A professional invoice in Australia is a formal request for payment that meets ATO requirements — including your ABN, the GST amount (if you’re registered), a clear description of goods or services, and the total amount payable. If you’re a sole trader, every invoice you issue must carry your ABN or the payer is legally entitled to withhold 47% of the payment.
In Sole, you can create and send a compliant invoice in under 60 seconds from your phone.
What Must Appear on Every Australian Invoice
The ATO sets minimum requirements for tax invoices. Here’s what every invoice for a sole trader must include:
| Required field | Notes |
|---|---|
| Your business name | Must match your ABN registration |
| Your ABN | Mandatory — payers can withhold 47% without it |
| Invoice date | Date the invoice is issued |
| Invoice number | Sequential numbering helps your records |
| Description of goods or services | Be specific — “labour” alone is not sufficient |
| GST amount (if registered) | Show separately or state total includes GST |
| Total amount payable | Including GST if applicable |
| Payment terms | e.g. “Due within 14 days of invoice date” |
For invoices over $1,000, the ATO also requires the buyer’s identity or ABN. Sole handles all of this automatically — you fill in the job details, and Sole formats a compliant invoice.
How to Create a Professional Invoice in Sole — Step by Step
- Open Sole and tap “New Invoice.” From the home dashboard, the New Invoice button is in the bottom navigation bar.
- Select or add your client. If you’ve invoiced this client before, Sole auto-fills their details. First time? Add their name, email, and ABN in 30 seconds.
- Add your line items. Enter a description, quantity, and unit price for each item or service. Sole calculates the line total automatically.
- Set the GST toggle. If you’re GST-registered, toggle GST on. Sole adds 10% to each applicable line and shows the GST breakdown at the bottom.
- Add your logo. Upload your business logo once — it appears on every invoice automatically from that point.
- Set payment terms. Choose from Sole’s defaults (7, 14, or 30 days) or enter a custom due date.
- Send. Email directly from Sole, share a link, or download as PDF. Sole records the invoice as sent and starts the overdue reminder clock.
GST Rules for Sole Trader Invoices
You only charge GST if you’re registered for it. GST registration is required once your annual turnover reaches or is expected to reach $75,000. Below that threshold, registration is optional — but many sole traders register voluntarily to claim input tax credits on business expenses.
If you’re not GST-registered, your invoices must not include a GST line. Sole lets you configure your GST status in settings — it won’t apply GST to invoices until you confirm you’re registered.
5 Common Invoicing Mistakes Sole Traders Make
- Missing ABN. Without your ABN on the invoice, the payer can legally withhold 47% of your payment.
- Wrong GST amount. Charging GST when you’re not registered — or miscalculating the 10% — creates ATO liability.
- No payment terms. An invoice with no due date is an invitation to pay late. Always specify terms.
- No invoice number. Non-sequential invoice numbers make record-keeping and audits harder. Sole auto-numbers every invoice.
- Wrong business name. Your invoice must use the business name registered to your ABN — not a nickname or trading name unless you’ve registered that too.
Frequently Asked Questions
Does every invoice need to show GST in Australia?
Only if you are registered for GST. If your annual turnover is under $75,000 (or $150,000 for non-profits), GST registration is optional. If you are registered, every invoice for a taxable sale must show the GST amount separately or state that the total price includes GST.
What is the difference between a quote, an invoice, and a receipt?
A quote is an offer to do work at a stated price — it is not a request for payment. An invoice is a formal request for payment after work is agreed or completed. A receipt confirms payment has been received. Sole handles all three as separate document types.
Do I need an ABN on every invoice?
Yes. If you have an ABN, it must appear on every invoice you issue. If you don’t quote your ABN, the payer may be required by the ATO to withhold 47% of the payment.
How quickly should I send an invoice?
The ATO has no fixed rule, but best practice is to invoice on the day work is completed or agreed. Late invoicing delays cash flow and makes it harder to dispute errors. Sole lets you create and send an invoice from your phone before you leave the job site.
What should my invoice payment terms be?
Standard terms in Australia are 14 or 30 days from the invoice date. Sole lets you set default payment terms so every invoice carries them automatically. You can also enable automated overdue reminders.
