Invoice Payment Terms in Australia Explained

Invoice payment terms tell your client when payment is due. In Australia the most common are Net 7, Net 14 and Net 30 — meaning payment is due 7, 14 or 30 days after the invoice date. There is no legally fixed default, so you choose the terms. For most sole traders and small businesses, shorter terms like Net 7 or Net 14 protect your cash flow and get you paid faster.

What "payment terms" actually mean

Payment terms are the conditions under which you expect to be paid. At a minimum they set the deadline — the due date — but they can also cover accepted payment methods, deposit requirements, and any late-payment charges. The clearer you make them, the fewer excuses a slow payer has.

The shorthand you'll see most often is "Net" followed by a number of days. "Net 14" simply means the full (net) amount is due 14 days after the invoice date. It's a convention, not a law — you're free to offer whatever period suits your business, as long as your client agrees to it before the work starts.

The common Australian payment terms

Due on receipt

Payment is expected as soon as the client receives the invoice, with no credit period. This is common for one-off jobs, new clients you haven't worked with before, and smaller amounts. In practice most clients still take a few days, but "due on receipt" signals that you expect prompt payment.

Net 7 and Net 14

Due within 7 or 14 days of the invoice date. These are the workhorse terms for freelancers, tradies and small businesses. They give the client enough time to process payment without leaving your cash flow exposed for a month. Net 7 is increasingly standard for services once trust is established.

Net 30

Due within 30 days. This is the traditional default for larger businesses and government clients, whose accounts departments often run on monthly cycles. It's slower for your cash flow, so only offer Net 30 where the client genuinely requires it — and consider asking for a deposit up front to bridge the gap.

EOM (end of month)

"EOM" means the clock starts at the end of the month the invoice was issued, not the invoice date. So "Net 30 EOM" on an invoice dated 5 August means payment is due 30 days after 31 August. EOM terms group a month's invoices into a single payment run, which suits clients who pay suppliers once a month. The trade-off is that an invoice sent early in the month effectively waits far longer than 30 days.

What's standard — and is there a legal default?

There is no law in Australia that sets a default payment term for private businesses, so the term is whatever you and your client agree. That said, the Federal Government and many large corporations have adopted faster-payment commitments — the Payment Times Reporting scheme encourages big businesses to pay small-business suppliers within 30 days or sooner. For general guidance on setting terms and getting paid on time, business.gov.au is a good starting point.

Culturally, Net 14 to Net 30 is the everyday range. If you quote Net 7, no one will blink; if you quote Net 60, expect pushback. Whatever you choose, put it in your quote or engagement terms so it's agreed before you invoice — not sprung on the client afterwards. If you're just getting started, our guide to invoicing as a sole trader walks through the basics.

How to set terms that get you paid faster

The term itself is only half the story. These small choices consistently move money into your account sooner:

• State the actual due date. "Due 30 July 2026" is far harder to ignore than "Net 14". Spell out the calendar date on every invoice.
• Keep terms short by default. Start at Net 7 or Net 14 and only extend when a client asks. It's easier to relax a term than to tighten it later.
• Make paying effortless. Include your BSB and account number, a PayID, and ideally a payment link. Every extra step is a reason to delay.
• Ask for a deposit. For larger jobs, invoice a deposit up front and the balance on completion. It protects your cash flow and filters out non-serious clients.
• Send the invoice immediately. The payment clock only starts once the invoice lands, so send it the day the work is done. See our step-by-step guide on how to write an invoice.
• Follow up promptly. A polite reminder the day after the due date resolves most late payments before they become a problem.

If you want to attach consequences to late payment, you can add late-fee or interest terms — but they must be agreed in advance to be enforceable. That's a topic in its own right, covered in our post on charging interest on overdue invoices.

This article is general information, not legal or financial advice. For guidance specific to your situation, see business.gov.au and the ATO, or speak to a qualified adviser.

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