Quick answer
An ATO-compliant tax invoice in Australia must include 7 fields: the words “Tax Invoice”, your business or trading name, your ABN, the date of issue, a description of the goods or services supplied, the total price and the GST amount payable, and — for invoices over $1,000 — the buyer’s identity or ABN. If any of these are missing, your client may not be able to claim a GST credit and the ATO can refuse to treat the document as a tax invoice.
Note: this is general information, not tax advice. Always cross-check with the ATO (ato.gov.au) for your specific situation.
When do you need a tax invoice vs a regular invoice?
A tax invoice is what a GST-registered business issues when it charges GST. A regular invoice is what you issue when you’re not registered for GST (turnover under $75,000) — you cannot call it a “Tax Invoice” and you must not include any GST amount.
One detail many sole traders miss: if a sale is for $82.50 or less (including GST), your customer doesn’t strictly need a tax invoice to claim a GST credit — a receipt is enough. Above $82.50, they need a full tax invoice with all the fields below.
The 7 required fields, with examples
1. The words “Tax Invoice”
The document must be clearly labelled. Put “Tax Invoice” at the top in a larger font. If you’re not GST-registered, label it “Invoice” instead — never “Tax Invoice”.
2. Your business or trading name
Use the name your client knows you by. If you trade under a business name registered with ASIC, use that. Sole traders can use their legal name (e.g. “Jane Smith”) or a registered business name (e.g. “Smith Plumbing”).
3. Your ABN
Your 11-digit Australian Business Number must be visible. Without an ABN on the invoice, your client is required to withhold 47% of the payment and remit it to the ATO — so this single field can cost you nearly half your invoice.
4. The date of issue
The date the invoice was created, not the date the work was done. If you completed a job on 1 May and invoice on 15 May, the date of issue is 15 May.
5. A description of what you supplied
Vague descriptions cause payment delays. Instead of “Consulting services”, write “Marketing strategy review — 4 hours @ $150/hr — delivered 12 May 2025”. Include quantity (hours, units, square metres) where relevant.
6. Total price and GST amount
State the total price and either (a) the GST amount as a separate line, or (b) a clear statement that “Total includes GST”. For mixed invoices (some items GST-free, some taxable), you must show the GST amount for each line.
7. The buyer’s identity (invoices over $1,000)
For any invoice with a GST-inclusive total of $1,000 or more, you must also include the buyer’s name, address, or ABN. This lets the ATO match the GST credit they claim to the GST you remit. We covered this in more depth in our guide on tax invoices over $1,000.
What happens if you leave a field out?
- Missing ABN: your client must withhold 47% of the payment.
- Missing GST amount: your client can’t claim a GST credit and may ask you to reissue.
- Not labelled “Tax Invoice”: the ATO can refuse to treat it as a tax invoice for GST credit purposes.
- No buyer ID on a $1,000+ invoice: same problem — the invoice is not a valid tax invoice.
The fix is always the same: reissue with the missing field. It’s embarrassing, it delays payment, and it’s entirely avoidable with a template that locks in every field by default.
How Free Invoice App handles this
Every invoice you create in Free Invoice App is pre-populated with the 7 ATO-required fields. Your ABN, business name, and GST treatment are saved once and applied to every invoice. The buyer-identity field appears automatically when an invoice total crosses $1,000. You don’t have to remember the rules — the template does.
The Starter plan is free with 7 sends per month and no credit card. Create your first invoice in under 60 seconds, or see plans (Pro is A$5/month).
Frequently asked questions
Do I need an ABN on every invoice in Australia?
If you’re running a business and issuing invoices, your ABN should appear on every invoice. Without it, your client is generally required to withhold 47% of the payment under the ATO’s no-ABN withholding rule.
What’s the difference between a tax invoice and a regular invoice?
A tax invoice is issued by a GST-registered business and shows GST. A regular invoice is issued when you’re not GST-registered — it must not be labelled “Tax Invoice” and must not show GST.
Do I need to include GST if I’m not registered?
No. You must not charge or list GST if you’re not GST-registered. You only register once your turnover hits $75,000 (or $150,000 for non-profits). See our guide on invoicing when you’re not registered for GST for the exact wording to use.
Can I email a tax invoice instead of printing it?
Yes. The ATO accepts electronic tax invoices. A PDF emailed to your client is valid as long as it has all 7 required fields.
How long do I need to keep a copy?
At least 5 years from the date of the transaction. Digital copies are fine. We go deeper on this in how long to keep invoices in Australia.