How to Take Someone to NCAT for an Unpaid Invoice in New South Wales

You sent the invoice. You chased it up. You sent reminders. They still have not paid.

For the forms, fees and each step, see our guide to making an NCAT application.

If you are the business that is owed money, an unpaid invoice is a debt claim for the Local Court of New South Wales, not NCAT. NCAT hears consumer claims, which are claims brought by a consumer about goods or services supplied to them, so it is your customer’s forum, not yours. The Local Court hears debts up to $20,000 in its Small Claims Division and over $20,000 up to $100,000 in its General Division. You do not need a lawyer to start a claim. This guide shows you how to chase an unpaid invoice through the right forum.

Before You Lodge: Send a Letter of Demand

A letter of demand is the usual first step, and it often gets the invoice paid without any claim being filed.

Your letter of demand should:

• State the invoice amount, date, and invoice number
• Attach a copy of the invoice and any relevant contract or quote
• Give a clear deadline (typically 7–14 days)
• State that you will start a claim in the Local Court if they do not pay

Keep a copy and proof of when you sent it. If the debt does go to court, it shows the debtor had a clear chance to pay.

Claim Done generates a letter of demand, formats it professionally, and delivers it by email for $49: start a Letter of Demand.

Can You Take a Client to NCAT for an Unpaid Invoice?

Usually, no. NCAT’s Consumer and Commercial Division hears consumer claims up to $100,000, but a consumer claim is a claim by a consumer about goods or services supplied to them (Fair Trading Act 1987 (NSW) s 79E and s 79I). The business chasing payment is the supplier, not the consumer, so its claim is a debt.

Debts go to the Local Court: the Small Claims Division up to $20,000, and the General Division over $20,000 up to $100,000. Above $100,000, the District Court hears claims up to $750,000. The one way an unpaid price is dealt with at NCAT is when your customer lodges a consumer claim against you: the Tribunal can then order the customer to pay you within that claim (s 79O).

Gather Your Evidence

The court decides your claim on the evidence you provide. You will need:

• The original invoice
• Proof of delivery (email, Australia Post tracking, signed delivery docket)
• Any contract, quote, or terms and conditions
• Correspondence showing you attempted to collect payment
• The letter of demand you sent and proof it was delivered
• Bank statements or payment records showing non-payment

Organise everything into a single PDF or folder. You will draw on it for your statement of claim, and you will need it if the debtor defends the claim.

File a Statement of Claim in the Local Court

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

You will need to:

1. Create an NSW Online Registry account
2. Choose the right division: Small Claims up to $20,000, or General over $20,000 up to $100,000
3. Complete the statement of claim, including:

• Your details (plaintiff)
• The debtor’s details (defendant)
• A clear statement of your claim
• The amount you are claiming
• A summary of the facts

4. Check every detail, especially the debtor’s correct legal name
5. Pay the filing fee

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

Once it is filed, the statement of claim has to be served on the debtor. The Online Registry and the court’s site explain how.

What Happens After You File

Once served, the debtor has 28 days to file a defence.

If they do not file a defence, you can apply for default judgment.

If they do file a defence to a small claim, the matter goes to a pre-trial review first, where a registrar, assessor or judge tries to help the parties agree. If it does not settle, it is listed for hearing. Small claims proceedings are less formal and less technical than other court cases, and the rules of evidence do not apply.

Timeframes: How Long Does It Take?

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

An undefended claim can move to default judgment without a hearing. A defended claim goes through a pre-trial review and, if it does not settle, a hearing.

A judgment of the Local Court is legally binding.

Enforcing the Judgment

If you win and the debtor still does not pay, you can enforce the judgment through:

• Garnishee order — take money directly from their bank account
• Writ of execution — seize and sell their assets
• Examination notice — require them to disclose their financial position

Enforcement is done through the Local Court and the New South Wales Sheriff’s Office.

What If the Debtor Is a Company?

If the debtor is a registered company (Pty Ltd or Ltd), you have an additional option before going to court: a statutory demand.

A statutory demand gives the company 21 days to pay or face wind-up proceedings. The consequences for the company are serious.

You can only use a statutory demand if:

• The debt is at least $4,000
• The debt is not genuinely disputed
• The debtor is a registered company

Claim Done prepares the statutory demand and supporting affidavit. See the statutory demand service page for when it applies.

Common Mistakes to Avoid

Not sending a demand letter first. A clear demand often gets the invoice paid, and it shows the debtor had a fair chance to pay before you went to court.

Incomplete evidence. If you cannot produce the invoice, contract, or proof of delivery, it is much harder to prove the debt.

Wrong forum. A business debt is not an NCAT consumer claim, so lodging it there risks a wasted fee and lost time. If the debtor is interstate, check which court can hear the claim before you file.

Not following up after judgment. Winning in court does not mean you get paid automatically. You must enforce the judgment.

Waiting too long. The limitation period for debt recovery in New South Wales is typically 6 years from the date the debt became due. After that, you cannot sue.

How Claim Done Prepares Your Statement of Claim

Claim Done does not file the claim for you — only you or a lawyer can do that. But we prepare the documents so you can file it yourself.

You complete a 5-minute intake form. You tell us about your invoice, contract, and correspondence. Our Programmatic Algorithms work from your answers, structure your case, and Claim Done’s Tribunal Application drafts:

• A Local Court statement of claim for your New South Wales debt
• A witness statement outline for you to complete in your own words

You read and approve the draft, then log in to the NSW Online Registry, file the statement of claim, and pay the court’s filing fee.

Flat fee: $97. No subscription. Done in about 5 minutes.

Final Checklist Before You File

Before you file your statement of claim, confirm:

• [ ] You sent a letter of demand and gave them time to respond
• [ ] You know which division fits: Small Claims up to $20,000, General Division over $20,000 up to $100,000
• [ ] You have checked whether the debtor is interstate and, if so, which court can hear the claim
• [ ] You have all supporting documents organised and ready
• [ ] You have checked the current filing fee
• [ ] You have checked the debtor’s correct legal name and current address

Once you file, serve the statement of claim and keep track of the defence deadline.

Ready to Chase Your Unpaid Invoice?

If someone owes your business money and refuses to pay, the Local Court is the forum for the debt in New South Wales, not NCAT.

Start with a letter of demand. If they still do not pay, file a statement of claim in the Local Court. Gather your evidence, follow the steps above, and present your case clearly.

Claim Done’s Tribunal Application drafts your Local Court statement of claim for $97, from your answers and documents. You approve it, then file it yourself through the NSW Online Registry.

Frequently Asked Questions

How much does it cost to take someone to NCAT in New South Wales?

If you are the business owed money on an invoice, the claim goes to the Local Court, not NCAT. The Local Court charges a filing fee to start a claim. Filing fees change each financial year; check the current fee on the Local Court’s site before you file.

Do I need a lawyer to go to NCAT for an unpaid invoice?

An unpaid invoice is a debt claim for the Local Court rather than NCAT, and you do not need a lawyer to file a statement of claim. Small claims proceedings are less formal and less technical than other court cases.

What happens if the debtor does not respond to my claim?

If the debtor does not file a defence within 28 days of being served with your statement of claim, you can apply to the Local Court for default judgment.

Can I take someone to NCAT if they live interstate?

A business debt goes to the Local Court rather than NCAT in any case. If the debtor lives interstate, check which court can hear the claim before you file; the Local Court’s civil jurisdiction page is the place to start.

How long does it take to get a decision?

It depends on the court’s list and whether the debtor defends the claim. If no defence is filed, 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.