Sole Trader Invoice Guide: How to Invoice Clients When You Are Not Registered for GST
Starting out as a sole trader or freelancer in Australia is an exciting milestone. However, setting up your very first invoice can feel a bit daunting — especially when it comes to navigating the rules around the Goods and Services Tax (GST).
If your business turnover is below the Australian Taxation Office (ATO) mandatory registration threshold of $75,000 in annual turnover, you do not charge GST to your clients. But formatting your paperwork incorrectly can cause significant delays in getting paid, or worse, trigger an unexpected audit.
Here is exactly how to structure a completely legal, professional invoice when you are not registered for GST, using the free tools on Invoice Generator Australia.
The absolute golden rule: never say “Tax Invoice”
If you are not registered for GST, the single biggest mistake you can make is writing the words “Tax Invoice” at the top of your document. Under Australian tax law, a “Tax Invoice” is a specific legal document that indicates GST is included in the price. If you issue a tax invoice without being registered, you are collecting tax illegally.
- Registered for GST? Your document title must be Tax Invoice. See our ATO tax invoice checklist.
- Not registered for GST? Your document title must simply be Invoice. Our free invoice generator switches automatically when GST is set to zero.
The 6-point checklist for a valid non-GST invoice
The ATO requires specific pieces of information on your invoice to ensure your clients can legally process your payment through their business expenses. Ensure your document includes these six elements:
- The document title: It must clearly say “Invoice” at the top (not “Tax Invoice”).
- Your business identity: Your name or your registered business/trading name.
- Your Australian Business Number (ABN): Even if you are not registered for GST, you still need an ABN so clients do not have to withhold tax from your payment.
- Invoice date and unique number: The date you sent the document, along with a sequential number (e.g., #INV-001) to keep your accounting organised.
- Description of goods or services: A clear breakdown of what you did, your hourly rates, or the items you delivered.
- Total amount due: The final amount the client owes you.
The crucial “No GST” statement
To prevent any confusion with your client’s accounts payable department, it is highly recommended to add a brief note in the footer or comments section of your invoice stating: “No GST has been charged.”
Visual layout guide (no-GST example)
When using Invoice Generator Australia, leave the GST (%) field completely blank or set it to 0%. Your final layout should look exactly like this:
============================================================
INVOICE
============================================================
Alex Green Freelance Design
ABN: 12 345 678 901
[email protected] | 0400 000 000
Invoice Number: #INV-0001
Date of Issue: 11 June 2026
BILL TO:
Enterprise Corporate Solutions Pty Ltd
Level 5, 100 Queen St, Melbourne VIC 3000
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Description Qty Rate Total
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Logo Design & Branding Package 1 $650.00 $650.00
Website Layout Wireframes 5 $50.00 $250.00
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Subtotal: $900.00
GST (0%): $0.00
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TOTAL DUE: $900.00
Payment Terms: Net 7 Days.
Bank Transfer Details: BSB: XXX-XXX | Account: XXXX-XXXX
Note: Alex Green Freelance Design is not registered for GST.
No GST has been charged on this invoice. Frequently asked questions
What happens if I do not put an ABN on my invoice?
If you invoice an Australian business without providing a valid ABN, that business is legally required by the ATO to withhold 47% of your total invoice amount and send it directly to the tax office. Always include your ABN to get paid in full.
When do I have to register for GST?
You must register for GST within 21 days if your business reaches, or is expected to reach, an annual gross turnover of $75,000 AUD or more. Gross turnover means your total sales before subtracting expenses.
If I am not registered, can I claim GST back on my business expenses?
No. Only businesses registered for GST can claim back input tax credits on the things they buy for work.
Create your non-GST invoice in seconds
Do not let complicated accounting software slow down your business growth. Our platform is completely free, requires zero accounts or sign-ups, and defaults perfectly to your custom sole trader requirements.
Related resources
- ATO tax invoice checklist (for GST-registered businesses)
- Quotes, estimates & purchase orders guide
- Help centre