Invoice Dispute Letter Generator

How to Dispute an Invoice in Australia

Receiving an incorrect invoice is common in business - whether it is a duplicate charge, incorrect pricing, goods not delivered, or an unauthorised amount. The key to resolving disputes quickly is putting your objection in writing immediately, referencing the specific invoice and purchase order, and clearly stating what resolution you require. A well-structured dispute letter protects your rights, creates a paper trail, and prompts faster action from suppliers.

Under Australian contract law, you are not obligated to pay an invoice that does not reflect the agreed terms of your purchase order or contract. However, you should dispute the invoice promptly - most supplier payment terms require notification of disputes within 7-14 days of invoice receipt. Failing to dispute within a reasonable timeframe may weaken your position if the matter escalates.

Best practice is to pay any undisputed portion of the invoice on time while formally disputing the balance. This demonstrates good faith and avoids late payment charges or damage to your credit standing on the amount you do agree is owed.

Common invoice dispute types

• Incorrect amount: The invoice total does not match the agreed price, purchase order, or quote.
• Duplicate invoice: You have received the same charge twice for a single delivery or service.
• Goods/services not received: The invoice is for items that were never delivered or work not performed.
• Defective goods: Items received were damaged, faulty, or not fit for purpose under Australian Consumer Law.
• Incorrect pricing: Unit prices or quantities do not match the agreed rates in your contract or PO.
• Unauthorised charges: The invoice includes items or services you did not order or approve.

What to include in your dispute letter

1. Your company details and the specific invoice number, date, and amount.
2. The purchase order number (if applicable) for cross-reference.
3. A clear description of the discrepancy with supporting evidence.
4. The correct amount (if known) and how you arrived at it.
5. The resolution you require (credit note, revised invoice, or refund).
6. A reasonable deadline for response (14 days is standard).

What happens if the supplier does not respond?

If your supplier does not respond within the stated deadline, escalate with a firmer letter referencing the original dispute. If the matter remains unresolved, you may withhold the disputed portion of payment (not the entire invoice, only the disputed amount), refer to the relevant state small claims tribunal (NCAT, VCAT, QCAT), or seek legal advice for larger amounts. Keep copies of all correspondence - a documented dispute trail is essential evidence in any formal proceedings.