A correct invoice gets you paid faster and keeps you on the right side of the ATO. An incorrect one can hold up payment, cause GST headaches, or even cost you 47% of the job. Here’s exactly what an Australian trade invoice needs in 2026.
Invoice vs tax invoice — which should you issue?
The two are not the same. If you’re registered for GST, you issue a tax invoice that shows the GST. If you’re not registered for GST, you must issue a plain “invoice” — you must not call it a tax invoice and you must not charge GST. Getting this wrong is one of the most common mistakes new sole traders make.
What a valid tax invoice must include (under $1,000)
For taxable sales of $82.50 (inc GST) or more, a GST-registered business must be able to give a valid tax invoice. The ATO requires these seven things:
- The words “Tax invoice” (usually as the heading).
- Your identity — your business or legal name.
- Your ABN.
- The date the invoice was issued.
- A brief description of what you sold, including quantity and price.
- The GST amount payable — shown separately, or a statement such as “Total price includes GST” if GST is exactly one-eleventh of the total.
- The extent to which each item is taxable (so on a mixed invoice it’s clear which items include GST).
For invoices of $1,000 or more
If the tax invoice is for $1,000 (inc GST) or more, you must also show the buyer’s identity or ABN. A simple tip: include the customer’s details on every invoice and you’ll never have to think about the threshold.
Always quote your ABN — the 47% trap
If you don’t quote an ABN on an invoice for a business customer, they’re generally required to withhold 47% of the payment and send it to the ATO. In other words, no ABN can mean getting less than half your money. (There’s a small exception for payments of $75 or less, excluding GST.) Put your ABN on every invoice, every time — even if you’re not registered for GST.
If you’re not registered for GST
- Call the document an “invoice”, not a “tax invoice”.
- Don’t add GST to your prices or show a GST amount.
- Still include your ABN to avoid the 47% withholding.
- It’s good practice to make clear no GST has been charged.
GST, BAS and the $75,000 threshold
You must register for GST once your turnover reaches $75,000 over a rolling 12 months (you can register voluntarily below that). GST is 10%. Once registered, you report it on a Business Activity Statement (BAS) — most small trade businesses lodge quarterly. Once you’re registered, your tax invoices need to show GST as set out above.
Get paid faster — invoicing best practice
- Use a unique invoice number so nothing gets lost or duplicated.
- Invoice immediately — ideally the moment the job is done, on site.
- State your payment terms and due date clearly (e.g. “due within 7 days”).
- List how to pay and offer card or online payment to remove friction.