How to Write a Tax Invoice as a Tradie in Australia

Job's done. You were in and out in three hours, the client was happy, you even found the issue faster than you quoted. So you send the invoice from the van on the way to the next job - good habit, right?

Three weeks later it's still sitting unpaid. You follow up. Turns out their accountant knocked it back because it didn't have the words "Tax Invoice" on it, and your ABN was nowhere to be seen. Invoice invalid. Pay run missed. Money sitting in limbo because of two lines of text.

It's not complicated once you know what goes on it. Here's everything the ATO requires - and a few habits that mean you only have to think about it once.

1. First: are you registered for GST?

This determines which type of invoice you're even allowed to send.

If your annual turnover is over $75,000 - or you've registered voluntarily - you're GST-registered. You must issue a tax invoice for taxable sales of $82.50 or more when a client asks for one. You have 28 days to provide it.

If you're under the threshold and haven't registered, you issue a standard invoice instead. No GST line, no "Tax Invoice" label - you're not allowed to use those words if you're not registered. And yes, the ATO cares.

Not sure where you sit? Check your myGov business portal or head to the ATO's GST registration page and find out before you send another invoice.

2. The 7 fields the ATO actually requires

For any GST-registered business, these seven things need to be on every tax invoice under $1,000:

1. The words "Tax Invoice" - Somewhere visible, ideally at the top. Not "Invoice". Not "Tax invoice" in 8pt font buried in the footer. Clear, at the top. If it's not there, the whole document is invalid regardless of what else you've included.

2. Your ABN - Non-negotiable. Without it, your client may be legally required to withhold 47% of your payment and hand it to the ATO. That is a conversation nobody wants to have.

3. Your business name - As it appears on your ABN registration. If you trade under a different name, use your trading name.

4. Date of issue - The date you're sending the invoice. Not the date you did the work, though you can include both.

5. Description of what you supplied - Enough that someone who wasn't there could understand it. "Labour - replace faulty switchboard, 22 Brown St Coburg" is good. "Electrical services" is not. Details prevent disputes later.

6. GST amount - Either as a separate dollar figure ("GST: $87.27") or as a statement that the total includes GST. If you use the statement approach, the GST has to be exactly 1/11th of the total. If you've got a mix of taxable and GST-free items on the same invoice, you need to break them out separately.

7. Total price including GST - The number they owe you. Make it obvious.

3. One more thing for jobs over $1,000

Once the invoice total hits $1,000 or more (GST inclusive), the ATO adds one requirement:

8. Buyer's identity or ABN - Their business name, trading name, or ABN number. If it's a private homeowner, their name is fine.

Most tradie jobs cross the $1,000 mark once you add labour and materials together, so honestly just put it on every invoice and stop thinking about it.

4. What it looks like in practice

Here's a real-world example for a $660 job:

TAX INVOICE

From: Kowalski Electrical Co   ABN: 12 345 678 901
To: Bayside Property Management   ABN: 98 765 432 100

Invoice #: INV-0112   Date: 5 May 2026

Supply and install 3x double GPO, 42 Park St Richmond
Labour 4 hrs @ $95/hr: $380.00
Materials - outlets, cable, conduit: $220.00

Subtotal: $600.00
GST: $60.00
Total: $660.00

Payment due: 19 May 2026
BSB: 063-000   Account: 1234 5678

Job address in the description. GST broken out. Buyer's ABN there because it's business-to-business. That's a valid tax invoice.

5. If you're not registered for GST

Your invoice looks almost the same, with a few important differences:

• Heading says "Invoice" not "Tax Invoice".
• No GST line. No 10% added on top.
• Still include your ABN if you have one - it's not technically required on a standard invoice, but try telling that to the client who won't process payment without it.
• The total is the total. No caveats, no GST statement.

6. What actually happens when you get it wrong

An invoice with missing required fields isn't a valid tax invoice. That's not a technicality - it has real consequences:

• The client's accountant rejects it. They come back asking for a corrected version before they'll process it. That can be days or weeks you wait for money already owed.
• The client can't claim the GST back from the ATO, which gives them a reason to push back on the amount - even if the work was perfect.
• During an audit, incomplete invoices on either side can lead to penalties. The ATO doesn't care that you forgot in a rush.

If you send one out and spot the mistake after the fact, don't scribble on it. Reissue a corrected invoice with the same number and a note - e.g. "INV-0112-R1, corrected ABN" - and resend it. Clean paper trail.

7. Make it a non-issue

The tradies who never think about invoicing compliance aren't doing anything clever. They've just set up a template that has all the required fields locked in, so they can't accidentally leave something out.

A few habits that help:

• Invoice same day. You remember the job, the client is still happy, and nothing has had time to go sideways. Do it from the van before you drive off.
• Unique invoice numbers. Starts at INV-0001, goes up from there. Makes follow-ups easy and your records clean.
• Payment terms on every invoice. "Payment due within 14 days" takes 10 seconds to type and removes any ambiguity about when you expect to be paid.
• Follow up on day 8. If an invoice is unpaid seven days past the due date, send a short, direct message. Silence doesn't get invoices paid.

The Invoice Generator in Smart Tools has all the required fields built in, calculates GST automatically, and produces a PDF you can send straight from your phone. If you want a closer look at the business admin side of running a trade, the guides on sending faster quotes and tax deductions most tradies miss are worth reading next.

Bottom line

Seven fields. "Tax Invoice" at the top. Your ABN. Your business name. The date. A description of the work. The GST amount. The total. Add the buyer's details for jobs over $1,000. Not registered for GST? Same structure, no GST, call it an invoice.

Get those fields right once in a template, and you'll never have an invoice knocked back by an accountant again.

Frequently asked questions

Do I need to register for GST as a tradie?

You must register once your annual turnover reaches $75,000. Below that threshold you can still register voluntarily - it lets your clients claim back the GST on your invoices, which some commercial clients actually prefer. Most tradies working full-time hit $75k fast enough that it becomes compulsory pretty quickly anyway.

What happens if I issue an incorrect or incomplete invoice?

It's not a valid tax invoice, which means your client can't use it to claim GST credits. That gives them a reason to hold up payment while they wait for a corrected version. If you catch the mistake, reissue it - same invoice number, add a revision note, resend. Don't write on the original.

Does a tax invoice need to be on letterhead?

No. The ATO doesn't care what it looks like as long as the required information is all there and it's readable. A PDF from your phone, a printout, an email with the details in the body - all valid. Branded letterhead looks more professional, but it's not a legal requirement.

Can I invoice without an ABN?

Technically yes, if you're not GST-registered. But most clients will withhold 47% of your payment under the ATO's no-ABN withholding rules for any invoice over $82.50. That means they legally have to send nearly half your money to the ATO instead of you. Getting an ABN is free and takes about 10 minutes at abr.gov.au. There's no reason not to have one.