How to Write a Statutory Demand for a Company That Owes You Money

If a registered Australian company owes you $4,000 or more and refuses to pay, a statutory demand gives you serious leverage. Serve one correctly and the company has 21 days to pay in full, apply to set it aside, or face presumed insolvency and potential wind-up proceedings.

This guide explains how to write a statutory demand in Australia, step by step.

What is a statutory demand?

A statutory demand is a formal notice issued under the Corporations Act 2001. It demands payment of a debt and warns the company that failure to comply within 21 days creates a presumption of insolvency, which you can then use to apply to wind up the company.

It is not a court document. You do not need a judgment. You simply need:

• A debt of at least $4,000
• A company debtor (registered Pty Ltd or Ltd)
• A liquidated sum (a specific, ascertained amount)
• An undisputed debt

If those conditions are met, you can serve a statutory demand without going to court first.

Step 1: Confirm the debt meets the requirements

Before drafting anything, verify:

The debtor is a registered company Check the Australian Securities and Investments Commission (ASIC) register at abr.business.gov.au. You need the full legal name and ACN or ABN. A sole trader or partnership cannot be served with a statutory demand.

The debt is at least $4,000 This is the statutory minimum. If the debt is less, send a letter of demand first and pursue the matter in a tribunal or court.

The debt is liquidated The amount must be certain. An unpaid invoice, loan, or judgment debt qualifies. Estimated damages or unliquidated claims do not.

The debt is not genuinely disputed If the company has raised a legitimate dispute about whether the debt is owed or the amount, a statutory demand is inappropriate and will likely be set aside.

Step 2: Prepare Form 509H

The statutory demand must be in the prescribed form: Form 509H under the Corporations Regulations 2001.

The form includes:

• Your details (the creditor)
• The company’s details (full legal name and ACN)
• The debt amount and description
• A demand for payment within 21 days
• A warning about the consequences of non-compliance
• Your signature and date

You can download a blank Form 509H from the ASIC website or the Federal Court website. Use the exact prescribed form.

What to include in the debt description Be specific:

• Invoice number and date
• Description of goods or services supplied
• Date the debt became due
• Any interest accrued (if your contract or the law allows it)

Example: “The sum of $12,450.00 being the unpaid balance of Invoice No. 2024-087 dated 15 March 2024 for construction services rendered at 22 Smith Street, Melbourne VIC 3000, due and payable 30 days from invoice date.”

If you are claiming interest, state the basis and calculate it clearly.

Step 3: Prepare the supporting affidavit

A statutory demand must be accompanied by an affidavit verifying the debt. This is sworn before a Justice of the Peace, solicitor, or other authorised person.

The affidavit must state:

• Your full name and address
• That you are the creditor (or authorised to act on behalf of the creditor)
• The facts establishing the debt
• That you believe there is no genuine dispute about the debt
• That the debt is due and payable

The affidavit is not filed anywhere at this stage. You serve it together with the statutory demand.

Sample affidavit structure

1. I am [your name], of [your address], the creditor named in the attached statutory demand.
2. The debt of $[amount] is owed by [company name] ACN [number].
3. The debt arose from [describe the transaction or invoice].
4. The debt became due and payable on [date].
5. I have demanded payment and the company has failed to pay.
6. I believe there is no genuine dispute about the existence or amount of the debt.
7. I make this affidavit in support of the statutory demand dated [date].

Sign it in the presence of an authorised witness and have them complete the jurat.

Step 4: Serve the statutory demand correctly

Service must comply with the Corporations Act and Regulations. Incorrect service can invalidate the entire demand.

Methods of service You can serve a statutory demand by:

• Personal service on the company’s registered office (hand it to someone who appears to be in charge)
• Leaving it at the registered office during business hours
• Posting it to the registered office by prepaid post

The registered office address is on the ASIC register. Do not use a postal address, email, or any other address unless it is the registered office.

Do not serve by email A statutory demand cannot be served by email, even if the company has previously accepted documents that way. The Corporations Act prescribes physical service only.

Proof of service Prepare an affidavit of service or a statutory declaration confirming:

• The date, time, and method of service
• The address where you served it
• Who you handed it to (if personal service)

You will need this if the company fails to comply and you proceed to wind-up proceedings.

Step 5: Wait 21 days

Once served, the company has 21 days to:

1. Pay the debt in full
2. Apply to the court to set aside the demand
3. Do nothing

If the company does nothing, the presumption of insolvency arises. You can then apply to the court to wind up the company.

Can the company negotiate? The company can contact you to negotiate, but the statutory demand itself does not allow for payment plans or partial payment. If you agree to a settlement, document any settlement with a deed and consider withdrawing the demand formally.

What if the company applies to set aside? The company has 21 days from service to apply to the court. Common grounds include:

• Genuine dispute about the debt
• Offsetting claim
• Defect in the demand that causes substantial injustice
• Other reason the court considers appropriate

If the company applies, the matter will be heard in the Federal Court or Supreme Court. You will need to respond with evidence supporting the debt. If the court finds a genuine dispute, the demand will be set aside.

Step 6: Decide your next step

If the 21 days pass with no payment and no application to set aside, you have three options:

Option 1: Do nothing and use the presumption elsewhere The presumption of insolvency can be used in other proceedings.

Option 2: Apply to wind up the company File an application in the Federal Court or Supreme Court. This is a serious step and typically requires legal representation. The court may appoint a liquidator if satisfied the company is insolvent.

Option 3: Negotiate a settlement The company may now be willing to negotiate seriously. If you reach an agreement, document it properly and consider withdrawing the wind-up threat.

Common mistakes to avoid

Using a statutory demand for a disputed debt If the company has raised a legitimate dispute, the demand will likely be set aside and you may be ordered to pay the company’s legal costs.

Serving it on the wrong address Always use the registered office address from the ASIC register. Service to a postal address, email, or director’s home address is invalid.

Not preparing the affidavit The affidavit is mandatory. Without it, the demand is defective.

Claiming unliquidated damages Estimated or unascertained amounts do not qualify. The debt must be a specific sum.

Ignoring a genuine offsetting claim If the company has a legitimate cross-claim that exceeds the debt, the demand may be set aside.

How ClaimDone helps

ClaimDone prepares your statutory demand and affidavit in 60 minutes for $197. You complete a 5-minute intake form, upload your evidence, and our Proprietary AI Engine drafts Form 509H and the affidavit template tailored to your debt.

You receive:

• Completed Form 509H with all required details
• Affidavit template ready to swear before a JP or solicitor
• Service instructions specific to your state
• Guidance on what happens next

ClaimDone does not serve the demand for you (you must arrange physical service), and does not provide legal advice. For complex disputes, high-value debts, or if the company applies to set aside, consult a solicitor experienced in corporate insolvency.

Final checklist

Before serving your statutory demand, confirm:

• [ ] The company is registered (checked on ASIC)
• [ ] The debt is at least $4,000
• [ ] The debt is liquidated and undisputed
• [ ] You have completed Form 509H correctly
• [ ] You have prepared the supporting affidavit
• [ ] You will serve it at the registered office address
• [ ] You have a plan for proof of service

A statutory demand is the fastest way to recover a debt from a company that refuses to pay. Follow the steps, serve it correctly, and the company will take you seriously. See how ClaimDone works to get your statutory demand prepared today.

Frequently Asked Questions

Can I serve a statutory demand by email?

No. A statutory demand must be served physically at the company’s registered office under the Corporations Act. Email service is not valid, even if the company has previously accepted documents that way.

What happens if the company ignores the statutory demand?

If the company does not pay or apply to set aside the demand within 21 days, a presumption of insolvency arises. You can then apply to the court to wind up the company, or use the presumption in other legal proceedings.

Can I use a statutory demand for a debt under $4,000?

No. The minimum debt for a statutory demand is $4,000 under the Corporations Act. For smaller debts, use a letter of demand and pursue the matter in a tribunal or court.

What if the company disputes the debt after I serve the demand?

The company has 21 days to apply to the court to set aside the demand. If the court finds a genuine dispute about the debt, the demand will be set aside. Do not use a statutory demand if you know the debt is genuinely disputed.

Do I need a lawyer to prepare a statutory demand?

No. You can prepare Form 509H and the supporting affidavit yourself, or use ClaimDone to generate them for $197. However, if the company applies to set aside the demand or you proceed to wind-up proceedings, you will typically need legal representation.