Sole trader invoices when you're not GST-registered (and how to watch the $75,000 threshold)
What to put on an Australian sole-trader invoice when you're not registered for GST, why you must not call it a tax invoice, how the $75,000 GST turnover threshold works month by month, and why quoting your ABN matters.
Plenty of sole traders have an ABN and are not registered for GST. That's normal under the ATO's $75,000 threshold. The paperwork still matters: you need a proper invoice (not a "tax invoice"), you need to quote your ABN so business customers don't withhold tax, and you need a running view of GST turnover so the 21-day registration clock doesn't catch you cold. This page summarises the official rules. It isn't tax advice.
Invoice vs tax invoice
business.gov.au draws a clear line:
- Tax invoices are for GST-registered businesses. They show GST and use the words "tax invoice".
- Regular invoices are what you use if you're not registered for GST. They must not say "tax invoice", and they must not show GST.
If you're not registered, put something like "No GST has been charged" on the invoice so the buyer isn't left guessing. Customers can check your GST status on ABN Lookup.
What to put on a non-GST invoice
There's no ATO checklist for a regular invoice the way there is for a tax invoice, but business.gov.au's common practice list is a good baseline:
- the word Invoice (not "Tax invoice")
- your business name and ABN
- a unique invoice number and the issue date
- your contact details
- a description of the work or goods, with quantity and price
- when and how to pay
- the buyer's name
- a clear note that no GST has been charged
Once you are GST-registered, switch to a tax invoice with the seven ATO details (and the buyer's identity or ABN on sales of $1,000 or more). See our tax invoice guide.
Why your ABN on the invoice matters
If a business pays you for goods or services and you don't quote an ABN, the ATO says the payer generally has to withhold tax from the payment (for payments over $75 excluding GST) and send that amount to the ATO. The ATO's supplier guidance puts that withholding at 47% from 1 July 2017 where the no-ABN rules apply. Quoting your ABN on the invoice (or another document about the supply) is how you avoid that. Keep a copy with your records.
Watching the $75,000 GST threshold every month
The ATO says you must register for GST within 21 days once your GST turnover reaches the threshold. You reach it if either:
- current GST turnover — this month plus the previous 11 months — is $75,000 or more, or
- projected GST turnover — this month plus the next 11 months — is likely to be $75,000 or more.
GST turnover is total business income, not profit. Materials you pass on to customers still count. When working out projected turnover, leave out sales of capital assets (for example selling a ute or a welder) and sales you make only because you're closing or substantially shrinking the business. Non-profits have a $150,000 threshold. Taxi, limousine and ride-sourcing drivers must register for GST regardless of turnover, so a threshold tracker isn't the right tool for them.
The ATO also says to check each month whether you've reached, or are likely to reach, the threshold. A rolling 12-month view (and a forward estimate) is how you get months of warning instead of a scramble.
Worked example (made-up figures)
A sole-trader landscaper invoices about $5,000 a month. Past 12 months = $60,000. They win a six-month council contract at an extra $3,000 a month. Projected next 12 months ≈ $60,000 + $18,000 = $78,000. They've hit the threshold on a projected basis, so the 21-day clock starts now — not when the trailing 12 months finally pass $75,000.
Practical checklist
- Confirm on ABN Lookup whether you're GST-registered. If not, use "Invoice", not "Tax invoice".
- Put your ABN on every invoice and quote.
- Number invoices in sequence and log payments so you can see unpaid and overdue amounts.
- Each month, add this month's sales to the previous 11 and to a next-11 estimate. Flag UNDER / WATCH / REGISTER.
- If you hit the threshold, register within 21 days (Online services for business, phone, or a registered agent). Then move to tax invoices and BAS reporting — see Do I need to register for GST? and Simpler BAS.
Sources
- ATO – Registering for GST
- ATO – Tax invoices
- business.gov.au – How to invoice
- ATO – Withholding if ABN is not provided
- ATO – Statement by a supplier not quoting an ABN
Related guides
- Do I need to register for GST? The $75,000 rule
- What a tax invoice must show (Australia)
- Simpler BAS: what goes in G1, 1A and 1B
- How to quote a job with GST (Australia)
General information only, summarised from the official sources above as at the review date. It isn't legal, tax, WHS or engineering advice. Rules change and your situation may differ, so check the source or ask a professional.