How to write a compliant Australian tax invoice

What a tax invoice is (and when you need one)

A tax invoice is the document a GST-registered business issues for a taxable sale. It's what your customer needs to claim a GST credit on their purchase, and what your accountant needs to report your income correctly. If you're registered for GST, you must give a buyer a tax invoice within 28 days if they ask for one — and in practice, you should issue one for every sale.

If you're not registered for GST, you don't charge GST and you can't call your document a "tax invoice" — a plain "invoice" is correct. See our guide to GST for sole traders if you're not sure which applies to you.

What every tax invoice must include

For sales under $1,000, the ATO requires seven things on the document:

• The words "Tax Invoice" stated clearly.
• Your identity — your business or trading name.
• Your ABN (Australian Business Number).
• The date the invoice was issued.
• A brief description of what was sold, including the quantity and price.
• The GST amount payable (you can show it separately, or state that the total price includes GST — e.g. "Total price includes GST of $10.00").
• The extent to which each item on the invoice includes GST (useful when a sale mixes taxable and GST-free items).

The extra rule for sales of $1,000 or more

Once a sale (GST-inclusive) reaches $1,000, the tax invoice must also show the buyer's identity or ABN — usually just their business name is enough. It's easy to forget this one because it doesn't apply to smaller sales, so it's worth building the habit of recording a customer name on every invoice regardless of amount.

A simple compliant template

Here's the minimum structure that satisfies every rule above:

Common mistakes worth avoiding

• Leaving off the ABN, or getting a digit wrong (checksums matter — an invalid ABN reads as a red flag to buyers and the ATO).
• Charging GST on a GST-free or input-taxed sale (basic food, some health services, exports, and residential rent don't attract GST).
• Not stating the GST amount at all — a total price with no GST breakdown or statement isn't a valid tax invoice.
• Forgetting the buyer's identity on a sale of $1,000 or more.
• Reusing invoice numbers, which makes reconciliation and your BAS harder to get right.

Doing this without the manual work

Every rule above is exactly what Billaroo's invoicing handles automatically — the right heading, your ABN, the GST breakdown or statement, and the buyer's name once a sale crosses $1,000 — so a compliant tax invoice is the only kind you can send.

This guide is general information, not tax advice — confirm current thresholds and your own obligations with the ATO or a registered tax or BAS agent.