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How do I chase an overdue invoice in Australia?

Short answer

Start friendly and get firmer on a set timetable: a polite reminder the day it falls overdue, a phone call around day 7, a firmer email at day 14, a payment plan offer if needed, then a final notice at day 30 naming your next step. Keep everything in writing and stay within the ACCC and ASIC debt collection guideline.

General information only, not legal or financial advice. Every business and every debt is different. For advice on your situation, talk to a lawyer, your accountant or your state small business commissioner.

Step by step

  1. 1

    Check your own paperwork

    Confirm the invoice went to the right entity (check ABN Lookup), shows a clear due date, and matches what was agreed.

  2. 2

    Send a polite reminder on day 1

    Assume it is an oversight. Re-attach the invoice and make paying easy.

  3. 3

    Call around day 7

    Ask for a specific amount and date, then confirm it by email.

  4. 4

    Send a firmer follow-up at day 14

    State the facts, the impact, and a new firm date.

  5. 5

    Offer a written payment plan if they are genuinely stuck

    Small regular payments beat a court fight.

  6. 6

    Send a final notice at day 30

    Name the next step you will actually take, such as a letter of demand, a collection agency or a small claims application.

What else to know

Most overdue invoices are paid after one or two well timed reminders. The businesses that get paid fastest are not the loudest. They are the most consistent. Put the chase on a calendar so it happens whether or not you feel like it.

If the customer is an individual rather than a business, be especially careful about how often and when you contact them. The joint ACCC and ASIC guideline sets out what is considered fair.

Polite reminder email template

Common questions

How soon should I chase an unpaid invoice?

The day after it falls due. A prompt, friendly reminder signals you are organised and is the least awkward time to ask.

How often can I follow up?

A reasonable rhythm is every 5 to 7 business days. Contact should not become harassment. The ACCC and ASIC guideline gives practical limits, especially for individuals.

Should I stop work until I am paid?

Only if your contract or terms allow it. If they do, say so clearly in your firmer follow-up.

Official sources

Sources checked 14 October 2026. Rules and limits change, so check the official site before acting.

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