If you're registered for GST in Australia, the invoices you send have to meet specific rules set by the Australian Taxation Office — otherwise your customers can't claim their GST credits, and you may run into trouble at tax time. The good news: the requirements are short and clear. Here's exactly what a valid tax invoice needs, with the edge cases that trip people up.
Want the checklist applied automatically as you type? The Australian tax invoice generator defaults to a Tax Invoice with 10% GST and an ABN field, and ticks off each ATO requirement live — including the $1,000 buyer rule below.
The 7 things a tax invoice must show (sales under $1,000)
For a taxable sale of less than $1,000, the ATO requires a tax invoice to contain seven pieces of information:
- The words "Tax Invoice". The document must clearly show it's intended as a tax invoice.
- The seller's identity. Your business or trading name.
- The seller's ABN. Your 11-digit Australian Business Number.
- The date the invoice was issued.
- A brief description of what was sold, including the quantity and the price.
- The GST amount payable — shown separately, or as the statement "Total price includes GST" when GST is exactly one-eleventh of the total.
- The extent to which each sale is taxable — i.e. which items include GST (relevant when some items are GST-free).
The extra rule for sales of $1,000 or more
Once a tax invoice is for $1,000 or more (GST-inclusive), it must also show the buyer's identity or ABN. This is the single most commonly missed requirement. If you regularly invoice other businesses for larger amounts, get in the habit of always recording the client's name and ABN — then you're covered regardless of the total.
The tax invoice generator watches your total and flags the buyer-identity requirement the moment your invoice crosses $1,000, so you can't forget it.
How to show GST correctly
There are two acceptable ways to display GST on a tax invoice, and they map to how you quote your prices:
- GST-exclusive prices. Your line items are before GST, and you add 10% as a separate line. A $200 service shows $200 + $20 GST = $220.
- GST-inclusive prices. Your prices already include GST. Here you show the GST component as one-eleventh of the total — so a $220 price includes $20 of GST. This is why you'll see "Total price includes GST" on many Australian invoices.
Either approach is valid; what matters is that the GST amount is visible. One-eleventh (not 10%) is the correct fraction to extract GST from a GST-inclusive figure, because the 10% was added to the smaller pre-GST amount.
Invoice vs tax invoice: do you even need one?
A tax invoice is only for businesses registered for GST. If that's you, you must issue tax invoices and charge 10% GST. If you're not registered for GST, you issue a plain invoice — titled "Invoice", with no GST line — and you don't charge GST at all.
GST registration is mandatory once your GST turnover reaches $75,000 a year (or from your first day for taxi and ride-share drivers). Below that, registration is optional. Many sole traders start with plain invoices and switch to tax invoices when they cross the threshold.
Invoicing without an ABN: the 47% trap
You're allowed to invoice without an ABN, but it can be expensive. When you supply goods or services to another business and don't quote an ABN, that business may be legally required to withhold 47% of the payment and send it to the ATO under the "no-ABN withholding" rules. Since an ABN is free to obtain from the Australian Business Register, quoting one is almost always the right move.
How long to keep your invoices
The ATO requires you to keep business records, including copies of the invoices you issue and receive, for five years. Download and store a PDF of every invoice you send — a simple dated folder works fine.
Your ATO tax invoice checklist
Before you send a tax invoice, confirm it has:
- The words "Tax Invoice"
- Your business name and 11-digit ABN
- The issue date
- An itemised description with quantities and prices
- The GST amount shown (or "includes GST")
- The buyer's identity or ABN — if the total is $1,000 or more
- Clear payment details (BSB, account number, PayID)
The fastest way to tick every box is to let the tool do it. Our free Australian tax invoice generator builds a compliant tax invoice, calculates GST both ways, and shows a live checklist — no signup, PDF download, and your data never leaves your browser. When you move to regular billing, InvoiceSonic handles recurring tax invoices, payment tracking and reminders for free.
This article is general information, not tax advice. For your circumstances, check the ATO's tax invoices page or a registered tax agent.
Frequently asked questions
What are the tax invoice requirements in Australia?
For sales under $1,000: the words "Tax Invoice", the seller's identity, the seller's ABN, the date issued, a description of items with quantity and price, the GST amount (or "includes GST"), and the extent to which each sale is taxable. Sales of $1,000+ must also show the buyer's identity or ABN.
When do I need to show my customer's ABN on a tax invoice?
On tax invoices for sales of $1,000 or more. Below $1,000 it isn't required, though it's still good practice for business customers.
Do I have to charge GST?
Only if you're registered for GST, which is mandatory once your GST turnover reaches $75,000 a year. If you're not registered, issue a regular invoice and don't charge GST.
Can I issue an invoice without an ABN?
You can, but invoicing another business without an ABN can trigger 47% withholding by the payer. ABNs are free from the Australian Business Register, so it's rarely worth going without one.
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