Australian Invoice Generator

When to use

Triggers:

• "Create an invoice" / "Generate a tax invoice"
• "Raise an invoice for [client]" / "Invoice [company] for [work]"
• "RCTI template" / "Recipient-created tax invoice"
• "Credit note" / "Adjustment note"
• "GST-free invoice" / "Export invoice — do I add GST?"
• Any AU SME operator needing to issue a billing document

Don't fire for:

• Quoting / estimating (use trades-quote-to-invoice or a quote-specific skill)
• Payroll payments (different rules — STP, no invoice needed)
• Consumer receipts / POS docket generation (different system)

The 7 mandatory tax-invoice fields (ATO)

For a tax invoice under $1,000 to be ATO-compliant, it must include:

1. The document is identified as a "Tax invoice" (those exact words)
2. Seller's identity — registered business name (or legal entity name)
3. Seller's ABN (or ARBN / ACN as applicable)
4. Date the invoice is issued (not the date of supply if different)
5. Brief description of what's sold — each item, quantity where relevant
6. GST amount — shown separately, OR a statement that the amount includes GST
7. Extent to which each supply is a taxable supply — e.g. "All items are subject to GST", or per-line indicators

Tax invoices over $1,000 must additionally include:

8. Buyer's identity — business name
9. Buyer's ABN — if the buyer is a GST-registered business

If any of the 7 (or 9 for >$1,000) are missing, the buyer can't claim the input tax credit. The buyer will ask you to reissue — correctly — before they pay. Save the back-and-forth.

Invoice types

Standard tax invoice

The everyday one. Seller raises, sends to buyer, buyer pays.

Required fields as above.

Recipient-created tax invoice (RCTI)

The BUYER raises the invoice on behalf of the SELLER. Used where the buyer has better data (marketplace operators, contractors on a commission arrangement, some industries).

Conditions for a valid RCTI (all must be true):

• Both parties are GST-registered
• There's a written agreement between them specifying RCTI use (must exist and be current — no written agreement = no valid RCTI)
• The agreement covers the supply being invoiced
• The RCTI shows the buyer's ABN and the words "Recipient-created tax invoice"
• The seller doesn't also issue an invoice for the same supply

Industries where RCTI is common: livestock, grain, construction (some sub-contractor arrangements), insurance premium funding, marketplace commissions.

Adjustment note (credit note)

Issued when you reduce a previous invoice. Required when:

• You overcharged
• Goods are returned
• Discount is applied after invoicing
• A bad debt is written off (formal adjustment for the GST component)

Adjustment notes need:

1. Words "Adjustment note"
2. Seller's identity + ABN
3. Date issued
4. Description of what's being adjusted + reference to the original tax invoice
5. The adjustment amount (GST-inclusive) and the GST component

GST treatment per line

Not every line on an invoice is 10% GST. Common categories:

| Category | GST treatment | Common examples | |---|---|---| | Taxable | 10% GST applies | Most goods and services | | GST-free | 0% GST | Basic food, some health, exports, some education, international travel | | Input-taxed | 0% GST, no input credit for buyer | Residential rent, financial services, fundraising | | Mixed | Different treatment per line | Invoice with both taxable + GST-free lines |

If your invoice mixes treatments, show GST per line (not just total). Show the GST-exclusive subtotal, then GST, then GST-inclusive total.

Exports

Exports are GST-free if the goods leave Australia within 60 days of payment or invoice (whichever is earlier). You need evidence of export (shipping documents, customs declarations). Flag "EXPORT — GST-free" on the invoice so the buyer knows not to try to claim GST.

Imports

You pay GST on imports as part of customs clearance, not on the supplier's invoice. The supplier's invoice typically shows no GST if they're not AU-registered.

Due dates and payment terms

Common AU SME terms:

• 7 days — tight; used for small-value consumer work or deposits
• 14 days — standard for trades and small business
• Net 30 — standard for B2B professional services, supplies
• Net 60 / 90 — common for larger commercial projects; longer terms, weigh cashflow

Always write the due date explicitly (not just "7 days from invoice"). Write the actual date. Disputes about "what day was day 1" are avoidable.

Late payment mechanics

• Interest for late payment — enforceable if the terms stated it; common rate is the prescribed business rate + 2% (Victorian legislation) or 10% p.a. (contract-specified). State in terms before any invoice is issued.
• Administrative / collection fees — enforceable if stated in terms and reasonable
• Payment plan — always discuss before issuing a debt-collection letter

Payment instructions

List ALL accepted methods, don't make the buyer ask:

• EFT / direct bank transfer — BSB + Account + Reference (usually the invoice number)
• BPAY — Biller Code + Reference (many AU businesses have a BPAY facility)
• Credit card — link to a payment gateway (Stripe, eWAY, Square); flag if you pass on surcharge
• PayTo (newer) — NPP-based instant payments; growing adoption
• Cheque — rare in 2026; usually don't encourage

Surcharges

Under the ACCC rules, surcharges for credit card payments must be "reasonable" — typically the actual cost of processing, not a markup. If you charge a 2% credit-card surcharge but your actual cost is 1.2%, that's excessive.

Common compliance errors (ATO audit flags)

• Missing "Tax invoice" words — buyer can't claim GST
• ABN missing or wrong — buyer's subsequent GST claim gets rejected
• GST calculated wrong — e.g. calculating GST on a GST-inclusive amount as if it were GST-exclusive; always clear which base you're using
• Inconsistent invoice numbering — skipping numbers, repeating numbers; auditor sees a gap and asks "what happened to #247?"
• Date backdating — invoice issued in April but dated in March for BAS-manipulation purposes; serious audit risk
• Mixing business and personal invoices — e.g. invoicing from a personal ABN for work done by a Pty Ltd; structural tax issue
• Unregistered GST — if your business isn't registered for GST, you CAN'T charge GST. Issue tax-invoice format but show "GST does not apply — supplier not registered for GST" (or similar)

Structure by business type

Sole trader

• Name: "[Personal name] trading as [Business name]" or "[Personal name]"
• ABN: your personal sole-trader ABN
• If GST-registered, show GST; if not, state it

Partnership

• Name: "[Partnership name]"
• ABN: the partnership's ABN (not individual partners)

Company (Pty Ltd)

• Name: "[Company legal name] Pty Ltd"
• ABN: the company's ABN
• ACN: also show; mandatory for companies

Trust

• Name: "[Trustee name] as trustee for [Trust name]"
• ABN: the trust's ABN

Output format

The skill produces:

1. PDF-ready invoice (Markdown or HTML) — formatted per the 7/9 field requirements, GST broken out correctly
2. Accounting-system line items — CSV-compatible for Xero/MYOB/QuickBooks import
3. Email body — a short professional cover email to send with the invoice
4. Chase email sequence (optional) — day 0, day 7, day 14, day 21, day 30 reminders in the operator's voice

Numbering scheme

Sequential, gap-free. Common patterns:

• INV-0001, INV-0002, INV-0003 — simple, works forever
• [YYMM]-NNNN — e.g. 2604-0023 = April 2026, 23rd invoice; resets counter monthly or yearly
• Client-specific prefix (for larger clients requiring it): [CLIENT]-0001 — can complicate reporting

Whatever you pick, never skip or reuse numbers. An auditor asking "why is there no invoice 247?" is a conversation you don't want.

Integration

• Xero — Sales → Invoice → New. Skill outputs the line items; paste or upload CSV.
• MYOB — Sales → Enter Sales → Invoice. Same pattern.
• QuickBooks Online — Sales → New → Invoice.
• Standalone — skill outputs a PDF-ready Markdown file.

If you don't have an accounting platform: consider getting one. Running invoices manually beyond ~20/month creates compliance risk. Xero Starter is ~$35/month as of April 2026.

What this skill does NOT do

• Send the invoice. Your accounting software or email does.
• Collect payment. Your payment gateway or the buyer does.
• Lodge BAS. See au-bas-gst-quarterly-prep.
• Chase serious debt. Once 60+ days overdue, this is collections territory — use a debt collector or small-claims tribunal.

Tier access

Base. Invoicing is daily work for every AU SME. Pro-tier members get the chase-email library customised to their voice + Xero/MYOB integration.

Related skills

• au-bas-gst-quarterly-prep — invoice GST flows here quarterly
• trades-quote-to-invoice — quoting → invoicing workflow for trades
• xero-myob-month-end-close — closes the books containing these invoices
• client-intake-to-proposal-pro-services — upstream of invoicing

References

• ATO — Tax invoices
• ATO — Recipient-created tax invoices
• ATO — Adjustment notes
• ACCC — Card payment surcharging