Last updated 2 October 2026 · Reviewed by the Claim Done team · Not legal advice

How to Write a Letter of Demand in Australia

A letter of demand is a formal written notice requiring someone to pay money or take a specific action — within a set timeframe, failing which you will commence legal proceedings. A clear letter sometimes settles a dispute without going further, and it sets up the next step if it does not.

What must a letter of demand include?

1. Your full name and contact details
2. The recipient’s full name and address — use the registered address for companies (check ASIC)
3. The date the letter is written
4. The exact amount owed — specify how the amount was calculated
5. The legal basis — which law, contract term, or obligation was breached
6. A specific deadline — state the actual date, e.g. “on or before 18 April 2026” (14 days is standard)
7. What will happen if they do not comply — tribunal application, statutory demand, or court proceedings
8. Your signature

The legal basis — which law applies?

• Unpaid invoices / breach of contract: cite the contract terms; for consumer transactions also cite the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010)
• Property damage: negligence at common law — duty of care, breach, and loss
• Bond not returned: the relevant state residential tenancies act (e.g. Residential Tenancies Act 2010 New South Wales)
• Defective goods: ACL s54 — statutory guarantee of acceptable quality
• Unpaid wages: Fair Work Act 2009 (Cth)

Setting the deadline

14 days from the date of delivery is standard in Australia and is regarded as reasonable by most tribunals. Always state the deadline as a specific calendar date rather than “within 14 days” — it removes ambiguity and looks more professional.

How to deliver a letter of demand

1. Email — fastest; request read receipt; keep the sent copy
2. Registered post — creates a legal presumption of receipt under the Acts Interpretation Act
3. Both — recommended for debts over $1,000 or where you expect resistance

Tone and language

Keep the letter factual, firm, and professional. Avoid emotional language. Do not threaten criminal action — saying “I will have you charged” when seeking civil recovery can constitute extortion. State only what you will actually do: file a tribunal application, issue a statutory demand, or commence court proceedings.

Common mistakes

• Vague demands that do not specify the exact amount or legal basis
• Unreasonably short deadlines (24–48 hours on large debts)
• Not keeping proof of delivery
• Threatening consequences you will not follow through on
• Sending informal demands (text, WhatsApp) that do not look like formal legal documents

What happens after you send it?

• They pay — in full or in part
• They negotiate — document any agreement in writing
• They ignore it — file a claim with the tribunal or court for your state (for example QCAT, VCAT, ACAT or NTCAT; in New South Wales, NCAT for a consumer claim and the Local Court for a business or private debt; in Western Australia, South Australia and Tasmania, the Magistrates Court), or a statutory demand if the debtor is a company

Get it done

Claim Done generates a professionally formatted letter of demand from your facts, citing the correct legislation, and emails it to the other party once you approve it, drafted in about 5 minutes. Start now.