Worked example · Sole Traders
Sole Trader invoice example: what a correct one looks like
The filled-in example below is a sole trader who is not registered for GST: a part-time handyman under the $75,000 threshold invoicing a gutter clean and a couple of small repairs. It shows what changes when there is no GST: the heading says Invoice, not Tax Invoice, the total equals the subtotal, and one line under the totals says so in plain words.
If you are registered for GST, the same layout applies with the heading changed to Tax Invoice and GST shown per line. Every trade template on this site shows that version, so compare this page with the cleaner or electrician example to see both side by side.
The example
Example invoice for a sole trader
INVOICE
R. Halloran Property Maintenance
| Description | Qty | Unit price | GST | Amount |
|---|---|---|---|---|
| Labour: gutter clean and downpipe reseal, single storey (per hour) | 3 | $65.00 | No GST | $195.00 |
| Supply: replacement downpipe bracket and exterior sealant | 1 | $38.00 | No GST | $38.00 |
| Labour: replace bathroom exhaust fan, unit supplied by owner (per hour) | 1.5 | $65.00 | No GST | $97.50 |
| Travel and call-out | 1 | $40.00 | No GST | $40.00 |
| Subtotal | $370.50 | |||
| Total (no GST charged) | $370.50 | |||
No GST has been charged. This business is not registered for GST. Payment within 7 days to the account below.
Want this as a blank fill-in PDF? Grab the free sole trader invoice template or skip the paperwork and generate one already filled in, free.
Trade-specific rules
GST notes for sole traders
Sole traders across every trade and service: the one invoice format that has to work whether you are registered for GST or still under the $75,000 threshold.
- Not registered for GST? Head the document 'Invoice', charge no GST, and add one line: 'No GST has been charged. This business is not registered for GST.' The ATO says the words 'Tax Invoice' are only for registered businesses.
- Registered for GST? The document must say 'Tax Invoice', show your ABN and the date, describe each line with quantity and price, and show the GST per line or state that the total includes GST. Sales of $1,000 or more (including GST) must also show the customer's identity or ABN.
- Either way, your ABN goes on every invoice. If a business customer pays you without an ABN quoted, they generally have to withhold tax at the top marginal rate and send it to the ATO, and you wait until tax time to get it back.
- Watch the threshold. GST turnover is tested on a rolling 12 months, not the financial year. Once you reach $75,000 you have 21 days to register, and from then on every invoice becomes a Tax Invoice with GST.
- If you're registered for GST, a customer can ask for a tax invoice for any taxable sale over $82.50 including GST, even if you didn't give one upfront, and you have 28 days from being asked to provide it.
- Keep a copy of every invoice you issue, Tax Invoice or plain Invoice, for at least 5 years. That's the ATO's minimum for business records, and invoices are part of that.
Related
Before you send it
- Working in a specific trade? The cleaner, electrician and plumber templates add the licence numbers, call-out lines and GST notes that trade actually uses.
- Invoicing a builder as a subbie? Read the subcontractor invoice guide for progress claims, variations and retention.
- Tired of retyping your details? The best invoice app for tradies and sole traders compares the apps Aussie sole traders actually use, with current prices.
Fair questions
FAQ
Why does the example say 'Invoice' and not 'Tax Invoice'?
Because the business in the example is not registered for GST. The ATO reserves the words 'Tax Invoice' for registered businesses. If you are registered, your version is headed 'Tax Invoice' and shows GST per line; every other trade example on this site shows that format.
Should I add a line saying no GST was charged?
It is not compulsory but it is worth doing. One sentence under the totals, 'No GST has been charged. This business is not registered for GST', stops the 'where is the GST?' email from a customer's bookkeeper.
Can I charge GST 'just in case' while unregistered?
No. Charging GST when you are not registered is collecting a tax you cannot remit, and the ATO treats it seriously. Register first (you can register voluntarily below the threshold), then charge it.
What if a business customer asks me for a tax invoice?
Explain that you are not registered for GST, so there is no GST for them to claim and no tax invoice to give. Your normal invoice with your ABN is the correct document. The ATO's own tax invoice page says the same.
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