It has a bright scaley thallus that grows like a green crust on rich soil between rocks.

The type specimen was collected on the track to Nevada Peak at an altitude of 1,150 m (3,770 ft), where it was found growing on the ground between boulders in heathland.

The authors explained that they had seen the unidentifiable sterile crust form of the lichen for many years before observing its fruiting stage, noting "it was very exciting when the species was finally encountered fertile, producing not ascomata as expected but attractive, yellow-orange, mushroom-like basidiocarps".

The stipe is 0.5–10 mm tall with a minute tomentum (i.e. fine, soft "hairs"); its colour is initially white in fresh specimens, but drys to a pale orange-pink.

[1] The thallus squamules of Lichenomphalia tasmanica usually grow on moist soil that is enriched with organic matter, such as is typical of the gaps between stones in heathland at the type locality.