Invoicing for tradies: how to get paid faster

What a tax invoice must show

If you are registered for GST, the ATO requires your invoices to include:

• The words Tax invoice.
• Your business name and ABN.
• The date of issue.
• A description of what was supplied, with quantities where relevant.
• The GST amount, or a statement that the total includes GST.
• For invoices of $1,000 or more (including GST): the customer's name or ABN.

If you are not GST registered, the document is just an invoice, it must not say tax invoice, and it should not show GST.

Terms that get you paid

• Seven days, not thirty. Thirty-day terms are a habit from big companies. A domestic customer can pay in seven.
• A deposit on anything with materials. Thirty percent on acceptance is standard and covers your outlay.
• Progress claims on longer jobs: for example 30 percent deposit, 40 percent at rough-in, 30 percent on completion. Each claim is its own invoice.
• Bank details on every invoice, and the invoice number as the payment reference, so you can match payments without guessing.
• Send the invoice the day the job finishes, from site if you can. Every day of delay adds to the average time to get paid.

A reminder schedule that works

Most late payers are not refusing to pay; they forgot. A fixed schedule gets the money without the awkwardness:

• Day after due: a short, friendly email with the invoice attached. Most pay here.
• One week overdue: a second email, plus a text.
• Two weeks overdue: a phone call. Ask when they can pay, and write it down.
• Four weeks overdue: a statement showing everything owed, and a formal letter of demand if the amount justifies it.

Write the reminder wording once and reuse it. SmokoBooks shows who is late on the dashboard, and the Chase button opens a pre-written reminder with the invoice attached, so the first two steps take seconds.

Late fees and interest

You can only charge them if the customer agreed to them before the work, which means they were on the quote or in your terms. A modest late fee stated up front is a good deterrent; one invented after the fact is unenforceable.

When they will not pay

For commercial and construction work, every state has security of payment legislation that gives contractors a fast route to recover progress payments; the process and time limits differ by state, so check yours early because the deadlines are short. For domestic work, the small claims division of your state's tribunal or magistrates court handles amounts up to a limit that varies by state, with low fees and no lawyer needed.

Before any of that, a clear statement of account and a phone call resolves most cases. Keep it factual: the invoice, the date it was due, the amount outstanding.

Common questions