Can I Invoice Without GST in Australia?
By Dan Reeve — Working handyman and founder of SMASH Invoices. Built SMASH after losing $1,200 in uninvoiced jobs in a single year. He still takes on handyman work and uses SMASH on every job. About Dan →
Yes. If you are not registered for GST, either because your annual turnover is under $75,000 or because you haven't voluntarily registered, you can and should invoice without GST. A non-GST invoice must still include your ABN, business name, invoice number, date, description, and total, but not the words "Tax Invoice," not a GST line, and not 10% added to your prices. Adding GST when you're not registered creates a compliance problem for both you and your customer.
The key difference between a GST and non-GST invoice
| Element | GST-registered invoice | Non-GST invoice |
|---|---|---|
| Label | "Tax Invoice" | "Invoice" |
| ABN | Required | Required |
| GST line | Required | Must NOT include |
| Total | Includes 10% GST | No GST component |
| Business name | Required | Required |
| Description | Required | Required |
The invoice structure is otherwise identical. The two critical differences: the label and the GST line.
The mistake that creates problems: adding GST when not registered
It seems harmless. You add 10% because it looks professional. Or a customer asks if you charge GST and you say yes.
The problem: charging GST without being registered is illegal under the GST Act. You're collecting money that isn't yours to collect and that you haven't reported to the ATO.
For the customer: if they're GST-registered themselves, they'll claim that GST back on their BAS. If the ATO finds it wasn't actually remitted (because you weren't registered), the customer has a problem.
For you: you've created GST income you need to remit but no registration under which to do so.
The fix is simple: don't add GST until you're registered. If you're close to the threshold and expecting to cross it soon, register proactively before you start charging.
Can customers ask why you're not charging GST?
Yes. And you can answer honestly: "My turnover is below the GST threshold, so I'm not currently registered." This is completely normal and legal. Many sole traders run below $75,000 for years or indefinitely without registering.
Some business customers prefer to work with GST-registered suppliers because they can claim input tax credits. If you're in this situation and want the business, you can voluntarily register for GST regardless of turnover.
Frequently asked questions
Can a sole trader in Australia choose not to register for GST? Yes. GST registration is compulsory only when your annual turnover exceeds $75,000. Below this threshold, registration is entirely optional. Some sole traders voluntarily register to claim input tax credits on business purchases; others prefer not to deal with quarterly BAS lodgement. Both are valid choices.
Does my invoice look less professional without GST? No. Many sole traders and small businesses operate without GST registration. A well-formatted invoice with your ABN, clear description, and professional layout looks professional regardless of whether GST appears. The only customers who care about GST registration are other businesses wanting to claim input tax credits.
What if I accidentally send a GST invoice when I'm not registered? Issue a corrected invoice immediately labelled as an amendment or replacement. Inform the customer that GST should not have been included and that the corrected amount is lower. If the customer has already paid including the incorrect GST, arrange to refund the excess or credit it against future work.
Can I switch between GST and non-GST invoicing? No, this isn't a choice you make per invoice. You are either registered for GST (all taxable sales include GST) or you are not (no sales include GST). You cannot charge GST on some invoices and not others based on customer preference.
How do I know if a customer is GST-registered? You can look up any Australian business's GST registration status by entering their ABN at abr.business.gov.au. If their ABN lookup shows "Goods and Services Tax (GST): Registered," they are. GST-registered business customers will want a tax invoice from you (if you're registered) so they can claim the input tax credit.
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Internal links: Do I need to register for GST as a sole trader? · What must be on a tax invoice in Australia?