A business quotation (also called a quote) is a formal written document in which a supplier offers to supply goods or services to a prospective client at a specified price and on specified terms. In Australia, a quotation is a pre-contractual document — it becomes a binding contract only when the client accepts it in the manner specified. A quotation differs from an estimate (which is an approximation of likely cost) in that it represents a firm offer: if the client accepts, the supplier is bound to supply at the quoted price.

Australian businesses in every sector — from building and construction and trades to professional services, IT, manufacturing, and retail — use quotations as the starting point for commercial relationships. A well-drafted quotation sets out the precise scope of work, itemised pricing, GST breakdown, exclusions, validity period, payment terms, and the method by which the client can accept the offer. These elements are critical for avoiding disputes about what was agreed.

Under the Australian Consumer Law (ACL), which forms Schedule 2 to the Competition and Consumer Act 2010 (Cth), consumer guarantees apply to goods and services supplied to consumers regardless of what the quotation says. Any clause in a quotation or resulting contract that purports to exclude consumer guarantees is void to that extent. A compliant Australian quotation will include a consumer law notice that informs clients of their statutory rights.

For GST-registered businesses, the A New Tax System (Goods and Services Tax) Act 1999 (Cth) requires a valid tax invoice to be issued for taxable supplies over $82.50. While a quotation is not itself a tax invoice, best practice is to show the GST component separately so clients know exactly how much GST will be charged and can claim an input tax credit if they are GST-registered.

This template is designed for Australian businesses of all sizes and industries and includes all the elements needed for a professional, legally sound quotation that complies with Australian law.

You should use a formal written quotation whenever you are offering to supply goods or services to a client at a fixed price, and you want legal certainty about the scope, price, and terms of the transaction. A quotation is especially important in the following situations.

Construction and trades: Builders, electricians, plumbers, carpenters, and other tradespeople in Australia are legally required in many states to provide a written contract (which typically begins with a quotation) for residential building work above certain thresholds. In New South Wales, for example, the Home Building Act 1989 requires written contracts for residential work over $20,000. A quotation is the first step in forming that contract.

Professional services: Consultants, accountants, lawyers, architects, engineers, and other professionals should issue a formal quotation or fee proposal before commencing work. This sets expectations about fees, scope, and deliverables and reduces the risk of fee disputes.

Supplying goods: Wholesale suppliers, manufacturers, and distributors quoting on large or custom orders should issue a written quotation rather than relying on a verbal price. A written quotation specifying validity period and GST protects both parties.

Government and corporate procurement: Many government agencies and large corporations require a written quotation before approving a purchase. A professional quotation format increases your credibility and likelihood of winning the work.

Any time prices are volatile: If your material costs, labour rates, or subcontractor prices are subject to change — which is common in construction and manufacturing — a quotation with a validity period ensures you are not locked into a price that becomes uncommercial due to cost increases.

A professional Australian business quotation should contain the following key elements.

Quotation header: The document should clearly be labelled 'Quotation' or 'Quote' and include a unique quotation number, the date of issue, and the validity period. The quotation number allows both parties to reference the document easily in correspondence and on purchase orders and invoices.

Party details: The quotation should clearly identify the supplier, including the business name, ABN, address, phone, and email. The Australian Business Number (ABN) must appear on tax invoices and is good commercial practice on quotations. The client details — name, contact person, address, and email — should also be set out clearly.

Scope of work: This is the most important section of the quotation. A clear, detailed description of exactly what is included prevents scope creep and disputes about what was agreed. The scope should be specific enough that a third party reading the quotation could identify precisely what work is to be done or what goods are to be supplied.

Exclusions: An exclusions list defines what is not included in the quoted price. This is particularly important in construction and trades, where the scope of work can expand significantly if exclusions are not clearly stated. Common exclusions include permits, disposal costs, and work required due to unforeseen site conditions.

Itemised pricing and GST: The quotation should list each item with its price, show the subtotal excluding GST, the GST amount (10%), and the total including GST. This allows the client to claim an input tax credit if they are GST-registered and demonstrates transparency.

Payment terms and acceptance: Clearly state when payment is due, what payment methods are accepted, and how the client should communicate their acceptance of the quotation. A clear acceptance mechanism — such as signing and returning the quotation — creates a clean paper trail confirming when the contract was formed.