If a company owes you a clear, undisputed debt of $4,000 or
more, a statutory demand is one of the most powerful ways to get paid: the company has 21 days to
pay or it is presumed insolvent. You have three real options: prepare it yourself, have it drafted for a flat
$97, or use a lawyer. This page sets out what each costs, what you get, and — just as important
— when a statutory demand is the right tool and when it is not.
First: is a statutory demand the right tool?
A statutory demand is a formal demand under section 459E of the Corporations Act 2001 (Cth). It is powerful,
but it is narrow, and using it in the wrong situation can backfire. It is only appropriate where:
- The debtor is a company (Pty Ltd or Ltd) — not an individual, a sole trader or a
partnership. For those, a letter of demand and a court or tribunal claim is the right path. - The debt is at least $4,000 — the statutory minimum.
- The debt is clear and not genuinely disputed. This is the critical point: if the company
has a genuine dispute about the debt, or a genuine offsetting claim, it can apply to court to set the demand
aside, and you can be ordered to pay its costs. A statutory demand is a debt-collection tool, not a way to
resolve a disputed claim.
If the debt is disputed, or the debtor is a person or sole trader, a letter of demand followed by a court or
tribunal claim is the safer route.
Your three options, compared by type
1. Prepare it yourself
You complete the prescribed statutory demand (Form 509H) and the supporting affidavit that verifies the debt,
and you serve it on the company’s registered office.
- Cost: free — there is no court filing fee to issue a statutory demand (unlike starting a
court claim). Your time, and getting the form and affidavit right, are the cost. - Good for: a clear, undisputed company debt where you are confident completing a
prescribed form and a sworn affidavit correctly. - Trade-offs: a statutory demand with a defect, a wrong amount, or a faulty affidavit can
be set aside, and strict rules govern how and where it is served. Mistakes can cost you the demand and
expose you to the company’s costs.
2. Statutory demand drafted — Claim Done ($97 flat)
You answer a few plain-English questions about the company and the debt. Claim Done drafts the statutory
demand (Form 509H) and the supporting affidavit from your answers, in the prescribed form, ready for you to
sign, swear the affidavit, and serve on the company’s registered office. You read it and approve it first.
- Cost: a flat $97, shown before you pay. No subscription.
- Exact deliverable: a completed statutory demand and the supporting affidavit, drafted
from your facts in the prescribed form, ready to sign, swear and serve. - Turnaround: usually ready about five minutes after you finish the questions.
- What you supply: the company’s name and ACN, its registered office, the amount owed and
what it is for, and the key dates. You do not need to know the form. - What happens after you approve it: you sign it, swear the affidavit before an authorised
witness, and serve the demand on the company’s registered office. The company then has 21 days to pay, settle,
secure the debt, or apply to set the demand aside. - Good for: a clear company debt of $4,000 or more where you want the demand and affidavit
done correctly and cheaply, and you are comfortable serving it yourself.
3. Lawyer (quote-based)
A commercial lawyer can advise whether a statutory demand is the right tool, draft and serve it, and act for
you if the company applies to set it aside or if you move to wind the company up.
- Cost: quoted by the firm, usually at an hourly rate; ask for a written quote first.
- Good for: a large debt, any doubt about whether the debt is genuinely disputed, or where
you expect the company to fight it — the situations where getting it wrong is most costly. - Trade-offs: the highest cost of the three, though often worth it when the debt is large
or a set-aside application is likely.
Ready to put it in writing?
Answer 3 quick questions to check you have the details your document needs, and see your next step.
1. Who is this about?
2. How much is at stake?
3. Do you have it in writing?
Your result is ready. Want a copy by email? (optional)
Which should you choose?
If the company debt is clear and undisputed and you are comfortable with a prescribed form and a sworn
affidavit, preparing it yourself costs nothing. If you want the demand and affidavit drafted correctly and
cheaply and will serve it yourself, the $97 option is the middle path. If the debt is large, might be disputed,
or you expect a fight, a commercial lawyer is worth the higher cost.
What a statutory demand is — and is not
A statutory demand is a formal demand to a company to pay a clear debt within 21 days. If the company does
not pay, settle, secure the debt or apply to set the demand aside in that time, it is presumed insolvent, which
lets you apply to wind it up. It is not a court claim, and it is not a tool for a disputed debt or for a debt
owed by an individual.
Where Claim Done fits
Claim Done is a document drafting service, not a law firm, and does not give legal advice. It drafts your
statutory demand and the supporting affidavit from your answers for a flat $97, you approve them before you
sign, swear and serve them, and it does not serve the demand or act for you in court.
Start your statutory
demand.
Frequently asked questions
What is the minimum debt for a statutory demand?
$4,000. The statutory minimum for a creditor’s statutory demand under the Corporations Act is $4,000, so the
debt the company owes you must be at least that amount.
What happens after I serve a statutory demand?
The company has 21 days to pay the debt, settle or secure it, or apply to court to set the demand aside. If it
does none of those within 21 days, it is presumed insolvent, and you can apply to wind the company up.
Can I use a statutory demand against a person or a sole trader?
No. A statutory demand is only for a debt owed by a company (Pty Ltd or Ltd). For a debt owed by an individual,
a sole trader or a partnership, use a letter of demand and, if needed, a court or tribunal claim.
What if the company disputes the debt?
Then a statutory demand is risky. If the company has a genuine dispute or an offsetting claim, it can apply to
set the demand aside and you may be ordered to pay its costs. Use a statutory demand only for a clear, undisputed
debt; for a disputed debt, a letter of demand and a court claim is the safer path.
Do I need a lawyer for a statutory demand?
No, you can prepare and serve one yourself, and Claim Done can draft it and the affidavit for $97. But because
a defective demand can be set aside with costs, a lawyer is worth considering for a large debt or where the company
is likely to fight it.
Is there a court or filing fee to issue a statutory demand?
No. There is no court filing fee to issue and serve a statutory demand — it is served on the company, not filed
in court. Court fees only arise later if you apply to wind the company up.
What a statutory demand does
Same problem. What a prepared case looks like.
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.