What is the minimum debt for a statutory demand?

The minimum is $4,000 under the Corporations Act 2001 (s459E). The debt must be a liquidated sum owed by a registered company — it cannot be used against individuals or sole traders.

How long does a company have to respond to a statutory demand?

The company has 21 days from the date of service to either pay the debt in full or apply to a court to set aside the demand. Ignoring it is deemed an admission of insolvency.

What happens if a company ignores a statutory demand?

Failure to comply within 21 days creates a presumption of insolvency under the Corporations Act. The creditor may then apply to a court for the company to be wound up.

Can I use a statutory demand to recover money from a sole trader?

No. A statutory demand can only be issued against a company (Pty Ltd, Ltd). For sole traders and individuals, use a letter of demand or file in the relevant state tribunal.

Do I need an affidavit with a statutory demand?

Yes. Form 509H must be accompanied by a supporting affidavit verifying the debt, sworn before a Justice of the Peace or solicitor. Claim Done's statutory demand package includes guidance on preparing the affidavit.

Company Debt Recovery

Statutory Demand — The Most Powerful Debt Recovery Tool Against a Company.

If a Pty Ltd company owes you $4,000 or more, a Corporations Act statutory demand triggers a 21-day window — comply, dispute, or face winding-up proceedings. Our AI prepares the correct form and instructions. $79.

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When to Use a Statutory Demand

A registered company (Pty Ltd) owes you $4,000 or more
The debt is due and payable, and is not genuinely disputed
Previous correspondence has been ignored by the company
You want to escalate pressure significantly beyond a standard letter of demand
You need a mechanism that can lead to winding-up proceedings if not satisfied

Statutory Demand

$79

Flat fee · All states · Done for you

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All 8 Australian states
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How This Service Works

Everything you need to know before you start.

Preparation Done for you by AI

Delivery You serve it on the company (we provide service instructions)

⏱ Turnaround Under 60 minutes

Revisions 2 free amendments included

Filing Fees Not applicable

Best For Recovering $4,000+ from a company

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How It Works

From Evidence to Document in 4 Steps

Provide the Company Details

Give us the company's registered name, ACN, and registered office address. We verify the structure. The debt must be owed by the company entity, not an individual director.

Detail the Debt

Tell us the amount owed, the nature of the debt (unpaid invoices, breach of contract, etc.) and any supporting documentation you have.

AI Prepares the Demand

The correct Form 509H is completed with all required particulars, citing section 459E of the Corporations Act 2001. The 21-day compliance period is calculated from service date.

You Serve It on the Company

A statutory demand must be served personally on the company's registered office — not by email. Your dashboard includes step-by-step service instructions and a service affidavit template.

What Claim Done Delivers

Form 509H (or equivalent) compliant with section 459E of the Corporations Act 2001
21-day statutory demand period clearly specified
Debt particulars correctly stated (amount, description, basis)
Instructions for correct service — must be served on the registered office in person
PDF document ready for service
Dashboard timeline: what happens at each stage after service

Law firms charge $500–$1,500 to prepare a statutory demand. Our AI produces a compliant form for $79.

Common Questions

Everything About Statutory Demand

What happens if the company doesn't comply in 21 days?

If the company fails to pay or apply to set aside the demand within 21 days, it is deemed insolvent under the Corporations Act. You can then apply to the Federal Court for a winding-up order. This is an extremely powerful lever.

What if the company disputes the debt?

If the debt is genuinely disputed, the company can apply to the court to set aside the demand. A statutory demand is most effective when the debt is clear and undisputed. We'll note this in your dashboard.

Can I use this against a sole trader or individual?

No. Statutory demands under the Corporations Act only apply to registered companies (Pty Ltd, Ltd). For debts owed by individuals or sole traders, use our Letter of Demand or Tribunal Application services.

What is the minimum debt amount?

The Corporations Act sets the minimum at $4,000 (as of 2024). Below this threshold, a statutory demand is not available — use a standard letter of demand instead.

Do I need a lawyer to serve it?

No. You can serve a statutory demand yourself. It must be delivered personally to the registered office of the company. Our dashboard includes a service record template you must complete after service.

Reviewed by

Alex Hartley Head of Legal Operations, Claim Done

Alex oversees every Claim Done service template, the Australian legal-citation database, and the AI drafting prompts. Based in Australia and focused on making everyday legal documents affordable for small business owners and consumers.

About the team →

Last reviewed 31 Jul 2026 Claim Done is not a law firm. This service prepares draft documents and does not constitute legal advice.

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