[1] It is found in New South Wales and southern Queensland (Australia), where it grows on bryophytes (i.e., mosses or liverworts).

The type specimen was collected from Cunninghams Gap in a cool temperate rainforest at an altitude of about 750 m (2,460 ft).

The pale pink excipulum, initially closed, later opens via a ragged pore (ostiole).

Ascospores typically number eight per ascus (sometimes only four are present), and are hyaline, halonate, and measure 90–130 by 9–12 μm.

[2] Topeliopsis decorticans appears to be morphologically identical to T. acutispora; the two species are distinguished by major differences in their ascospores, including shape, size, septation, and number per ascus.