Free Australian Invoice Generator — ABN, GST & AUD

What Must an Australian Tax Invoice Include?

The Australian Taxation Office (ATO) requires that tax invoices — used when GST-registered businesses charge GST — include specific information. A valid Australian tax invoice must contain:

• The words "Tax Invoice" clearly displayed
• Your ABN (Australian Business Number)
• The date of issue
• A clear description of the goods or services supplied
• The GST amount (or a statement that the total price includes GST)
• The total amount payable

For invoices over $1,000 AUD, you must also include the buyer's identity or ABN. For invoices under $1,000, a simplified tax invoice format is acceptable.

ABN — What You Need to Know

Do You Need to Charge GST?

GST registration is mandatory when your annual turnover reaches or exceeds $75,000 ($150,000 for non-profits). Once registered, you must:

• Charge 10% GST on most taxable goods and services
• Issue a Tax Invoice (not just an "Invoice") to GST-registered customers
• Lodge Business Activity Statements (BAS) regularly
• Remit the GST you collect to the ATO

If you are not registered for GST, do not charge GST and do not use the words "Tax Invoice". Leave the GST checkbox unchecked above.

How to Invoice as an Australian Freelancer or Sole Trader

If your annual turnover is under the $75,000 GST threshold, you don't charge GST — but you still need an ABN to invoice legally. Without one, your client is required by law to withhold 47% PAYG tax from any payment over $75 before sending it to you.

Use your individual name or your registered business name on the invoice. Either is valid, as long as it matches your ABN registration with the Australian Business Register. Consistency matters — using different names across invoices creates reconciliation headaches for your clients.

For payment details, Australian clients expect a BSB and account number for direct bank transfer. Including your PayID (linked to your ABN or phone number) speeds things up for smaller amounts. If you use Stripe, add the payment link directly to the notes field — it cuts collection time significantly.

How to Invoice International Clients from Australia

Exports are GST-free under Australian tax law. If your client is based overseas, don't charge GST — your invoice should show $0 GST or simply omit the GST line entirely. This applies to services delivered digitally, consulting work, and physical goods exported from Australia.

Bill in USD or AUD based on your client's preference. USD is common for US and European clients, and most prefer it so they can budget in their own currency. Use Wise or Payoneer to receive foreign currency at close-to-market exchange rates — both are far cheaper than receiving international wire transfers through an Australian bank.

Still include your ABN on the invoice even for overseas clients. It identifies you as a legitimate Australian business entity and prevents confusion when your client's accounts team processes the payment.

• For projects under $5,000 AUD: invoice on completion with 14-day terms
• For projects over $5,000 AUD: use milestone billing — typically 30–50% upfront, then progress payments tied to deliverables
• Always agree on the invoicing currency before starting work to avoid exchange-rate disputes

Australian Invoice Payment Terms

The two most common terms for Australian freelancers are 14 days for small projects and 30 days for commercial B2B work. "Net 7" exists but is rare outside of hospitality and fast-moving goods sectors.

Under the Payment Times Reporting Act 2020, large businesses with revenue over $100 million are required to report how quickly they pay their small business suppliers. While the Act doesn't cap payment times at 30 days, it creates public accountability — and most large businesses now aim to pay SMEs within 30 days to avoid poor ratings on the government's Payment Times Register.

You can legally charge interest on overdue invoices in Australia — but only if you've included a late payment clause in your terms. A practical way to do it:

For repeat clients who are consistently late, consider switching to upfront payment or requiring a 50% deposit before work begins. It's a normal request in the Australian freelance market and most professional clients accept it without issue.

Tax Invoice Requirements in Australia (ATO Rules)

A "tax invoice" is a specific legal document required by the ATO when a GST-registered business makes a taxable sale over $82.50 (including GST). A regular invoice and a tax invoice aren't the same thing — the distinction matters for your clients' GST reporting.

A valid tax invoice must include all of the following:

• The words "Tax Invoice" — this exact phrase must appear on the document
• Your ABN
• The date of issue
• A clear description of the goods or services supplied
• The GST amount shown as a separate line item (or a statement that the total price includes GST)
• The total price payable

For sales under $1,000, a simplified tax invoice is allowed — you can omit the buyer's identity and ABN. For sales of $1,000 or more, you must also include the buyer's name and either their ABN or address.

InvoFree's Australian invoice generator handles this automatically. When you enable the GST checkbox, the invoice title switches from "Invoice" to "Tax Invoice", and GST appears as a separate line item — both requirements for ATO compliance. The ABN field on the form maps directly to the invoice so it's always visible to your client.