What to Do When a Client Refuses to Pay Your Invoice in Queensland

You completed the work. You sent the invoice. The client has gone quiet.

When a Queensland client refuses to pay, you have a structured pathway to recover what you are owed. This guide covers the exact steps, timeframes and costs specific to Queensland — from your first demand letter through to the Queensland Civil and Administrative Tribunal (QCAT).

Step 1: Send a Letter of Demand

Before you file anything with QCAT, send a formal letter of demand. QCAT typically expects you to attempt resolution before escalating.

A proper demand letter should:

• State the exact amount owed, including GST if applicable
• Reference the original invoice number and date
• Cite the contract, quote or agreement under which the work was performed
• Give a clear deadline — typically 7 to 14 days
• State what will happen if they do not pay (QCAT application, interest, costs)
• Be sent via email and registered post to create a paper trail

A dated, delivered demand letter proves you attempted to resolve the matter before filing.

Claim Done generates and sends demand letters by email for $49. Tell us about your invoice, describe what happened, and the system drafts a letter citing the applicable Australian Consumer Law or contract law provisions. It is emailed to the debtor.

Step 2: Wait for the Deadline and Document Everything

Give them the time you stated in the letter — usually 7 to 14 days from the date they receive it.

During this period:

• Do not accept partial payment without a written agreement that it is part of a payment plan, not settlement in full
• Keep all communication in writing (email or SMS)
• If they dispute the invoice, ask them to put their reasons in writing
• If they claim financial hardship, offer a payment plan in writing — but do not waive the debt

If the deadline passes with no payment and no genuine dispute, move to step 3.

Step 3: Decide Whether to Use QCAT

QCAT handles civil disputes up to $25,000. If your invoice exceeds that threshold, you will need to file in the Magistrates Court or District Court instead.

QCAT is faster, cheaper and less formal than court. You do not need a lawyer. The process is designed for self-represented parties.

An unpaid invoice up to $25,000 is a minor civil dispute at QCAT. Fees change each 1 July; check the current fee on the tribunal’s or court’s website before you file.

Step 4: File Your QCAT Application

You file online or by post. The QCAT website has step-by-step instructions and downloadable forms.

What you need to include:

• Completed minor civil dispute application form from QCAT’s website
• Copy of your invoice
• Copy of your demand letter and proof of delivery
• Copies of any contract, quote or agreement
• Any correspondence showing the client acknowledged the debt or the work
• Evidence the work was completed (photos, emails, delivery receipts, signed job sheets)

What happens next:

1. QCAT gives you sealed copies of your application, and you must give (serve) a sealed copy on the respondent
2. The respondent has 28 days from the date they were served to file a response
3. If they do not respond, you can apply for a default decision in your favour
4. If they do respond, claims up to $10,000 are referred to mediation and claims over $10,000 are listed for hearing, unless QCAT orders otherwise

Step 5: Mediation (Claims up to $10,000)

Under QCAT Practice Direction 1 of 2026, minor civil disputes up to $10,000 are referred to mediation unless the tribunal orders otherwise, and claims over $10,000 go straight to a hearing. A party who reasonably considers the dispute unsuitable for mediation can ask in writing to skip it. Mediation is not a hearing — no decision is made. If you do not attend without a reasonable excuse, QCAT can make orders in your absence, including dismissing your application.

The goal is settlement.

What to bring:

• All your evidence (invoice, contract, proof of work, demand letter)
• A clear position on what you will accept (full payment, payment plan, reduced amount)
• A calculator and a notepad

If you reach an agreement, the terms of settlement are recorded in writing and QCAT can make orders to give effect to them. Those orders are enforceable if the client does not keep to the agreement.

If you do not settle, the matter proceeds to a hearing.

Step 6: QCAT Hearing

If mediation does not resolve the dispute, or your claim is over $10,000, QCAT lists it for a hearing. You will receive a notice with the date, time and location (or whether it will be held by phone or video).

How to prepare:

• Organise your evidence in chronological order
• Prepare a short written outline of your case (1 to 2 pages)
• Give (serve) the respondent a copy of everything you want to rely on at least five business days before the hearing, unless QCAT orders otherwise; QCAT will not do this for you
• Bring three copies of everything (one for you, one for the tribunal member, one for the respondent)
• Practice explaining your case in plain language in under 10 minutes

At the hearing:

• You present your case first
• The respondent presents their case
• The tribunal member may ask questions
• You may be allowed to ask the respondent questions
• The tribunal member makes a decision on the day or reserves their decision

QCAT decisions are legally binding. If you win, you receive a written order stating the amount the respondent must pay and the timeframe.

Step 7: Enforce the QCAT Order

Winning at QCAT does not automatically put money in your account. If the client still refuses to pay, you must enforce the order.

Enforcement options in Queensland:

• Garnishee order — the debtor’s bank can be ordered to pay you directly from their account
• Warrant for redirection of earnings — the debtor’s employer can be ordered to deduct payments from their wages
• Warrant to seize property — a Queensland sheriff can seize and sell the debtor’s assets to pay the debt

QCAT does not enforce its own money orders; you file the order in the Magistrates Court and enforce it there. QCAT’s website explains the steps. There are additional fees for enforcement action.

What If the Client Disputes the Invoice?

If the client genuinely disputes the invoice — they claim the work was defective, incomplete or not authorised — QCAT will assess the evidence from both sides.

You will need to prove:

• The work was completed to the agreed standard
• The client authorised the work (written quote, signed agreement, email approval)
• You complied with any contract terms or Australian Consumer Law guarantees

If the client’s dispute is weak or unsupported, QCAT will typically still order payment. If their dispute has merit, QCAT may reduce the amount or dismiss your claim.

This is why documentation matters. Keep every email, every text message, every signed quote. Take photos of completed work. Get written sign-off where possible.

How Claim Done Helps Queensland Businesses

Claim Done generates and sends your letter of demand in about 5 minutes. You complete a 5-minute form, tell us about your invoice and any supporting documents, and the system drafts a professionally formatted demand letter citing the relevant Australian law.

The letter is emailed to your client. You receive a copy.

If the client does not pay, you have the documented evidence QCAT requires — a formal demand, proof of delivery, and a clear paper trail.

No subscription. Australia-wide.

If you need to escalate to QCAT, Claim Done also prepares tribunal applications and a witness statement. You attach your own evidence and lodge QCAT’s form yourself.

Final Checklist: Queensland Unpaid Invoice Recovery

• [ ] Send a formal letter of demand (7 to 14 day deadline)
• [ ] Wait for the deadline and document all responses
• [ ] Decide whether to file with QCAT (debt under $25,000)
• [ ] Gather all evidence (invoice, contract, proof of work, demand letter)
• [ ] File your QCAT application online or by post
• [ ] Attend mediation (claims up to $10,000) prepared to negotiate
• [ ] If no settlement, prepare for the QCAT hearing
• [ ] If you win, enforce the order if the client still does not pay

You do not need a lawyer for most QCAT matters. You need organised evidence, a clear timeline and a formal demand letter that proves you tried to resolve the dispute before filing.

Generate and send a demand letter by email so you can move quickly and professionally when a Queensland client refuses to pay.

Frequently Asked Questions

How long does a QCAT claim take in Queensland?

It depends on QCAT’s current workload and whether the matter settles at mediation. A matter that settles at mediation finishes sooner than one that goes to a hearing.

Can I recover my QCAT filing fees from the client?

Yes. If you win, QCAT can order the respondent to pay your application and hearing fees as part of the costs order. You must ask for costs in your application and at the hearing. QCAT does not automatically award costs.

What if my client is based interstate but the work was done in Queensland?

You can still file in QCAT if the contract was performed in Queensland or the debt arose in Queensland. QCAT has jurisdiction over disputes connected to Queensland, even if the respondent lives elsewhere. The respondent can participate by phone or video.

Do I need a lawyer for QCAT in Queensland?

No. QCAT minor civil disputes, including debt claims up to $25,000, are designed for parties to represent themselves.

What happens if the client ignores the QCAT application?

If the respondent does not file a response within 28 days, you can apply for a default decision. QCAT will review your evidence and, if satisfied, make an order in your favour without a hearing. The respondent can apply to set aside the default order, but they must show a reasonable excuse for not responding.