Unpaid Subcontractor Invoice New South Wales: Recovery Guide for Tradies

You finished the job. You sent the invoice. The head contractor read your messages. They just will not pay.

This happens to New South Wales subcontractors every week — sparkies, plumbers, concreters, carpenters, all owed thousands for work already done. You have clear legal options, and the process is faster than you think.

One point first: a subcontractor owed money by a head contractor has a debt claim for the Local Court of New South Wales, not NCAT. NCAT hears consumer claims, which are brought by the consumer, so a business chasing payment for work it supplied goes to the Local Court: the Small Claims Division for claims up to $20,000 and the General Division for claims over $20,000 up to $100,000. Above that, it is the District Court.

Why subcontractors get stiffed

Head contractors delay payment for three main reasons:

• Cash flow problems — they have not been paid by the builder or developer yet
• Dispute over quality — they claim defects or incomplete work (often exaggerated or invented)
• Deliberate avoidance — they know most subbies will not chase small debts through the system

None of these reasons make the debt go away. If you did the work and invoiced correctly, you are owed the money.

Step 1: Send a Letter of Demand

Before you start a claim in the Local Court, give the debtor a final written chance to pay. A clear written demand is the usual first step, and it often gets the invoice paid without going to court.

A proper Letter of Demand for an unpaid subcontractor invoice in New South Wales should include:

• Invoice details (date, number, amount owing)
• Work performed and when
• Payment terms from your contract or quote
• Days overdue
• Deadline to pay (typically 7 days from receipt)
• Consequences if they refuse (a Local Court claim, interest, costs)

Send it by email and registered post so you have proof of delivery.

Claim Done generates a Letter of Demand and sends it by email for $49. You tell us about your invoice and evidence, answer a short questionnaire, and the letter is drafted in about 5 minutes, and sent once you approve it.

Step 2: Gather your evidence while you wait

Give them the full 7 days. Some will pay. Some will respond with excuses or counter-claims.

While you wait, collect:

• Signed contract or quote
• Original invoice and any reminders
• Proof of work (photos, site diary, delivery dockets, timesheets)
• Correspondence showing they accepted the work or acknowledged the debt
• Anything in writing about payment terms

If they claim defects, get your own photos and a written statement from someone else on site. Do not let invented complaints derail a legitimate debt.

Step 3: File a statement of claim in the Local Court if they refuse to pay

An unpaid subcontractor invoice is a debt, and debts in New South Wales go to the Local Court of New South Wales, not NCAT.

Jurisdiction limits:

• Small Claims Division: claims up to $20,000 (less formal and less technical)
• General Division: claims over $20,000 up to $100,000
• District Court: claims above $100,000

The amount you claim decides the division.

Filing fees change each 1 July; check the current fee on the Local Court’s website before you file. You can ask for the filing fee as part of your claim.

What you need to lodge:

1. Statement of claim setting out what happened, what you are owed, and why
2. Supporting documents (contract, invoice, Letter of Demand, proof of delivery, evidence of work)

You can file the statement of claim online through the NSW Online Registry.

Step 4: Serve the statement of claim on the debtor

Once the statement of claim is filed, you must serve it on the debtor. The Local Court’s website and the NSW Online Registry explain the accepted methods of service and the time limits.

Keep proof of service. If the debtor does not respond, you will need to prove they were properly served.

Step 5: Prepare for the hearing

If the debtor files a defence, a Small Claims Division matter goes to a pre-trial review first, where a registrar, assessor or judge tries to help the parties agree. Small claims proceedings are less formal and less technical than other court proceedings, but you still need to be organised.

What to bring:

• Three copies of everything (one for you, one for the court, one for the other party)
• A chronological summary of events (one page maximum)
• Photos on your phone or printed
• Written statements from anyone who can confirm the work was done properly (in defended small claims, witnesses are generally not called unless the court decides otherwise)

What to expect:

• You will usually explain your case first
• The debtor gets to respond and present their evidence
• You get a chance to reply
• The court may ask questions or encourage the parties to settle

If the debtor raises defects for the first time at the hearing, point out that they never mentioned this in writing before.

Step 6: Get judgment and enforce it

If you win, the court gives judgment for the amount owed.

If they still do not pay, you can enforce the judgment by:

• Garnishee order — intercept money owed to them by a third party
• Writ of execution — sheriff seizes and sells their assets
• Examination notice — force them to disclose their financial situation under oath

Enforcement costs money upfront, but you can add those costs to the debt.

Can you claim interest and legal costs?

Interest: Yes. New South Wales law allows pre-judgment interest from the date the invoice was due until judgment. You must specifically claim interest in your statement of claim.

Legal costs: Ask for your filing fee and service costs in your statement of claim; whether costs are ordered is up to the court.

What if the head contractor is insolvent?

If the company is in liquidation or administration, your Local Court claim may be stayed. Check the ASIC register before you file.

If the company is still trading but clearly insolvent, you may want to issue a statutory demand instead. This gives them 21 days to pay or face wind-up proceedings. It is a stronger threat, but only works if the debt is at least $4,000.

How Claim Done helps New South Wales subcontractors recover unpaid invoices

Claim Done’s Programmatic Algorithms use what you tell us about your invoice, contract, and correspondence to generate a Letter of Demand tailored to your answers. The letter is sent by email — no lawyer, no subscription, done in about 5 minutes.

If the debtor still refuses to pay, Claim Done’s Tribunal Application ($97) can draft a Local Court statement of claim for a New South Wales debt, with a witness statement outline, ready for you to review and file.

You do not fill out templates — you tell us what you have, and the system drafts the case.

Start your recovery today

The Local Court’s Small Claims Division is less formal and less technical than other court proceedings. Many subcontractors never chase a debt because they think it is too hard or too slow. It is a set of clear steps.

The alternative is writing off the debt and letting the head contractor do it to the next subbie.

You did the work. You are owed the money. Tell us about your invoice and evidence to generate your Letter of Demand — Claim Done drafts it in about five minutes and sends it once you approve it.

Frequently Asked Questions

Do I need a lawyer to recover an unpaid subcontractor invoice in New South Wales?

No. The Local Court’s Small Claims Division hears claims up to $20,000 and is less formal than other court proceedings, so many people run their own claims there. You file the statement of claim yourself, present your evidence, and the court makes the decision. Claim Done can prepare your Letter of Demand ($49) and draft your Local Court statement of claim (Tribunal Application, $97) for you to check and file.

How long does it take to get paid after filing a Local Court claim?

It depends on whether the debtor files a defence, how the court lists the matter, and whether you need to enforce the judgment. The Local Court’s website explains each stage. Sending your Letter of Demand promptly is the part you control.

Can I claim interest on the overdue invoice?

Yes. New South Wales law allows pre-judgment interest from the date the invoice was due until judgment. You must specifically claim interest in your statement of claim.

What if the head contractor claims the work was defective?

If they never raised defects in writing before your Letter of Demand, point that out to the court. Bring photos, site diary entries, and any correspondence showing they accepted the work. If there was a genuine defect, they should have notified you in writing and given you a chance to rectify.

What happens if the company goes into liquidation before I get paid?

Your Local Court claim will generally be stayed, and you become an unsecured creditor in the liquidation. This is why speed matters — if you suspect insolvency, send the Letter of Demand immediately and file your statement of claim as soon as the deadline expires. For debts over $4,000, consider a statutory demand instead.