Self Billing Agreement Template for Australia

A Self Billing Agreement is a crucial legal document that allows you to create tax invoices on behalf of your suppliers under Australian GST law. This arrangement, formally known as Recipient Created Tax Invoices (RCTIs), enables streamlined invoicing processes while ensuring full compliance with the A New Tax System (Goods and Services Tax) Act 1999. You'll need this agreement when regular, recurring supplies make it more efficient for you as the recipient to generate invoices rather than waiting for supplier documentation.

When do you need this document?

You'll require a Self Billing Agreement when your business regularly receives supplies and you want to take control of the invoicing process. This is particularly common in industries like mining where you extract materials from suppliers' land, manufacturing where you process suppliers' raw materials, or agriculture where you handle produce on suppliers' behalf. The agreement is also essential when you need to calculate complex pricing based on market rates, quality assessments, or volume measurements that you're better positioned to determine than the supplier. Without this formal agreement, any tax invoices you create would be invalid under Australian GST law, potentially causing compliance issues and payment delays.

Key legal considerations

Your Self Billing Agreement must clearly establish that both parties are registered for GST and agree to the RCTI arrangement. You need to define exactly which supplies are covered, specify the calculation methods for GST amounts, and establish procedures for handling variations or disputes. The agreement should include robust record-keeping obligations to satisfy Australian Taxation Office requirements, with both parties maintaining detailed transaction records for at least five years. You must also address what happens if either party's GST registration status changes, including immediate notification requirements and cessation procedures. Payment terms, invoice numbering systems, and dispute resolution mechanisms are equally important to prevent future conflicts and ensure smooth operations.

Legal requirements in Australia

Under Australian law, your Self Billing Agreement must comply with the A New Tax System (Goods and Services Tax) Act 1999, which sets strict requirements for RCTI arrangements. Both parties must be registered for GST, and the agreement must be in writing with clear terms about which supplies are covered. The Taxation Administration Act 1953 imposes record-keeping obligations that your agreement must address, including requirements to maintain transaction records for five years. If you're using electronic systems, ensure compliance with the Electronic Transactions Act 1999 for digital signatures and document validity. The Competition and Consumer Act 2010 may also apply, particularly regarding unfair contract terms in business-to-business relationships, so ensure your agreement terms are fair and reasonable for both parties.