Installers ask this four ways: what is an RCTI, how does it work with a trader, do traders issue them, and what is the agreement. They are one topic, so here is the whole picture.
What an RCTI is
A tax invoice normally comes from the seller. For STC sales that would mean you writing an invoice for each batch. A recipient created tax invoice reverses that: the buyer, your trader, prepares the invoice from the claim details and the agreed rate and sends it to you. You keep it as your tax invoice.
How it works with a trader
- You and the trader sign a written RCTI agreement.
- You lodge a claim and the rate is set.
- When the certificates settle, the trader issues the RCTI, listing the certificates, the price, GST where it applies and the total.
- You reconcile the RCTI to the payment in your bank and book it.
The sale and the paperwork move together, which is why RCTIs suit high-volume installers.
The RCTI agreement
The ATO’s conditions generally include that:
- the supplier and recipient are both registered for GST
- there is a written agreement that the recipient may issue RCTIs
- the recipient issues the invoice within the time allowed
- the supplier does not also issue a tax invoice for the same supply
- the agreement is current and neither party has told the other it will not accept RCTIs
Confirm the current requirements on the ATO website, as they can change.
RCTI versus a tax invoice you raise
| RCTI | Your own tax invoice | |
|---|---|---|
| Who writes it | Trader | You |
| Needs an agreement | Yes | No |
| Both parties GST-registered | Generally yes | Seller must be |
| Admin for you | Reconcile only | Raise, send, chase |
| Risk | Errors in the trader’s invoice | Errors in yours |
If you are not on an RCTI arrangement, you raise a tax invoice for each sale, and the trader pays against it. That adds a step and a place for payment to stall.
What to check on every RCTI
- Your legal name and ABN match the registry and your bank account.
- The certificate count matches what you assigned.
- GST appears on its own line where it applies.
- The total matches the deposit, claim by claim.
- Adjustments for rejected claims are shown clearly.
See our RCTI answer and the guide to RCTI, GST and ABN for STC payments for the detail on each point. For the term itself, the RCTI glossary entry is a quick reference.
What this means for installers
An RCTI is a convenience, not a loophole. It saves you invoicing, but your GST and BAS obligations remain. Give your bookkeeper every RCTI, and match each one to a payment. We issue RCTIs for partners under an agreement, so there is nothing to chase after settlement. How that fits with rates is on the pricing page, and the trader contract checklist shows what else to look for.
This is general information, not tax advice. Talk to your accountant about your own position.