You are owed money. The other party is not responding. You want your money back without wasting time or paying unnecessary fees.
Should you send a letter of demand before filing a tribunal application, or go straight to the tribunal?
Send the letter of demand first in almost every case. It costs less, resolves faster, and is expected by most Australian tribunals before they will accept your application.
Why tribunals expect a letter of demand first
Australian civil and administrative tribunals operate on the principle that parties should attempt to resolve disputes before involving the tribunal. When you file a tribunal application, you will be asked whether you attempted to resolve the dispute directly. If you answer no, the tribunal may:
- Adjourn the hearing and order you to send a demand first
- Dismiss your application without prejudice
- Award reduced or no costs in your favour, even if you win
Tribunals across all states and territories expect pre-action communication. A letter of demand is the simplest way to satisfy this requirement.
The standard escalation sequence
Most debt recovery and dispute cases follow this path:
- Letter of demand — formal written demand citing the debt, legal basis, and deadline (typically 7-14 days)
- Final demand — shorter deadline, explicit warning that tribunal action will follow
- Tribunal application — formal filing with the relevant state or territory tribunal
- Hearing — the tribunal makes a binding decision
Each step increases cost, time, and formality. The goal is to resolve at the earliest stage.
Step 1: Letter of demand
Cost: flat fee with Claim Done Time: Draft in about five minutes; sent once you approve it
A letter of demand is a formal written notice that states the amount owed, cites the applicable law, sets a clear deadline, and warns of tribunal action if the debt is not paid.
The letter does not need to be sent by a lawyer or by registered post. It needs to be clear, accurate, and delivered.
Claim Done’s Programmatic Algorithms draft a letter of demand based on the evidence you describe, cite the applicable law, and send it by email once you review and approve it.
Step 2: Final demand
Cost: flat fee with Claim Done Time: Draft in about five minutes; sent once you approve it Purpose: Reinforces seriousness, provides one last opportunity to settle
If the first letter does not result in payment, a final demand refers to the previous letter, restates the amount owed, sets a shorter deadline (typically 7 days), and explicitly states that tribunal proceedings will be filed if payment is not received.
This step is optional, but it often prompts payment from debtors who ignored the first letter.
Step 3: Tribunal application
Cost: $50-$350 filing fee (varies by state and claim amount) Time: depends on the tribunal’s waiting times Outcome: Binding tribunal order, enforceable through the court system
If the letter of demand and final demand do not result in payment, file a tribunal application.
Tribunal applications require a completed application form, a filing fee, supporting evidence, and proof that you attempted to resolve the dispute.
Claim Done prepares tribunal applications for all Australian states and territories: your application (for a New South Wales debt, a Local Court statement of claim) and a witness statement.
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When you can skip the letter of demand
There are situations where sending a letter of demand first is unnecessary or counterproductive.
1. The debt is already acknowledged in writing
If the debtor has already acknowledged the debt in writing (email, text message, signed payment plan) and refuses to pay, a letter of demand may be redundant. Proceed directly to tribunal.
2. The debtor is evasive or uncontactable
If the debtor has moved, changed contact details, or is deliberately avoiding communication, a letter sent to an old address will not achieve anything. File the tribunal application and serve it through the tribunal’s substituted service process.
3. Urgent injunctive relief is required
If you need an urgent tribunal order to stop ongoing harm, waiting 7-14 days for a letter of demand to expire may not be practical. Tribunals have processes for urgent applications.
4. The claim is time-barred soon
If your claim is approaching the limitation period (typically 6 years for contract and debt claims in most states), do not risk letting the deadline pass. File the tribunal application to preserve your claim, and continue settlement negotiations in parallel.
5. The debtor has a history of ignoring demands
If you have already sent multiple demands and the debtor has never responded, another letter is unlikely to change behaviour. Proceed directly to tribunal.
Cost comparison: letter of demand vs tribunal application
The letter of demand is the cheapest and fastest option. Even if it does not result in immediate payment, it satisfies the tribunal’s pre-action requirement and strengthens your case.
What tribunals look for in pre-action communication
When you file a tribunal application, you will be asked to provide evidence of your attempts to resolve the dispute. Tribunals assess:
- Clarity — was the demand clear about the amount owed and the reason?
- Reasonable deadline — did you give the debtor a reasonable opportunity to respond?
- Good faith — did you genuinely attempt to resolve the matter?
A professionally drafted letter of demand that cites the applicable law, sets a clear deadline, and is delivered via email and post addresses each of these points.
How Claim Done helps
Claim Done generates both letters of demand and tribunal applications, so you can follow the escalation sequence without hiring a lawyer.
For letters of demand
- Complete a 5-minute intake form about your dispute
- Tell us what evidence you have (invoices, contracts, photos, emails)
- Our Programmatic Algorithms draft a letter citing the applicable Australian law
- The letter is sent by email once you review and approve it
No subscription. Done in about 5 minutes.
For tribunal applications
- Complete a detailed intake form about your claim
- Tell us about all your supporting evidence
- Our Programmatic Algorithms draft your application and a witness statement
- You review, download, and file with the tribunal
All states. Prepared in about 5 minutes.
Both services are available Australia-wide. Claim Done does not provide legal advice—it generates legal-style documents based on the information you give us.
Final recommendation
Send a letter of demand first unless:
- The debt is already acknowledged in writing and the debtor refuses to pay
- The debtor is uncontactable or evasive
- You need urgent injunctive relief
- Your claim is approaching the limitation period
- The debtor has a history of ignoring demands
In all other cases, the letter of demand is the fastest, cheapest, and most effective first step. It resolves many disputes without tribunal involvement, satisfies the tribunal’s pre-action requirement, and costs a fraction of a tribunal filing fee.
If the letter does not work, escalate to a final demand, then to a tribunal application. Each step is documented, each step strengthens your case, and each step keeps you in control.
Start your letter of demand today
Claim Done drafts your letter of demand in about 5 minutes, cites the applicable law, and sends it by email once you approve it. If the debtor does not pay, we can prepare your tribunal application next. No subscription. Flat fee. Australia-wide.
Generate your letter of demand now.
Frequently Asked Questions
Do I legally have to send a letter of demand before filing a tribunal application?
Most Australian tribunals do not have a strict legal requirement, but they strongly expect you to attempt resolution first. If you file without sending a demand, the tribunal may adjourn your case and order you to send one, or they may reduce the costs awarded in your favour even if you win.
How long should I wait after sending a letter of demand before filing a tribunal application?
Give the debtor the full deadline stated in your letter (typically 7-14 days). If they do not respond or refuse to pay, you can file immediately after the deadline expires. Waiting longer is optional but not required.
Can I send a letter of demand and file a tribunal application at the same time?
Technically yes, but tribunals prefer sequential escalation. If you file before the demand deadline expires, the tribunal may view it as bad faith and adjourn the hearing. Send the demand first, wait for the deadline, then file if necessary.
What if the debtor responds to my letter of demand but disputes the amount?
If the debtor genuinely disputes the debt with a reasonable explanation, tribunals expect you to engage in good faith negotiation before filing. If the dispute is frivolous or the debtor is stalling, you can proceed to tribunal and let the tribunal decide.
Does a letter of demand need to be sent by registered post?
No. Email is sufficient in most cases. Registered post provides proof of delivery, which is useful if the debtor later claims they never received it, but it is not a legal requirement. Claim Done sends letters by email.
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