If your letter of demand is ignored in Australia, your usual next step is to file a claim with the small-claims court or tribunal in the debtor’s state or territory, such as NCAT, VCAT, QCAT, ACAT, NTCAT or the relevant Magistrates Court. Before filing, confirm the deadline in your letter has passed, gather your proof of sending, and check the current claim limit and filing fee on that body’s official website. A documented letter of demand strengthens your claim.
Before escalating, check three things:
PayClaim is not a law firm and does not provide legal advice or guarantee payment.
A short, written follow-up (“Our letter of demand dated [date] required payment by [date]. No payment has been received. We will now proceed as set out in that letter unless payment is received by [new short date].”) sometimes shakes loose a payment from a debtor who was hoping you would go away. Keep it to one follow-up. Repeated extensions teach the debtor that your deadlines mean nothing.
If the debtor cannot pay the full amount at once, a written payment plan may recover more than a court judgment against someone with no money. Put the plan in writing, specify dates and amounts, and state that the full balance becomes due immediately if an instalment is missed.
Every Australian state and territory has a low-cost forum for smaller civil claims, including unpaid debts, that is designed to be used without a lawyer. The table below tells you where to file. It does not tell you the monetary limit or the fee, because those change and a wrong number here could cost you. Check the current limit on the tribunal or court’s own website before you file.
| State or territory | Where to file | Check current limit & fee |
|---|---|---|
| New South Wales | NSW Civil and Administrative Tribunal (NCAT) for consumer and commercial disputes about goods and services. For a plain unpaid debt with no dispute about the goods or work, also consider the Local Court of New South Wales, Small Claims Division. | Check the current limit on the NCAT website, and the Local Court website, before filing. |
| Victoria | Victorian Civil and Administrative Tribunal (VCAT) for goods and services disputes. For a plain unpaid debt, also consider the Magistrates’ Court of Victoria. | Check the current limit on the VCAT website, and the Magistrates’ Court of Victoria website, before filing. |
| Queensland | Queensland Civil and Administrative Tribunal (QCAT), minor civil dispute (minor debt) | Check the current limit on the QCAT website. |
| South Australia | Magistrates Court of South Australia, Minor Civil claims | Check the current limit on the Courts Administration Authority of South Australia website. |
| Western Australia | Magistrates Court of Western Australia, minor case claims | Check the current limit on the Magistrates Court of Western Australia website. |
| Tasmania | Magistrates Court of Tasmania, Minor Civil Claims | Check the current limit on the Magistrates Court of Tasmania website. |
| Australian Capital Territory | ACT Civil and Administrative Tribunal (ACAT), civil dispute | Check the current limit on the ACAT website. |
| Northern Territory | Northern Territory Civil and Administrative Tribunal (NTCAT), small claims | Check the current limit on the NTCAT website. |
Two practical notes. First, you generally file in the state or territory where the debtor is located or where the contract was performed, not necessarily where you are. Second, if the amount is above the small-claims limit, the claim goes to a higher division or court, where the process is more formal and legal advice is strongly recommended.
A properly sent letter of demand does several things for a later claim:
A letter from a third party, on that party’s letterhead and with a clear sending record, is easier to rely on than a handwritten note or a text message. That is one reason people send the formal demand through a solicitor or an authorised agent rather than from their own email address.
Before you file, it can be worth sending one formal demand from a third party so the debtor sees the matter has escalated beyond you. PayClaim prepares a letter of demand on its own letterhead, as your authorised agent, and sends it to the debtor with a copy and sending record to you. Free watermarked preview before you pay. Flat A$69, no commission.
Get my free letter preview — flat A$69
Use the deadline you set in the letter, which is commonly seven to fourteen days. Allow a few extra days if it was posted, then treat it as ignored once that date passes with no payment and no genuine attempt to resolve it. Keep your proof of sending so the date is not in dispute.
Sometimes. You may be able to claim interest if your contract or invoice allows for it, or under the rules of the court or tribunal where you file. You generally cannot invent a penalty that was never agreed. If you are unsure what you can add, get legal advice. PayClaim prepares the letter and does not give legal advice.
Yes, it helps. Courts and tribunals expect parties to have tried to resolve a dispute first, and a dated demand that went unanswered shows you did exactly that. Bring the letter, proof that it was sent, and evidence of the debt when you file your claim.
Filing fees and claim limits vary by state and territory and by the size of the claim. Check the official website for the tribunal or court in the debtor’s location, such as the New South Wales Civil and Administrative Tribunal, the Victorian Civil and Administrative Tribunal, the Queensland Civil and Administrative Tribunal, or the relevant Magistrates Court, for the current fee before you file.
No. PayClaim prepares and sends the letter of demand on its own letterhead as your authorised agent, with a copy to you. It is not a law firm and does not run court proceedings. If the letter is ignored, filing a claim is something you do yourself or through a solicitor.