A letter of demand template gives you the structure of a formal payment demand: your details, the debtor’s details, a description of the debt, the exact amount, a calendar deadline, payment instructions, a statement of what may happen if it is ignored, and a signature. The free Australian template below is ready to copy and complete. Replace every bracketed item, keep the tone factual, and send it by a method that gives you proof of delivery.
A template only works if the details you put into it are right. Before you start, have in front of you the invoice or contract, the exact amount owing, the debtor’s correct legal name and address, and the dates of any reminders you have already sent. If you are unsure whether the debt is actually due, or the debtor is disputing the work rather than delaying payment, consider getting legal advice before sending anything.
PayClaim is not a law firm and does not provide legal advice or guarantee payment.
[Your full name or business name] [Your street address] [Suburb, State, Postcode] [Phone] | [Email] [Date] [Debtor's full legal name or company name] [ABN / ACN if a business: ABN 00 000 000 000] [Debtor's street or registered address] [Suburb, State, Postcode] By [email to: address] and [registered / tracked post] LETTER OF DEMAND Dear [Name / Sir or Madam], Re: Outstanding payment of $[amount] for [brief description] On [date of agreement], you engaged [me / us] to [describe the goods supplied or services performed] at / for [address or project]. This was agreed [in writing / by quote number X / by email dated X]. [I / We] completed the work / supplied the goods on [date] and issued invoice [number] on [invoice date] for $[amount], payable by [due date]. As at the date of this letter, $[amount] remains unpaid. [Reminders were sent on [dates] and a final notice on [date]. No payment has been received.] [If applicable: Under clause [X] of [our terms / the contract], interest accrues on overdue amounts at [rate]. Interest to the date of this letter is $[amount], bringing the total to $[total].] [I / We] demand payment of $[total amount] in full so that it is received no later than [calendar date, e.g. Monday 23 March 2026]. Payment can be made to: Account name: [name] BSB: [BSB] Account number: [number] Reference: [invoice number] If payment is not received in full by [calendar date], [I / we] may commence proceedings against you to recover the debt in the appropriate court or tribunal without further notice, and may seek to recover interest and costs where permitted. If you dispute this debt, please set out the grounds in writing to [email] before [calendar date]. This letter is sent without prejudice to [my / our] rights, all of which are reserved. Yours faithfully, [Signature] [Your name] [Your position, if a business] [Your business name] Enclosed: Copy of invoice [number]; [copy of quote / contract]; [copies of reminders]
Use the name that appears on your invoice so the debtor can match the two. Date the letter the day you send it; the deadline counts from this date.
This is where most DIY letters go wrong. If you dealt with a company, the letter should be addressed to the company by its registered name, with its ABN or ACN if you have it, at its registered office or principal place of business. If you dealt with a sole trader, use their full name and trading name. Getting the entity right now saves you from filing a claim against the wrong party later.
State how you are sending the letter, and then actually send it that way. Email plus tracked post is a common combination. Keep the tracking number, the sent email and any delivery or read receipt.
Two or three sentences is enough: what was agreed, when, what you did, and what you invoiced. Refer to documents by number and date rather than retelling the whole story. Attach copies.
One figure, to the cent. If it is made up of several invoices, list them. If you are adding interest, only do so where your contract or terms clearly allow it, and show the calculation. Do not add “administration fees”, “collection costs” or the cost of this letter unless your terms specifically provide for them.
A period of 7 to 14 days from the date of the letter is commonly used. Write the deadline as a calendar date. Make sure it gives the letter time to arrive by post.
Keep it to what you are genuinely prepared to do: commence proceedings in the appropriate court or tribunal, and seek interest and costs where permitted. Do not threaten anything else. Threats of criminal action, publicity or contact with third parties are inappropriate and can rebound on you.
Asking the debtor to put any dispute in writing by a date does two things: it flushes out a genuine disagreement early, and it shows a tribunal or court that you acted reasonably.
The closing line simply records that sending this letter does not give up any of your rights. It is standard wording and does not need to be changed.
Attach copies, never originals, of the invoice, the quote or contract, and any reminders. A letter with the paperwork attached is much harder to ignore.
A letter on your own letterhead, from the same address the debtor has been ignoring, is easy to set aside. Many people find a demand carries more weight when it comes from a third party.
PayClaim takes the same details you would put into this template, prepares the letter on its own letterhead as your authorised agent, and sends it to the debtor with a copy and the sending record to you. You see a free watermarked preview of the actual letter before paying anything. If you approve it, issuing it costs a flat A$69, with no commission on what you recover. Pay by Visa, Mastercard or Afterpay.
Get my free letter preview — flat A$69
Yes. The plain-text template on this page is free to copy and adapt for your own unpaid debt. There is no charge and no sign-up to use it.
No. There is no legal requirement for a letter of demand to be written or signed by a lawyer. You can complete the template yourself. A solicitor is worth engaging when the debt is large, the facts are genuinely disputed, or you need advice on your position. PayClaim is not a law firm and does not give legal advice.
Either can work, and the most important thing is to keep proof that you sent it. Some people send by both email and post so there is a clear record of the date. If you post it, consider a method that gives you tracking or a record of delivery.
Avoid threats, abusive language, and any claim you cannot back up. Do not overstate the amount owed or invent penalties that were never agreed. A calm, accurate, dated demand is more effective and keeps you within the debt-collection guidelines that apply in Australia.
PayClaim can prepare the same letter on its own letterhead and send it to the debtor as your authorised agent, with a copy to you, for a flat A$69. You review a free preview before you pay anything. PayClaim does not guarantee that the debtor will pay.