| Description | Qty | Rate | Amount |
|---|
InvoFree Australian Invoice Generator — Features
| Feature | InvoFree | Generic Invoice Tools |
|---|---|---|
| ABN field | ✅ Built-in | ❌ Not included |
| GST (10%) auto-calculation | ✅ | ❌ Manual |
| AUD default currency | ✅ | ❌ |
| Tax Invoice label | ✅ Auto when GST applied | ❌ |
| No signup required | ✅ | ❌ |
| Free forever | ✅ | Varies |
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
| Threshold | Requirement |
|---|---|
| Annual turnover < $75,000 | GST registration optional; ABN recommended but not mandatory |
| Annual turnover ≥ $75,000 | Must register for GST and include ABN on all tax invoices |
| Payments over $75 without ABN | Payer must withhold 47% (top withholding tax rate) |
| Non-profit organisations | GST threshold is $150,000 |
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.
Australian Invoice Payment Terms
Common payment terms used by Australian businesses and freelancers:
- Net 7 — Payment due 7 days from invoice. Common for smaller jobs and sole traders.
- Net 14 — Payment due 14 days. Increasingly common for freelancers and agencies.
- Net 30 — Payment due 30 days from invoice. Standard for most B2B work in Australia.
- Due on Receipt — Payment expected immediately on receipt of invoice.
- 50% upfront — Deposit before starting. Recommended for new clients or large projects.
Under Australian law, you can charge interest on overdue invoices if this is specified in your payment terms. It is good practice to state your late payment policy clearly in the notes section of your invoice.
Frequently Asked Questions
Australian invoicing rules for freelancers, sole traders, and businesses
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