How to Invoice With an ABN: Your First Invoice, Step by Step

How to invoice with an ABN: put your name and ABN at the top, give the invoice a unique number and date, list what you did with quantities and prices, show the total, set a due date and tell the client how to pay. If you aren't registered for GST, call it "Invoice" and add no GST. That's it. The quickest way to get it right first time is an ABN invoice template that already has the fields in place. Below: a checklist for your first invoice, a worked example with real numbers, and what changes when you register for GST.

What do you need before you send your first ABN invoice?

You need four things sorted before the first invoice goes out: your ABN, your business name details, how you'll be paid, and your payment terms. Five minutes on these now saves you reissuing invoices later.

• Your ABN, checked. Look it up on ABN Lookup and make sure the name it shows matches the name you'll put on the invoice. The same lookup shows whether you're registered for GST.
• The name you trade under. As a sole trader that's your own name, or your registered business name if you have one. If you use a business name, include your legal name too so the ABN matches.
• Your GST status. Most new ABN holders aren't registered for GST. That decides whether you send an "Invoice" or a "Tax Invoice" (more below).
• A separate account for payments. Not compulsory, but it makes your records far easier. Have the BSB, account number and account name ready.
• Payment terms. Pick a number of days, such as 7 or 14, and agree it with the client before you start. Our guide to invoice payment terms compares the options.

How do I write my first invoice with an ABN? Step by step

Work top to bottom: your details, the client, the invoice number and dates, the line items, the total, then payment details. Each step below is a field on the invoice, in the order a client reads it.

1. Heading. "Invoice" if you're not registered for GST, "Tax Invoice" if you are.
2. Your details. Name or business name, ABN, email and phone. An address is optional for a sole trader working from home; a suburb and state is enough for most clients.
3. The client. Their business name and contact person. For a business client, add their ABN if they give it to you.
4. Invoice number. Unique and sequential. INV-0001 or 2026-001 both work. Our guide on how to number invoices covers the systems that scale.
5. Issue date and due date. Write the due date as a date ("Due 30 October 2026"), not only as "14 days".
6. Line items. One line per job or deliverable, each with a quantity, a rate and a line total. Specific beats vague: "Website copy, 5 pages" not "Writing".
7. Total. Add up the lines. No GST line unless you're registered.
8. How to pay. Account name, BSB, account number, and the invoice number as the payment reference.

If you'd rather not build this layout yourself, the sole trader invoice generator lays out these fields in order and works out the totals as you type.

ABN invoice example: a first invoice with real numbers

Here is a complete first invoice from a sole trader who isn't registered for GST. Mia is a freelance copywriter in Geelong who has just received her ABN and is billing her first client for a website project.

Around that table, the invoice shows "Invoice" as the heading, Mia's name and ABN, number INV-0001, issue date 16 October 2026, due date 30 October 2026 (14 days), the client's business name, and Mia's bank details with "INV-0001" as the reference. The total is $900 + $180 + $150 = $1,230.00, and that's the amount the client pays. There's no GST line because Mia isn't registered.

That layout is exactly what a no GST invoice template is for: "Invoice" heading, ABN field, no GST line, nothing to delete.

Do I put "tax invoice" on an ABN invoice?

Only if you're registered for GST. The ATO says that if you're not registered, your invoices should not include the words "tax invoice". Having an ABN doesn't make you registered for GST; they're separate registrations.

GST registration is compulsory once your GST turnover reaches $75,000, and you have 21 days to register once you're required to. Taxi and ride-sourcing drivers must register regardless of turnover. The GST registration threshold guide explains the rolling 12-month test.

What changes on your invoice when you register for GST?

From your GST date of effect, the same job becomes a tax invoice. Here is Mia's invoice again, after registration, with GST-exclusive prices:

GST is 10% of $1,230.00 = $123.00, so the total becomes $1,353.00. The ATO's tax invoice rules list seven details every tax invoice must show, plus the buyer's identity or ABN for sales of $1,000 or more. Our tax invoice requirements guide walks through each one. If you invoice regular clients, tell them about the price change before the first tax invoice arrives.

Invoicing with an ABN as a contractor: red flags you might be an employee

An ABN lets you invoice, but it doesn't decide whether you're actually a contractor. The ATO says having an ABN doesn't automatically make you an independent contractor, and that some businesses advertise jobs as "must have ABN" as a way of lowering their costs.

The test is the legal rights and obligations in your working arrangement, not the label on it. Calling yourself a contractor in a contract makes no difference if the arrangement is really employment. Your invoices are a useful mirror, though. These patterns line up with the ATO's employee indicators:

No single row decides it, and the ATO warns against using the indicators as a checklist. One point that surprises people: if a business pays you mainly for your labour, you count as an employee for super guarantee purposes, and the ATO says it doesn't matter if you have an ABN. If most of your invoices look like the first row, raise it with the business, the Fair Work Ombudsman or a tax agent.

How do I get paid on an ABN invoice?

Put your account name, BSB and account number on every invoice, ask the client to use the invoice number as the payment reference, and add a PayID if you have one. Then set a due date and follow up the day after it passes.

A "How to pay" box next to the total works best:

• Account name: exactly as your bank holds it
• BSB: 6 digits
• Account number
• PayID: your email or mobile, if registered
• Reference: INV-0001

Add one line: "Our bank details will never change by email." It protects your client from payment-redirection scams, and it protects you from not getting paid. The bank details on an invoice guide has layouts for overseas clients too.

How long should you keep invoices you send with an ABN?

Keep them for 5 years. The ATO says you need to keep most business records for 5 years, starting from when you prepared or obtained the record or completed the transaction, whichever is later. That includes every invoice you send.

PDFs are fine. The ATO's record-keeping rules also say records must be in English (or easily converted to it) and that you need to be able to reconstruct them if you change systems. A practical setup for a new sole trader: one folder per financial year, each PDF named with its invoice number and client (for example "INV-0001 Harbour Design.pdf"), and a simple list of which ones are paid.

Common mistakes on a first ABN invoice

The most common first-invoice mistakes are calling it a tax invoice when you aren't registered, adding GST you can't charge, and leaving off the due date. Each one either confuses the client or delays payment.

• "Tax Invoice" heading without GST registration. Use "Invoice" until your GST date of effect.
• Adding 10% GST "to be safe". If you aren't registered you can't charge GST, and the client can't claim it back.
• An ABN that doesn't match the name. If your ABN is in your own name, put your own name on the invoice, even if you also show a trading name.
• No due date. "Payment on receipt" means different things to different people. Write the date.
• Vague line items. "Services: $1,230" invites questions. Itemise.
• Reusing an invoice number. Every invoice needs its own number, including a corrected one you reissue.

The free Australian ABN invoice template avoids most of these by design: it has its own ABN field and a due date field, and it starts as a plain "Invoice" with GST at 0%. When you register, you change the title to "Tax Invoice" and set GST to 10%.

The short answer

To invoice with an ABN, show your name and ABN, a unique invoice number, the date, itemised work with prices, the total, a due date and your bank details. Not registered for GST: head it "Invoice" and add no GST. Registered: head it "Tax Invoice", add 10% GST and include the buyer's identity on sales of $1,000 or more. Keep a copy of each one for 5 years.

Once the same clients come back every month, the PDF is the easy part; remembering who has paid is the hard part. InvoiceSonic keeps your clients, invoices and reminders in one place, free to start, with a 7-day Pro trial when you need recurring invoices and overdue tracking.

This article is general information, not tax or legal advice. For your circumstances, check the ATO's guide to setting up your business invoices or speak to a registered tax agent.

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