Trades & Construction Invoice Template — Australia

Trades and construction invoicing has more moving parts than most industries — staged payments, progress claims, variations, retention and subcontractor management. Getting the invoice right the first time is critical: incorrect or incomplete progress claims are one of the most common causes of payment disputes on construction sites.

Use our free invoice generator to produce a correctly formatted ATO-compliant tax invoice, then refer to the template structure below.

Trades & construction invoice — template structure

TAX INVOICE

[Your Business Name] Pty Ltd
ABN: [XX XXX XXX XXX]
[Your Address]
[Your Phone] | [Your Email]
[QBCC Licence No.: XXXXXXX]          ← include if required by licence conditions

Invoice No.:    [INV-001]
Invoice Date:   [DD Month YYYY]
Due Date:       [DD Month YYYY]       ← e.g. 14 days from invoice date

To:
[Client / Head Contractor Name]
[Client ABN]
[Client Address]

Contract / PO No.:  [Contract or PO reference]
Project:            [Project name and address]
Progress Claim No.: [X of Y]          ← for staged contracts

Description                            Qty    Unit      Rate       Amount (ex GST)
─────────────────────────────────────────────────────────────────────────────────
Labour — structural framing             48    hours    $85.00      $4,080.00
Labour — fix-out carpentry              24    hours    $85.00      $2,040.00
Materials — framing timber (per quote)   1    lot      $2,800.00   $2,800.00
Materials — fixings and hardware         1    lot      $340.00     $340.00
─────────────────────────────────────────────────────────────────────────────────
Subtotal (ex GST)                                                  $9,260.00
GST (10%)                                                            $926.00
─────────────────────────────────────────────────────────────────────────────────
Total (inc GST)                                                   $10,186.00

Less: retention held (5%)                                           ($509.30)
─────────────────────────────────────────────────────────────────────────────────
Amount payable this claim                                          $9,676.70

Approved Variations
─────────────────────────────────────────────────────────────────────────────────
Variation 001 — Additional earthworks              $1,200.00 ex GST
  Approved by: [Client rep name], [Date]
Variation 002 — Revised window schedule              $650.00 ex GST
  Approved by: [Client rep name], [Date]
─────────────────────────────────────────────────────────────────────────────────
Total variations this claim (ex GST)               $1,850.00
GST on variations (10%)                              $185.00
─────────────────────────────────────────────────────────────────────────────────
Total variations inc GST                           $2,035.00

Payment details:
  Bank:         [Your Bank]
  BSB:          [BSB]
  Account No.:  [Account number]
  Account name: [Your Business Name]
  Reference:    [INV-001]

Payment terms: 14 days from invoice date / as per contract.

This is a tax invoice for the purposes of the A New Tax System (Goods and Services Tax) Act 1999.
GST is included at 10% on all taxable supplies listed above.

Progress claims under the Building and Construction Industry Security of Payment Act

In Queensland, Victoria, NSW and the ACT, commercial building contracts are covered by Security of Payment legislation (SOP Act). Key points:

• A payment claim under the SOP Act must be served on the respondent (client or head contractor) on or before the reference date specified in the contract.
• The payment claim must be in writing and identify the construction work or goods and services to which it relates.
• In QLD and NSW, the document must state on its face that it is made under the relevant SOP Act. Include the words: "This is a payment claim made under the [Building Industry Fairness (Security of Payment) Act 2017 (QLD) / Building and Construction Industry Security of Payment Act 1999 (NSW)]".
• The respondent must serve a payment schedule within the prescribed timeframe (14 days in QLD; 10 business days in NSW) or the full claimed amount becomes due.
• SOP legislation does not override GST law — your payment claim must still meet ATO tax invoice requirements if you are GST-registered.

For disputes over non-payment on construction contracts, refer the debt to Merion for commission-only recovery — we understand SOP Act procedures.

Payment terms guidance for trades

7 days

Recommended for small domestic jobs — plumbing call-outs, electrical repairs, tiling. Payment is expected promptly while the work is fresh.

14 days

A good standard for medium residential jobs and all commercial subcontracting. Balances cash flow against client expectations.

As per contract / reference date

For large commercial or government contracts, payment is usually tied to the contract reference date and progress claim cycle (commonly monthly).

Retention release

Retention is typically released 50% at practical completion and 50% at the end of the defects liability period (commonly 12 months). State this clearly on the invoice.

Common mistakes on trades invoices

• Missing licence number — Queensland, NSW and VIC require contractor licence numbers on invoices for licensed work. Check your state's requirements.
• No ABN — clients are required to withhold 47% if no ABN is on the invoice. Always include it.
• Vague description — "Labour as discussed" is not sufficient. Describe the specific work performed.
• No purchase order reference — head contractors and government clients will not process without a PO number. Confirm this before invoicing.
• GST on margin scheme supplies — if you buy and sell second-hand goods under the margin scheme, GST applies only to the margin, not the full price. Standard invoicing rules are different — see the ATO construction GST guide.

Related tools and guides

• Invoice Generator — create a compliant tax invoice in minutes
• Statement Generator — track all progress claims on a project
• Australian Tax Invoice Requirements
• Payment Reminder Templates — chase overdue progress claims
• Setting Payment Terms for B2B
• Merion Free Tools — late payment cost calculator
• Refer a debt to Merion