If you are a business that supplies goods or services to Council, you need to understand how Council processes the payments for those goods and services that are purchased from you.
A purchase order is Council's way of entering into an agreement with a supplier to purchase goods or a service. A purchase order is required before any payment of invoices can be processed.
Generally Council will send you a purchase order once an agreed quote has been met. Once you receive the purchase order, you can issue a tax invoice for the payment of the goods or service.
There will be no contract or agreement between Council and any contractor/supplier unless Council issues to that contractor/supplier a purchase order for the provision of the goods or service.
Purchase Orders: Terms and Conditions
Council has prepared a document outlining the Purchase Order Terms and Conditions to make it easier for you to understand our processes. Refer to the document below.
Requirements of Tax Invoices/Invoices
Council will only process Tax Invoices for payment if they meet the requirements as set out in the Australian Taxation Office Guidelines 'How to set out tax invoices' as per the link below.
Tax invoices you issue must include certain information. The requirements differ for:
- sales of less than $1,000;
- sales of $1,000 or more - invoices for these sales require more information.
If your tax invoice meets the requirements for sales of $1,000 or more, you can use the same type of invoices for sales of less than $1,000.
In addition to the general requirements, tax invoices for mixed supplies - that is, an invoice that includes taxable items and either GST-free or input taxed items - must show which sales are taxable.
Sales of less than $1,000
Tax invoices for taxable sales that total less than $1,000 must include enough information to enable the following to be clearly ascertained (see the example below):
- that the document is intended as a tax invoice;
- the seller's identity;
- the seller's Australian business number (ABN);
- the date the tax invoice was issued;
- a brief description of the items sold, including the quantity (if applicable) and the price of what is sold;
- the GST amount (if any) payable in relation to the sale - this can be shown separately or, if the GST to be paid is exactly one-eleventh of the total price, as a statement such as 'Total price includes GST'; and
- the extent to which each sale on the invoice is a taxable sale (ie the extent to which each sale includes GST).
Sales of $1,000 or more
Tax invoices for taxable sales that total $1,000 or more must include enough information to enable the following to be clearly ascertained:
- that the document is intended as a tax invoice
- the seller's identity
- the seller's ABN
- the date the tax invoice was issued
- the buyer's identity or ABN
- a brief description of the items sold, including the quantity (if applicable) and the price of what is sold
- the GST amount (if any) payable in relation to the sale - this can be shown separately, or, if the GST to be paid is exactly one-eleventh of the total price, a statement such as 'The total price includes GST'
- the extent to which each sale on the invoice is a taxable sale (ie the extent to which each sale includes GST). The example below meets this requirement in two ways: it shows the GST included in each line item, and the sale is clearly identified as being fully taxable.
Taxable and non-taxable sales (mixed supplies)
There are additional requirements for tax invoices that include taxable items and either GST-free or input taxed items. For these mixed supplies, the tax invoice must show:
- each taxable sale;
- the amount of GST to be paid; and
- the total amount to be paid.
Payment of Tax Invoices/Invoices
Council’s Accounts Payable Section run a Weekly EFT payment cycle each Thursday. All Tax Invoices must first be approved by a Council Officer before payment will be made.
Council’s preferred method of payment is by EFT. If you would like to receive payment by EFT, you will need to complete an EFT Agreement Form81KB pdf(PDF, 81KB) and send it back to Council before payment can be made by this method.
When Council pays suppliers who provide goods or services to our business, suppliers generally need to quote an Australian Business Number (ABN).
If a supplier does not quote an ABN - they may be asked to complete a “Statement by Supplier” form or Council may be required to deduct Withholding Tax.
If you would like more information about ABN requirements, please visit the Australian Taxation Office Website.
This page was last updated on: 06 February 2020