What goes in a letter of demand in Australia?
A letter of demand is a formal written request for payment sent after reminders have failed. It sets out who owes what and why, the amount, a deadline (commonly 7 to 14 days), and the step you will take if it is not paid. It should be accurate, calm and only mention action you are genuinely prepared to take. Consider getting legal advice before sending one.
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
Head it 'Letter of demand'
It signals this is a formal step.
- 2
Identify the parties correctly
Use the debtor's exact legal name and ABN or ACN from ABN Lookup and the ASIC registers.
- 3
Set out the debt
Invoice numbers, dates, amount, and what it was for.
- 4
List earlier reminders
Dates of emails, calls and any promises made.
- 5
Give a clear deadline
A specific date, commonly 7 to 14 days away.
- 6
State the next step
Only one you will actually take, for example a tribunal or court claim.
- 7
Send it trackably
Keep a copy and proof of delivery.
What else to know
business.gov.au suggests sending a letter of demand by registered post with proof of delivery, and attaching copies of the contract, invoice and earlier reminders. Do not include interest unless your contract allows it, and do not threaten anything you are not entitled to do.
Our final notice template is a softer step that sits just before a formal letter of demand. Many debts are paid at that point.
Final notice template (the step before a letter of demand)
Common questions
Do I need a lawyer to send a letter of demand?
No, you can send one yourself, but a letter from a lawyer can carry more weight. For larger or disputed amounts, legal advice is wise.
Can I threaten court in a letter of demand?
You can say you intend to start proceedings if that is genuinely what you will do. Threatening action you do not intend to take can be misleading.
Official sources
- business.gov.au: write a letter of demand
- ABN Lookup
- Search ASIC registers
- ACCC and ASIC debt collection guideline (RG 96)
Sources checked 14 October 2026. Rules and limits change, so check the official site before acting.
Related guides
- How do I chase an overdue invoice in Australia?
- What should a payment reminder email say?
- Can I charge interest on overdue invoices in Australia?
- How long can a business take to pay an invoice in Australia?
- Where do I make a small claim for an unpaid invoice in NSW, Victoria or Queensland?
- What should I do if a client who owes me money goes into liquidation?
- How do I write payment terms that get me paid on time?
- How do I write off a bad debt and claim back GST in Australia?
- Should I use a debt collection agency for an unpaid invoice?