Free Australian Tax Invoice Template

What Is a Tax Invoice in Australia?

A tax invoice is a specific type of invoice required under Australian Goods and Services Tax (GST) law. It serves as the official document that allows buyers to claim GST credits (also called input tax credits) on business purchases. Without a valid tax invoice, your customer cannot claim back the GST they have paid, which directly affects their bottom line.

If your business is registered for GST, you are legally required to provide a tax invoice for any taxable sale of AU$82.50 or more (including GST) when a customer requests one. This threshold exists because below that amount, the GST component (under $7.50) is considered too small to require formal documentation, although you can still issue a tax invoice for smaller amounts if you choose.

The key difference between a tax invoice and a regular invoice is legal status. A regular invoice is simply a request for payment. A tax invoice is a regulated document under the A New Tax System (Goods and Services Tax) Act 1999 that must contain specific information prescribed by the ATO. Using the words "Tax Invoice" on a document that does not meet ATO requirements, or issuing a tax invoice when you are not registered for GST, can result in penalties.

Tax Invoice Requirements (ATO)

The ATO sets out clear requirements for what a tax invoice must contain. Missing any of these fields means the document is not a valid tax invoice, and your customer may not be able to claim their GST credit.

For all tax invoices, you must include:

• The words "Tax Invoice" stated prominently on the document
• The supplier's (your) identity — business name or trading name
• The supplier's Australian Business Number (ABN)
• The date the invoice was issued
• A brief description of each item sold, including quantity and price
• The GST amount for each item (or a statement that the total price includes GST)
• The total price including GST

For tax invoices of AU$1,000 or more (including GST), you must also include:

• The buyer's identity — their name or business name
• The buyer's ABN (if they have provided it)
• The quantity or volume of each item

This template automatically includes fields for all of these requirements. When you enter line items with GST, the tool calculates the GST component and displays it separately on the final PDF, ensuring your tax invoice meets ATO standards.

How to Create an Australian Tax Invoice

Use the free tool above to generate an ATO-compliant tax invoice in minutes. Here is how:

1. Enter your business details and ABN. Fill in your business name, trading name, address, and 11-digit ABN in the "From" section. Your ABN is mandatory on every tax invoice. You can also upload your business logo for a professional look.
2. Add your client's details. Enter your client's name, address, and contact information. If the invoice total is AU$1,000 or more (including GST), add their ABN as well. Set a unique invoice number, the issue date, and your payment due date.
3. Add line items with GST. Add each product or service as a separate line item. Include a clear description, the quantity, and the unit price. Select whether each item includes GST. The tool calculates the GST component (10%) and all totals automatically.
4. Review and download as PDF. Add your bank details (BSB and account number) or other payment instructions. Preview the completed tax invoice to check all details, then download as a PDF. Send it to your client by email or print a copy for your records.

Tax Invoice vs Regular Invoice

Not every invoice is a tax invoice. If you are not registered for GST, you issue a regular invoice. Here is how the two compare:

If you are not registered for GST, do not label your invoice as a "Tax Invoice" and do not show a GST amount. Doing so can mislead the buyer into claiming a GST credit they are not entitled to, and you could face penalties from the ATO.

Common Tax Invoice Mistakes

Even experienced businesses make errors on tax invoices. These are the most common mistakes that delay payments or create problems at BAS time:

Not including your ABN. Your Australian Business Number must appear on every tax invoice. If it is missing, the buyer may be required to withhold 47% of the payment under the ATO's no-ABN withholding rules (Pay As You Go Withholding). This applies even for small invoices, and even if the buyer knows your ABN from previous dealings — the invoice itself is the document of record.

Not showing GST separately. The GST amount must be shown on the tax invoice, either as a separate amount for each line item or as a statement that the total price includes GST. If GST is not identifiable on the invoice, the buyer cannot claim their input tax credit. Our template calculates and displays the GST breakdown automatically so you never miss this.

Wrong GST calculations. GST in Australia is 10% of the GST-exclusive price. A common error is calculating 10% of the GST-inclusive price, which gives the wrong amount. For example, if you sell a service for AU$110 including GST, the GST component is AU$10 (not AU$11). The formula is: GST = GST-inclusive price / 11. This tool handles the calculation for you, eliminating arithmetic errors.

Missing the "Tax Invoice" label. A valid tax invoice must contain the words "Tax Invoice" prominently displayed. Without this label, the document is technically just an invoice, and the buyer's AP team may reject it or request a corrected version — adding days to your payment cycle.

Frequently Asked Questions

Who needs to issue a tax invoice?

Any business registered for GST in Australia must issue a tax invoice for taxable sales of AU$82.50 or more (including GST) when the buyer requests one. GST registration is compulsory if your annual turnover is AU$75,000 or more (AU$150,000 for non-profit organisations). If you have voluntarily registered for GST with a lower turnover, the same rules apply. Businesses that are not registered for GST should not issue tax invoices.

What is the time limit for issuing a tax invoice?

You must provide a tax invoice within 28 days of a buyer's request. There is no legislated time limit for issuing one proactively, but best practice is to issue the tax invoice at the time of the transaction or as soon as possible afterwards. Delays in issuing tax invoices can slow down your cash flow, since many businesses will not process a payment until they have received a valid tax invoice.

Can you use an electronic tax invoice?

Yes. The ATO fully accepts electronic tax invoices, including PDF invoices sent by email. The document must contain all the same required information as a paper tax invoice and be a true and clear reproduction. Australia also supports e-invoicing through the Peppol network, which allows invoices to be exchanged directly between business software systems. For most small to medium businesses, a PDF tax invoice generated with this tool and sent by email is the simplest and most widely accepted option.

What if my customer requests a tax invoice?

If you are GST-registered and the taxable sale is AU$82.50 or more (including GST), you are legally obligated to provide a tax invoice within 28 days of the request. If the sale is under AU$82.50, you are not required to issue one but may do so voluntarily. Failing to provide a tax invoice when required can result in administrative penalties from the ATO. In practice, promptly issuing tax invoices builds trust with your customers and ensures you get paid faster.