Quick answer
Add a short Terms & Conditions block to the last page of every invoice PDF covering: payment terms, late-fee policy, deposit and refund rules, scope and revision limits, ownership/IP, cancellations, GST treatment, and a dispute window. The ideal length is around 200–400 words — long enough to be specific, short enough to be read. For service businesses with different products (e.g. a photographer doing weddings, headshots, and product shoots), use per-service T&Cs so the right wording attaches automatically to each invoice.
Note: this is general information, not legal advice. For high-value or specialised work, have a lawyer review your template once.
Why T&Cs on the invoice (not just the contract)
Most freelance work doesn’t have a heavyweight signed contract. You quote, the client says “sounds good”, work happens, an invoice goes out. When something goes wrong — late payment, scope dispute, “but I thought it included…” — the only written record is the invoice itself.
T&Cs printed on the invoice serve three purposes:
- Notice. The client can’t later claim they didn’t know about late fees, deposits, or revision limits — the terms were on every invoice they received.
- Authority. Specific written terms (“1.5% monthly interest on balances over 30 days”) carry far more weight in a small-claims process than a vague verbal expectation.
- Anchoring. Just listing your terms in writing changes client behaviour — people pay closer to the due date when there’s a stated fee for not doing so.
The 8 clauses every service invoice should include
1. Payment terms and due date
State the due date explicitly (“Payment is due by 18 June 2026”) and the payment methods you accept (EFT, PayID, card). See payment terms in Australia for the conventions around Net 7 / 14 / 30.
2. Late-fee or interest policy
Example wording: “Invoices unpaid 14 days after the due date will accrue interest at 1.5% per month or the maximum rate permitted by law, whichever is lower. The cost of recovery (including reasonable debt-collection fees) is payable by the customer.” Be aware: late fees are enforceable only if the client had reasonable notice before the invoice was issued. Putting them in the quote AND on every invoice is the safe pattern.
3. Deposits and refunds
If you require deposits, state when they’re due, what they secure (a specific date, stock, materials), and whether they’re refundable if the client cancels. For time-sensitive bookings (weddings, event production), non-refundable deposits past a certain date are standard and enforceable when clearly stated.
4. Scope and revisions
The most common source of disputes in creative and consulting work. Define what’s included and what isn’t. Example: “This quote includes 2 rounds of revisions. Additional revisions will be billed at $120/hr in 15-minute increments.” Without this clause, “a few small tweaks” becomes 14 hours of unpaid work.
5. Ownership and IP
State when ownership of deliverables transfers to the client — typically on full payment of the invoice. Until then, you retain all rights. This gives you real leverage on late-paid invoices: a client using your work commercially without having paid is in copyright breach.
6. Cancellations
What happens if the client cancels mid-project? Standard wording: a percentage of total fee payable based on the stage reached, or a flat cancellation fee for services with time-blocked delivery (events, photography sessions).
7. GST treatment
State clearly whether prices are GST-inclusive or GST-exclusive, and your GST registration status. If you’re not GST-registered, a line like “No GST has been charged — not registered for GST” prevents confusion. See invoicing without GST and how to add GST to an invoice for full wording.
8. Dispute window
A short clause like: “Any disputes regarding this invoice must be raised in writing within 7 days of issue.” Without one, clients can dispute charges months later, often after they’ve already received the work. With one, silence is acceptance.
One generic T&Cs block vs per-service T&Cs
A single all-purpose T&Cs block is fine if you do one type of work. Most service businesses don’t.
A photographer might offer:
- Wedding photography: non-refundable deposit, 8-week delivery, full personal-use licence
- Headshot session: small deposit, 1-week delivery, personal + LinkedIn use
- Product shoots: 50% deposit, 2-week delivery, commercial licence on payment
Trying to fit all three under a single block leads to wishy-washy wording. Per-service T&Cs — with each service having its own terms attached — means the right rules show up on each invoice automatically without you having to remember to edit.
How to word T&Cs that actually get read
Three principles:
- Plain English. “If you cancel within 7 days of the booking, we’ll keep 50% of the deposit.” beats “Pursuant to clause 4.2, cancellation effected within seven (7) calendar days of the scheduled date shall result in forfeiture of fifty percent (50%) of the deposit paid hereunder.”
- Numbered clauses. Easy to reference later. “See clause 3 of the T&Cs on your invoice” is unambiguous.
- Short. 200–400 words total is the sweet spot for a service invoice. Long T&Cs get skimmed past entirely.
Where to place them on the PDF
The last page, in slightly smaller text, headed “Terms & Conditions”. Don’t hide them — courts and the ACCC have both taken a dim view of T&Cs that are technically present but practically invisible. A readable 9pt or 10pt font is fine; 6pt grey-on-white isn’t.
How Free Invoice App handles T&Cs
Free Invoice App Pro+ has per-service Terms & Conditions. You write the T&Cs once per service in your settings, attach them to the relevant service, and every invoice that includes that service automatically attaches the right T&Cs block to the PDF. Different services on the same invoice can carry different terms, and the generated PDF lays them out cleanly on the final page.
On Free Invoice App Starter and Pro, you can still write a single T&Cs block that appears on every invoice. The per-service granularity is a Pro+ feature for businesses where it actually matters. Get started free and upgrade when your services need different terms.
Frequently asked questions
Do I legally need T&Cs on an invoice?
No. But without them, enforcing payment terms, late fees, or scope limits is much harder.
Are invoice T&Cs enforceable?
To the extent the client had reasonable notice. T&Cs introduced for the first time on an invoice (after work is done) are weaker than the same terms in an earlier quote or contract.
Can I have different T&Cs per service?
Yes, and you usually should. Free Invoice App Pro+ attaches the right T&Cs block per service automatically.
Where do T&Cs go on the PDF?
Last page, clearly headed, in a readable font size.
Do I need a lawyer to write them?
For most freelance work, no. For high-value or specialised work, a one-off lawyer review of your template is worth the spend.