What makes a valid Australian tax invoice?

A valid tax invoice must include: 'Tax Invoice' label, your business name and ABN, invoice date and number, description of goods/services, GST amount or 'includes GST' note, and total amount due. Invoices over $1,000 must include customer details or ABN.

What's the $82.50 GST threshold in Australia?

If you're GST-registered and your invoice is over $82.50, it must be a valid tax invoice or the customer can't claim GST credits. Invoices under $82.50 have slightly relaxed requirements but should still be professionally formatted.

How to Create a Legal Invoice in Australia (Tax Invoice Requirements 2026)

Q: How long do I need to keep invoices?

Keep all invoices for at least 5 years. The ATO audits tax records, and you'll need original invoices to support your income and GST records if audited.

When Do You Need a Tax Invoice?

In Australia, a tax invoice is required for any GST-inclusive sale over $82.50. If you're GST-registered and your customer needs to claim GST credits, your invoice must include specific information or they can't claim the deduction. Even if you're not GST-registered, professional invoices show business credibility and help with record-keeping and tax time.

The ATO can audit invoices, so accuracy matters. Invoices are your proof of income and expenses. If you're audited and your invoices don't meet requirements, you risk disputes and penalties.

Required Fields for Australian Tax Invoices

A valid Australian tax invoice must include:

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The words "Tax Invoice" clearly displayed at the top
Your business name and Australian Business Number (ABN)
Invoice issue date
A unique invoice number (e.g., INV-001, INV-002)
Description of goods or services supplied (be specific)
Quantity and unit price for each item or service
GST amount — either shown separately or with a statement that "the price includes GST"
Total amount due (including GST)

These are the mandatory fields. Without them, the invoice won't be a valid tax invoice, and your customer can't claim GST credits.

Optional But Professional Fields

Include these to improve clarity and professionalism:

Customer's name and address (required if over $1,000)
Customer's ABN (if you have it and they request it)
Your contact details — phone, email, website
Payment terms — e.g., "Due within 14 days of invoice date" or "Due 30 days from issue"
Payment methods accepted — bank transfer, credit card, PayPal, etc.
Your bank details for direct transfer (account name, BSB, account number)
Any early payment discounts — e.g., "2% discount if paid within 7 days"
Late payment interest — if you charge interest on overdue invoices, disclose the rate

Key Rules for Invoices Over $1,000

For invoices totalling $1,000 or more, you must include:

The customer's full name (as registered with the ATO if they're GST-registered)
The customer's ABN (if they're registered) or their full address
All the usual mandatory fields (see above)

Invoices under $1,000 don't require the customer's details on the face of the invoice, but it's still good practice to include them for clarity and record-keeping.

GST Treatment on Your Invoice

If you're GST-registered, you must show the GST amount on your invoice. You can do this in two ways:

Option 1: Show GST separately

Subtotal (before GST): $90
GST (10%): $9
Total (including GST): $99

Option 2: Include GST in the price with a note

Total (including GST): $99
Note: "Price includes GST"

Either method is acceptable. Most businesses separate GST to make it clear how much GST is being charged.

Invoice Numbering and Record-Keeping

The ATO requires sequential invoice numbering. This helps them verify you're not skipping invoices or hiding income. Start with INV-001 and number sequentially. If you use accounting software (Xero, MYOB, QuickBooks), it will auto-number invoices.

Keep copies of all invoices for at least 5 years. The ATO audits tax records, and you'll need original invoices to defend your records.

ATO compliance: The ATO publishes guidance on valid tax invoices at ato.gov.au. If you're unsure whether your invoices meet requirements, check their "GST and invoices" page or consult an accountant.

Common Invoice Mistakes to Avoid

Missing "Tax Invoice" label: If it's not labeled "Tax Invoice," it's not a valid tax invoice
No ABN: Your ABN must be on every invoice
Incorrect GST calculation: Double-check your math. Incorrect GST is an ATO red flag
Non-sequential numbering: Gaps in invoice numbers raise audit flags
Vague descriptions: "Services rendered" is too vague. Describe what you actually did
No payment terms: Specify when you expect payment (e.g., "Due within 14 days")
Handwritten invoices: Professional printed or digital invoices are preferred. Handwritten invoices are harder to verify

Late Payment: Can You Charge Interest?

Yes, you can charge interest on overdue invoices, but you must disclose the rate on your invoice. Example: "Interest charged on overdue invoices at 8% per annum from the due date."

Keep interest rates reasonable. Excessive interest rates can be challenged. 8–10% per annum is standard for Australian small businesses.

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How to Create a Legal Invoice in Australia