Letter of Demand Template Australia: The Definitive Guide (and Why a Template Is Not Enough)

You’re looking for a letter of demand template for Australia. Someone owes you money, ignored your invoices, or broke a deal, and you want a document that makes them take you seriously. Good instinct. A clear letter of demand can resolve a dispute without anyone setting foot in a courtroom or tribunal.

This guide covers what an Australian letter of demand should contain, gives you a free template you can use today, and explains the $49 option if you would rather have one drafted for your state and situation.

What a letter of demand actually is

A letter of demand is a formal written notice that states what you are owed, why you are owed it, and what will happen if it isn’t paid by a deadline. It has no special legal form in Australia. The federal government’s business.gov.au describes it as a letter that states how much is owed, what for and when it must be paid, and says it may include a warning that you’ll consider legal action if the debt isn’t paid by a particular date. It is usually the last step before a tribunal or court claim, and it gives the other side a fair chance to pay.

What every Australian letter of demand should include

• Correct parties. The exact legal name of the person or company, including the ABN or ACN if it is a business. business.gov.au suggests finding out who owns the business and sending the letter to the owner, who may not be the person you dealt with.
• The facts. Dates, invoice numbers, contract terms, what was promised and what was delivered.
• The legal basis. Breach of contract, unpaid goods or services, the Australian Consumer Law, or a tenancy or building statute. This is the part templates leave blank.
• The exact amount. Itemised. Include late payment interest only if your contract provides for it.
• A firm deadline. Usually 7, 14 or 21 days.
• The next step. What you will do if it isn’t paid, such as applying to your state’s tribunal or small claims court. Only mention action you are prepared to take.
• Payment instructions so there is no excuse for delay.

Free letter of demand template

Copy this, replace everything in square brackets, and delete anything that doesn’t apply. It is deliberately plain: firm, polite, and limited to steps you can lawfully take.

LETTER OF DEMAND

[Your full name or business name, and ABN if you have one]
[Your address]
[Your email and phone]

[Date]

[Their full name or business name, and ABN or ACN if a business]
[Their address]

Re: Unpaid amount of $[amount] for [goods, services, loan or invoice number]

Dear [name],

On [date], you agreed to [what was agreed, for example “pay $2,400 for landscaping work at 12 Smith Street”]. I [supplied the goods / completed the work / lent you the money] on [date]. A copy of [the contract, quote, invoice or messages] is attached.

The amount of $[amount] was due on [date] and has not been paid, despite my reminders on [dates].

I ask that you pay $[amount] by [date, at least 14 days from today] to [account name, BSB and account number, or other payment method], using the reference [reference].

If you dispute any part of this amount, please tell me in writing by that date, with your reasons.

If the amount is not paid or disputed in writing by [date], I intend to apply to [name of the tribunal or court] to recover it. I would prefer to resolve this without that step.

Yours sincerely,

[Signature]
[Your name]

Attachments: [for example, contract, invoice, reminder emails]

How to use the template

business.gov.au’s own checklist for a letter of demand is a good final check. Before you send:

• Make sure you have already tried friendlier means, such as a phone call or late payment reminders.
• Check that everything in the letter is precisely accurate, and that nothing could be called false or misleading.
• Include a late payment interest rate only if it was in the contract.
• Only mention action you are prepared to take.
• Keep it polite and respectful, and sign and date it.
• Attach copies of the contract, invoice, reminders and relevant emails, and keep the originals and a copy of the signed letter.
• Send it by registered post and ask for signed proof of delivery, which you can keep as evidence. Emailing a copy as well gives you a second dated record.

Where free templates fall short

A template is a fill-in-the-blanks skeleton, including the one above. It doesn’t know whether your dispute is an unpaid invoice in Queensland, a bond dispute in Victoria (Residential Tenancies Act 1997), or a consumer refund in New South Wales (Australian Consumer Law, in the Competition and Consumer Act 2010). A letter that names the law that applies, and the forum you would use, is harder to dismiss.

Some templates also include demands you may not be entitled to make, such as costs or interest your contract doesn’t provide for. Those mistakes can undermine your position later, which is why business.gov.au says to include interest only if it was in the contract and to mention only action you are prepared to take.

DIY template vs Claim Done

How Claim Done works

For Claim Done’s Letter of Demand, you answer plain-English questions about who owes you, how much, and what happened. Our Programmatic Algorithms draft a complete letter of demand that names the correct legislation for your state and dispute type, works out the amount you can demand, sets a deadline and spells out the tribunal or court you would use. You review it, then send it. Total cost: $49. Our services come with guarantees under the Australian Consumer Law.

What to do after you send it

Send it by email and registered post, keep proof of delivery, and diary the deadline. If they pay, you’re done. If they don’t, your letter becomes a key document in a tribunal application, which we can also draft from your answers for $97.

Rather not fill in the template yourself? Get a letter of demand drafted for your exact situation for $49. Done in about 5 minutes. You approve it before it is sent.