How to invoice as a sole trader in Australia
An invoice is the document that turns work into money, and a poor one slows the money down. This guide covers what has to be on it, what should be on it, and the habits that get sole traders paid faster.
Updated 16 September 2026. General information only, not tax advice.
What must be on it
For any sole trader invoice:
- Your name (or registered business name) and ABN.
- The word Invoice, or Tax invoice if you are GST registered and the sale is taxable.
- The date of issue.
- A unique invoice number.
- The customer’s name, and their ABN or business name for sales of $1,000 or more if you are registered.
- A description of the goods or services, with quantities or hours where relevant.
- The amount, and if registered, the GST amount or a statement that the total includes GST.
See GST on invoices for the exact tax invoice rules.
What should be on it
- Payment terms: Due in 7 days, Due on receipt, or a specific date. Vague terms get ignored.
- How to pay: BSB and account number, or a payment link. Make it impossible to have an excuse.
- Your contact details: email and phone.
- A reference the customer needs: their purchase order number, job address, or project name. Large customers will not pay an invoice that cannot be matched to a PO.
- A note on late payment if your terms include interest or fees.
Invoice or tax invoice
If you are not registered for GST, your document is an Invoice. You do not add GST, and the total is the price. If you are registered, taxable sales need a Tax invoice with the GST shown. Using Tax invoice when you are not registered, or charging GST you are not entitled to, is an offence and confuses your customer’s bookkeeper.
The no-ABN rule
If you invoice a business without an ABN on the invoice, that business must withhold 47% of the payment and send it to the ATO. You get it back through your tax return, months later. Put your ABN on every invoice, every time. If you are waiting on an ABN, tell the client and invoice once it arrives.
Payment terms that work
Shorter terms get paid sooner. Seven or 14 days is normal for sole traders; 30 days is a concession to large customers, not a default. Deposits are standard for anything with materials or a long lead time: 30% to 50% up front, balance on completion. For ongoing work, invoice fortnightly or monthly rather than at the end of a three-month project.
If a customer insists on 30, 45 or 60 days, price it in. Some large businesses have supplier portals and specific invoice formats; ask before the first invoice, not after it is rejected.
Numbering and records
Use a simple sequence: INV-0001, INV-0002. Never reuse a number, and never delete an invoice; if one is wrong, issue a credit note or a corrected invoice with a new number. Keep every invoice for five years. Your invoice numbers are also the easiest way to match payments on your bank statement to jobs.
Recurring and progress invoices
Retainers and subscriptions should be recurring invoices that go out automatically on the same day each month. Progress invoices for larger jobs should reference the stage and the total contract value so the customer can see where they are. Both are easy in invoicing software and painful in a word processor.
Sending and following up
Email a PDF the day the work is done. Late in the week is fine; late in the month is not, because many businesses run payment runs on a cycle. Set a reminder for the day after the due date. See chasing late invoices for the follow-up ladder. FlowFi sends invoices with your ABN and GST handled and chases overdue ones automatically.
Email me the quarterly BAS checklist
The checklist now, then a few short notes on getting your BAS done. No spam, unsubscribe any time.
Frequently asked questions
Do I need an ABN to invoice?
You need one to invoice as a business without the 47% withholding applying. Applying for an ABN is free through the Australian Business Register.
Can I invoice in a foreign currency?
Yes. Record the Australian dollar amount you actually receive in your books, and treat conversion fees as an expense. Check the GST treatment of services supplied overseas with your accountant.
What if a customer wants a receipt after paying?
Mark the invoice as paid and send it back with Paid on it, or issue a short receipt referencing the invoice number. Either is fine.
General information only, not tax advice. Check your own situation with a registered tax agent or the ATO.
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