Letter of Demand Before VCAT: What Victoria Expects Before You Apply

Last updated 21 October 2026 · Reviewed by the Claim Done team · Not legal advice

Short answer: nothing makes a letter of demand compulsory before a VCAT goods and services claim. But VCAT says to expect about 52 weeks from applying to your mediation or hearing, and a clear letter often settles the matter long before that, without a filing fee. Consumer Affairs Victoria recommends approaching the business and then writing to it. In the Magistrates’ Court you must agree to make a genuine attempt to resolve the dispute, and a letter of demand is the usual evidence that you did. Domestic building and retail lease disputes each have a required first step.

First: VCAT or the Magistrates’ Court?

• VCAT goods and services disputes: disputes about products and services bought or sold, heard in VCAT’s Civil Claims List (from February 2026 called the Consumer and Business Disputes practice area). VCAT lists unpaid money and some loans, franchise and leasing agreements among the matters it can help with. VCAT does not publish a maximum claim amount for these disputes; $15,000 is the point above which a higher application fee applies, and below which VCAT generally does not let a lawyer speak for you. Generally you must apply within six years of the dispute.
• Magistrates’ Court of Victoria: civil disputes, including debts, up to $100,000. A debt that does not come from buying or supplying goods or services, such as a private loan between friends, usually is not a VCAT consumer dispute and is generally brought here. Defended claims under $10,000 go straight to arbitration.

If you are not sure which applies, check with the court or tribunal, or a community legal centre, before you apply.

What the official guidance says before you apply

• Consumer Affairs Victoria: approach the business and explain the problem; if that does not resolve it, send a complaint letter or email. Its own dispute service is voluntary and cannot enforce an outcome.
• Magistrates’ Court: “You should try to resolve your dispute before coming to court.” When you start a claim you must agree to act honestly, cooperate and make a genuine attempt to resolve the dispute. The Dispute Settlement Centre of Victoria offers free, voluntary mediation.
• VCAT: its goods and services application page does not require a step before you apply, and VCAT encourages the parties to keep trying to settle right up to the hearing.

When a different first step is required

• Domestic building: you must take the dispute to the government’s free building dispute resolution service (now run by the Building and Plumbing Commission, previously Domestic Building Dispute Resolution Victoria) before applying to VCAT, unless you are seeking an injunction. That service requires you to try to resolve the dispute with the builder yourself first, which is where a clear letter helps.
• Retail leases: if you are seeking damages or other relief, you must attach a certificate from the Small Business Commission, except for a claim solely to recover outstanding rent or for an injunction.
• Residential tenancy: bond, compensation, rent and repair disputes start with Rental Dispute Resolution Victoria, a VCAT service. A rental bond is claimed through that process, not a letter of demand.

What it costs, and how long it takes

VCAT goods and services application fees from 1 July 2026:

• claim of $15,000 or less (or not for a sum of money): $67.40 standard rate, $202.10 corporate rate, no fee for concession card holders;
• claim of more than $15,000, or an unspecified amount: $222.80 standard, $673.50 corporate.

The standard rate covers individuals and businesses with turnover under $300,000. Hearing fees and other costs may also apply, and each side usually pays its own legal costs. You must serve the application on the other party yourself. VCAT says to expect about 52 weeks from applying to your mediation or hearing. Fees change; check before you lodge. More detail: VCAT fees 2026.

What the letter should say

• Your name and contact details, and the full name of the person or business that owes you.
• What the money is for (the goods, the service, the agreement, the loan), with dates.
• The exact amount, and anything already paid.
• A date to pay by (14 days is usual) and how to pay.
• That if it is not paid, you will apply to VCAT or the Magistrates’ Court.
• Copies of your proof.

Keep it calm and factual, and do not threaten anything the law does not allow. See a real sample letter of demand, explained part by part.

If they ignore it

Apply to VCAT or the Magistrates’ Court, with the letter and any reply as part of your evidence. If you win at VCAT and the other party still does not pay, VCAT does not enforce the order for you: an order of $100,000 or less is enforced through the Magistrates’ Court, for a fee. VCAT arranges a professional interpreter at no cost if you need one.

When not to send another letter

• You have already sent a clear written demand with an amount and a deadline: go to the next step.
• The dispute is a domestic building, retail lease or tenancy matter: take the required first step above.
• A time limit is close, the matter is already before VCAT or a court, or there are threats, violence or a complex question of who is legally responsible: get advice from Victoria Legal Aid, a community legal centre or a lawyer.

Have it drafted for you

You can write the letter yourself. Or Claim Done drafts it from your answers under Victorian law, names the right forum, checks it, and emails it to the other party after you approve it. If they still do not pay, Claim Done can draft your VCAT application from the same answers.

Letter of Demand: $49. VCAT application: $97. Nothing is sent until you approve it.

Start my letter of demand →

How your letter is drafted and checked: how Claim Done checks your document. Other states: New South Wales, Queensland, and the national guide.

Questions

Do I have to send a letter of demand before VCAT?
No, not for a goods and services dispute. But VCAT says to expect about 52 weeks to a mediation or hearing, Consumer Affairs Victoria recommends writing to the business first, and a letter often settles the matter sooner. Domestic building and retail lease disputes have required first steps.

Is there a VCAT limit for goods and services claims?
VCAT does not publish a maximum claim amount for goods and services disputes. Claims over $15,000 pay a higher fee, and below $15,000 VCAT generally does not let a lawyer speak for you.

Where does a private loan go in Victoria?
A debt that does not come from buying or supplying goods or services, such as a loan between friends, is generally brought in the Magistrates’ Court, which hears claims up to $100,000. Check with the court or get advice if you are unsure.

How long should I give them to pay?
Fourteen days is usual. If nothing happens by the date in your letter, apply.

Is Claim Done a law firm?
No. Claim Done drafts documents from your answers. It does not give legal advice and does not guarantee that you will be paid.

Sources

Checked against the official pages on 21 October 2026. Fees and limits change; check the tribunal or court before you apply.

• VCAT: apply for a goods and services dispute (fees, waiting time, who can speak for you)
• VCAT: new structure from 2 February 2026
• VCAT: enforce a VCAT order
• VCAT: support services and interpreters
• Magistrates’ Court of Victoria: starting a civil matter
• Consumer Affairs Victoria: resolve your problem
• Dispute Settlement Centre of Victoria: mediation
• VCAT: domestic building disputes
• Building and Plumbing Commission: dispute resolution
• VCAT: retail and commercial leases
• Rental Dispute Resolution Victoria