Australia's tax invoice requirements are governed by the A New Tax System (Goods and Services Tax) Act 1999. For freelancers and sole traders, getting your invoices right matters — your business clients can't claim GST credits without a valid tax invoice from you, and missing details can hold up your payment.
Do you need to register for GST?
You must register for GST if your GST turnover is $75,000 or more per year (or $150,000 for non-profit organisations). If you're below this threshold, registration is optional — but often worthwhile if your clients are businesses that want to claim input tax credits.
Once registered, you must charge GST on your taxable supplies, lodge BAS (Business Activity Statements), and issue tax invoices for supplies over $82.50 (GST inclusive).
The ABN requirement
Every Australian business must have an Australian Business Number (ABN). Even if you're not registered for GST, you should include your ABN on invoices. Without it, businesses paying you are required to withhold 47% of the payment under the pay as you go (PAYG) withholding rules — the top marginal rate.
Get your ABN free at abr.gov.au. It takes about 15 minutes and is available immediately for most applications.
What must appear on an ATO-compliant tax invoice
| Field | $82.50–$1,000 | Over $1,000 |
|---|---|---|
| The words "Tax Invoice" | Required | Required |
| Your identity (name or business name) | Required | Required |
| Your ABN | Required | Required |
| Date of issue | Required | Required |
| Brief description of supply | Required | Required |
| GST-inclusive price | Required | Required |
| GST amount OR statement that price includes GST | Either | GST amount separately |
| Buyer's identity (name or ABN) | Not required | Required |
| Quantity or extent of each supply | Not required | Required |
Below $82.50 (GST inclusive): No tax invoice is required. A regular receipt or invoice is sufficient. Your clients cannot claim an input tax credit on amounts below this threshold without a tax invoice anyway, so neither party loses out.
Calculating GST at 10%
Australian GST is charged at 10%. The calculation is straightforward:
- Adding GST to a price: Multiply by 1.1 (e.g. $500 × 1.1 = $550 GST inclusive)
- Finding GST in a GST-inclusive price: Divide by 11 (e.g. $550 ÷ 11 = $50 GST)
Show GST-exclusive price, GST amount, and GST-inclusive total as separate line items for invoices over $1,000.
ABN withholding: what happens without an ABN
If you don't quote your ABN on an invoice and the payer is a business, they are legally required to withhold 47% of the payment and remit it to the ATO. You'll get the withheld amount back when you lodge your tax return — but it's a significant cash flow problem in the meantime.
Always include your ABN. There's no reason not to.
Invoices for non-GST registered freelancers
If your turnover is below $75,000 and you're not GST registered, you still need to send proper invoices — they just don't include GST and are technically called "invoices" rather than "tax invoices". These invoices should include:
- Your name and ABN
- Date
- Description of services
- Total amount (no GST added)
- A note: "Not registered for GST" (optional but helps avoid confusion)
Record keeping
The ATO requires you to keep records for 5 years from when you prepared or obtained them, or when the transactions were completed — whichever is later. Digital records are fully acceptable.
Checklist: ATO-compliant tax invoice (over $1,000)
- The words "Tax Invoice" at the top
- Your full name or business name
- Your ABN
- Invoice date
- Description of each supply with quantity
- Buyer's name or ABN
- GST-exclusive subtotal per line item
- GST amount (10%)
- GST-inclusive total
- Payment due date and bank details
ATO-compliant Australian invoices built in
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