How to Apply to NCAT for Unpaid Invoices: Step-by-Step New South Wales Guide

If you’ve sent invoices, followed up repeatedly, and still haven’t been paid, you might expect the NSW Civil and Administrative Tribunal (NCAT) to be the place to go. In most cases it isn’t. If you are the business that is owed money, this is a debt claim for the Local Court of New South Wales, not NCAT: the Small Claims Division hears claims up to $20,000 and the General Division hears claims over $20,000 up to $100,000, and you don’t need a lawyer to start one.

Can You Use NCAT for an Unpaid Invoice?

Usually not. NCAT’s Consumer and Commercial Division hears consumer claims up to $100,000, and under the Fair Trading Act 1987 (NSW) a consumer claim is a claim brought by a consumer about goods or services supplied to them (s 79E, s 79I). A supplier chasing its customer for payment is not bringing a consumer claim.

NCAT only comes into it when:

• Your customer has lodged a consumer claim against you (for example, alleging the work was defective), and the Tribunal can order the claimant to pay you within that claim (s 79O)
• You are the customer, not the supplier, and you have a complaint about goods or services supplied to you

Common unpaid invoice scenarios that go to the Local Court:

• Trade and construction invoices
• Freelance and consulting fees
• Supplier invoices for goods delivered
• Service provider charges
• Contractor and subcontractor payments

One exception: residential building work is its own NCAT case type under the Home Building Act 1989, and NCAT’s home building page lists payment for home building work among the orders it can make. A contractor chasing a homeowner for residential building work can therefore be in NCAT rather than the Local Court. Other contractor and commercial debts go to the Local Court.

If the debt exceeds $100,000, you’ll need to apply to the District Court (up to $750,000) instead.

Local Court of New South Wales: The Basics

The Small Claims Division is designed to be accessible, and proceedings are less formal and less technical than other court cases.

Key features:

• Monetary limit: Small Claims Division up to $20,000; General Division over $20,000 up to $100,000
• Filing fee: Filing fees change each financial year; check the current fee on the Local Court’s website before you file
• Starting a claim: A Statement of Claim, which can be filed through the NSW Online Registry
• Evidence: In the Small Claims Division, the rules of evidence do not apply

Step 1: Send a Letter of Demand First

Before you start a court claim, try to resolve the matter. A letter of demand is the standard first step.

Your letter should:

• State the amount owed clearly
• Reference the invoice number and date
• Specify the work or goods provided
• Give a clear deadline for payment (typically 7–14 days)
• State that you will start a claim in the Local Court if payment is not received

Keep a copy of the letter and proof of delivery (registered post or email with read receipt). It becomes part of your evidence if you need to file. Claim Done drafts a letter of demand for $49: start a Letter of Demand.

Step 2: Gather Your Evidence

Court decisions are based on evidence. You’ll need to prove:

1. You provided the goods or services
2. The invoice is valid and due
3. The debtor has not paid
4. You’ve demanded payment

Documents to prepare:

• Signed contract or written agreement
• Invoice(s) showing the amount owed
• Proof of delivery or completion (delivery dockets, photos, completion certificates)
• Correspondence with the debtor (emails, text messages)
• Your letter of demand and proof it was sent
• Bank statements showing non-payment

Organise everything chronologically. Clear, well-structured evidence is easier for the court to follow.

Step 3: Prepare Your Statement of Claim

A Local Court claim is started with a Statement of Claim.

What to include:

• Your details — your name, address, contact details (or your business details if trading as a company)
• Debtor details — the debtor’s full name and address (for companies, use the registered office address from ASIC)
• Claim amount — the total unpaid amount including any interest you claim
• What you are asking for — typically judgment for the amount owed, plus interest
• Summary of claim — a brief, factual description of what happened

Common mistakes to avoid:

• Incorrect debtor name or address (if the debtor is a company, name the company, not the director personally)
• Vague claim description (be specific about the work done and the amount owed)
• Claiming the wrong amount (your figure must match your invoices, less anything already paid)

Step 4: File and Serve the Statement of Claim

Once your statement of claim is complete:

1. Check the current filing fee on the Local Court’s website; filing fees change each financial year
2. File it through the NSW Online Registry
3. Serve it on the debtor, and keep proof of service

The Local Court’s website explains the accepted ways to serve a statement of claim.

Step 5: If the Debtor Defends: the Pre-Trial Review

The debtor can pay, or file a defence. In the Small Claims Division, a defended claim goes to a pre-trial review first. This is an opportunity to settle before a hearing.

What happens:

• Both parties attend
• A registrar, assessor or judge tries to help the parties reach agreement
• If you settle, the matter can be finalised on agreed terms
• If you don’t settle, the matter is listed for a hearing

Bring all your evidence to the pre-trial review.

Step 6: Prepare for the Hearing

If the matter doesn’t settle, it will proceed to a hearing before the court.

How to prepare:

• Organise your evidence bundle (number each document, prepare an index)
• Prepare a brief written outline (a one-page summary of your claim and the key evidence)
• File and serve your written statements and documents by the dates the court sets at the pre-trial review, and bring your own copy of everything to the hearing
• Be ready to explain your claim clearly (focus on facts, not emotion)

At the hearing:

• You’ll be given an opportunity to present your case
• The debtor will present their defence
• The court may ask questions
• In defended small claims matters, witnesses are generally not called unless the court decides otherwise

Step 7: Receive the Judgment

After the hearing, the court will make a decision. This may be delivered on the day or later in writing.

If you win, the court will give judgment for the amount owed, plus any interest if applicable.

Enforcement options:

• Garnishee order — attach the debtor’s bank account or wages
• Writ for levy of property — seize and sell the debtor’s assets
• Examination notice — require the debtor to complete a statement of their financial position (if that is not enough, the court can order them to attend for examination)

You’ll need to apply separately for enforcement if the debtor doesn’t pay voluntarily. If NCAT made a money order in your favour within a customer’s consumer claim, you register a certified copy of it with the Local Court and enforce it there.

What If the Debtor Disputes the Invoice?

If the debtor genuinely disputes the debt (for example, they claim the work was defective or not completed), the court will hear both sides.

You’ll need to prove:

• The work was completed to the agreed standard
• Any defects were minor or have been remedied
• The invoice amount is accurate

If your customer instead lodges an NCAT consumer claim against you over the same work, NCAT can order the claimant to pay you within that claim if it decides the claim wholly or partly in your favour (s 79O). If the debtor simply ignores your statement of claim and files no defence, you may be able to ask the court for default judgment.

How Claim Done Helps You Recover Unpaid Invoices

Claim Done’s Tribunal Application service drafts a Local Court statement of claim for a New South Wales debt, based on the evidence you describe.

What you get:

• A Local Court statement of claim with the required details
• A witness statement outline for you to complete in your own words

The package is prepared in about 5 minutes for a flat fee of $97. No subscription, no lawyer fees. You review and approve it, then file it yourself.

Key Takeaways

• A business chasing an unpaid invoice has a debt claim for the Local Court, not NCAT
• Small Claims Division up to $20,000; General Division over $20,000 up to $100,000
• Send a letter of demand with a clear deadline first
• Filing fees change each financial year, so check the current fee before you file
• Strong evidence is essential — contracts, invoices, proof of delivery, correspondence

Ready to Recover Your Unpaid Invoice?

Start with a Letter of Demand for $49. If the debtor still doesn’t pay, Claim Done drafts your Local Court statement of claim in about 5 minutes. Tell us what evidence you have, answer a few questions, and receive a draft statement of claim to review. Start your tribunal application now for a flat fee of $97.

Frequently Asked Questions

How much does it cost to file a claim for an unpaid invoice?

If you are the business owed money, the claim goes to the Local Court, not NCAT. Filing fees change each financial year; check the current fee on the Local Court’s website before you file. Claim Done’s Letter of Demand costs $49 and its Tribunal Application, which drafts a Local Court statement of claim, costs $97.

Do I need a lawyer to recover an unpaid invoice in New South Wales?

Not necessarily. For claims up to $20,000, the Small Claims Division is less formal and the rules of evidence do not apply. Get legal advice if the debtor raises a complicated defence.

What happens if the debtor doesn't respond to my statement of claim?

If the debtor doesn’t file a defence, you may be able to ask the court for judgment without a hearing (default judgment). You’ll need to show the statement of claim was properly served.

How long does a Local Court unpaid invoice claim take?

It depends on whether the debtor pays, defends or ignores the claim, and on the court’s workload. In the Small Claims Division, a defended claim goes to a pre-trial review first, and if it doesn’t settle there, it is listed for a hearing.

Can I claim interest on an unpaid invoice?

Yes. If your contract sets an interest rate, claim at that rate; otherwise the court can allow interest under the Civil Procedure Act 2005 (NSW) at the prescribed rate from when the debt was due.