Letter of Demand Australia: Cost and Your 3 Options

A letter of demand in Australia formally asks someone to pay what
they owe or fix a problem by a deadline, usually 7 to 14 days. You have three real
options: write it yourself from a free government template, have it drafted and sent
for you for a flat $49, or engage a commercial law firm at a quoted
hourly rate. This page sets out what each option costs, what you get, and the honest
trade-offs, so you can pick the one that fits your situation.

Your three options, compared by type

1. Free government template (do it yourself)

Government and consumer bodies publish free letter-of-demand templates and
guidance, such as business.gov.au and the state small business commissioners and
fair trading offices. You fill in the template, print or email it, and send it
yourself.

• Cost: free.
• Good for: a simple, undisputed debt where you are comfortable
  writing formal letters and the amount is small enough that your own time is the
  main cost.
• Trade-offs: a generic template does not apply your state’s law
  or name the right tribunal, regulator or court if the debt is not paid. You decide
  the wording, the deadline and the tone yourself, and you arrange and prove delivery
  yourself. There is no draft to review against your facts.

2. Online drafting service — Claim Done ($49 flat)

You answer a few plain-English questions about what happened. Claim Done drafts a
complete letter of demand from your answers, applies your state’s law, and names the
tribunal, regulator or court that comes next if the other side does not respond. You
read the draft and approve it before anything is sent.

• Cost: a flat $49, shown before you pay. No
  subscription. Email delivery is free; registered post, signed for on delivery, is
  $29 extra.
• Exact deliverable: a finished, ready-to-send letter of demand
  addressed to the other party, drafted from your facts, with a clear deadline and
  the correct legal basis for your state.
• Turnaround: the draft is usually ready about five minutes after
  you finish the questions.
• What you supply: who owes you (or who is at fault), how much and
  what for, the key dates, and any supporting detail such as an invoice number or
  agreement. You do not need to know the law.
• What happens after you approve it: Claim Done emails the letter
  to the other party for you and sends you a copy and the delivery confirmation. If you
  chose registered post ($29 extra), it is posted and tracked. The key dates are listed
  on your dashboard.
• Good for: most everyday disputes where you want a correct,
  professional letter without paying lawyer rates, and you want it sent and recorded
  for you.

3. Commercial lawyer (quote-based)

A commercial law firm can write and send a letter of demand on its letterhead and
advise you on the dispute.

• Cost: quoted by the firm, typically charged at an hourly rate.
  Costs vary widely between firms and matters, so ask for a written quote before you
  proceed.
• Good for: large sums, genuinely contested or complex matters, or
  where you need tailored legal advice and a lawyer’s letterhead carries extra weight.
• Trade-offs: the highest cost of the three, and usually the
  slowest to turn around. For a small, straightforward debt the fee can approach or
  exceed the amount in dispute.

Which should you choose?

If the debt is small and simple and you are happy to write and send it yourself, a
free government template costs nothing. If you want a correct, state-specific letter
drafted, reviewed by you and sent on your behalf without lawyer fees, the $49 drafting
service is the middle path. If the matter is large, contested or complex, a commercial
law firm and tailored legal advice is worth the higher cost.

What a letter of demand is — and is not

A letter of demand is a formal written request to pay or to remedy a problem by a
deadline. It is often the required or expected step before escalating to a tribunal or
court, and it creates a dated record that you asked. It does not, by itself, force
payment, and sending one is not starting court proceedings.

Where Claim Done fits

Claim Done is a document drafting service, not a law firm, and does not give legal
advice. It drafts your letter of demand from your answers for a flat $49, you approve
it before it is sent, and it does not file anything in a court or tribunal for you.
Start your
letter of demand.

Frequently asked questions