Invoice Checklist Template for Australia

An invoice checklist is an internal compliance tool rather than a contract, so it does not itself create obligations between you and a customer. Its legal weight comes from the requirements it captures, principally the tax invoice rules in section 29-70 of the A New Tax System (Goods and Services Tax) Act 1999 and the Australian Taxation Office record keeping rules. Using it consistently helps demonstrate a reasonable system of controls if the ATO reviews your GST credits or reporting.

Under section 29-70 of the GST Act and ATO guidance, a tax invoice must show that the document is intended to be a tax invoice, the seller's identity and ABN, the date of issue, a description of the items sold including quantity where applicable, the GST amount (or a statement such as "Total price includes GST"), and the extent to which each sale is taxable. For sales of $1,000 or more (GST-exclusive) it must also identify the buyer, by name and address or ABN. The checklist should list each of these as a separate tick item so no field is missed before an invoice is sent.

You only issue tax invoices if you are registered for GST, and a customer registered for GST needs one to claim an input tax credit. The ATO does not require a tax invoice to claim credits for purchases of $82.50 or less including GST, though you still need some record such as a receipt or bank statement. If you are not GST registered, your document should be headed "Invoice" rather than "Tax invoice" and must not show a GST amount.

Invoices and related records must generally be kept for five years from the date the record was prepared or the transaction was completed, whichever is later, under the ATO record keeping rules supported by section 262A of the Income Tax Assessment Act 1936 and Division 382 of Schedule 1 to the Taxation Administration Act 1953. Records must be in English or readily convertible to English, and electronic copies are acceptable provided they are true and clear reproductions. Include a retention and storage step in the checklist so archiving is not left to individual staff.

If a supplier does not quote an ABN on an invoice for a taxable supply to your business, the no-ABN withholding rule in Schedule 1 to the Taxation Administration Act 1953 requires you to withhold 47 per cent from the payment and remit it to the ATO. Limited exceptions apply, for example where the supply is $75 or less excluding GST, or the supplier gives you a Statement by a Supplier form. Adding an ABN verification step to the checklist, including a check against ABN Lookup, prevents the withholding obligation being triggered by accident.

Yes. Invoices sent by email, PDF or through the Peppol eInvoicing network administered by the ATO are valid, and the Electronic Transactions Act 1999 (Cth) confirms that information is not invalid merely because it is in electronic form. The same content requirements apply regardless of format, so the checklist should be used identically for digital and paper invoices. If you use eInvoicing, confirm the recipient's Peppol ID as part of the pre-send checks.

Your recovery position depends on the payment terms agreed in the underlying contract or your standard terms, which is why the checklist should confirm the due date, any interest rate for late payment and any recovery costs clause before the invoice goes out. Without an agreed interest term you may still be able to claim interest through court proceedings, but the rate and entitlement are at the court's discretion. Businesses supplying large enterprises can also check the Payment Times Reports Register, established under the Payment Times Reporting Act 2020, to see a customer's reported payment performance before extending credit.