Client Won’t Pay Your Invoice: Letter of Demand or Straight to QCAT?

You’ve done the work. Sent the invoice. Followed up politely. Followed up again, less politely. The client still hasn’t paid, and now you’re weighing your options: send a formal demand letter, or file directly with the Queensland Civil and Administrative Tribunal?

For the forms, fees and each step, see our guide to making an QCAT application.

Send the demand letter first. Skipping it can hurt your tribunal case, cost you more, and reduce your chances of getting paid without a hearing.

Why a demand letter matters in Queensland

A letter of demand serves three purposes:

It creates a clear evidentiary record. QCAT typically expects parties to have attempted resolution before filing. A demand letter proves you gave the client a final opportunity to pay and sets out your exact claim in writing.

It marks the formal pursuit of the debt. While your invoice starts the clock, a demand letter makes it explicit that you are pursuing the debt and the client can no longer claim confusion or oversight.

It often gets you paid without tribunal fees. Clients who have been ignoring emails suddenly pay when they realise the next step is legal action.

If you skip straight to QCAT, you lose all three benefits.

What QCAT expects before you file

QCAT is designed for disputes that could not be resolved by negotiation. When you lodge an application, the tribunal may ask:

• Did you send a final demand?
• Did you give the client a reasonable opportunity to respond?
• Have you attempted to negotiate payment terms?

If your answer is “no, I filed straight away,” the tribunal member may view your claim less favourably. If the client raises a genuine dispute about the work or the amount owed, and you never gave them a chance to respond in writing, QCAT may adjourn the matter and order you to attempt settlement first — costing you time and an additional filing fee.

A demand letter shows you acted reasonably. It also forces the client to either pay, dispute the claim in writing, or ignore you — all of which strengthen your position if you do end up in tribunal.

The demand letter as evidence at QCAT

If your matter proceeds to a hearing, the demand letter becomes one of your most important pieces of evidence. It proves:

• You clearly stated the amount owed
• You gave the client a deadline to pay
• You cited the contract, invoice, or terms that support your claim
• The client had notice of your intention to take legal action

Without a demand letter, your case relies entirely on the invoice and any prior correspondence. Clients often claim at tribunal that they “didn’t realise it was urgent” or “thought we were still negotiating.” A demand letter removes that defence.

When filing straight to QCAT makes sense

There are situations where skipping the demand letter and filing immediately is appropriate:

The client is insolvent or about to disappear. If you have reason to believe the client is winding up their business or leaving the country, file immediately. A demand letter gives them time to move assets or dissolve the company.

The debt is large and the client is clearly stalling. For debts over $25,000 (QCAT’s minor civil dispute limit), you file in the Magistrates Court instead. In these cases, your solicitor will likely send a formal letter of demand as part of pre-action requirements, but the timeline is compressed.

The limitation period is about to expire. In Queensland, most contractual debts have a six-year limitation period. If you are approaching that deadline, file first and negotiate later.

The client has already disputed the invoice in writing. If the client has sent you a detailed email or letter disputing the work, the amount, or the contract terms, a demand letter is unlikely to resolve anything. You may as well file and let QCAT decide.

For most unpaid invoices under $25,000, none of these apply. The client is simply ignoring you, and a demand letter is the fastest, cheapest way to get paid.

What a proper demand letter includes

A demand letter is not an angry email with “PAY ME” in the subject line. It is a formal document that sets out your claim, cites the applicable law, and gives the client a final deadline to pay.

A properly drafted demand letter includes:

• Your details and the client’s details — full names, ABNs, addresses
• The amount owed — broken down by invoice number and date
• The basis of the claim — contract terms, scope of work, payment terms
• Applicable law — typically the Australian Consumer Law or the contract itself
• A clear deadline — usually 7 to 14 days
• Consequences of non-payment — tribunal filing, interest, costs
• Your contact details — for payment or dispute

The letter must be professional, factual, and legally precise. It should not contain threats, insults, or exaggerations. If the client does dispute the claim, anything you say in the demand letter can be used against you at tribunal.

The cost comparison: demand letter vs QCAT filing

Let’s compare the two approaches for a $5,000 unpaid invoice.

Demand letter first:

• Claim Done demand letter: $49
• Payment deadline: usually 7 to 14 days
• If ignored, you still file at QCAT — but now with stronger evidence

Straight to QCAT:

• QCAT filing fee: fees change each 1 July; check the current fee on the tribunal’s or court’s website before you file
• If the client disputes, you may need to attend multiple directions hearings
• If you lose or the claim is reduced, you may not recover your filing fee

Even if you end up filing at QCAT after sending a demand letter, you have only spent an extra $49 — and you have a stronger evidentiary record.

What happens after you send the demand letter

Three outcomes are possible:

The client pays. This happens in most cases. Once the client realises you are serious and the next step is tribunal, they pay.

The client disputes the claim. They send a detailed response explaining why they believe they do not owe the full amount, or any amount. You now know their defence before you file at QCAT, and you can decide whether to negotiate, reduce your claim, or proceed.

The client ignores the letter. After 14 days, you file at QCAT. The demand letter is now exhibit A. The client cannot claim they did not know you were serious, and QCAT will view your claim more favourably because you attempted to resolve the matter first.

All three outcomes are better than filing immediately without a demand letter.

How Claim Done helps Queensland businesses recover unpaid invoices

Claim Done’s Programmatic Algorithms use what you tell us about your invoices, contracts, and correspondence to draft a professionally formatted letter of demand citing the applicable Australian law. The letter is delivered by email, creating a clear evidentiary record.

If the client does not pay, Claim Done can prepare your QCAT application, including the statement of claim and a witness statement. The demand letter becomes part of your evidence.

The process:

1. Complete a 5-minute intake form about the unpaid invoice
2. Tell us about your invoices, contract, and any relevant correspondence
3. Claim Done drafts your demand letter and delivers it by email
4. If the client does not pay, upgrade to a QCAT application for a flat fee

No subscription. No hourly billing. No waiting weeks for a solicitor.

Get your demand letter sent today

Claim Done prepares and delivers your letter of demand in about 5 minutes for a flat fee. No subscription, no hidden costs, no waiting. If the client does not pay, upgrade to a full QCAT application and use the demand letter as evidence.

Start your demand letter now and get your unpaid invoice resolved.

Frequently Asked Questions

Can I file at QCAT without sending a demand letter first?

Yes, there is no legal requirement to send a demand letter before filing at QCAT. However, skipping it can weaken your case, as QCAT typically expects parties to have attempted settlement. A demand letter also resolves most unpaid invoices without needing a tribunal hearing.

How long should I give the client to respond to a demand letter in Queensland?

Most demand letters give 7 to 14 days. Seven days is appropriate for small debts or when the client has been ignoring you for months. Fourteen days is more common for larger amounts or where the client may have a genuine dispute.

What if the client disputes the invoice after receiving the demand letter?

If the client sends a detailed written dispute, you now know their defence before filing at QCAT. You can decide whether to negotiate, reduce your claim, or proceed to tribunal. Either way, you are better informed than if you had filed immediately.

How much does it cost to file a minor debt claim at QCAT?

QCAT filing fees for minor civil disputes (up to $25,000) depend on the claim amount. Fees change each 1 July; check the current fee on the tribunal’s or court’s website before you file. You may recover the filing fee if you win, but only if QCAT orders the other party to pay your costs — which is not guaranteed.

Can Claim Done prepare my QCAT application if the demand letter does not work?

Yes. If the client does not pay after receiving your demand letter, Claim Done can prepare your QCAT application, including the statement of claim and a witness statement. The demand letter becomes part of your evidence.