How to Invoice as a Sole Trader 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 →

To invoice as a sole trader in Australia, every invoice must include: your ABN, business name (or your own name), a unique invoice number, the date, a specific description of services or goods provided, the total amount, and GST (if you are registered). If your turnover exceeds $75,000, you must register for GST and label invoices "Tax Invoice." Invoices should be sent as soon as work is completed, same-day invoicing reduces payment time by 14–18 days on average.

Step 1: Get your ABN

Before you invoice anyone for anything, you need an ABN (Australian Business Number). It's free, takes 15 minutes, and is available at abr.business.gov.au.

Without an ABN, customers can legally withhold 47% of your payment. With an ABN, you're a legitimate sole trader in the eyes of the ATO.

Step 2: Know whether you need GST

If your expected annual turnover is under $75,000 and you haven't voluntarily registered for GST:

Don't charge GST
Don't label invoices "Tax Invoice"
Label them "Invoice"

If your turnover exceeds $75,000 or you've voluntarily registered:

Add 10% GST to all taxable sales
Label invoices "Tax Invoice"
Show GST as a separate line item
Lodge BAS quarterly

Step 3: Know what must be on every invoice

Minimum required fields:

Your business name (or full name as sole trader)
Your ABN
"Tax Invoice" (if GST-registered) or "Invoice" (if not)
A unique invoice number
The date the invoice was issued
Description of services or goods — specific, not vague
Total amount (including GST if applicable)
GST amount shown separately (if registered)

Strongly recommended (not legally required but practically essential):

Customer name and contact details
Job address (especially for property-based work)
Payment terms (due date)
Payment method details (BSB/account, Pay Now link)
Your contact details for invoice queries

Step 4: Set your payment terms

State them clearly on every invoice. Common options:

Payment on completion — due when you hand over the keys
7 days — due 7 days from invoice date
14 days — standard for residential work
30 days — standard for commercial/property manager work

The shorter your payment terms, the faster you get paid. Most residential customers pay same-day or within 3 days when invoiced via a payment portal link. The longer the due date, the more it's treated as permission to delay.

Step 5: Invoice at the job

This is the step that separates tradies who get paid consistently from those who don't.

The moment you finish the job, before you load the last tool into the van, before you get in and drive away, send the invoice. Not tonight. Not Sunday. Now.

Every hour you wait increases the chance the invoice gets forgotten, delayed, or abandoned. Every job you invoice at the site is a job you get paid for.

An invoice sent same-day from the job gets paid 14–18 days faster than one sent at week's end. The difference over a year is thousands of dollars in cash flow, and zero forgotten $700 jobs.

Step 6: Use a payment link, not a bank account in a text message

Sending your BSB and account number via SMS is a fraud risk. Invoice fraud, where scammers intercept payment communications and substitute their own bank details, cost Australian businesses $12.3 million in 2023 alone.

Send a secure portal link instead. The customer clicks the link, sees the full invoice, and pays via a verified payment gateway. The money goes directly to your account. No interception risk. No BSB floating around in a text thread.

Frequently asked questions

Do sole traders need to register a business name in Australia? Not necessarily. You can operate under your own full name without registering a business name. If you want to trade as "Smith's Handyman Services" rather than "John Smith," you must register the business name with ASIC, which costs $39 for one year. Registration doesn't create a company; you remain a sole trader.

How many invoices can I send as a sole trader before needing accounting software? There's no formal threshold, but once you're sending more than 15–20 invoices per month, having an invoicing app pays for itself in time saved. At 25+ invoices per month, manual invoicing creates significant EOFY reconciliation work.

Can I issue a receipt instead of an invoice as a sole trader? A receipt is proof of payment, it's issued after money is received. An invoice is a request for payment, issued before or at the time of service. For GST purposes, customers need a tax invoice (not a receipt) to claim input tax credits. Issue invoices, then issue receipts after payment.

What is the best way to chase unpaid invoices in Australia? Start with a polite reminder at 7 days after the due date. If no response within 14 days of the due date, issue a formal overdue notice. At 30 days overdue, consider a debt collection letter. For amounts under $10,000, state small claims tribunals (NCAT, VCAT, QCAT) offer low-cost resolution. For larger amounts, a debt collection agency or solicitor's letter is appropriate.

Is there an invoicing app designed specifically for Australian sole traders? SMASH Invoices is built for Australian sole traders who work on-site and want to send invoices in under 60 seconds by voice. It includes GST calculations, ABN on every invoice, a 2,250-item Australian materials catalogue, and a customer payment portal, designed specifically for the way Australian tradies work.

Your complete guide to getting paid properly. Starting with the first invoice. Start Free →

Internal links: What must be on a tax invoice in Australia? · Do I need to register for GST? · The EOFY invoicing checklist