How to Invoice as a Freelancer in Australia

Invoicing is one of the most fundamental skills for any Australian freelancer. Send the wrong invoice and you could delay payment, fail an ATO audit, or miss out on claiming GST. Send a professional, compliant invoice and you project confidence, get paid faster, and stay on the right side of the ATO.

This step-by-step guide covers everything Australian freelancers need to know about invoicing — from getting your ABN to choosing the right invoicing software.

Step 1: Get Your ABN Before You Invoice

As a freelancer in Australia, you must have an Australian Business Number (ABN) before you start invoicing clients. Your ABN must appear on every invoice you send.

If you don't include your ABN on an invoice, your client is legally required to withhold 47% of the payment and send it to the ATO — which will significantly delay your payment.

Applying for an ABN is free and can be done online through the Australian Business Register (ABR) at abr.gov.au. Most applications are approved instantly. You'll need your tax file number (TFN) and some basic information about your business activities.

Step 2: Decide Whether to Register for GST

You only need to register for GST if your annual turnover (income before expenses) is $75,000 or more. If you're below this threshold, you don't have to register — but you can voluntarily if you want to claim GST credits on your expenses.

Not GST-registered

Your invoice shows your ABN and the total amount only. Do not add GST. The invoice does not need to say "Tax Invoice" — just "Invoice" is fine. Your client cannot claim a GST credit from your invoice.

GST-registered

You must issue a "Tax Invoice" and add 10% GST to your prices. You report and pay the GST to the ATO via your BAS each quarter. You can also claim GST credits on your business expenses.

Step 3: Create a Professional Invoice

A well-structured invoice contains all the information your client needs to pay you promptly and the ATO requires for compliance. Here's what to include:

"Tax Invoice" or "Invoice" heading
Use "Tax Invoice" if you are GST-registered. Use "Invoice" if you are not GST-registered.
Your name and ABN
Your full legal name (or business name if you have one registered) and your ABN. Include your contact email and phone number.
Invoice number and date
A unique sequential invoice number (e.g., INV-001) and the date you issued the invoice.
Client details
The client's name or company name and their address. For invoices over $1,000, you must include the client's ABN or name.
Description of services
A clear description of what you did, when, and how many hours or units. Be specific enough that the client can match it to the work you delivered.
Amount, GST (if applicable), and total
Show the subtotal, GST amount (10%), and total. If not GST-registered, just show the total with a note that no GST is included.
Payment due date and bank details
State the exact due date and your BSB/account number or PayID. Make it easy for the client to pay.

Step 4: Set Clear Payment Terms

Most Australian freelancers use Net 7 or Net 14 payment terms — payment due within 7 or 14 days of the invoice date. Net 30 is common in larger corporate environments.

Include your payment terms in your client agreement before starting work, and restate them on every invoice. This prevents disputes and sets clear expectations. If you charge late fees, state the rate on your invoice (e.g., "Overdue invoices attract 2% per month").

Step 5: Send and Track Your Invoices

Send your invoice as a PDF by email immediately after completing the work — don't wait until the end of the month. The faster you invoice, the faster you get paid.

Send invoices the same day or next day after completing work
Follow up with a friendly reminder 2-3 days before the due date
Chase immediately on the due date if payment hasn't arrived
Keep a record of all sent invoices and their payment status
Use invoicing software that tracks paid and overdue invoices automatically

Professional invoicing built for Australian freelancers

BillMate creates ATO-compliant invoices in seconds, tracks what's paid and overdue, and generates GST reports for your BAS. Free to start, no accounting knowledge required.

Create Your First Invoice