How to Take a Client to NCAT for Unpaid Invoices

You sent an invoice. The client acknowledged it. Weeks pass. Reminders go unanswered. A letter of demand gets ignored. Now you need to escalate — and in New South Wales, that usually means a claim in the Local Court, not NCAT.

If you are the business that is owed money, an unpaid invoice is a debt claim for the Local Court of New South Wales. NCAT hears consumer claims, which are brought by a consumer about goods or services supplied to them, so it is not the forum for a supplier chasing payment. The Local Court’s Small Claims Division hears debts up to $20,000 and its General Division hears claims over $20,000 up to $100,000. Small claims proceedings are less formal and less technical than other court cases, you do not need a lawyer, and a judgment can be enforced across New South Wales once you have it.

Can you take a client to NCAT for an unpaid invoice?

Usually, no. NCAT handles consumer claims up to $100,000, and a consumer claim is a claim by a consumer about goods or services supplied to them (Fair Trading Act 1987 (NSW) s 79E, s 79I). As the business that did the work, you are the supplier, so your claim is a debt. The Local Court is the right forum if:

• The debt is up to $20,000 (Small Claims Division) or over $20,000 up to $100,000 (General Division); above that, the District Court hears claims up to $750,000
• The claim is connected to New South Wales (if the client is interstate, check which court can hear the claim first)
• The debt is for goods or services you supplied (not employment, family law, or criminal matters)
• You have evidence — invoices, quotes, contracts, correspondence, proof of delivery
• You have usually sent a letter of demand first (good practice, not a legal requirement)

The one way an unpaid price is dealt with at NCAT is when your client lodges a consumer claim against you, for example alleging defective work. In deciding that claim, the Tribunal can order the claimant to pay you a specified amount (s 79O).

Local Court filing fees

The Local Court charges a fee to file a statement of claim.

Filing fees change each financial year; check the current fee on the Local Court’s site (Local Court: civil jurisdiction) before you file.

What you need before you file

Gather these before starting your statement of claim:

Basic details:

• Full legal name and ABN of your business
• Full legal name and address of the client (individual or company)
• Invoice numbers, dates, and amounts
• Total amount claimed (including interest if applicable)

Supporting documents:

• Original invoices clearly showing services rendered or goods supplied
• Quote or contract (if one exists)
• Proof of delivery — delivery dockets, signed acceptance, email confirmations
• Correspondence showing the client acknowledged the debt
• Letter of demand (if you sent one)
• Payment history (if partial payments were made)

Evidence of attempts to resolve: A letter of demand with a clear deadline is the usual first step before filing. Document every attempt — emails, phone call notes, SMS screenshots.

How to file your statement of claim

A Local Court debt claim is started with a statement of claim, which can be filed online through the NSW Online Registry (how to file a statement of claim):

1. Create an account on the NSW Online Registry portal
2. Choose to file a statement of claim in the Local Court
3. Choose the division: Small Claims for debts up to $20,000, General for over $20,000 up to $100,000
4. Complete the form — party details, claim amount, brief description of the debt
5. Check the client’s correct legal name before you submit
6. Pay the filing fee

Once filed, the statement of claim has to be served on the client. The client then has 28 days to file a defence.

What happens after you file

Service: The Online Registry and the court’s site explain how to serve the statement of claim. If the client does not file a defence within 28 days, you can apply for default judgment.

Response period: If the client disputes the debt, they file a defence. If they admit it, the matter may be resolved without a hearing.

Pre-trial review: A defended small claim goes to a pre-trial review first, where a registrar, assessor or judge tries to help the parties agree. This is not the main hearing.

Hearing: If the matter does not settle, it is listed for hearing. Small claims proceedings are less formal and less technical than other court cases, the rules of evidence do not apply, and witnesses are generally not called unless the court decides otherwise.

Appeals from the Small Claims Division go to the District Court, and only on lack of jurisdiction or denial of procedural fairness.

Realistic timelines

Timing depends on the court’s list, how quickly the statement of claim is served, and whether the client files a defence.

• Undefended claim: you can apply for default judgment without a hearing
• Defended small claim: a pre-trial review, then a hearing if it does not settle
• Claims over $20,000 up to $100,000: these run in the General Division, not the Small Claims Division

Delays occur if the client files a late defence, asks for adjournments, or the court list is busy.

Evidence requirements at hearing

To succeed on a debt claim, you need to prove:

1. A contract existed — written or verbal agreement for goods or services
2. You performed your side — delivered the goods or completed the services
3. The amount is correct — invoices match the agreed scope and price
4. Payment is overdue — the client has not paid despite the invoice terms

Bring:

• Original invoices and quotes
• Proof of delivery or completion
• Correspondence showing the client acknowledged the work
• Your own written account of events
• Statements from anyone who can verify the work or delivery

If the client disputes quality or claims breach of contract, be ready to respond with evidence showing you met the agreed standard.

What the court can order

If you win, the court can give judgment for:

• Payment of the debt — the amount owed under the invoice
• Interest — typically calculated from the due date
• Costs, as the court allows

A debt claim is about the money owed under the agreement, with interest and costs as the court allows.

Enforcing a judgment

A Local Court judgment can be enforced if the client does not pay voluntarily. You can:

• Apply for a garnishee order to intercept money from the debtor’s bank account or wages
• Issue a writ for the levy of property to seize and sell assets
• Examine the debtor’s financial position through an examination notice

Enforcement can take weeks to months depending on the debtor’s assets and cooperation.

Common mistakes to avoid

Incomplete invoices: If your invoice does not clearly describe the work, the client can argue they did not know what they were being charged for. Always include detailed line items.

No written agreement: Verbal contracts are enforceable, but harder to prove. Always confirm scope, price, and payment terms in writing — even a simple email works.

Choosing the wrong forum: A business debt is not an NCAT consumer claim, so lodging it there risks a wasted fee and lost time. Send at least one clear demand, then file a statement of claim in the Local Court.

Missing the limitation period: In New South Wales, you typically have 6 years from the invoice due date to file a claim. After that, the debt may be statute-barred.

Ignoring the response: If the client files a defence, read it carefully. If they raise genuine issues (defective work, breach of contract), be ready to respond with evidence.

Final checklist before filing

Before you file your statement of claim:

• [ ] Confirm the division: Small Claims up to $20,000, General Division over $20,000 up to $100,000
• [ ] Check whether the client is interstate and, if so, which court can hear the claim
• [ ] Gather all invoices, quotes, contracts, and correspondence
• [ ] Send a final letter of demand (and wait 7-14 days for response)
• [ ] Prepare a written account of the dispute
• [ ] Check the Local Court’s current filing fee and have payment ready
• [ ] Create an account on the NSW Online Registry
• [ ] Keep all supporting documents organised in PDF format

Once filed, serve the statement of claim and keep track of the 28-day defence period.

How Claim Done prepares your statement of claim

Claim Done’s Tribunal Application service drafts a Local Court statement of claim for a New South Wales debt. Tell us about your invoices, contract, and correspondence. Our Programmatic Algorithms draft the statement of claim and generate a witness statement outline for you to complete in your own words.

You file it yourself through the NSW Online Registry. Claim Done does not give legal advice or file on your behalf — we prepare the documents for you to review, approve and file.

Fixed fee: $97. No subscription. Start your statement of claim now. Not sent a demand yet? Start a Letter of Demand for $49 first.

Frequently Asked Questions

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

An unpaid invoice owed to your business is a debt claim for the Local Court, not NCAT. The Local Court charges a filing fee for a statement of claim. Filing fees change each financial year; check the current fee on the Local Court’s site before you file.

How long does an unpaid invoice case take?

It depends on the court’s list and whether the client defends the claim. If no defence is filed within 28 days of service, you can apply for default judgment without a hearing. A defended small claim goes to a pre-trial review first, and to a hearing only if it does not settle.

Can I take a client to NCAT if they are based interstate?

An unpaid invoice is a debt claim for the Local Court rather than NCAT, wherever the client is. If your client is based interstate, check which court can hear the claim before you file, and check the client’s registered address.

What happens if my client does not respond to my claim?

If the client does not file a defence within 28 days of being served, you can apply to the Local Court for default judgment. You can then enforce the judgment through the Local Court, for example with a garnishee order.

Do I need a lawyer to take a client to NCAT?

An unpaid invoice is a debt claim for the Local Court rather than NCAT, and you do not need a lawyer to file one. Small claims proceedings, for debts up to $20,000, are less formal and less technical than other court cases, so you can handle a straightforward claim yourself with properly prepared documents.