Australia GST Invoicing Guide

1. Overview

Sparrow Invoicing helps Australian businesses create clear, professional and GST-ready tax invoices. This guide explains key Australian GST invoicing requirements and how to manage them correctly in Sparrow — including creating tax invoices, recording payments, applying credit notes and reviewing GST reporting information.

In Australia, GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. A GST invoice is commonly called a tax invoice. The guide also explains common GST treatments used on customer invoices, including 10% GST, GST-free, input-taxed and No GST / out of scope.

2. What is GST in Australia?

GST means Goods and Services Tax. If your business is registered for GST, you generally charge GST on taxable sales, claim GST credits on eligible business purchases and report GST through the Business Activity Statement (BAS). In Sparrow, you can select the GST treatment that applies to each invoice line.

GST treatment options and what each means in Sparrow
GST option	What it means
10% GST	Standard taxable sales connected with Australia.
GST-free	Sales where GST is not charged, but GST credits may still be claimable on related business purchases. Examples may include some exports and some health, education or food supplies.
Input-taxed	Sales where GST is not charged and GST credits usually cannot be claimed on related purchases, such as many residential rent and financial supplies.
No GST / out of scope	Transactions where Australian GST does not apply or the transaction should not be reported as a GST sale.

Sparrow can price invoices as GST-inclusive or GST-exclusive. In organisation settings, mark whether the business is registered for GST and set the base currency to AUD. If the business is not GST-registered, invoices must not charge GST.

How GST-inclusive and GST-exclusive pricing work in Sparrow
Pricing setting	How it works
GST-inclusive	The price already includes GST. For a 10% taxable sale, GST is generally 1/11th of the GST-inclusive price.
GST-exclusive	GST is added on top of the price. For example, AUD 100.00 plus GST = AUD 110.00.

3. When you must register for GST

A business or enterprise generally must register for GST when its GST turnover reaches the relevant threshold. Some activities, such as taxi and ride-sourcing services, have special GST registration rules.

GST registration turnover thresholds by business type
Business type	GST registration turnover threshold
Most businesses and enterprises	Generally must register for GST when GST turnover is AUD 75,000 or more.
Not-for-profit organisations	Generally must register when GST turnover is AUD 150,000 or more.
Taxi and ride-sourcing services	Special rules apply — GST registration is generally required regardless of turnover.

4. Tax invoice basics

In Australia, a GST invoice is commonly called a tax invoice. A GST-registered supplier must provide a tax invoice within 28 days if the customer asks for one, unless the sale is AUD 82.50 including GST or less.

When a tax invoice is required and what to do in Sparrow
Invoice situation	Sparrow guidance
Sale of AUD 82.50 or less including GST	A tax invoice is generally not required if requested, but the business should still keep clear sales records.
Sale above AUD 82.50 including GST	Create and send a valid tax invoice when requested.
Sale of AUD 1,000 or more including GST	Include the buyer identity or ABN as well as all standard tax invoice details.
Mixed supplies	Clearly show which items include GST, which are GST-free, input-taxed or not subject to GST.

5. What an Australian tax invoice should include

Details an Australian tax invoice should include and how Sparrow helps
Invoice detail	How Sparrow helps
Words “Tax Invoice”	Shown clearly on the invoice PDF.
Supplier identity	Business name or trading name.
Supplier ABN	Australian Business Number shown on GST invoices.
Invoice issue date	Date the invoice is issued.
Invoice number	Unique system-generated invoice number.
Description of goods or services	Clear line-item descriptions.
Quantity, unit price and line total	Useful for clarity and customer queries.
Extent to which each sale is taxable	GST rate or GST treatment shown per line where possible.
GST amount	GST amount shown, or a clear GST-inclusive statement where allowed.
Total amount payable	Shown as total AUD.
Buyer identity or ABN for AUD 1,000+ sales	Customer name, business name or ABN included for higher-value invoices.
Payment terms and payment details	Helps customers pay faster and supports reconciliation.

6. Tax invoice information by value

Tax invoice information required by invoice value
Invoice value	Information to include
AUD 82.50 or less including GST	A tax invoice is generally not required if requested, but records should still show the sale details.
More than AUD 82.50 and less than AUD 1,000 including GST	Show “Tax Invoice”, supplier identity, supplier ABN, issue date, description, GST amount or GST-inclusive statement, and the extent to which each sale is taxable.
AUD 1,000 or more including GST	Include all standard tax invoice details plus the buyer identity or buyer ABN.

7. Creating a GST invoice in Sparrow

Go to Invoices and select New Invoice.
Choose the customer and confirm the customer details are correct.
Add the products or services supplied.
Choose whether invoice prices are GST-inclusive or GST-exclusive, if this is not already set in organisation settings.
Select the correct GST treatment for each line: 10% GST, GST-free, input-taxed, or No GST / out of scope.
Check the subtotal, GST amount and total payable in AUD.
Save as draft while preparing the invoice.
Approve the invoice when ready.
Send the invoice to the customer or download the invoice PDF.
Record payments against the invoice when the customer pays.

Sparrow should display GST clearly so the customer can see the subtotal, GST amount and total payable in AUD.

8. GST calculation examples

Worked GST calculation examples for 10% GST
Pricing method	Example
GST-exclusive	Service fee AUD 100.00 + GST AUD 10.00 = Total AUD 110.00.
GST-inclusive	Total AUD 110.00 including GST. GST component = AUD 110.00 / 11 = AUD 10.00.
GST-free sale	Total AUD 110.00. GST charged = AUD 0.00.
Mixed invoice	Some lines may include 10% GST and other lines may be GST-free, input-taxed or no GST.

9. Cash vs non-cash GST reporting

Australian GST reporting is commonly managed on either a cash basis or a non-cash basis. Sparrow helps businesses track invoices, payments and credits clearly so they can prepare BAS information correctly.

How each GST reporting method is generally reported
GST reporting method	General meaning
Cash basis	GST is generally reported when payment is received from customers or paid to suppliers.
Non-cash basis / accrual basis	GST is generally reported when an invoice is issued or a payment is received, whichever occurs first.

Invoice statuses in Sparrow

Recommended Sparrow invoice statuses and their meaning
Invoice status in Sparrow	Meaning
Draft	Invoice is being prepared and should not be reported as final sales information.
Approved	Invoice is approved internally but may not yet be sent.
Sent	Invoice has been issued to the customer.
Partially paid	Some payment has been received. This is important for cash-basis GST records.
Paid	Full payment has been received.
Credited	Credit note or adjustment has been applied.
Void	Invoice has been cancelled or voided according to business rules.

10. Credit notes and adjustment notes

In Australia, an adjustment note is used when a change affects the price or GST amount after a tax invoice has been issued. This may happen because of returned goods, discounts, cancellations, incorrect GST treatment or invoice corrections.

How to handle credit notes and adjustment notes in Sparrow
Situation	What to do in Sparrow
Customer returns goods	Create a credit note or adjustment note linked to the original invoice.
Invoice amount was too high	Create a partial credit note for the overcharged amount.
GST was charged incorrectly	Create an adjustment and correct the GST treatment.
Customer has already made part payment	Apply only the correct remaining credit and keep the payment history.
Invoice should not have been issued	Void or credit the invoice depending on the invoice status and audit trail requirements.

Keep the original invoice number, correction date, reason for correction, GST effect and authorised user details in the invoice history or audit trail.

11. BAS and GST reporting

GST-registered businesses report GST through the Business Activity Statement (BAS). Sparrow helps users prepare GST reporting information by keeping invoices, payments, credits and GST treatment clear and exportable.

Sparrow reports and records that support BAS preparation
Sparrow report or record	Why it matters for BAS
GST Summary	Shows taxable sales, GST-free sales, input-taxed/no GST amounts and GST collected.
Invoice Summary	Shows issued invoices by date, customer, status and amount.
Payment Report	Important for cash-basis GST reporting.
Credit Note Report	Supports GST adjustments and corrections.
Customer Statements	Shows unpaid balances and payment history.
Audit History	Shows who edited, approved, credited, voided or sent a transaction.

12. Record keeping

Australian businesses must keep GST and business records that explain sales, purchases and BAS figures. GST records generally need to be kept for five years from when the records are prepared, obtained or the transaction is completed, depending on the record type.

GST record types and where to keep each
Record type	Keep in Sparrow or business files
Tax invoices issued	PDF and transaction record.
Customer details	Customer name, ABN, email and billing address where available.
Payment records	Payment date, amount, method and reference.
Credit notes / adjustment notes	Correction reason, GST effect and original invoice reference.
BAS working papers	GST summary, sales report, payment report and adjustments.
Audit history	User, date/time, action, reason and transaction status.

13. Common GST invoicing mistakes to avoid

Common GST invoicing mistakes and why they matter
Mistake	Why it matters
Forgetting to show the ABN	A valid Australian tax invoice generally needs the supplier ABN.
Not showing “Tax Invoice” clearly	Customers may reject the invoice or request a corrected version.
Charging GST when not registered	Businesses not registered for GST should not charge GST.
Using 10% GST for GST-free or input-taxed sales	This can cause incorrect BAS reporting and customer confusion.
Not recording payment dates	Creates problems for cash-basis GST reporting.
Crediting an invoice incorrectly after payment	May overstate credits or incorrectly reduce GST collected.
Editing sent invoices without an audit trail	Creates record-keeping and dispute risk.
Not adding buyer details for AUD 1,000+ invoices	Higher-value invoices require buyer identity or ABN.

14. Recommended Sparrow invoice layout

Recommended customer-facing invoice layout in Sparrow
Invoice section	Customer-facing display
Header	Business logo, business name, ABN, email, phone and billing address.
Invoice details	Tax Invoice, invoice number, issue date, due date and customer details.
Line items	Description, quantity, rate, GST treatment, GST amount and line total.
Totals	Subtotal, GST total and Total AUD.
Payment details	Bank account, payment reference and payment terms.
Footer	Short GST wording and support/contact information.

15. Help Centre FAQ

Frequently asked questions about Australian GST invoicing in Sparrow
Question	Answer
Can I issue invoices without GST?	Yes, if the business is not GST-registered or the sale is GST-free, input-taxed or outside the scope of Australian GST. The invoice must not incorrectly charge GST.
Can I show GST-inclusive prices?	Yes. Sparrow shows the total amount and GST component clearly. For a fully taxable GST-inclusive sale, GST is generally 1/11th of the price.
Can I edit a sent invoice?	Only limited fields are editable after sending. Material changes are managed with a credit note or adjustment note and kept in the audit trail.
Can I create a credit note after payment?	Yes, but the credit must consider any payments already received and should not incorrectly credit more than the remaining amount unless a refund is intended.
Does Sparrow lodge BAS?	Sparrow can provide invoice, payment and GST summary reports. BAS lodgement should be completed through the business, accountant, BAS agent or tax agent as applicable.

Source notes

Source references checked in June 2026. Users should confirm details with the Australian Taxation Office or a registered tax adviser before relying on this guide for specific transactions.