How to write a legal tax invoice with an ABN in Australia

Getting the invoice right is not a formality. An invoice with missing or incorrect details can be rejected by the client, delay payment by weeks, or trigger an ATO compliance review.

What every ABN invoice must contain

For invoices under $75 (excluding GST), the minimum required information is:

• The seller's name (your full legal name, the same as on your ABN registration)
• The seller's ABN
• The date of issue
• A description of the goods or services
• The total amount payable

For invoices of $75 or more (excluding GST), if you are not registered for GST, the same information applies. If you are registered for GST, the invoice must also include:

• The words "Tax Invoice" clearly displayed
• The GST amount (or a statement that the total includes GST)
• The buyer's name or ABN if the invoice is for $1,000 or more

Most working holiday makers with an ABN are not registered for GST because they earn well below the $75,000 turnover threshold. See our article on GST and ABN for working holiday makers for when GST registration becomes required.

What happens if your invoice does not show an ABN?

Under the No-ABN withholding rule, a business paying for goods or services from someone who does not quote an ABN is legally required to withhold 47% of the payment and remit it to the ATO. This applies even if you have a valid ABN but simply forgot to put it on the invoice.

The 47% withheld is recoverable when you lodge your tax return at the end of the financial year, but it sits with the ATO in the meantime. For a $2,000 invoice, that is $940 you lose access to until the return is processed.

What are the common invoice mistakes that delay payment?

Even with all the required fields, clients regularly reject invoices for:

• Name on the invoice not matching the name registered against the ABN
• ABN with a typo (one wrong digit makes the ABN invalid on lookup)
• No invoice number for ongoing work (clients need a unique reference for each invoice)
• Date in the wrong format (Australian dates are DD/MM/YYYY, not MM/DD/YYYY)
• Bank account details missing, leaving the client unable to pay

The ABN on every invoice can be verified by the client through the public ABN Lookup tool. If the name and ABN do not match, the invoice will be rejected.

How does our service handle ABN invoicing for working holiday makers?

When you register an ABN through our service, we set up your ABN registration so that the name, address, and business activity on your invoices match the official ATO record. We also provide guidance on the correct invoice format for your work type, whether that is farm contracting, hospitality, ride-share, delivery, trades, or other contractor work.

At tax time, we reconcile every invoice you issued during the year against the income reported by your clients to the ATO, making sure no income is missed and no over-withholding has occurred. See our article on how to register for an ABN for how to get started, or get in touch with our team for direct help.