABN, the date, a unique invoice number, a description of the work with quantity and price, the total, the due date and how to pay.
How should I number my invoices?
Use a simple sequential system such as INV-0001, INV-0002 and so on. Never reuse a number. Unique numbers make it easy to match payments and keep tidy records.
What payment terms should a sole trader use?
Many sole traders use 7 or 14 days. Shorter terms usually mean faster payment. Whatever you choose, show the exact due date on the invoice and agree on it upfront.
This article is general information only, not tax, legal or financial advice. Rules change — check the linked ATO and business.gov.au pages or speak to a registered tax agent about your situation.