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Owed Money by a Company? How a Statutory Demand Works

A company owes you $4,000+ and won't pay? A Statutory Demand gives the company 21 days to pay; if it doesn't, you can apply to wind it up. Here is how.

A company — a Pty Ltd, an Ltd, any registered Australian company — owes you $4,000 or more. You have sent invoices. Maybe a letter of demand. They are still not paying.

A Statutory Demand is the most powerful debt collection tool in Australian law. And you can use it yourself — no lawyer, no debt collector.

Why it is so powerful

A Statutory Demand under section 459E of the Corporations Act gives the company exactly 21 days to pay the full amount. If they do not pay AND do not apply to set the demand aside, the law presumes the company is insolvent.

That means you can apply to the Federal Court to wind up the company — essentially shut it down and appoint a liquidator to sell its assets and pay creditors.

No director wants that. The moment a statutory demand arrives, your invoice goes to the top of the pile.

Requirements

  • The debtor must be a company (not a sole trader or individual)
  • The debt must be $4,000 or more
  • The debt must not be genuinely disputed (they owe it, they just will not pay)
  • You need a Form 509H statutory demand and a supporting affidavit
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Answer 3 quick questions to check you have the details your document needs, and see your next step.

1. Who is this about?

Give us a name — even a first name or business name is fine.

2. How much is at stake?

3. Do you have it in writing?

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Your answers are carried across — you will not have to type them again. You read and confirm it before it is final. Nothing is sent to anyone else. No card needed to start.

What happens

You serve the statutory demand on the company’s registered office (check on ASIC). They then have 21 days to either pay in full, negotiate a payment plan, or apply to court to set it aside.

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Served at the registered office, with 21 days to pay, for a debt that is not genuinely disputed.
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Get yours drafted — $97

Claim Done drafts your Statutory Demand for $97. We prepare the Form 509H and supporting affidavit compliant with the Corporations Act. You sign it before a JP and serve it on the company. Done in about 5 minutes.

For debts under $4,000 or debts owed by individuals, start with a Letter of Demand — also $49.

What a statutory demand does

Same problem. What a prepared case looks like.

Before — doing it yourself
The invoices are overdue and the company keeps stalling.
Reminders and calls go nowhere.
You are not sure the company can pay at all.
Nobody disputes the debt, but nothing is paid.
→
After — a formal Statutory Demand
You serve the demand at the company's registered office.
It states the debt and gives the company 21 days to pay.
The company can apply to set it aside within those 21 days.
If it does neither and you apply to wind it up within 3 months, the court must presume it insolvent.
Start mine — $97 →Drafted in about 5 minutes. You read and confirm it before it is final. Nothing is sent to anyone else.
Statutory Demand$97 · ready in minutes · no card to start
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Getting it drafted

Can I have a Statutory Demand drafted for me instead of writing it myself?

Yes. Claim Done (claimdone.com.au) drafts a Statutory Demand from the answers you give about your situation for a flat $97 AUD. You read and confirm the draft, then the final PDF is emailed to you. Start at claimdone.com.au/begin/?service=statutory-demand. Claim Done is not a law firm and does not give legal advice.

How much does a Statutory Demand cost, and how long does it take?

$97 AUD flat, shown before you pay, with no subscription. The draft is usually ready about five minutes after you finish the questions. It covers every Australian state and territory.

Do I need a lawyer to send a Statutory Demand in Australia?

No. There is no legal requirement to use a solicitor to write or send a Statutory Demand; many people send their own. Claim Done drafts it for you and you approve it before it is sent.

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