How to Invoice as a Sole Trader in Australia

Going out on your own as a freelancer, contractor or tradie means you're now responsible for getting paid — and that starts with a clean, correct invoice. Invoicing as a sole trader isn't complicated, but there are a few Australia-specific things to get right around ABNs and GST. This guide covers everything you need to send your first invoice with confidence.

First: do you need an ABN?

As a sole trader you're running a business, and that means you should have an Australian Business Number (ABN). Strictly speaking you're not forced to have one — but if you invoice another business without quoting an ABN, they may be legally required to withhold 47% of your payment and send it to the ATO. That's a huge dent in your cash flow for no reason, because an ABN is free to apply for through the Australian Business Register and usually issued immediately.

Put your ABN on every invoice, directly under your name. It signals you're a legitimate business and keeps your full payment in your pocket.

Do you need to charge GST?

This is the question that confuses most new sole traders. The rule is simple:

• Under $75,000 a year in turnover? GST registration is optional. Most sole traders starting out issue a plain "Invoice" with no GST.
• At or above $75,000? You must register for GST, charge 10% on your invoices, and issue "Tax Invoices".

Keep an eye on your rolling annual turnover as you grow — once you expect to cross $75,000, you have 21 days to register. Until then, don't add GST you're not registered to collect.

What to put on a sole trader invoice

Whether or not you're registered for GST, your invoice should include:

1. Your name or business name — if you trade under your own name, that's fine.
2. Your ABN — right under your name.
3. "Invoice" (or "Tax Invoice" if you're registered for GST).
4. A unique invoice number — INV-0001, INV-0002, and so on.
5. The issue date and a clear due date.
6. Your client's name (and their ABN, if the invoice is $1,000 or more).
7. An itemised description of the work — be specific: "Kitchen electrical — labour, 12 hrs @ $95" beats "electrical work".
8. The total — plus a 10% GST line if you're registered.
9. Payment details — your BSB, account number and PayID.

Make it easy to pay you

Most sole traders are paid by bank transfer, so spell out exactly how. Include your bank name, BSB and account number, and add your PayID (an email or mobile number linked to your account) for near-instant payments. The less a client has to think about, the sooner you get paid.

Handling deposits and progress payments

For larger jobs, it's normal to ask for a deposit up front or bill in stages. On your invoice, record any amount already paid and show the remaining balance due — that way the client sees exactly what's outstanding. A good invoice tool does this maths for you.

How to chase a late payment

Even with clear terms, some invoices run late. A calm, systematic follow-up gets most of them paid:

1. Day after due dateSend a short, friendly reminder with the original invoice attached. Assume they simply forgot.
2. One week laterFollow up again, restating the due date and payment details, and ask them to confirm a payment date.
3. Two weeks+Pick up the phone. A direct conversation resolves most stubborn cases, and you can offer to resend the invoice on the spot.

Prevention beats chasing: clear due dates, easy payment options, and prompt invoicing stop most late payments before they start. If chasing payments is becoming a regular job, an invoicing app can send these reminders for you automatically.

Keep copies for five years

The ATO requires you to keep your business records — including invoices — for five years. Save a PDF of every invoice you issue in a dated folder so you're ready at tax time and if you're ever audited.

The simplest way to invoice as a sole trader

You don't need expensive software to start. Our free Australian invoice generator is made for exactly this: add your ABN, choose whether to charge GST, list your work, add your PayID, and download a professional PDF — no signup, and your details are saved in your browser for next time. New to invoicing generally? Start with how to write an invoice.

As your client list grows, InvoiceSonic takes it further — recurring invoices, payment tracking and automatic reminders so you spend less time chasing and more time working. It's free, and built for sole traders and small businesses.

This article is general information, not tax or legal advice. For your circumstances, check the business.gov.au invoicing guide or a registered tax agent.

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