ABNs, GST and invoicing for freelance practitioners.

This article is for informational purposes and general commentary only. It does not constitute legal advice and does not create a solicitor-client relationship.

Most freelance performers, crew and creatives are running a small business, even if they never set one up on purpose. Three things follow from that. You will usually need an Australian Business Number, or ABN. You may have to register for the goods and services tax, or GST. And every invoice you send has to meet basic legal requirements. Getting these wrong can cost you money, because a payer who is not given an ABN must hold back nearly half your fee and send it to the tax office.

An ABN and GST are not the same thing. An ABN is a number that identifies your business to government and to the people who pay you. GST is a 10 per cent tax on most sales. You can have an ABN without being registered for GST, and for many freelancers that is the right position. This guide deals with Commonwealth tax rules, which apply the same way across the country.

Do you need an ABN to take paid work?

An ABN is issued free through the Australian Business Register. There is no need to pay a third party to get one. You are entitled to an ABN only if you are carrying on an enterprise, which for a freelancer means providing your services in a business-like way with a view to making money. A performer who takes paid engagements, quotes for jobs and works for different clients is usually carrying on an enterprise. A one-off payment for a hobby may not be.

The reason venues and producers ask for your ABN before they pay is the no-ABN withholding rule. If you supply a service to another business and do not quote an ABN, the payer must withhold tax at the top rate, currently 47 per cent, from any payment of more than $75 excluding GST, and pay it to the Australian Taxation Office. You would then have to wait until you lodged your tax return to get it back. Quoting a valid ABN on your invoice avoids this. Where a payment is genuinely private or a hobby, the supplier can instead give the payer a completed “Statement by a supplier” form so no amount is withheld.

When do you have to register for GST?

You must register for GST once your GST turnover reaches $75,000 or more in a 12-month period. That includes both what you have earned over the past 12 months and what you reasonably expect to earn over the next 12. The turnover figure is your gross business income, not your profit. For a non-profit organisation the threshold is higher, at $150,000. Below the threshold, registering is optional.

Registration has real consequences. Once you are registered, you add 10 per cent GST to your fees, report and pay it to the tax office on a business activity statement, and can claim GST credits for the GST included in your business expenses. If you are not registered, you do not charge GST and cannot claim those credits. You should track your rolling 12-month turnover, because you have only 21 days to register once you reach the threshold, and late registration can leave you owing GST you never collected from your clients.

Should you register for GST voluntarily?

You can register for GST before you reach $75,000 if you choose. It can make sense if you buy a lot of taxable equipment and want to claim the GST credits, or if you deal mainly with GST-registered businesses that do not mind the extra 10 per cent because they claim it back. It usually does not help if your clients are members of the public, because adding GST either raises your price or eats into your fee, and you take on quarterly reporting for little gain. This is a commercial decision worth talking through with an accountant.

What a lawful invoice must contain

If you are not registered for GST, you send an ordinary invoice. It must not be headed “tax invoice” and must not show any GST, because you are not charging it. It should still show your name or business name, your ABN, the date, a description of the work, and the amount payable.

If you are registered for GST, you issue a tax invoice. It must show that the document is intended to be a tax invoice, your identity, your ABN, the date, a description of what was sold, the GST amount (or a statement that the total price includes GST), and the extent to which the sale is taxable. For a sale of $82.50 including GST or more, a GST-registered client needs a valid tax invoice from you to claim its own GST credit, so a compliant invoice is part of getting paid promptly. For a sale of $1,000 or more, the tax invoice must also show the buyer’s identity or ABN.

Income tax still applies, GST or no GST

GST is separate from income tax. Whether or not you are registered for GST, the income you earn from your work is assessable, and you pay income tax on your net profit after allowable deductions. Keep records of your income and expenses, and keep them for five years, because the tax office can ask to see them. Our note on tax deductions for performing artists covers what you can and cannot claim.

Once you report business income, the tax office may also ask you to pay your income tax in instalments during the year through the pay as you go instalments system, rather than in one lump sum after your return. Many freelancers also earn what the tax law calls personal services income, meaning income that is mainly a reward for your personal efforts or skills. Special rules can limit the deductions available on that income and affect how it is taxed, so it is worth checking your position with a registered tax agent.

Practical steps for a freelance practitioner

Apply for an ABN through the Australian Business Register if you are carrying on an enterprise, and quote it on every invoice so nothing is withheld. Watch your rolling 12-month turnover and register for GST within 21 days of reaching $75,000, or decide deliberately whether to register earlier. Use invoice templates that meet the requirements above, keep your business records for five years, and get tax advice from a registered tax agent or accountant on GST, deductions and personal services income.

The structure you trade through, as a sole trader, company or trust, changes how all of this works, and it interacts with your contracts and your liability. Our note on choosing a structure sets out the options. If a client has not paid you, see recovering an unpaid performance fee.

Frequently asked.

Do I need an ABN to do paid gigs?

If you are carrying on an enterprise, which most regular freelancers are, you should get an ABN. It is free through the Australian Business Register. The practical reason is the no-ABN withholding rule: if you supply a service to a business and do not quote an ABN, the payer must withhold tax at the top rate, currently 47 per cent, from payments over $75 excluding GST. Quoting your ABN on the invoice avoids that.

When do I have to register for GST?

You must register once your GST turnover reaches $75,000 or more in a 12-month period, measured on both the past 12 months and the next 12 months you reasonably expect. For a non-profit the threshold is $150,000. Turnover is your gross business income, not your profit. You have 21 days to register after you reach the threshold.

Should I register for GST if I earn under $75,000?

You can, but it is optional below the threshold. Voluntary registration can help if you buy a lot of taxable equipment and want the GST credits, or if your clients are GST-registered businesses. It usually does not help if you sell mainly to the public, because you either raise your price or absorb the 10 per cent, and you take on quarterly reporting. It is a commercial decision worth discussing with an accountant.

What happens if I don't quote an ABN on my invoice?

For a business-to-business supply over $75 excluding GST, the payer must withhold tax at the top rate, currently 47 per cent, and send it to the tax office. You then have to wait until you lodge your tax return to recover it. Where the work is genuinely private or a hobby, you can give the payer a completed 'Statement by a supplier' form instead, so nothing is withheld.

What must a tax invoice include?

If you are registered for GST, a tax invoice must show that it is a tax invoice, your identity, your ABN, the date, a description of the sale, the GST amount or a statement that the price includes GST, and the extent to which the sale is taxable. For sales of $1,000 or more it must also show the buyer's identity or ABN. If you are not registered, you must not issue a tax invoice or charge GST.

Is GST the same as income tax?

No. GST is a 10 per cent tax on most sales that you only collect and remit if you are registered. Income tax is charged on the net profit you make from your work, and it applies whether or not you are registered for GST. Keep records of income and expenses for five years, and get advice on personal services income, which can affect your deductions.

If you are a performer, producer, venue, or independent practitioner and this raises a question about your own situation, Aaron Kernaghan and the team at Brady & Associates Lawyers can give you tailored guidance. Call 0421 717 019 or contact the firm.

This article is for informational purposes and general commentary only. It does not constitute legal advice and does not create a solicitor-client relationship. It reflects the law in Australia as at 27 September 2026, with a focus on Commonwealth law and New South Wales and ACT practice. The law changes and applies differently to every set of facts. Written by Aaron Kernaghan, Brady & Associates Lawyers.

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