Free Invoice Generator

ATO requirements for a valid tax invoice

Under ATO rules, a valid tax invoice must include: your business name and ABN, the words "Tax Invoice", the date of issue, a description of the goods or services, the GST amount (or a statement that the total includes GST), and the total amount payable. For invoices over AU$1,000, the buyer's identity (name or ABN) must also be shown. Missing any of these fields means your customer cannot claim the GST input tax credit, a common mistake that creates friction at BAS time.

If you are not registered for GST (turnover under AU$75,000), you issue a regular invoice without GST. Your invoice must not show a GST amount or use the words "Tax Invoice", as this could mislead the buyer into claiming a credit they are not entitled to.

What makes a good invoice

Beyond ATO compliance, a well-structured invoice reduces the time it takes your customer to process and pay it. Clear line item descriptions help the buyer's AP team code the invoice correctly. A purchase order reference number lets them match the invoice to the original order without contacting you. Bank details displayed prominently reduce "how do I pay?" queries.

Payment terms should be specific. "Net 30" means payment is due 30 days from the invoice date. "Due on receipt" means immediately. If you offer early payment discounts (e.g. 2% discount if paid within 10 days), state the discount terms clearly. The faster your invoice is processed, the faster you get paid, and how quickly it is processed often depends on how easy it is for the buyer's AP team to handle.

Common invoicing mistakes

Incorrect or missing ABN. If your ABN is wrong or missing, the buyer may need to withhold 47% of the payment under the no-ABN withholding rules (Pay As You Go Withholding). This applies even if the buyer knows your correct ABN, as the invoice is the document of record. Always verify your ABN is correct on every invoice.

Inconsistent invoice numbering. Invoice numbers should be sequential and unique. Gaps or duplicates create problems for both your records and your customer's AP team. Duplicate invoice numbers are a common flag in fraud detection systems and can delay payment while the buyer investigates.

Vague line item descriptions. "Services rendered" or "materials" gives the buyer nothing to work with. Specific descriptions ("Site inspection, 123 Main St, 4 hours at AU$150/hr") speed up coding, approval, and payment. They also reduce disputes because both parties have a clear record of what was delivered.

How to use this invoice generator

1. Enter your business name, ABN, and address. Add your logo if you have one.
2. Fill in your client's details, a unique invoice number, the issue date, and payment due date.
3. Add line items with descriptions, quantities, unit prices, and GST treatment. Totals calculate automatically.
4. Add bank details or payment instructions, preview, and download as PDF.

Frequently asked questions

Do I need to include GST on every invoice?

Only if your business is registered for GST. If your annual turnover is AU$75,000 or more (AU$150,000 for non-profits), GST registration is compulsory. Once registered, you must charge 10% GST on taxable supplies and issue a valid tax invoice for sales of AU$82.50 or more (including GST).

How long do I need to keep copies of invoices?

The ATO requires businesses to keep records for five years from the date the record was created or the transaction occurred. Digital copies are acceptable as long as they are a true and clear reproduction of the original.

What is the difference between an invoice and a receipt?

An invoice is a request for payment issued before or at the time of a transaction. A receipt is proof of payment issued after the money has been received. Only the tax invoice is needed for the customer to claim GST input tax credits.

Can I use this for recurring invoices?

Yes. Fill in your standard details, download the PDF, and reuse it each month by updating the invoice number and date. For businesses sending recurring invoices at volume, accounting software removes the manual step.