Australian Tax Invoice: ATO Requirements and Free Template
Updated
In Australia, a GST-registered business must give its customers a tax invoice when asked, so they can claim back the GST as a credit. The ATO sets out exactly what a tax invoice must show, and there's an extra rule for sales of $1,000 or more. This guide covers the requirements, invoices without GST, and a complete example.
What an Australian tax invoice must include
- The words "Tax invoice", so it's clear what the document is
- Your identity: your business or trading name
- Your ABN (Australian Business Number)
- The date it was issued
- A brief description of what you sold, including quantity and price
- The GST amount, or a statement that the total includes GST
- The extent to which each sale includes GST (which items are taxable)
For sales of $1,000 or more, also include the buyer's identity or ABN.
Source: the ATO's tax invoice rules. Check ato.gov.au for the latest requirements.
Who issues tax invoices
Only businesses registered for GST can issue tax invoices. You must register when your GST turnover reaches $75,000 a year ($150,000 for non-profit organisations), and if you provide taxi or ride-sharing services, whatever your turnover. You can also register voluntarily below the threshold.
- If a GST-registered customer asks for a tax invoice, you must give one within 28 days.
- Customers don't need a tax invoice to claim GST credits on purchases of $82.50 or less (including GST), but a receipt or invoice is still good practice.
- Keep copies of your tax invoices for five years.
Showing GST correctly
GST in Australia is 10%. On a tax invoice you can show it in one of two ways:
- As a separate amount: subtotal, GST, then total. This is the clearest and the most common for business invoices.
- As a statement: if the GST is exactly one-eleventh of the total, you can write "Total price includes GST" instead of showing the amount.
Some sales are GST-free, for example most basic food, some medical and health services, some education courses, and exports. If an invoice has both taxable and GST-free items, mark which items include GST, for example by adding "(GST-free)" to those lines.
Invoices when you're not registered for GST
If you're not registered for GST, for example a sole trader under the $75,000 threshold, you can't charge GST or issue a tax invoice. Send a regular invoice instead:
- Title it "Invoice", not "Tax invoice"
- Show your ABN. Without it, a business customer may have to withhold tax from your payment at the top rate.
- Don't add GST. You can add a note such as "No GST has been charged" so the customer knows why.
Everything else is the same as any invoice. See how to make an invoice, or our freelance invoice guide if you work for yourself.
Australian tax invoice example
A GST-registered plumber invoices a café for a new hot water system. The total is over $1,000, so the buyer's details are included:
Harbourside Plumbing
18 Victoria Rd, Marrickville NSW 2204
[email protected]
ABN 12 345 678 901
TAX INVOICE
# 0347
Bill To:
Bondi Bean Café Pty Ltd
ABN 98 765 432 109
62 Hall St, Bondi Beach NSW 2026
| Item | Quantity | Rate | Amount |
|---|---|---|---|
| Supply 250L hot water system | 1 | $2,150.00 | $2,150.00 |
| Installation labour (hours) | 5 | $110.00 | $550.00 |
| Call-out fee | 1 | $90.00 | $90.00 |
Notes:
All amounts in Australian dollars (AUD). All items include GST. Please pay by bank transfer within 14 days, quoting invoice 0347.
- Subtotal:
- $2,790.00
- GST (10%):
- $279.00
- Total:
- $3,069.00
- Balance Due:
- $3,069.00
It meets all of the ATO's requirements: the words "Tax invoice", the seller's name and ABN, the date, a description with quantities and prices, the GST amount ($279.00) shown separately, a note that every item includes GST and, because the sale is over $1,000, the buyer's name and ABN.
How to make one with invoices.net
-
Change the title and add your ABN
Click the title and change it to TAX INVOICE. In the From box, add your business name, address and ABN.
-
Choose AUD and add GST
Pick AUD from the Currency menu. Add tax, rename it GST and set it to 10%. The GST and total are calculated for you.
-
Add the buyer for sales of $1,000 or more
Fill in Bill To with the customer's name, and their ABN if they have one. It's good practice on every invoice, and required from $1,000.
-
Handle GST-free items
The template applies GST to the whole subtotal. If some items are GST-free, mark them "(GST-free)", switch the GST line to a fixed amount with the ⇄ button, and enter 10% of the taxable items only.
-
Download and keep a copy
Download the PDF and send it. Keep a copy for five years; with a free account every invoice is saved for you.
This guide is general information, not tax advice. For your situation, check ato.gov.au or speak to a registered tax agent.
Frequently asked questions
What is the difference between a tax invoice and an invoice in Australia?
A tax invoice is an invoice from a GST-registered business that includes the information the ATO requires, so the buyer can claim a GST credit. If you are not registered for GST, you issue a regular invoice instead, without GST and without the words "tax invoice".
Do I need to be registered for GST to issue a tax invoice?
Yes. Only GST-registered businesses can issue tax invoices and charge GST. You must register once your GST turnover reaches $75,000 a year ($150,000 for non-profits), and taxi and ride-sharing drivers must register whatever their turnover.
When do I have to give a tax invoice?
If a GST-registered customer asks for one, you must provide it within 28 days. Buyers don't need a tax invoice to claim GST credits on purchases of $82.50 or less (including GST), but many still ask for one.
Should I put my ABN on an invoice if I'm not registered for GST?
Yes. Show your ABN on every invoice. If you don't, a business that pays you may have to withhold tax from the payment at the top rate and send it to the ATO.
How do I show GST on a tax invoice?
Show the GST amount separately, or, if GST is exactly one-eleventh of the total price, you can instead include a statement such as "Total price includes GST". If some items are GST-free, make clear which items GST applies to.
What is the GST rate in Australia?
GST is 10% on most goods and services. Some items are GST-free, including most basic food, some health and medical services, some education courses and exports.
How long do I need to keep tax invoices?
Keep your tax invoices and other business records for five years.
Can I make an Australian tax invoice for free?
Yes. Use the free invoice template on invoices.net: change the title to TAX INVOICE, add your ABN, choose AUD, rename Tax to GST at 10%, and download a PDF. No sign-up needed.
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