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.

Statutory Demand — South Australia

Q: 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.

A statutory demand is the most powerful debt recovery tool available against a registered company — anywhere in Australia, including South Australia. It operates under the Corporations Act 2001 (Cth), a federal law that applies in every state and territory.

Claim Done prepares Form 509H under s459E of the Corporations Act and provides delivery instructions for service on the company in South Australia. $79 flat fee.

Prepare your statutory demand — $197

Who can use a statutory demand in South Australia?

Any creditor can issue a statutory demand against a registered company (Pty Ltd or Ltd) provided:

The debt is $4,000 or more
The debt is a liquidated sum (a specific amount — not estimated damages)
The debt is not genuinely disputed
The debtor is a registered company — check on ASIC’s company register

What happens if the company ignores it?

The company has 21 days from the date of service to pay in full or apply to set aside the demand
If neither happens, the company is presumed insolvent under s459C Corporations Act
You can then apply to the Federal Court or the SA Supreme Court for a winding-up order

Why statutory demands work

A statutory demand carries a consequence that no other debt recovery document can match — the threat of being wound up. Most companies pay promptly when they receive one, because the cost and damage of defending a winding-up application far exceeds the debt itself.

The supporting affidavit requirement

Form 509H must be accompanied by a supporting affidavit verifying the existence and amount of the debt, sworn before a Justice of the Peace or solicitor. Claim Done provides an affidavit template as part of the statutory demand package.

Statutory demand vs letter of demand

A letter of demand can be sent to anyone, carries no presumption of insolvency if ignored. Use for individuals, sole traders, or smaller amounts.
A statutory demand is for companies only, minimum $4,000, and carries the nuclear option of winding up. Use this when the debtor is a company and the debt is clear.

Prepare your statutory demand — $197 | Letter of demand instead — $97