How to invoice as a contractor (complete guide)

Contractors often spend years on the tools before sending their first invoice. When you do start, the difference between a professional invoice and a scrawled quote on a piece of paper is the difference between getting paid in 14 days and getting paid in 90 — or not at all.

What goes on a contractor invoice

• Your legal trading name or ABN/business registration — the name that matches your bank account.
• Your contact details — phone, email, and business address.
• Client's full legal name and address — important for larger commercial clients.
• A unique invoice number — sequential, never skipped or reused.
• Invoice date and due date — write the exact date, not "Net 30".
• Line items — labour by hours or days, materials as separate lines, and any travel/call-out fees.
• Subtotal, GST/VAT, and total — required for amounts over the tax-registration threshold.
• Payment instructions — BSB/account number, PayID, or Stripe link.

Labour vs materials: keep them separate

Clients (and their accountants) appreciate it when you split labour and materials as separate line items. It also makes it easier to justify the total if anyone queries the invoice later. In FoxIn you can save common line items — "Call-out fee", "Labour – standard rate", "Materials" — and add them in one tap on future invoices.

Do you need to charge GST?

In Australia, you must register for and charge GST once your turnover exceeds $75,000 per year. If you're below that threshold you don't have to — but you still need to make clear on the invoice whether GST is included or not. See our full GST invoice guide for exact ATO requirements.

Payment terms for contractors

1. For small residential jobs: payment on completion is standard. Include payment instructions on the invoice so there's no delay.
2. For larger commercial jobs: Net 14 is reasonable. Net 30 is too long for cash flow.
3. For new clients or large jobs: take a 30–50% deposit before starting work.
4. Include a late fee clause — 1.5% per month is common — and note it on the invoice.

How to send the invoice on-site

The faster you send an invoice after the job, the faster you get paid. With FoxIn installed as an app on your phone, you can open the job, tap New Invoice, fill in the hours and materials, and email or share a PDF before you've even packed up the tools. See FoxIn for tradies for more.

What if the client doesn't pay?

Send a polite reminder on the due date. If there's no response, follow up weekly for three weeks. After 30 days overdue, send a formal notice. Read our guide to chasing late payments for exact scripts.