How to Take Someone to NCAT for Unpaid Money in New South Wales

Someone owes you money. They have ignored your calls, dodged your emails, and binned your letter of demand. In New South Wales, if you are the business owed money on an invoice, or the person who lent money privately, 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, and you can bring the claim without hiring a solicitor.

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

This guide explains when NCAT does and does not apply, how to recover unpaid money through the Local Court, what evidence you need, and how Claim Done prepares the documents.

What is NCAT and when can you use it?

NCAT is a state tribunal that handles disputes across multiple divisions. Its Consumer and Commercial Division hears consumer claims up to $100,000. Under the Fair Trading Act 1987 (NSW), a consumer claim is a claim brought by a consumer about goods or services supplied to them (s 79E, s 79I).

You can use NCAT to recover:

• Refunds for defective goods or services you bought
• Compensation from a supplier for poor work done for you
• Money a supplier owes you as the customer, where you are a natural person, a partnership or a small proprietary company (s 79D)

NCAT does not handle:

• Unpaid invoices you issued to a customer (Local Court)
• Money lent under a private loan (Local Court)
• Debts one business owes another (Local Court)
• Employment disputes (Fair Work Commission or a court, depending on the claim)
• Family law matters
• Criminal matters

If you are the one who supplied the goods, did the work or lent the money, the Local Court is the right forum: the Small Claims Division up to $20,000, the General Division over $20,000 up to $100,000, and the District Court above that (up to $750,000).

Send a letter of demand first

A formal letter of demand is the usual first step, and it often gets the money paid without any court claim.

The letter should:

• State the amount owed
• Explain why it is owed (invoice, contract, loan agreement)
• Give a clear deadline to pay (typically 7–14 days)
• State that you will start a claim in the Local Court if they do not pay

Keep proof you sent it — email receipt, registered post tracking, or statutory declaration.

Claim Done’s Letter of Demand service drafts and sends the letter by email for $49: start a Letter of Demand. If they still refuse to pay, you move to a statement of claim in the Local Court.

Gather your evidence

The court decides cases based on evidence. You need documents that prove:

1. The debt exists — invoice, contract, loan agreement, receipt
2. The amount owed — itemised breakdown, payment records
3. You tried to resolve it — copy of your letter of demand, emails, SMS screenshots
4. The other party received notice — delivery confirmation, read receipts

Organise everything into a single PDF. Label each document clearly. The court does not chase missing evidence for you.

Prepare your statement of claim

A Local Court claim is started with a Statement of Claim, which can be filed through the NSW Online Registry. It sets out:

• Your details (name, address, contact)
• The details of the person or company that owes you
• The amount you are claiming
• A brief statement of your claim (what happened, why they owe you)
• What you are asking the court for (typically judgment for the amount owed)

Common mistakes:

• Vague claim statements (“they owe me money”) — be specific
• Wrong defendant name — use the exact legal name (check ABN lookup for companies)
• Missing supporting documents — have everything ready before you file
• Incorrect fee — check the current fee on the Local Court’s website

Pay the filing fee

Filing fees change each financial year; check the current fee on the Local Court’s website before you file.

Serve the statement of claim

Once your statement of claim is filed, it must be served on the person who owes you. That means delivering it in a way you can prove.

The Local Court’s website and the NSW Online Registry explain the accepted methods of service, including for companies.

Keep proof of service. You will need it if the debtor does not respond.

Attend the hearing

The debtor can pay, or file a defence. In the Small Claims Division, a defended claim goes to a pre-trial review first, where a registrar, assessor or judge tries to help the parties agree. If it does not settle, it is listed for a hearing.

At the hearing:

• Bring printed copies of all your evidence
• Be prepared to explain your claim clearly and answer questions
• The debtor may attend and dispute your claim — be ready to respond

Small Claims Division proceedings are less formal and less technical than other court cases, and the rules of evidence do not apply. Witnesses are generally not called in defended small claims matters unless the court decides otherwise.

Get your judgment and enforce it

If the court finds in your favour, it gives judgment for the amount owed. The judgment is legally binding.

If the debtor still does not pay, you can enforce the judgment through the Local Court, for example by:

• Applying for a garnishee order (taking money from their bank account or wages)
• Applying for a writ of execution (seizing and selling their property)

Enforcement is a separate process. The court does not collect the money for you.

If the debtor does not file a defence and has been properly served, you may be able to ask for judgment without a hearing (default judgment). You will need to show the statement of claim was properly served.

How Claim Done prepares your Local Court claim

Claim Done’s Tribunal Application service drafts a Local Court statement of claim for a New South Wales debt, based on the evidence you describe.

You complete a 10-minute intake form. Our Programmatic Algorithms work from what you tell us about your documents — invoices, contracts, emails, letters of demand — and draft:

• A Local Court statement of claim
• A detailed account of what is owed and why
• A summary of the evidence and the judgment you are seeking

You receive a PDF to review. You pay the court’s filing fee separately and handle service yourself.

What Claim Done does:

• Drafts the statement of claim based on your evidence
• Sets it out for a New South Wales Local Court debt claim
• Delivers the completed draft in about 5 minutes

What Claim Done does not do:

• Provide legal advice (we are not a law firm)
• File the statement of claim with the court on your behalf
• Serve the debtor
• Represent you at the hearing

For a straightforward debt in New South Wales, Claim Done gives you a professionally prepared statement of claim at a fixed fee of $97.

Final checklist before filing

Before you file your statement of claim, confirm:

• You sent a letter of demand and kept proof
• You know your division: Small Claims up to $20,000, General Division over $20,000 up to $100,000
• You have all supporting documents organised and labelled
• The debtor’s name and address are correct
• You have checked the current filing fee
• You have a plan to serve the statement of claim on the debtor
• You are available to attend a pre-trial review or hearing

If you have ticked every box, you are ready to file.

Start your claim now

Start with a Letter of Demand for $49. If that does not get you paid, Claim Done’s Tribunal Application drafts a Local Court statement of claim for your New South Wales debt in about 5 minutes. Tell us what evidence you have, answer a few questions, and receive a draft to review and file. Fixed fee $97, no subscription.

Frequently Asked Questions

How much does it cost to take someone to NCAT for money?

If you are owed money for an invoice or a private loan, the claim belongs in the Local Court, not NCAT. Filing fees change each financial year, so check the current fee on the Local Court’s website. Claim Done’s Letter of Demand costs $49, and its Tribunal Application, which drafts a Local Court statement of claim, costs $97. You pay the court’s fee separately when you file.

Do I need a lawyer to recover unpaid money?

Not necessarily. For claims up to $20,000, the Local Court’s Small Claims Division is less formal and less technical, and the rules of evidence do not apply. Claim Done prepares the documents, and you file and attend yourself. Get legal advice if the matter is complicated.

What happens if the other person does not pay after the court orders them to?

You can enforce the judgment through the Local Court, for example with a garnishee order or a writ of execution. The court does not collect the money for you — enforcement is a separate process.

Can I take a company to NCAT for unpaid invoices?

Generally, no. If your business supplied the goods or services, your claim for payment is a debt claim for the Local Court: the Small Claims Division up to $20,000, the General Division over $20,000 up to $100,000. The exception is where the company has lodged an NCAT consumer claim against you; the Tribunal can then order it to pay you within that claim (Fair Trading Act 1987 s 79O). Either way, use the company’s correct legal name (check the ABN lookup).

How long does a Local Court debt claim take?

It depends on whether the debtor pays, defends or ignores the claim, and on the court’s workload. In the Small Claims Division, a defended claim goes to a pre-trial review first. If the debtor does not comply with a judgment, enforcement adds more time depending on the method used.