9.2 Fees, Invoices, Receipts, Statements of Services, and Refunds

9.2 Fees, Invoices, Receipts, Statements of Services, and Refunds

Financial compliance begins in the service agreement, not at the moment money is moved. The agreement, work record, invoice, receipt, statement of services, and bank transaction should form one consistent audit trail.

Fee and disbursement terms

Section 46 permits an hourly rate or fixed fee, including relevant tax, and requires the amount to be fair and reasonable. Hourly work must include a reasonable time estimate. Charging beyond an estimate or varying a fee depends on exceptional circumstances, a written updated estimate, and the written agreement required by the Code. A “fees may change at any time” clause does not displace those protections.

Section 47 requires likely disbursements and their amounts or reasonable estimates to be disclosed, with the payment method. Unexpected or increased disbursements require written details and the client agreement specified by the section. When the actual amount is known, the client cannot be charged more than that amount. Any excess must be refunded under section 52.

Section 48 requires payment terms and any interest on unpaid amounts. The practice should identify milestones and distinguish professional fees from government, review, translation, medical, or assessment costs.

Invoice, receipt, and statement of services

Under section 49, the client must receive an itemised invoice describing the work or disbursement before being charged. After payment, the client must receive a receipt identifying the relevant work and invoice.

Migration Act section 313 is an additional entitlement rule: an RMA is not entitled to be paid a fee or reward for immigration assistance unless the assisted person has received a statement of services setting out each service and its charge. A practice can design one document to satisfy multiple requirements, but the content must do the legal work. A bare line such as “professional services—AUD 4,000” is not meaningfully itemised.

Applying client money

An account balance is not practice revenue. Before transferring professional fees, confirm that the work and payment milestone have occurred, that the fee is authorised by the agreement, that the invoice and statement-of-services requirements are satisfied, and that the amount held for that purpose is sufficient. For a disbursement, confirm client authority and the actual recipient and amount.

Never use one client’s money to cover another’s liability or a practice expense. Maintain a ledger for each client and purpose so the section 50 limit can be demonstrated.

Refunds and disputes

Section 52 requires every service agreement to contain a fair and reasonable refund policy. Sufficient funds must be available for refunds, and a refund must be made in accordance with the agreement promptly and no later than 14 days after it becomes payable. The 14 days runs from the point of entitlement, not automatically from every demand.

If a client disputes a fee, identify what amount is truly payable and what the agreement’s dispute and refund provisions require. Do not create leverage by withholding documents or moving contested money without a legal basis. Preserve records and seek accounting or legal advice where necessary.

Worked calculation

A client pays AUD 6,000 in advance. The agreement fairly allocates AUD 1,500 to completed initial work, which is itemised and documented; the application was never prepared or lodged. If termination makes the remaining AUD 4,500 refundable, the responsible agent must issue the proper final account and pay the refund promptly, no later than 14 days after it becomes payable. A clause saying “all payments non-refundable” is unlikely to satisfy section 52 if it lets the practice retain unearned money regardless of work.

Billing audit example

Suppose an agreement sets a fixed AUD 4,800 fee across intake, preparation, and lodgement milestones and estimates a translation at AUD 600. The practice should document which milestone work was completed, issue an itemised invoice describing it, provide the section 313 statement of services, and then apply only the corresponding client money. If translation costs AUD 420, the client cannot be charged AUD 600 merely because it was the estimate; account for and refund the excess as required. If new evidence creates genuinely exceptional work, follow the written estimate and variation provisions before performing chargeable excess work. On termination, calculate work actually authorised and performed, outstanding disbursements, money remaining for each purpose, and the time the refund becomes payable. A second person should check the final account against the ledger and agreement. This example tests the sequence—agreement, work, invoice, entitlement, receipt, application of money, and refund—rather than focusing on the bank transfer alone.