How to Create an Invoice in Australia

What Is an Invoice?

An invoice is a document a business sends to a customer requesting payment for goods or services that have been provided, or are due to be provided under agreed terms.

A good invoice makes it clear who is requesting payment, what the customer is being charged for, how much they owe and when payment is expected.

What Should an Australian Invoice Include?

The exact information required can depend on your business and circumstances, but a professional Australian invoice will generally include:

• Your business name and contact details
• Your ABN, where applicable
• The customer's name or business name
• The invoice number
• The invoice date
• A description of the goods or services
• Quantity or hours, where relevant
• The price for each item or service
• The total amount payable
• GST information, if applicable
• Payment terms and payment instructions

1. Add Your Business Details

Start with the details that identify your business. This normally includes your business or trading name, contact information and ABN if you have one.

Including your phone number or email address gives customers an easy way to contact you if they have a question about the invoice.

2. Include the Customer's Details

Clearly identify who the invoice is being sent to. For a business customer, this may include the business name and relevant contact person.

For a private customer, their name and appropriate contact details may be sufficient depending on the circumstances.

3. Give the Invoice a Unique Number

Every invoice should have a clear invoice number so that you and your customer can easily identify it.

You can use a simple numbering system such as INV-1001, INV-1002 and INV-1003. The important thing is to use a consistent system that makes your records easy to manage.

4. Add the Invoice Date

Include the date the invoice was issued. This helps both you and your customer keep track of when the invoice was created and can also be relevant to payment terms.

5. Clearly Describe the Work or Products

The invoice should explain exactly what the customer is being charged for.

Instead of writing something vague such as "Services", provide enough detail for the customer to understand the charge. For example, a tradie might list the type of work completed, the relevant hours and any materials supplied.

6. Show Quantities, Rates and Prices

Where appropriate, show how the total was calculated. This could include the number of hours worked, quantity of products supplied or a fixed price for a particular service.

Breaking charges down clearly can make an invoice easier for the customer to check and can reduce confusion about what they are paying for.

7. Handle GST Correctly

If your business is registered for GST, your invoices need to meet the relevant Australian GST requirements.

The Australian Taxation Office provides specific requirements for tax invoices, including information that must be shown depending on the amount and type of transaction.

If you are not registered for GST, you generally should not charge GST to your customers.

For current GST requirements, check the Australian Taxation Office GST guidance .

8. Include Payment Terms

Tell the customer when payment is expected. Common payment terms include:

• Due on receipt
• 7 days
• 14 days
• 30 days

Whatever terms you use, make them clear and consistent with what you agreed with the customer.

9. Tell the Customer How to Pay

Make payment as straightforward as possible by providing the information the customer needs.

Depending on how you accept payment, this might include your bank account details, payment link, card payment instructions or other agreed payment methods.

Simple Invoice Example

A basic invoice could look something like this:

Quote vs Invoice vs Receipt

These documents serve different purposes:

• Quote: tells a customer how much a proposed job or service is expected to cost.
• Invoice: requests payment for goods or services.
• Receipt: confirms that payment has been received.

A business may use all three during the course of a customer transaction.

Common Invoice Mistakes

A few simple mistakes can make invoices harder to understand or manage. Common problems include:

• Missing invoice numbers
• Unclear descriptions of work
• Incorrect customer details
• Not stating payment terms
• Incorrect GST treatment
• Missing payment instructions
• Using inconsistent invoice numbering

Keep Your Invoices Consistent

Using the same basic invoice structure for each customer makes your records easier to organise and gives your business a more consistent appearance.

Keep copies of invoices and supporting records as part of your normal business record-keeping. Australian tax and record-keeping requirements can vary depending on your circumstances, so check the current ATO guidance for your business.