How to Recover an Unpaid Invoice in Australia | Claim Done
How to Recover an Unpaid Invoice in Australia
Someone owes you money and won’t pay. Here is the exact process for recovering an unpaid invoice in Australia — from the first formal step to tribunal proceedings.
Step 1: Send a letter of demand
A letter of demand is the required first step before filing a tribunal claim. It formally puts the debtor on notice, states the exact amount owed, and gives them 14 days to pay. Most debtors pay at this stage.
The letter must cite the relevant legal obligation — the contract terms, the Australian Consumer Law, or applicable state legislation. Claim Done generates a professional letter of demand for $97 and delivers it automatically.
Step 2: File a tribunal application (if ignored)
If the 14-day deadline passes without payment, file a claim with the relevant state tribunal:
- NSW: NCAT — Consumer and Commercial Division (up to $30,000)
- VIC: VCAT — Civil Claims List (up to $100,000)
- QLD: QCAT — Minor Civil Disputes (up to $25,000)
- WA: SAT
- SA: SACAT (up to $12,000)
- ACT: ACAT (up to $25,000)
Tribunal filing fees are paid directly to the tribunal and range from $30 to $400 depending on the state and claim amount. Claim Done prepares the full application for $197.
Step 3: Statutory demand (for company debtors)
If the debtor is a registered company (Pty Ltd, Ltd) and the debt is $4,000 or more, consider a statutory demand under s459E of the Corporations Act instead of (or in addition to) a tribunal application.
A statutory demand gives the company 21 days to pay or face wind-up proceedings. This is a far more powerful lever than a tribunal application for company debts. Claim Done prepares statutory demands for $197.
How long does debt recovery take?
- Letter of demand: 14-day deadline. Most debtors pay within this window.
- Statutory demand: 21 days to comply. If ignored, winding-up application can proceed.
- Tribunal hearing: Typically 4–12 weeks from filing to hearing date. Orders are usually made within 2–4 weeks after the hearing.
What if you win at tribunal but they still won’t pay?
A tribunal order is enforceable as a court judgment. If the debtor ignores it, you can enforce it through the local sheriff’s office (seizure of assets), garnishee orders (direct deduction from bank accounts), or by registering the judgment on the debtor’s credit file.
Start your debt recovery — letter of demand for $97
Step 2: Escalate to a tribunal or court if ignored
If the letter of demand is ignored or rejected, file a claim in the appropriate tribunal. Most unpaid invoice disputes under $100,000 are heard in state tribunals (QCAT, VCAT, NCAT etc.) within 4–12 weeks of filing. Filing fees are $30–$350 depending on the claim amount.
Step 3: Enforce the order
Once you have a tribunal order, the debtor must pay. If they refuse, enforcement options include:
- Garnishment order — the tribunal can order the debtor's bank to pay you directly
- Wage garnishment — for individual debtors, a portion of their wages can be redirected to you
- Property charge — a charge can be registered over real property the debtor owns
For company debtors — use a Statutory Demand
If the debtor is a registered company and owes $4,000 or more, consider a statutory demand under s459E of the Corporations Act. This is the most powerful debt recovery tool against companies — failure to comply within 21 days creates a presumption of insolvency and allows you to file for winding up proceedings.
Time limits for recovering unpaid invoices
| State | Limitation period (contract) |
|---|---|
| New South Wales | 6 years |
| Victoria | 6 years |
| Queensland | 6 years |
| Western Australia | 6 years |
| South Australia | 6 years |
| Tasmania | 6 years |
| ACT | 6 years |
| Northern Territory | 3 years |
Do not delay — time limits run from the date the debt was due and payable.
Recover your unpaid invoice today — letter of demand from $97