How to Apply to NCAT for Unpaid Invoices: Complete Process

If a client or customer in New South Wales owes you money and refuses to pay, the forum is usually not the NSW Civil and Administrative Tribunal (NCAT). If you are the business that is owed money, this is a debt claim for the Local Court of New South Wales, not NCAT: the Small Claims Division hears claims up to $20,000, and the General Division hears claims over $20,000 up to $100,000.

This guide covers why NCAT is usually the wrong forum for an unpaid invoice, what to do before you file, how to start a claim in the Local Court, what happens if the claim is defended, and how to enforce a judgment.

Can you take a client to NCAT for an unpaid invoice?

Usually, no. NCAT hears consumer claims, which are claims brought by a consumer about goods or services supplied to them (Fair Trading Act 1987, s 79E and s 79I). A business chasing its customer is the supplier, not the consumer. Here is where common money claims go:

• Unpaid invoices for goods or services you delivered: Local Court
• Contract disputes where the other party owes you money under a written or verbal agreement: Local Court
• Debt recovery for money owed under private loans, payment plans, or acknowledgments of debt: Local Court
• Consumer claims for defective goods, poor workmanship, or misleading conduct, brought by the customer against the supplier: NCAT, up to $100,000

Local Court limits for a debt claim:

• Small Claims Division: up to $20,000
• General Division: over $20,000 up to $100,000
• Above $100,000: the District Court (up to $750,000)

One exception: if your customer has lodged an NCAT consumer claim against you, for example alleging the work was defective, and the Tribunal decides it wholly or partly in your favour, it may order the claimant to pay you a specified amount (s 79O).

Step 1: Send a Letter of Demand

Before you file in the Local Court, the usual first step is a formal Letter of Demand with a clear deadline.

What to include:

• The amount owed and how it was calculated
• The goods or services you provided
• The date payment was due
• Reference to the contract, invoice, or agreement
• A clear deadline (typically 7–14 days)
• A statement that you will start a claim in the Local Court if payment is not received

Send it by registered post or email with read receipt. Keep proof of delivery, because it becomes part of your evidence if you have to file.

Give the debtor at least 7 days to respond. If they ignore the letter or refuse to pay, you can proceed. Claim Done drafts a letter of demand for $49: start a Letter of Demand.

Step 2: Gather your evidence

The court decides cases on evidence, not arguments. Collect everything that proves:

1. You provided the goods or services — contracts, work orders, delivery dockets, photos, emails
2. The amount owed — invoices, quotes, payment schedules
3. You tried to get paid — the Letter of Demand, follow-up emails, text messages
4. The other party agreed to pay — signed contracts, purchase orders, email confirmations

Organise documents chronologically and label each one clearly, so you can find and present any document quickly.

Step 3: File a statement of claim in the Local Court

A Local Court claim is started with a statement of claim, which can be filed through the NSW Online Registry.

What you need:

• Statement of claim — in the Small Claims Division for debts up to $20,000, or the General Division for debts over $20,000 up to $100,000
• Filing fee — filing fees change each financial year; check the current fee on the Local Court’s website before you file
• Your documents — invoices, contracts, Letter of Demand, proof of delivery, kept ready for later steps
• Details of the other party — full legal name, ABN or ACN (if a business), address

Online filing process:

1. Log in to, or create, a NSW Online Registry account
2. Choose to file a statement of claim in the Local Court
3. Complete the statement of claim, including the amount you claim and why it is owed
4. Pay the filing fee
5. Submit the claim

If the debtor lives in another state or territory, check the Local Court’s guidance on where to file before you start.

Step 4: The other party is served

Once filed, the statement of claim must be served on the defendant. The Local Court’s website explains how service works. The defendant can then:

• Pay the amount claimed
• Admit the debt
• File a defence disputing the claim

If they do nothing and no defence is filed, you can apply for default judgment.

Step 5: Prepare for the pre-trial review and hearing

A defended small claim goes first to a pre-trial review, where the court tries to help the parties reach agreement. If it does not settle, it goes to a hearing. Small claims proceedings are less formal and less technical than other court hearings, the rules of evidence do not apply, and witnesses are generally not called unless the court decides otherwise.

What to bring:

• File and serve your written statements and documents by the dates the court sets at the pre-trial review, and bring your own copy of everything to the hearing
• A chronological summary of events (one page, dot points)
• Written statements from anyone else who can support your case
• Calculator and notepad

What happens:

1. The case is called and the details are confirmed
2. You explain what happened, refer to documents, and state the amount owed
3. The other party responds
4. The person hearing the case may ask both parties questions
5. The court gives its decision, on the day or later

Tips for presenting:

• Speak clearly and stick to facts
• Do not argue or interrupt
• Refer to specific documents by date and page number
• Write down your key points beforehand if you are nervous

Step 6: The court’s decision

If the court finds in your favour, it gives judgment for:

• The amount the defendant must pay
• Any interest the court allows
• Any costs the court allows, which may include the filing fee

The judgment is legally binding. If the defendant does not pay, you can enforce it.

If the court dismisses your claim, you generally cannot bring the same claim again. Appeals from the Small Claims Division go to the District Court, and only on lack of jurisdiction or denial of procedural fairness.

Step 7: Enforce the judgment

A judgment is not self-executing. If the defendant does not pay voluntarily, you must take enforcement action.

Enforcement options:

1. Garnishee order — take money directly from their bank account or wages
2. Writ for the levy of property — seize and sell their assets
3. Examination notice — require them to complete a statement of their financial position (if that is not enough, the court can order them to attend for examination)
4. Bankruptcy or wind-up proceedings — if the debt meets statutory thresholds

Enforcement is a further step through the Local Court. You will need to file additional forms and pay further fees.

If the debtor is a company and the debt is at least $4,000 (the statutory minimum), you may also issue a Statutory Demand against a company under the Corporations Act.

How Claim Done helps

Claim Done drafts the documents for each step in about 5 minutes.

What you get:

• A Letter of Demand ($49) setting out the debt, the deadline and your next step
• A Tribunal Application ($97), which drafts a Local Court statement of claim for a New South Wales debt

You tell us about your invoices, contracts, and evidence. Our Programmatic Algorithms work from your answers, identify the legal issues, and draft a Local Court statement of claim citing the applicable New South Wales law. You approve it, then file and serve it yourself.

Flat fees. No subscription. Done in about 5 minutes.

Final checklist before you file

Before you file, confirm:

• [ ] You sent a Letter of Demand at least 7 days ago
• [ ] You know which division fits: up to $20,000 is the Small Claims Division; over $20,000 up to $100,000 is the General Division
• [ ] If the debtor lives in another state, you have checked where to file
• [ ] You have copies of all invoices, contracts, and correspondence
• [ ] You know the debtor’s full legal name and address
• [ ] You are ready to attend a pre-trial review and hearing if the claim is defended

If you tick all those boxes, you are ready to file.

What happens if you do nothing

If you do not take action, the debt becomes harder to recover. Evidence goes missing. Witnesses forget details. The debtor may move, close their business, or declare bankruptcy.

New South Wales has a 6-year limitation period for contract debts. After 6 years from the date payment was due, you lose the right to sue.

For a business owed money in New South Wales, the path is a letter of demand first, then a statement of claim in the Local Court.

If you are owed money and the debtor will not pay, Claim Done can draft your Local Court statement of claim today — drafted in about 5 minutes for you to check and file.

Frequently Asked Questions

Can I apply to NCAT for an unpaid invoice, and what does it cost?

Usually not. NCAT consumer claims are brought by the consumer, so a business chasing an unpaid invoice has a debt claim for the Local Court: the Small Claims Division up to $20,000, or the General Division over $20,000 up to $100,000. Filing fees change each financial year; check the current fee on the Local Court’s website before you file.

Do I need a lawyer to file in the Local Court?

No. You can prepare and present your own case. Small claims proceedings are less formal and less technical than other court hearings, and the rules of evidence do not apply.

How long does a Local Court debt claim take?

It depends on whether the defendant files a defence. If no defence is filed, you can apply for default judgment. A defended small claim goes to a pre-trial review first and, if it does not settle, to a hearing.

What happens if the debtor ignores the statement of claim?

If the defendant does not file a defence, you can apply for default judgment instead of going to a hearing. Keep your invoices and proof of service ready in case the court asks for them.

Can I enforce a Local Court judgment if the debtor still refuses to pay?

Yes. You can enforce the judgment through the Local Court using garnishee orders, writs for levy of property, or examination notices. If the debtor is a company and the debt meets the statutory threshold, you can also issue a Statutory Demand under the Corporations Act.