Late payment is the most common cash-flow headache for sole traders. The fix is mostly boring: a consistent schedule, polite wording, and a clear invoice. This guide gives you all three.
Step 0: make sure the invoice is right
If you're registered for GST and the customer asks for a tax invoice, you must provide one within 28 days (unless the sale is $82.50 inc GST or less). A tax invoice needs: the words "Tax invoice", your identity and ABN, the issue date, what you sold (quantity and price), the GST amount (or "Total price includes GST" when GST is exactly 1/11 of the total), and how much of each item is taxable. For sales of $1,000 or more, it also needs the buyer's identity or ABN. (Source: ATO, Tax invoices, last updated 18 Sep 2026.) Not registered for GST? Call it an "Invoice" and say no GST has been charged.
The 5-step schedule
| When | Tone | Goal |
|---|---|---|
| 3 days before due | Friendly heads-up | Catch the "forgot" cases |
| Due date | Gentle reminder | Make it easy to pay today |
| +7 days | Polite overdue | Ask if there's a problem |
| +14 days | Firm second notice | Set a 7-day deadline |
| +30 days | Final notice | Mention pausing work and next steps |
The templates
1. Three days before: "Hi {name}, just a quick heads-up that invoice {number} for {amount} is due on {date}. If it's already scheduled, thank you, and please ignore this email. Payment details: {BSB/account or pay link}."
2. Due date: "Hi {name}, a reminder that invoice {number} is due today. If you've already paid, thank you, and please disregard this."
3. +7 days: "Hi {name}, our records show invoice {number} is now 7 days overdue. It may simply have slipped through. Could you arrange payment, or let me know if there's an issue with the invoice?"
4. +14 days: "Hi {name}, invoice {number} for {amount} is now 14 days overdue and I haven't heard back. Please arrange payment within the next 7 days, or reply to let me know when it will be paid. If there's a problem with the work, I'm happy to discuss it."
5. +30 days: "Hi {name}, despite previous reminders, invoice {number} remains unpaid 30 days after its due date. Please pay the full amount within 7 days, or contact me today to agree a payment plan. If I don't hear from you, I may need to pause further work and consider next steps to recover the debt."
Tips that actually help
- Put the payment details in every email. Every extra click delays payment.
- Send from your normal email, so replies come back to you.
- Keep a simple sheet: invoice, due date, last reminder sent. Stop the moment it's paid.
- Don't threaten anything you won't do. This guide isn't legal advice; for debt recovery, get advice.
Want this on autopilot?
If you use n8n, the AU Invoice Chaser sends exactly this schedule from a Google Sheet, with ATO tax-invoice wording, and logs each reminder so nothing goes twice: https://quillroo.gumroad.com/l/au-invoice-chaser
Free download: these 5 templates as a PDF: https://quillroo.gumroad.com/l/payment-reminder-templates
Published by Quillroo, a small Australian automation studio. Questions: ledgerlinetools@proton.me
