How to Create a Sole Trader Invoice

If you’re a sole trader in Australia, sending proper invoices is essential for getting paid, tracking income, and staying compliant with the ATO.

In this guide, we’ll walk through:

• Why invoicing matters
• What to include on your sole trader invoice
• How to send invoices professionally
• Common mistakes to avoid

Need an ABN before you can invoice clients? Get your ABN online with Register My ABN today – it takes less than 5 minutes.

1. Why invoicing matters

An invoice is a legal document requesting payment for services or goods provided. If your invoice is incomplete or incorrect, you could face:

• Delays in payment
• Difficulty tracking overdue invoices
• ATO compliance issues during tax reporting

Professional, compliant invoicing helps you get paid faster and protects your business if disputes arise.

2. What to include on your sole trader invoice

There are two types of invoices and the type you need to provide will depend on whether you’re registered for goods and services tax (GST). If you’re registered for GST, you’re usually required to provide ‘Tax Invoices’ otherwise you can issue a regular invoice called ‘Invoice’.

According to ATO guidelines, your invoice should also clearly show:

• Your full name or registered business name
• Your ABN (Australian Business Number)
• The word ‘Invoice’ or ‘Tax Invoice’ clearly displayed (if you’re registered for GST)
• A unique invoice number (e.g. INV-001)
• The date the invoice was issued
• A clear description of the goods or services provided
• The total amount payable
• GST details (if you are registered for GST)

If you are not registered for GST, you must not charge or include GST on your invoice.

Here's a simple example of what your invoice should look like:

3. How to send invoices professionally

You can send invoices by:

• Emailing a PDF attachment
• Using invoicing platforms like Xero or MYOB
• Sending directly via Stripe, PayPal, or other payment platforms

Make sure your payment instructions are easy to find - include your bank details and clearly state your due date.

4. Common mistakes to avoid

To prevent payment delays or tax issues, avoid:

• Leaving out your ABN
• Repeating or skipping invoice numbers
• Charging GST if you’re not registered
• Forgetting key details like client name, service description, or date

Small mistakes can create confusion, or worse, cost you money at tax time.

Need an ABN first?

You must have an ABN to invoice clients in Australia for business activity. If you don’t have one yet, Register My ABN can help you apply online - it only takes a couple minutes, and costs just $45 incl. GST.

Once you have your ABN, you can start invoicing clients immediately and include your ABN on every invoice.

Ready to start invoicing?

Invoicing professionally is a key part of running a successful sole trader business.

It helps you:

• Get paid on time
• Stay organised for tax time
• Build trust and credibility with clients

Make sure your invoices are clear, compliant, and always include your ABN. Still need one? Apply through Register My ABN - it takes less than 5 minutes for only $45 incl. GST.