What’s on the australian adjustment note
Extra fields on this template: Original invoice, Invoice date, ABN.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| Electrician labour, overbilled6 hours at $110.00 | 6 | A$110.00 | A$660.00 |
| Subtotal | A$660.00 | ||
| GST (10%) | A$66.00 | ||
| Total credit | A$726.00 | ||
Example prices in Australian dollars. Replace them with your own; in the generator, any currency works.
Adjustment note or credit note?
The GST law calls the document an adjustment note; in everyday business it’s often still called a credit note. What matters is that it does the job of one: it records a decrease in the GST on a sale you issued a tax invoice for, and your customer needs it to reduce the GST credit they claimed.
Issue one when goods are returned, a price is reduced, a sale is cancelled, or an amount was overcharged. You must give the customer an adjustment note within 28 days of their request.
What to include
- a heading that makes clear it is an adjustment note (the template prints “Adjustment note”);
- your name and ABN;
- the date of issue;
- a brief explanation of the adjustment;
- the amount of the adjustment and the GST on it;
- the number and date of the original tax invoice;
- for adjustments of $1,000 or more, the customer’s name or ABN.
Before you rely on it
This page summarizes the rules as published by the Australian Taxation Office (ATO); it isn’t tax advice, and the rules change. Check the current guidance, or ask your accountant, before you issue credit notes in volume. If your business is required to issue electronic invoices through a government system, credit notes usually have to go through that system too, and a PDF made here doesn’t replace it.
Frequently asked questions
What is an adjustment note in Australia?
The GST name for a credit note: a document that records a change, usually a decrease, in the GST on a sale after the tax invoice was issued.
Do I need an adjustment note for every credit?
When the credit reduces GST on a taxable sale, yes in most cases. A few small adjustments are covered by ATO exemptions; check ATO guidance.
Can I call it a credit note?
Many businesses do. To work as an adjustment note it must contain the details the ATO requires; the heading should make that purpose clear.