Quick answer
If your turnover is under $75,000 you don’t need to be registered for GST, and you can absolutely still invoice clients. Your invoice must include your ABN, the date, a description of work, and the total. It must not be labelled “Tax Invoice”, and it must not include a GST line or a 10% GST amount.
Note: this is general information, not tax advice. Confirm your specific situation on the ATO website (ato.gov.au).
What “not registered for GST” means
GST registration is required in Australia once your business turnover hits $75,000 in a rolling 12-month period ($150,000 for non-profits, or any turnover for taxi/rideshare). Below that threshold, registering is optional. Many sole traders and freelancers operate quite happily under the threshold for years.
GST registration is separate from having an ABN. You should have an ABN regardless — without one your client is required to withhold 47% of payment under the ATO’s no-ABN withholding rule.
What to include on your invoice
When you’re not GST-registered, your invoice still needs the basics. Think of it as a regular invoice, not a tax invoice.
- The word “Invoice” (not “Tax Invoice”) at the top
- Your business or trading name
- Your ABN
- The invoice date
- A unique invoice number
- A clear description of the goods or services
- The total amount payable (no GST line)
- Client details (name, optional address/email)
- Payment terms and bank details
What you must NOT include
Three specific things will get you in trouble if they appear on a non-GST invoice:
- The words “Tax Invoice”. This label is reserved for GST-registered businesses.
- A “GST” line item or any 10% calculation. You cannot charge GST you are not collecting on behalf of the ATO.
- Statements like “Total includes GST”. There is no GST to include, so saying so is misleading.
How to word the total correctly
Some clients (especially larger businesses or accountants) expect to see a GST treatment on every invoice they process. To remove ambiguity, add one short line below the total:
Total: $1,200.00 No GST has been charged. Supplier is not registered for GST.
This wording is unambiguous, professional, and avoids the dreaded “hey, where’s the GST?” email from their accounts team.
What to say when a client asks for a tax invoice
It happens. A new client’s accounts team emails asking for a “tax invoice please”. Don’t panic and don’t fake one. Send back something like:
Hi [Name], Thanks for getting in touch. I'm not currently registered for GST (I'm under the ATO's $75,000 turnover threshold), so the document I sent is a standard invoice, not a tax invoice — which is the correct format for my situation. You can process it the same way you would any non-GST purchase. My ABN is on the invoice for your records. Let me know if you need anything else. Thanks, [Your name]
That’s usually the end of it. The client’s accounts software will accept a non-GST invoice with an ABN.
When you’ll need to register (and what changes)
The moment your rolling 12-month turnover hits $75,000, you have 21 days to register for GST. From your registration date forward:
- You charge 10% GST on top of your prices.
- You label every invoice “Tax Invoice”.
- You can claim GST credits on business expenses.
- You lodge a Business Activity Statement (BAS) quarterly or monthly.
You can also see the full ATO tax invoice checklist for what changes the moment you register.
How Free Invoice App handles it
When you set up your business profile in Free Invoice App, you tick a single “Registered for GST” checkbox. If it’s off, every invoice you generate is labelled “Invoice”, has no GST line, and includes the “No GST” note automatically. The moment you register, flip the checkbox and every future invoice becomes a proper tax invoice with GST broken out.
The Starter plan is free with 7 sends per month. Create your first invoice in 60 seconds, or compare plans (Pro is A$5/month).
Frequently asked questions
Can I charge GST if I’m not registered?
No. Charging GST when you’re not registered is treated as collecting tax you’re not entitled to. Remove the GST line entirely and don’t label the document as a “Tax Invoice”.
What if my client insists on a “tax invoice”?
Politely explain you’re under the $75,000 threshold and not GST-registered, so a standard invoice with your ABN is the correct document. Their accounts team will be able to process it.
How do I know when to register for GST?
Once your turnover hits $75,000 in any rolling 12-month period, you have 21 days to register. Taxi and rideshare drivers must register from day one regardless of turnover.
Can I voluntarily register below the threshold?
Yes. It can be worth it if you have significant GST-bearing expenses (so you can claim credits) or your clients are all GST-registered businesses. Once registered, you must stay registered for at least 12 months.
Do I still need an ABN?
Yes. ABN and GST are separate. You need an ABN on every invoice or your client must withhold 47% of payment. ABN registration is free and takes about 10 minutes at the Australian Business Register.