Quick answer
The ATO just says “brief description of items sold, including quantity where relevant” — no specific wording is required. But the practical answer is: write descriptions that name the deliverable, the date or period, and the quantity. That removes the three things that cause invoices to be queried: ambiguity, recency, and scope.
Why descriptions matter more than people think
Accounts payable teams pay invoices they can match to a job, a PO, or an approver. The instant your line item is unclear, your invoice goes into the “query pile” — which is checked weekly, not daily. A 2-second improvement to wording can buy you 14 days on payment time.
For sole traders and freelancers, clear descriptions also protect you in disputes (“That’s not what we agreed!”) and at tax time when you need to prove the work was real.
The 3-rule formula
- What — name the deliverable in concrete terms
- When — date completed, date range, or scheduled date
- How much — hours, units, sqm, or “fixed-price package”
Each line should answer all three. If it doesn’t, expect a query.
Bad vs good: side-by-side examples
Trades / construction
Bad: “Plumbing work”
Good: “Replaced hot water service (Rheem 250L), Site: 14 Smith St — labour 4 hrs @ $110, materials per attached list, completed 2026-05-22”
See how to invoice as a tradie for full job-card invoice structure.
Freelance design
Bad: “Design”
Good: “Logo design package — 3 concepts, 2 revision rounds, final files delivered 2026-05-30 (fixed-price)”
Freelance dev / web
Bad: “Hours worked May”
Good: “Frontend dev, checkout redesign — 12.5 hrs @ $140 (period: 12–23 May 2026, see attached timesheet)”
Consulting / strategy
Bad: “Advisory services”
Good: “Strategy retainer — May 2026 (8 hrs included + 1 quarterly board prep session, delivered 2026-05-28)”
Cleaning / regular service
Bad: “Cleaning May”
Good: “Office cleaning, Level 3 — 4 visits (1, 8, 15, 22 May 2026), per cleaning checklist”
Deposits and partial payments
Bad: “Deposit”
Good: “50% deposit for kitchen splashback installation (quote #Q-2026-104), work scheduled to commence 2026-06-12”
More on this in how to invoice for a deposit.
Words and patterns that get invoices paid faster
- Past tense for completed work — “Installed”, “Delivered”, “Completed”
- Reference numbers — quote #, PO #, job # — AP teams love these
- Dates over months — “12–16 May 2026” beats “May”
- Units of measure — hrs, sqm, units, lots
- Address or site — for trades, always
Words and patterns to avoid
- “Services rendered”, “Work performed”, “As discussed”
- Vague time references — “recent”, “ongoing”, “this period”
- Internal jargon the client won’t recognise
- Acronyms without the long form on first use
Sensitive items: how to phrase carefully
Variations and out-of-scope work
Put variations on their own line: “Variation V1 — additional power point in laundry, agreed 2026-05-19 (verbal, confirmed by SMS)”. Don’t bury extras in the main line — that’s what gets disputed.
Late fees and finance charges
“Late payment fee — invoice #INV-2026-0034, 14 days overdue (per terms)”. See late fee rules in Australia.
Credits and refunds
Use a credit note, not a negative line: “Adjustment for under-delivered hours, May 2026 retainer (8 hrs included, 6 hrs delivered)”. See credit notes in Australia.
GST descriptions
If a line is GST-free (e.g. some food, exports, education), mark it on the line: “Educational workshop — GST-free”. Mixed invoices need to make it obvious which lines have GST applied.
Copy-paste templates
{Past-tense verb} {deliverable}, {scope detail} — {qty} {unit} @ {rate}, period: {DD MMM} – {DD MMM YYYY}.
Examples:
- Installed split-system aircon (Mitsubishi 5kW), Site: 22 Park Rd — labour 3 hrs @ $120, materials per attached list, completed 2026-06-01.
- Brand strategy workshop + report — fixed-price package, delivered 2026-05-28.
- Bookkeeping support — 6.5 hrs @ $85, period: 1–31 May 2026, scope per engagement letter.
- 30% deposit for landscape design (quote #Q-2026-088), works scheduled 2026-07-10.Free Invoice App saves your most-used descriptions so you can reuse them in one click — instead of retyping them on every job.
Frequently asked questions
What does the ATO require in an invoice description?
The ATO requires a brief description of the items sold, including quantity where relevant. There’s no minimum word count, but the description must be specific enough to identify what was supplied — so a buyer (or auditor) can match it to the goods or services received.
Can I just write “Services rendered” on an invoice?
Technically yes, but it’s a bad idea. Vague descriptions are the #1 cause of invoice disputes and slow payment. Accounts payable teams will query “Services rendered” before they pay it. Always include what, when, and how much.
How detailed should my invoice line items be?
Detailed enough that someone who wasn’t in the room can understand what they’re paying for. Three rules of thumb: name the deliverable, name the date or period, name the quantity (hours, units, or scope). For trades, separate labour from materials.
Should I write invoice descriptions in past or present tense?
Past tense for completed work (“Installed two power points”) and present/future tense for deposits or scheduled work (“50% deposit for kitchen splashback installation, scheduled 2026-06-12”). Past tense reads as “done”, which helps payment chase.
Do I need to include dates on each line item?
Not legally, but it helps payment. Especially for hourly work, retainers, or recurring services — a date or period (e.g. “Design work, 12–16 May 2026”) removes ambiguity and protects you in disputes.