How to Set Up Recurring Invoices for Your Australian Business
If your business has clients on retainers, subscriptions, or monthly service agreements, recurring invoices can save you hours of manual work each month and ensure you never forget to bill anyone. Instead of recreating the same invoice every month, you set it up once and let the system do the rest.
This guide explains what recurring invoices are, who they suit, how to set them up correctly for Australian GST compliance, and how to automate your billing workflow end-to-end.
What Are Recurring Invoices?
A recurring invoice is an invoice that is automatically generated and sent to a client at a fixed interval — weekly, fortnightly, monthly, quarterly, or annually. The invoice content stays the same (or with minor updates), and the process is fully automated.
Recurring invoices are ideal for:
- Monthly retainer clients (marketing agencies, IT support, consulting)
- Subscription-based services (software, memberships, maintenance plans)
- Regular service contracts (cleaning, accounting, property management)
- Monthly SaaS or hosting billing
- Rental income (commercial or short-term accommodation)
Benefits of Automating Your Invoicing
- Save time every month
Manually recreating the same invoice 10-20 times per month can take hours. Automation returns that time to you.
- Consistent cash flow
Invoices sent on the same date each month means payments arrive predictably, making cash flow management easier.
- Never forget to invoice
Missed invoices mean missed revenue. Recurring invoices ensure every client is billed every time without relying on your memory.
- Professional and consistent
Clients receive a professional invoice every billing period, reinforcing your reliability and attention to detail.
- Automatic payment reminders
Pair recurring invoices with automatic reminders so overdue invoices are chased without you lifting a finger.
How to Set Up Recurring Invoices Step by Step
Step 1: Choose invoicing software that supports recurring billing
Not all invoicing tools support automated recurring invoices. Look for software that lets you set a billing frequency, start date, and end date (if the contract has an end). It should also handle GST automatically and maintain correct sequential invoice numbers.
Step 2: Set up the recurring invoice template
Create your invoice template with all the required ATO details (Tax Invoice heading, your ABN, client details, service description, price, and GST). Set the billing frequency — weekly, monthly, quarterly — and the day you want it to send.
Step 3: Confirm the client agrees to recurring billing
Before setting up recurring invoices, ensure your client agreement or contract specifies the billing amount, frequency, and payment terms. This protects you from disputes and sets clear expectations.
Step 4: Enable automatic payment collection (optional)
For the smoothest experience, set up automatic payment collection via a direct debit mandate (the client authorises you to charge their account) or save their card details via Stripe or Square for automatic charging on each billing date.
Step 5: Monitor and adjust as needed
Review your recurring invoices regularly. Update amounts if your pricing changes, pause invoices when a client is on a break, and cancel when contracts end. Don't let recurring invoices run unattended indefinitely.
GST on Recurring Invoices
If you are GST-registered, each recurring invoice must be a valid tax invoice and include the correct 10% GST amount. Make sure your recurring invoice software:
- Labels each invoice as "Tax Invoice"
- Includes your ABN on every invoice
- Shows GST as a separate line item or states the total is GST-inclusive
- Assigns a new, sequential invoice number to each generated invoice
- Uses the correct invoice date (the date of issue, not a future date)
For BAS purposes, the GST is reportable in the period the invoice was issued, regardless of when payment is received (for accrual-basis reporting). Check with your accountant if you report on a cash basis, as the timing rules differ.
Direct Debit vs. Invoice-Based Recurring Billing
You have two main approaches to recurring billing:
Invoice-based recurring billing
You send an invoice each period and the client pays manually (bank transfer, PayID, card). More administrative effort for the client, but gives them control and visibility of each charge.
Direct debit / automatic payment
The client signs a direct debit mandate or saves a payment method, and you charge them automatically each period. Faster, higher success rate, less chasing — but requires the client's explicit upfront consent.
Automate your recurring billing with BillMate
BillMate makes it simple to set up recurring invoices for your retainer clients. Set the schedule once and invoices go out automatically — with the correct GST, your ABN, and sequential invoice numbers every time.
Set Up Recurring Invoices