Taking Someone to NCAT Over Money in New South Wales: What to Expect

If someone owes you money in New South Wales and refuses to pay, the NSW Civil and Administrative Tribunal (NCAT) is usually not where you claim it. If you are the business that is owed money, or you lent someone money privately, this is a debt claim for the Local Court of New South Wales, not NCAT. Its Small Claims Division hears claims up to $20,000 and its General Division hears claims over $20,000 up to $100,000, and you can run a claim without hiring a lawyer.

This guide explains when NCAT applies to unpaid money and when it does not, and how to take a debt to the Local Court — the limits, documents, fees, steps, and evidence you need.

What is NCAT and when can you use it?

NCAT is an independent tribunal that resolves disputes across multiple areas. Its Consumer and Commercial Division hears consumer claims up to $100,000, and a consumer claim is a claim brought by a consumer about goods or services supplied to them (Fair Trading Act 1987, s 79E and s 79I). “Consumer” includes a natural person, a partnership and a small proprietary company (s 79D).

So the question is who is claiming from whom:

• You bought goods or services and want your money back from the supplier: NCAT consumer claim, up to $100,000
• You supplied goods or services and the customer has not paid: Local Court debt claim
• Another business owes your business money: Local Court
• You lent money privately and it has not been repaid: Local Court

Common money claims and where they go:

• Unpaid invoices for goods or services: Local Court
• Rental bond disputes: NCAT (tenancy)
• Loans to friends, family members, or business partners: Local Court
• Refunds for defective goods or services, claimed by the customer: NCAT consumer claim
• Breach of contract resulting in a liquidated debt owed to you: Local Court

If your customer has lodged an NCAT consumer claim against you and still owes part of the price, NCAT can order the claimant to pay you within that claim (s 79O).

Claim limits and fees

For a debt claim, the Local Court has two divisions:

• Small Claims Division: claims up to $20,000
• General Division: claims over $20,000 up to $100,000

Above $100,000, the claim goes to the District Court (up to $750,000).

Filing fees change each financial year; check the current fee on the Local Court’s website before you file. If you win, the court may order the other party to pay your costs, which can include the filing fee, but this is at the court’s discretion.

Fee waivers: If paying the fee would cause you hardship, ask the court registry whether a fee waiver or postponement is available to you before you file.

Step 1: Send a letter of demand first

The usual first step is a letter of demand with a clear deadline. It often gets the money paid without any claim.

A letter of demand:

• States the amount owed and the reason
• Provides a clear deadline for payment (typically 7 to 14 days)
• Warns that you will start a claim in the Local Court if payment is not received

Keep proof that you sent the letter — registered post receipt, email confirmation, or a statutory declaration if delivered in person. It becomes part of your evidence. Claim Done drafts a letter of demand for $49: start a Letter of Demand.

Step 2: Gather your evidence

Court decisions are based on evidence. Before you file, collect everything that proves:

1. The debt exists: invoices, contracts, purchase orders, signed agreements, loan agreements
2. The amount owed: itemised invoices, bank statements showing payments made or missed
3. You tried to recover the money: letter of demand, emails, text messages, payment reminders
4. The other party received the goods or services: delivery receipts, signed acceptance forms, emails confirming receipt

Organise your evidence chronologically and label each document clearly. Clear, well-organised evidence makes your claim easier to prove.

Step 3: Prepare your statement of claim

A Local Court claim is started with a statement of claim.

You will need to provide:

• Your details: full name, address, contact number, email
• The defendant’s details: full name, address (this must be accurate — the statement of claim has to be served on them)
• The amount claimed: the exact figure you are owed
• A clear statement of your claim: what happened, why the money is owed, what agreement supports your claim
• The division: Small Claims Division up to $20,000, General Division over $20,000 up to $100,000

Be specific. Explain the transaction, the agreement, and why payment is overdue.

Tip: If the defendant is a company, include the full registered company name and ACN. Check the ASIC register to confirm these details.

Step 4: File your statement of claim and pay the fee

You can file a statement of claim online through the NSW Online Registry, which explains the steps and what you need.

Once filed:

• The claim is given a case number
• The statement of claim must be served on the defendant
• The defendant can respond by paying, admitting the debt, or filing a defence

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

Step 5: The defendant’s options

Once served, the defendant can:

• Admit the debt: agree to pay, so the claim can be resolved without a hearing
• Dispute the debt: file a defence explaining why they do not owe the money
• Do nothing: if no defence is filed, you can apply for default judgment

If the defendant disputes the claim, a 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 where both parties present their evidence.

Step 6: Prepare for the pre-trial review and 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. Preparation still matters.

Before the hearing:

• Review all your evidence
• Prepare a short opening statement (2-3 minutes) summarising your claim
• 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
• Arrive 15 minutes early

At the hearing:

• Dress appropriately (business casual is fine)
• Speak clearly and stick to the facts
• Do not interrupt the other party
• Answer questions directly

The person hearing the case will ask questions, review the evidence, and may ask you to clarify certain points.

Step 7: The court gives judgment

After the hearing, the court will make a decision. This may happen:

• On the day: for simple claims with clear evidence
• At a later date: for more complex matters

If the court finds in your favour, the judgment will typically require the defendant to:

• Pay the amount owed
• Pay any interest and costs the court allows, which may include your filing fee

A judgment is legally binding. If the defendant does not comply, you can enforce it through the Local Court, including with the help of the New South Wales Sheriff’s Office.

What if the defendant does not pay after judgment?

A judgment does not enforce itself. If the defendant ignores it, you will need to take enforcement action, which may include:

• Writ of execution: the Sheriff seizes and sells the defendant’s property
• Garnishee order: money is taken directly from the defendant’s bank account or wages
• Examination notice: the defendant is required to complete a statement of their financial position (if that is not enough, the court can order them to attend for examination)

These enforcement steps involve additional fees and processes. In some cases, if the defendant has no assets, enforcement may not be practical.

Final checklist before you file

Before filing your statement of claim, confirm:

• The claim is a debt owed to you, not a consumer claim for NCAT
• You know which division fits: up to $20,000 Small Claims, over $20,000 up to $100,000 General
• You sent a letter of demand and kept proof
• You have all supporting evidence organised and labelled
• The defendant’s details are accurate
• You have checked the current filing fee

How Claim Done helps with your debt claim

Preparing a claim takes time. You need to draft a clear statement of claim, organise your evidence, and complete the forms correctly. Claim Done’s Tribunal Application service drafts a Local Court statement of claim for a New South Wales debt.

Tell us what evidence you have, answer a few questions, and Claim Done drafts a professionally formatted statement of claim — citing the applicable principles and structuring your claim clearly.

What you get:

• A draft Local Court statement of claim tailored to your evidence ($97)

Not ready to file yet? Start with a Letter of Demand for $49. Claim Done does not give legal advice, but it gives you a strong starting point — drafted in about 5 minutes, for a flat fee, with no subscription. You approve every document before you use it.

Start your claim with Claim Done

If someone owes you money in New South Wales and will not pay, the Local Court is usually the place to recover it, after a letter of demand. Claim Done drafts your statement of claim in about 5 minutes — drafted by its Programmatic Algorithms, based on your evidence, for you to check and file. Have Claim Done draft your Local Court statement of claim for $97 today.

Frequently Asked Questions

How long does a Local Court money claim take from start to finish?

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. Complex disputes can take longer.

Can I claim against someone who lives in another state?

A debt claim is not an NCAT matter either way. NCAT’s own pages warn that it may not have power to deal with disputes involving parties who live in another state or territory, and the Local Court’s page says those parties lodge in the Local or District Court instead. Check the Local Court’s guidance on where to file before you start, and note that enforcing a judgment interstate can be more difficult.

What happens if the other party does not respond to my claim?

If the defendant does not file a defence, you can apply for default judgment instead of going to a hearing. You will still need your invoices and proof of service in order.

Do I need a lawyer to represent me in the Local Court?

No. You can represent yourself. Small claims proceedings are less formal and less technical than other court hearings, and the rules of evidence do not apply.

Can the court force someone to pay if they have no money?

The court can give judgment requiring payment, and you can enforce it through the Local Court, including through the Sheriff’s Office. If the defendant has no assets or income, enforcement may not be practical, so recovery depends on the defendant’s financial situation.