How to Write a Letter of Demand in Australia | Claim Done
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 well-drafted letter resolves most disputes without any tribunal involvement. A poorly written one gets ignored.
What must a letter of demand include?
- Your full name and contact details
- The recipient’s full name and address — use the registered address for companies (check ASIC)
- The date the letter is written
- The exact amount owed — specify how the amount was calculated
- The legal basis — which law, contract term, or obligation was breached
- A specific deadline — state the actual date, e.g. “on or before 18 April 2026” (14 days is standard)
- What will happen if they do not comply — tribunal application, statutory demand, or court proceedings
- 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 NSW)
- 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
- Email — fastest; request read receipt; keep the sent copy
- Registered post — creates a legal presumption of receipt under the Acts Interpretation Act
- 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 — most common outcome; a formal letter is taken far more seriously than an email
- They negotiate — document any agreement in writing
- They ignore it — file a tribunal application (QCAT, VCAT, NCAT, SAT, SACAT, ACAT) or a statutory demand if the debtor is a company
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