How to Take Someone to NCAT for Unpaid Money (New South Wales Small Claims)

If someone owes you money in New South Wales and won’t pay after repeated demands, you need a forum that can make a legally binding order. If you are the business that is owed money, or you lent someone money privately, that is a debt claim for the Local Court of New South Wales, not NCAT. The Local Court’s Small Claims Division hears claims up to $20,000 and its General Division hears claims over $20,000 up to $100,000 — no lawyer required, and small claims proceedings are less formal and less technical than other court cases.

This guide covers when NCAT can help with money and when it cannot, how to file a debt claim in the Local Court, fees, evidence, and what happens at the hearing.

When NCAT is the right option, and when it is not

NCAT hears consumer claims up to $100,000. A consumer claim is a claim brought by a consumer about goods or services supplied to them (Fair Trading Act 1987 (NSW) s 79E, s 79I), and a consumer includes a natural person, a partnership and a small proprietary company. You can use NCAT if:

• You are the customer, and a business supplied you faulty goods or poor services
• The claim is within $100,000
• The goods or services were supplied in New South Wales, or the agreement was made here
• You have usually raised the problem with the supplier first (good practice, not a legal requirement)
• The matter is not criminal, family law, or employment law

NCAT is not the forum if you supplied the goods or services and have not been paid. Unpaid invoices, debts between businesses and loans between friends or family are debt claims for the Local Court. Tenancy matters, including rental bond disputes, are a separate NCAT case type. The one exception for an unpaid supplier: if your customer lodges a consumer claim against you, NCAT can order the claimant to pay you within that claim (s 79O).

If the debtor is a registered company and owes $4,000 or more, a statutory demand for company debtors may be another option. If the claim exceeds $100,000, the District Court hears claims up to $750,000.

Eligibility and jurisdiction

For a consumer claim, NCAT only has jurisdiction if one of these applies (s 79K):

• The agreement was made in New South Wales
• The goods or services were supplied in New South Wales
• The agreement contemplated supply in New South Wales

If a party lives interstate, NCAT may not have power to deal with the dispute, and the matter goes to the Local or District Court instead. For a debt claim, check which court can hear it before you file.

NCAT cannot hear disputes involving defamation, personal injury, wills and estates, family property, employment termination, or criminal matters. If your dispute involves any of these, you need a different forum.

Before you file: send a letter of demand

A letter of demand is the usual first step, whichever forum applies. It gives the other side a clear deadline, and it often gets the money paid without any claim.

A proper letter of demand should:

• State the exact amount owed, with a breakdown
• Cite the legal basis (contract, invoice, consumer guarantee)
• Give a clear deadline (typically 7-14 days)
• State the consequence of non-payment (a claim in the Local Court, or an NCAT consumer claim if you are the consumer)
• Be sent via email and registered post for proof of delivery

Keep copies of the demand letter and proof of sending — you may need them as evidence. If you need help drafting one, Claim Done drafts a letter of demand for $49: start a Letter of Demand.

Local Court online filing process

A Local Court debt claim is started with a statement of claim, which can be filed through the NSW Online Registry (how to file a statement of claim). You will need:

• An email address
• The debtor’s full legal name and address
• The amount you are claiming and how it is made up
• A way to pay the filing fee

Step 1: Create an account

Register for an NSW Online Registry account.

Step 2: Start a statement of claim

Log in and choose to file a statement of claim in the Local Court: the Small Claims Division for claims up to $20,000, or the General Division for claims over $20,000 up to $100,000.

Step 3: Complete the statement of claim

The statement of claim sets out:

• Your details (name, address, contact)
• The defendant’s details (the debtor’s full legal name and address)
• Claim amount (principal debt plus any interest)
• A brief description of the claim: what was agreed, what was supplied or lent, and what is owed

Be specific. Stick to the facts: what was agreed, what was delivered or not delivered, what is owed.

Step 4: Keep your evidence ready

Keep your supporting documents organised. You will need them if the debtor files a defence and the claim goes to a pre-trial review or hearing:

• Copy of the contract, invoice, or loan agreement
• Proof of delivery (emails, receipts, delivery notes)
• Letter of demand and proof it was sent
• Any correspondence with the debtor (emails, text messages, letters)
• Bank statements showing payment or non-payment
• Photos or reports if the debtor says the goods or services were defective

Combine multiple pages into a single PDF where you can, so each document is easy to find.

Step 5: Pay the filing fee

Filing fees change each financial year; check the current fee on the Local Court’s site (Local Court: civil jurisdiction) before you file.

Once the statement of claim is filed, it has to be served on the debtor. The Online Registry and the court’s site explain how.

What happens after you file

Once served, the debtor has 28 days to file a defence.

If the debtor does not file a defence, you can apply for default judgment.

If the debtor files a defence to a small claim, the matter goes to a pre-trial review first, where a registrar, assessor or judge tries to help the parties agree. If you reach agreement, the matter can be resolved there. If not, it is listed for hearing.

Preparing for the hearing

Small claims hearings are less formal and less technical than other court cases, the rules of evidence do not apply, and witnesses are generally not called unless the court decides otherwise. You still need to be prepared. The court will ask you to explain your case, refer to your evidence, and answer questions.

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 written timeline of events in chronological order
• Any additional evidence you rely on
• A notebook to take notes during the hearing

How to present your case:

1. Introduce yourself and briefly state what you are claiming
2. Walk the court through the timeline: what was agreed, what happened, what went wrong
3. Refer to specific documents as you go (invoice, contract, emails)
4. Stay calm, factual, and respectful — do not argue with the debtor or interrupt
5. Answer the court’s questions directly and honestly

The debtor will then present their side. Keep anything you say in reply relevant and non-aggressive. The court may also ask both parties questions.

The court may give its decision on the day, or later in writing.

Judgment and enforcement

If the court finds in your favour, it gives judgment for the debt. The judgment may also include interest and costs.

A Local Court judgment is legally binding. If the debtor does not pay, you can enforce it through:

• Garnishee order (take money from their bank account or wages)
• Writ of execution (seize and sell their property)
• Examination notice (require them to disclose their financial position)

Enforcement is a separate process with its own fees, applied for through the Local Court.

If the debtor is a company and does not pay, you can also use the judgment as the basis for a statutory demand.

How Claim Done helps with your claim

Preparing a court claim means organising evidence, drafting a clear statement of claim, and making sure it is filed in the right forum.

Claim Done’s Tribunal Application service drafts a Local Court statement of claim for a New South Wales debt. You tell us what evidence you have, answer a few questions, and our Programmatic Algorithms draft:

• A Local Court statement of claim setting out the debt
• A witness statement outline for you to complete in your own words

Flat fee of $97. No subscription.

You read and approve the draft, then file it yourself through the NSW Online Registry and pay the court’s filing fee. If you are the consumer with a claim against a supplier, the same service drafts your NCAT consumer claim instead.

Final checklist before filing

Before you file your statement of claim, confirm:

• You sent a letter of demand and kept proof
• The debtor’s legal name and address are correct
• Your evidence is complete and organised
• The claim amount is accurate and itemised
• You chose the right forum: the Local Court for a debt (Small Claims Division up to $20,000; General Division over $20,000 up to $100,000), NCAT only if you are the consumer
• You checked the current filing fee

Check every detail carefully before you file; fixing a mistake later costs time.

Get your claim prepared now

Ready to take someone to court for unpaid money? Start with a Letter of Demand for $49. If the debt is still unpaid, prepare your Local Court statement of claim with Claim Done. Tell us what evidence you have, answer a few questions, and receive a draft you review and approve. No lawyer fees. Fixed fee of $97.

Frequently Asked Questions

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

If you are a business owed money, or you lent money privately, the claim goes to the Local Court, not NCAT, and the court charges a filing fee to start it. Filing fees change each financial year; check the current fee on the Local Court’s site before you file.

Can I take someone to NCAT without a lawyer?

Yes, a consumer can lodge an NCAT consumer claim without a lawyer. For a debt, you also do not need a lawyer to file a statement of claim in the Local Court, and small claims proceedings are less formal and less technical than other court cases.

What happens if the debtor does not respond to my claim?

If the debtor does not file a defence within 28 days of being served with your statement of claim, you can apply to the Local Court for default judgment.

How long does a debt claim take from filing to hearing?

It depends on the court’s list and whether the debtor defends the claim. If no defence is filed, you can apply for default judgment without a hearing. A defended small claim goes to a pre-trial review first, and to a hearing only if it does not settle.

Can I claim interest on the debt in my statement of claim?

Yes. You can include interest in your statement of claim. Specify the interest amount and show how it was worked out.