How to Invoice Clients as a Sole Trader in Australia

As a sole trader in Australia, invoicing correctly is one of the most important administrative tasks you will do. Get it right and you get paid on time. Get it wrong and you face delayed payments, confused clients, and potential issues with the ATO.

This guide covers everything a sole trader needs to know about invoicing in Australia.

Do Sole Traders Need to Charge GST?

Not automatically. As a sole trader, you must register for GST and charge it on your invoices only if your annual turnover is $75,000 or more.

If you earn less than $75,000 per year, registering for GST is optional. Many sole traders choose not to register when starting out because it keeps things simpler and makes their prices more competitive — clients pay less when there is no GST on top.

However, some sole traders choose to register voluntarily even below the threshold because it makes them look more established and allows them to claim back GST on business purchases.

What is a Sole Trader ABN?

An ABN — Australian Business Number — is a unique 11-digit number that identifies your business. As a sole trader, your ABN is linked to you personally, not to a separate company.

You need an ABN to invoice clients professionally, register for GST, avoid having 47% tax withheld from payments (clients must withhold tax if you don't quote an ABN), and register a business name.

Getting an ABN is free and takes about 15 minutes at abr.gov.au.

Two Types of Invoices for Sole Traders

If you are registered for GST: You must issue tax invoices that include GST, your ABN, and all ATO-required fields. Your clients pay 10% more but can claim that GST back.

If you are not registered for GST: You issue regular invoices without GST. These still need your ABN and a clear description of services but do not need to say "Tax Invoice" or show a GST amount. Keep it simple — just list your services and the total amount.

What to Put on Your Sole Trader Invoice

Whether or not you charge GST, every sole trader invoice should include the following.

Your details: your full legal name (e.g. "Jane Smith" or "Jane Smith trading as JS Design"), your ABN, your address or at minimum your suburb and state, and your email and phone number.

Invoice details: the words "Tax Invoice" if you are registered for GST, a unique invoice number, and the date.

Client details: client name or business name, and client address.

Services provided: a clear description of work completed, hours worked or units delivered, your rate, and the line total.

Totals: subtotal, GST if applicable, and the total amount due.

Payment details: your BSB and account number, and the payment due date.

Sole Trader Invoice Example

Here is what a correctly formatted sole trader invoice looks like.

TAX INVOICE — From: Sarah Johnson, ABN: 12 345 678 901, Email: sarah@sjcopywriting.com.au, Phone: 0400 000 000.

Invoice #: INV-0023. Date: 5 June 2026. Due Date: 19 June 2026.

Bill To: Acme Pty Ltd, ABN: 98 765 432 109, 123 Business Street, Sydney NSW 2000.

Line items — Website copywriting (Home + About pages): 1 × $800.00 = $800.00. Blog post editing (4 posts): 4 × $75.00 = $300.00.

Subtotal: $1,100.00. GST (10%): $110.00. Total: $1,210.00.

Payment details: Bank: Commonwealth Bank, BSB: 062-000, Account: 12345678, Account name: Sarah Johnson. Please transfer by 19 June 2026. Thank you for your business.

How to Get Paid Faster as a Sole Trader

Late payments are one of the biggest frustrations for sole traders. These strategies help.

Send the invoice immediately. Do not wait until the end of the month. Send the invoice the same day you complete the work or deliver the product. The sooner you send it, the sooner the payment clock starts.

Use clear due dates. "Payment due within 14 days" is vague. "Payment due by 19 June 2026" is clear. Specific dates get paid faster.

Follow up on day 1 of being overdue. Send a polite email the day after a payment is due if it has not arrived. Do not wait a week. A simple "Hi, just checking — did you receive Invoice INV-0023? It was due yesterday" is perfectly professional.

Make payment easy. Include your BSB and account number on every invoice. The easier you make it to pay, the faster you get paid.

Consider shorter payment terms. Standard is 30 days but for small sole trader work, 7 or 14 days is reasonable and gets you paid faster.

Record Keeping for Sole Traders

Keep copies of every invoice you send for at least five years. This is an ATO requirement and also protects you if a client disputes a payment.

Create a simple system: a folder on your computer organised by year, with subfolders for Paid and Unpaid invoices. Move invoices to Paid when the money arrives.

Also keep records of your business expenses — anything you buy for the business can potentially reduce your tax. If you are registered for GST, you can also claim back the GST on business purchases.

This article is for general information purposes only. For advice specific to your situation, consult a registered tax agent or accountant.