Unpaid Invoice Over $10,000 in New South Wales: NCAT or Local Court?

You completed the work. You sent the invoice. The client has gone silent. The debt is now $12,000, $15,000, or $20,000, and reminders are no longer working.

If you are the business that is owed money, this is a debt claim for the Local Court of New South Wales, not NCAT. The Small Claims Division hears claims up to $20,000 and the General Division hears claims over $20,000 up to $100,000. Above that, the claim goes to the District Court (up to $1,250,000). The real question for an invoice over $10,000 is which division of the Local Court it belongs in.

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, and under the Fair Trading Act 1987 (NSW) a consumer claim is a claim brought by a consumer about goods or services supplied to them (s 79E, s 79I). The claim runs from the buyer to the supplier, not the other way.

What NCAT’s consumer claims cover:

• A consumer suing a supplier over faulty goods or poor services
• A small business suing its own supplier as the buyer: “consumer” in s 79D includes a natural person, a partnership and a small proprietary company
• Defective goods or services claims under Australian Consumer Law, brought by the customer

What goes to the Local Court instead:

• A business chasing its customer for an unpaid invoice for trade services, consulting or design
• One business owed money by another
• A private loan that has not been repaid

There is one way an unpaid price is dealt with at NCAT: if your customer lodges a consumer claim against you, for example alleging the work was defective, the Tribunal can order the claimant to pay you within that claim (s 79O).

Local Court: Small Claims Division or General Division?

The Local Court hears civil claims up to $100,000, in two divisions. An invoice over $10,000 can fall into either.

Small Claims Division (up to $20,000):

• Less formal: the court’s page describes proceedings as less formal and less technical
• Rules of evidence do not apply, and witnesses are generally not called in defended matters unless the court decides otherwise
• Pre-trial review first: a defended claim goes to a pre-trial review, where a registrar, assessor or judge tries to help the parties agree
• Limited appeals: appeals go to the District Court, and only on lack of jurisdiction or denial of procedural fairness

General Division (over $20,000 up to $100,000):

• More formal procedure than the Small Claims Division
• Same starting document: you file a Statement of Claim, and the debtor can file a defence

The General Division is where your claim goes when:

• Your invoice, or the total you are claiming, is over $20,000
• It is not more than $100,000 (above that, the District Court)

Costs: filing fees and legal costs

Filing fees change each financial year; check the current fee on the Local Court’s website before you file.

Legal costs are a separate question. Whether you can recover them if you win depends on the court’s rules for your division and claim amount, so check before you commit to paying a lawyer.

Small Claims Division:

• The process is built to be less formal and less technical
• Many creditors prepare their own claim or use a document preparation service

General Division:

• The procedure is more formal, and legal advice is more common at this level
• If you lose, you may be ordered to pay the debtor’s costs

A letter of demand costs far less than any court step, which is why it comes first.

Timeline: what happens after you file?

Local Court:

• Statement of Claim filed, for example through the NSW Online Registry, and served on the debtor
• The debtor can pay, or file a defence
• In the Small Claims Division, a defended claim goes to a pre-trial review first
• If it does not settle there, it is listed for a hearing

How long that takes depends on whether the debtor defends and on the court’s workload. The court’s own site has current information.

Speed matters when cash flow is at stake, so send your demand promptly and file once the deadline passes.

Enforcement: getting paid after you win

Winning a judgment is only half the battle. You still need to enforce it.

Local Court enforcement:

• A judgment creditor can apply for enforcement if the debt is not paid
• Enforcement tools include garnishee orders, writs of execution and examination notices

If NCAT ordered your customer to pay you:

• This arises where your customer brought a consumer claim against you and the Tribunal made a money order in your favour
• You ask NCAT for a certified copy of the money order and register it with the Local Court
• From there, the same enforcement tools are available

Either way, enforcement runs through the Local Court.

When does NCAT come into it?

NCAT is the right forum if:

• You are the customer, not the supplier, and you want a remedy for faulty goods or poor services (a consumer claim up to $100,000)
• Your customer has lodged a consumer claim against you, and you want the Tribunal to deal with what they still owe you (s 79O)

It is not the forum for a business chasing its own customer for an unpaid invoice. That is a debt claim for the Local Court, whatever the amount up to $100,000.

When to choose each Local Court division

You do not choose freely; the amount decides. Go to the:

• Small Claims Division if your claim is $20,000 or less
• General Division if it is over $20,000 up to $100,000
• District Court if it is over $100,000 (up to $1,250,000)

If your invoice is just over $20,000, check exactly what you are claiming. Your figure must match your invoices, less anything already paid.

What to do before filing

Whichever division applies, take these steps first:

1. Send a letter of demand: state the amount, the invoices and a clear deadline, such as 14 days, and say you will start a claim in the Local Court if it is not paid.
2. Gather your evidence: invoices, contracts, proof of delivery, correspondence, payment records.
3. Check the debtor’s details: an ASIC company search confirms the correct legal name and whether the company is still registered.
4. Consider a statutory demand: if the debtor is a company, see our statutory demand service page for when it applies.

If the debtor ignores your demand and you have clear evidence, file promptly. Delay only increases the risk of insolvency or asset dissipation.

How Claim Done helps New South Wales creditors recover unpaid invoices

Claim Done drafts the letter of demand and, if that does not work, a Local Court statement of claim for a New South Wales debt.

What you get:

• A Letter of Demand ($49) setting out the debt, the invoices behind it and the deadline to pay
• A Local Court statement of claim through our Tribunal Application ($97), drafted from the evidence you describe

What you do:

1. Complete a 5-minute intake form about the unpaid invoice
2. Tell us what evidence you have (invoice, contract, correspondence, proof of work)
3. Review and approve your documents
4. File it yourself

Claim Done does not give legal advice. It drafts documents from the evidence you provide; you review and approve them.

Final recommendation

For an unpaid invoice in New South Wales where you are the business owed money, the Local Court is the forum, not NCAT. Up to $20,000 it is the Small Claims Division; over $20,000 up to $100,000 it is the General Division.

NCAT comes into it only if you are the customer making a consumer claim, or your customer has brought a consumer claim against you.

The key is to act quickly. The longer you wait, the harder it becomes to recover. Prepare your evidence, send a letter of demand, and file your statement of claim as soon as the deadline passes.

Ready to recover your unpaid invoice?

Start with a Letter of Demand for $49. If the debtor still does not pay, Claim Done’s Tribunal Application drafts a Local Court statement of claim for your New South Wales debt from the evidence you describe, ready for you to review and file. Start it at Start your Tribunal Application — $97 flat fee, no subscription.

Frequently Asked Questions

Can I file in NCAT if the unpaid invoice is $35,000?

Not as the business owed money. NCAT hears consumer claims brought by consumers, so a supplier chasing an unpaid invoice has a debt claim for the Local Court. A $35,000 claim goes to the Local Court’s General Division, which hears claims over $20,000 up to $100,000. Above $100,000, the District Court (up to $1,250,000).

Do I need a lawyer for a $15,000 debt claim?

Not necessarily. A $15,000 claim is in the Local Court’s Small Claims Division, where proceedings are less formal and less technical and the rules of evidence do not apply. You can prepare your own statement of claim or use a document preparation service. Get legal advice if the debtor raises a complicated defence.

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

If the debtor does not file a defence, you may be able to ask the court for judgment without a hearing (default judgment). The Local Court’s site and the NSW Online Registry explain the current steps.

My client says the work was defective and has taken me to NCAT. Can I still recover the invoice?

It can be dealt with in their claim. If the Tribunal decides the consumer claim wholly or partly in your favour, it may order the claimant to pay you a specified amount (Fair Trading Act 1987 s 79O). Bring your contract, invoices and evidence of the completed work.

How do I enforce a judgment if the debtor still does not pay?

A Local Court judgment can be enforced using garnishee orders, writs of execution or examination notices. If the money order came from NCAT, you first register a certified copy of it with the Local Court, then use the same tools.