You have sent reminders. You have called. You have emailed. The invoice is now 90 days overdue, and the debtor is still not paying. Do you send one last formal demand, or do you file directly with the tribunal?
The answer depends on the size of the debt, the debtor’s behaviour, and how much time you are willing to spend chasing it.
Why 90 days matters
An invoice unpaid for 90 days is no longer a late payment. The debtor has had three full months to pay. They have received your reminders. They know they owe the money.
At this stage, the debtor is either:
- Unable to pay — they do not have the money and are avoiding you
- Unwilling to pay — they are disputing the work, the invoice, or the amount
- Stalling deliberately — they are waiting for you to give up
Each scenario requires a different approach. A final demand works best when the debtor is stalling. A tribunal application is more effective when the debtor is disputing the debt or has gone silent.
What a final demand achieves
A final demand is a formal letter that gives the debtor one last chance to pay before you take legal action. It includes a specific deadline and a clear consequence.
A properly drafted final demand should:
- State the exact amount owed, including any interest or late fees
- Reference the original invoice and any prior correspondence
- Give the debtor a final deadline (typically 7 days)
- State that you will file a tribunal application if they do not pay
- Be sent by registered post or email with read receipt
Many debtors pay at this stage because they realise you are serious.
When a final demand is worth sending
Send a final demand if:
- The debtor has been responsive in the past but has stopped replying recently
- The debt is under $10,000 and you want to avoid tribunal filing fees
- You suspect the debtor is waiting for you to give up
- You have not yet sent a formal demand letter
- The debtor is a sole trader or small business (not a large company)
A final demand costs less than a tribunal application and takes less time. If it works, you recover the debt without filing anything. If it does not work, you have a clear record of your attempts to resolve the matter, which strengthens your tribunal application.
When a final demand is a waste of time
Do not send a final demand if:
- The debtor has already ignored multiple formal letters
- The debtor is disputing the invoice and refusing to engage
- The debtor has gone completely silent
- You have already sent a letter of demand within the past 30 days
- The debt is over $25,000 and you need a statutory demand or court action
If the debtor has already ignored a formal letter of demand, a final demand will not change their behaviour.
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 owes you?
2. How much?
3. Do you have it in writing?
Your result is ready. Where should we send it?
What a tribunal application achieves
A tribunal application is a formal legal claim filed with the relevant state or territory tribunal. It forces the debtor to respond within a set timeframe (typically 28 days). If they do not respond, you can apply for a default judgment.
Tribunal applications are designed for small claims (usually up to $25,000, depending on the state). They are faster and cheaper than court proceedings, and you do not need a lawyer.
When to go straight to tribunal
File a tribunal application if:
- You have already sent a letter of demand and the debtor ignored it
- The debtor is disputing the invoice and refusing to pay
- The debtor has gone silent and you need a legal mechanism to force a response
- The debt is over $10,000 and you want to secure a judgment quickly
- You are confident in your evidence and do not want to wait any longer
A tribunal application typically costs between $50 and $500 (depending on the claim amount and state). If you win, you get a legally enforceable judgment that allows you to pursue enforcement action.
The downside of tribunal applications
Filing a tribunal application takes time. You need to:
- Complete the application form correctly
- Attach all supporting evidence (invoices, contracts, correspondence)
- Serve the application on the debtor
- Attend the hearing (in person or by phone)
- Wait for the tribunal’s decision
If the debtor defends the claim, the process takes longer. If they do not respond, you may be able to get a default judgment.
The other downside is cost. Even if you win, you may not recover your filing fees or your time. Tribunals do not always award costs, and when they do, the amount is often limited.
The cost-benefit calculation
Here is the practical calculation:
A final demand from Claim Done costs $49, whatever the amount owed. Tribunal and court filing fees depend on the forum and the size of the claim, and they change each 1 July, so check the current fee on the tribunal’s or court’s website before you file. If a company owes you at least $4,000 and does not genuinely dispute the debt, a statutory demand ($97) is another option.
If the debt is under $5,000 and you have not yet sent a formal demand, send a final demand first. It costs less than the tribunal filing fee and may recover the debt within 7 days.
If the debt is over $10,000 and you have already sent a letter of demand, file a tribunal application.
What about statutory demands?
If the debtor is a registered company and the debt is over $4,000, you can serve a statutory demand. This is one of the most powerful debt recovery tools in Australia.
A statutory demand gives the company 21 days to pay or face wind-up proceedings.
Statutory demands are not filed with a tribunal — they are served directly on the company. If the company does not pay or apply to set aside the demand, you can apply to wind up the company.
Claim Done prepares statutory demands for $97. This is cheaper than a tribunal application and far more effective against companies.
How Claim Done helps
Claim Done generates both final demands and tribunal applications using the same Programmatic Algorithms. You tell us what evidence you have, answer a few questions, and the system drafts the document.
For final demands:
- flat fee
- Drafted and drafted in about 5 minutes (you approve it before it is sent)
- Delivered by email
- Includes a 7-day deadline and clear consequences
For tribunal applications:
- -$97 depending on complexity
- Prepared for filing in your state or territory
- Includes a witness statement
- For you to check and lodge with the tribunal yourself
If you are unsure which option to choose, start with a final demand. If the debtor does not respond within 7 days, Claim Done can prepare your tribunal application using the same evidence.
The decision tree
Use this decision tree to decide:
- Has the debtor received a formal letter of demand?
- No → Send a final demand first
- Yes → Go to step 2
- Did the debtor respond to the letter of demand?
- No → File a tribunal application
- Yes, but disputing → File a tribunal application
- Yes, but stalling → Send a final demand
- Is the debtor a registered company and the debt over $4,000?
- Yes → Consider a statutory demand instead
- No → File a tribunal application
- Is the debt under $2,000?
- Yes → Send a final demand (tribunal fees may exceed recovery)
- No → File a tribunal application
Take action now
An unpaid invoice over 90 days is not going to resolve itself. The debtor has had three months to pay.
If you have not yet sent a formal demand, send a final demand. It may recover the debt within a week. If the debtor ignores it, file a tribunal application. Do not wait another 90 days hoping they will pay.
The longer you wait, the harder it becomes to recover the debt. Debtors who ignore invoices for 90 days are banking on you giving up.
Claim Done prepares the document you need — whether it is a final demand, a tribunal application, or a statutory demand against a company. Tell us what evidence you have, answer a few questions, and the system drafts the document automatically.
Stop chasing. Start recovering.
Frequently Asked Questions
Should I send a final demand if I have already sent a letter of demand?
Only if the first letter was informal or did not include a specific deadline and consequences. A final demand is a stronger, more formal version. If you have already sent a properly drafted letter of demand within the past 30 days, skip the final demand and file a tribunal application.
How long should I give the debtor to respond to a final demand?
Seven days is standard. This is long enough to be reasonable but short enough to maintain pressure. If the debtor does not respond within 7 days, file your tribunal application immediately.
Can I add interest to an invoice that is 90 days overdue?
Yes, if your original invoice or terms of trade included a clause allowing interest on overdue payments. The standard rate is typically 10-12% per annum. If your invoice did not include an interest clause, you can only claim the original amount plus any tribunal filing fees.
What if the debtor disputes the invoice after 90 days?
If the debtor raises a genuine dispute, you may need to provide additional evidence to the tribunal. However, if the debtor has had 90 days to raise the dispute and only mentions it after receiving a final demand, the tribunal will likely view this as a delaying tactic. File your tribunal application and let the tribunal decide.
Is it worth pursuing a debt under $1,000 through the tribunal?
It depends on the filing fee in your state and whether you are willing to spend the time. In most states, the filing fee for claims under $1,000 is $50-$100. If the debtor does not defend, you may be able to get a default judgment. However, enforcing the judgment may cost more than the debt itself. A final demand is usually a better first step for small debts.
Need this document prepared for you?
Claim Done generates professional legal documents from your evidence in about 5 minutes. Flat fee. No subscription.
What happens when you send a Final Demand
Same problem. What a prepared case looks like.