Invoicing for Creative Professionals — Designers, Photographers & Writers

Deposit invoices and final invoices

Most creative projects should be invoiced in at least two stages: a deposit invoice before work commences, and a final invoice on delivery. For longer projects, milestone invoices in between reduce your exposure further.

Deposit invoice: Issue before any work begins. Typically 30–50% of the total project fee. Note that the deposit is non-refundable per your kill fee policy. This is the invoice that confirms the engagement is real.
Milestone invoice: For projects over a few weeks, invoice at agreed milestones (e.g. concept approval, first draft acceptance). Keeps cash flow positive throughout the project.
Final invoice: Issue on delivery of the final approved files. Deduct the deposit paid. Only release the final files once this invoice is paid — your terms should state this clearly.

Invoicing for licensing and usage rights

Creative work often involves two components: the production fee (your time and skill) and the licence fee (the right to use the work). These should be separate line items on your invoice:

Production fee: "Brand identity design — logo, colour palette, typography guide"
Licence: "Commercial licence — print and digital use — Australia — unlimited term"

The licence scope should match what is in your engagement letter. Common licence variables: territory (Australia-only, worldwide), duration (12 months, perpetual), medium (print, digital, broadcast), and exclusivity. Charging separately for different licence scopes is standard practice for photography, illustration, and copywriting.

Describing creative work on an invoice

Be specific enough that someone in the client's accounts payable department can connect the invoice to the project they approved. Avoid generic descriptions like "design work" or "photography". Preferred format:

"Brand photography — product shoot — 12 final edited images — delivered 20 June 2026"
"Website copywriting — homepage, about, 3 service pages, meta descriptions"
"Logo design — three concept directions, two rounds of revisions, final files in AI, EPS, PNG, SVG"

Kill fees and cancellation terms

A kill fee compensates you for work done and opportunity cost when a client cancels a project in progress. Without a kill fee clause in your engagement terms, you may have limited recourse if a client cancels after you have invested significant time. A common scale:

Cancellation before first draft: deposit retained (or 25–30% of project fee)
Cancellation after first draft: 50% of project fee
Cancellation after approval: 100% of project fee

To apply a kill fee, issue a separate invoice titled "Cancellation fee — [Project name]" and reference your engagement letter.

GST on creative services

Creative services provided to Australian clients are generally taxable supplies — both the production fee and the licence fee are subject to 10% GST if you are registered. If you supply services to overseas clients, the export-of-services rules may make the supply GST-free. See ATO: Exports of services.

Late payment in the creative industry

Late payment is unfortunately common in the creative industry. Practical steps to reduce it:

Get a signed engagement letter before commencing work
Charge a deposit (non-refundable)
Use 14-day rather than 30-day payment terms
Withhold final files until paid
Start the reminder sequence on day one of overdue — see payment reminder templates
For repeat offenders, require prepayment on future projects

When to use a purchase order

Agency clients and larger companies often require a purchase order before they can approve an invoice. Ask early in the engagement whether the client needs to raise a PO — it is much harder to get one retrospectively. Include the PO number on your invoice.

Frequently asked questions

Should I charge a deposit for creative work?

Yes, for most project-based creative work a deposit is strongly recommended. A deposit of 30–50% upfront confirms the client's commitment, covers your initial time investment and materials, and reduces the risk of non-payment on completion. Without a deposit, you bear all the financial risk for the project. Make the deposit non-refundable (subject to your kill fee policy) and invoice it before commencing work.

How do I invoice for image licensing or usage rights?

Licensing fees should appear as a separate line item on your invoice, distinct from your production fee. Be specific: describe the usage rights granted (e.g. 'Digital licence — website and social media — 12 months — Australia only'). If the licence is ongoing or has renewal terms, note those in your invoice or attach your licence agreement. IP ownership does not transfer to the client until the licence fee (and all other fees) are paid.

Can I withhold final files until the invoice is paid?

Yes — if your terms of engagement state that ownership of files or intellectual property does not transfer until payment is received in full, you can withhold final deliverables until you are paid. This is a legitimate and enforceable practice. Make sure your engagement letter or terms clearly state this before the project begins, so there is no ambiguity.

What is a kill fee and how do I invoice for it?

A kill fee is compensation you charge when a client cancels a project after work has commenced. It is typically a percentage of the total project fee, scaled to how far the work has progressed. For example: 25% kill fee if cancelled before first draft, 50% after first draft, 100% after approval. Your kill fee must be in your agreement before the project starts. Issue a separate invoice for the kill fee referencing the original project and the cancellation.