ABN Invoice Template
Free Australian invoice template with an ABN field — and why that one field is worth 47% of your payment
Every Australian business invoice should carry an ABN. It is the single most consequential field on the document, because its absence has an automatic and expensive effect: a business client paying an invoice with no ABN on it is required to withhold 47% of the payment and send it to the ATO.
That is not a discretionary penalty. It is an obligation placed on the payer, and a client with a careful bookkeeper will apply it rather than risk their own exposure. You will eventually recover the money through your tax return, but "eventually" can mean the better part of a year — which for most sole traders is the difference between a paid invoice and a cash-flow problem.
No ABN on the invoice means 47% withheld
On a A$5,000 invoice, that is A$2,350 going to the ATO instead of to you, recoverable only at tax time. The exceptions are narrow: supplies of A$75 or less excluding GST, or a supply made in a private capacity with a signed supplier statement.
What is Australian Business Number (ABN)?
An eleven-digit identifier issued by the Australian Business Register to any entity carrying on an enterprise — sole traders, partnerships, companies and trusts alike. It identifies your business to the ATO and to the businesses you invoice, and it is separate from GST registration: you need an ABN whether or not you charge GST.
Examples:
- Written as 11 digits in the grouping XX XXX XXX XXX
- Required on invoices regardless of turnover or GST status
- Verifiable by anyone through the free ABN Lookup register
ABN or ACN — which goes on the invoice?
Both numbers exist and they are routinely mixed up. The invoice needs the ABN.
| ABN | ACN | |
|---|---|---|
| Digits | 11 | 9 |
| Issued by | Australian Business Register | ASIC |
| Who holds one | Any entity running an enterprise | Companies only |
| Needed on invoices | Yes | No |
| Sole traders | Yes | Not applicable |
A company holds both, and its ABN is generally its ACN with two extra digits in front. Quoting the ACN alone on an invoice does not satisfy the ABN requirement, so a company invoice that shows only an ACN is still exposed to withholding.
Where to put the ABN
There is no prescribed position, but placement has practical consequences. Put it in your sender block at the top, directly beneath or beside your business name, formatted in the standard eleven-digit grouping. Accounts-payable staff scan for it there, and an ABN buried in a footer or set in small grey type gets missed — which produces exactly the same withholding as leaving it off altogether.
If you are not registered for GST, this is also the natural place for a short note saying so. See the no-GST invoice guide for how that document differs.
Frequently Asked Questions
What happens if I do not put my ABN on an invoice?
Your client is legally required to withhold 47% of the payment and remit it to the ATO under the no-ABN withholding rules. This is not a penalty the client chooses to apply — it is an obligation placed on them, and a business with a competent bookkeeper will apply it. You can recover the withheld amount when you lodge your tax return, but that can be many months later, so in cash-flow terms a missing ABN is close to a missing payment.
Are there exceptions to the 47% withholding rule?
A few, and they are narrow. Withholding is not required where the total payment for the supply is A$75 or less excluding GST; where the supplier gives a written statement that the supply is made in a private or domestic capacity rather than in the course of an enterprise; or where the supplier is an entity not required to have an ABN, such as a non-resident with no Australian operations. For ordinary business-to-business work, none of these will apply and the ABN is simply required.
Where should the ABN appear on the invoice?
In your sender details near the top, directly under or beside your business name, so it is visible without hunting. There is no prescribed position, but burying it in a footer invites the client's accounts system to miss it, and a missed ABN produces the same withholding as an absent one. Format it in the conventional 11-digit grouping (XX XXX XXX XXX) since that is what people scan for.
What is the difference between an ABN and an ACN?
An ACN is a nine-digit Australian Company Number issued to companies registered with ASIC. An ABN is an eleven-digit Australian Business Number issued to any entity carrying on an enterprise, including sole traders, partnerships and trusts. A company has both, and its ABN usually consists of its ACN with two digits prefixed. Invoices need the ABN. A sole trader has an ABN and no ACN at all.
Do I need an ABN if I am not registered for GST?
Yes. The two registrations are separate and are commonly confused. GST registration depends on turnover and becomes compulsory at A$75,000; an ABN is needed by anyone carrying on an enterprise, at any turnover. A sole trader well under the threshold still quotes an ABN on every invoice — the withholding rule applies regardless of GST status.
How do I check whether a supplier's ABN is valid?
Look it up on ABN Lookup, the free public register maintained by the Australian Business Register. It shows whether the ABN is active, the entity name it belongs to, and whether that entity is registered for GST. It is worth checking for a new supplier: an ABN that is cancelled or belongs to a different name than the one on the invoice is a genuine problem, and the GST registration status tells you whether they can validly charge you GST at all.
What do I do if a supplier invoices me without an ABN?
Ask them for it first, since in most cases they simply left it off a template. If they genuinely have no ABN, either obtain a completed 'Statement by a supplier' form from them explaining why withholding does not apply, or withhold 47% of the payment and remit it to the ATO. Paying the full amount without either is the one option that leaves you exposed rather than them.
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