How Much Does a Letter of Demand Cost in Australia? | Claim Done
How Much Does a Letter of Demand Cost in Australia?
The cost of a letter of demand in Australia depends on how you get it. Options range from free (DIY) to $800+ (solicitor). Here is a complete breakdown — and why the cheapest option is not always the best one.
Cost breakdown by option
| Option | Cost | What you get | Risks |
|---|---|---|---|
| Claim Done | $97 | AI-generated letter, correct legislation cited, delivered automatically | Not legal advice; AI-generated |
| Solicitor (junior) | $350–$500 | Solicitor-drafted, reviewed | Slow (1–3 days); expensive for small claims |
| Solicitor (senior / firm) | $600–$800+ | Senior practitioner, full review | Often overkill for claims under $30,000 |
| LawPath template | $79–$99 | Template — you fill in and send yourself | Generic; you must determine the legal basis |
| Free online template | $0 | Basic template | Often incorrect legislation, no tailoring, no delivery |
Does the cost matter?
For small claims (under $5,000), an $800 solicitor letter of demand makes no economic sense — the legal cost represents 16% of the amount you are trying to recover. For a $30,000 claim, the economics are better but a properly drafted AI-generated letter achieves the same outcome at a fraction of the cost.
For claims over $50,000 with legal complexity — multiple parties, contested facts, potential counterclaims — a solicitor is worth the investment. For routine debt recovery, consumer disputes, and tenancy matters, Claim Done produces a document of equivalent quality.
What does a letter of demand need to include?
There is no prescribed form for a letter of demand under Australian law. But a letter of demand that will actually achieve results needs to include:
- The legal basis for the claim (which legislation or contract term was breached)
- The exact amount owed (with GST breakdown if applicable)
- A specific payment deadline (14 days is standard)
- The consequences of non-compliance (tribunal claim, credit default, statutory demand)
- Payment instructions
- Correct identification of both parties
A free template that omits the legal basis or the correct legislation for your state will be taken less seriously by the recipient and their advisers.
Does a letter of demand from a solicitor carry more weight?
In practice — marginally, for sophisticated commercial debtors. For individual debtors and most consumer disputes, a well-drafted letter on headed paper citing the correct legislation is treated the same regardless of who prepared it. The legal obligation to pay does not depend on who signed the letter.
What about tribunal filing costs on top?
If the letter of demand is ignored, tribunal filing fees are separate — paid directly to the tribunal when you file your application. These range from $34 (NCAT, small claim) to $430 (VCAT, large claim). Claim Done prepares tribunal applications for $197 in addition to the letter of demand.