For unpaid invoices up to $20,000, file a statement of claim in the Small Claims Division of the Local Court of NSW, usually online through the NSW Online Registry. From 1 July 2026 the filing fee is $179, or $358 if you are filing as a corporation. Once served, the customer has 28 days to pay, settle or file a defence. If they do nothing, you can ask the court for default judgment and then enforce it with a garnishee order, examination notice or writ. Claims over $20,000 and up to $100,000 go to the General Division. Send a final notice and consider the NSW Small Business Commissioner's mediation first.
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
Send a final notice or letter of demand
Give a clear deadline and name the step you will take. Many debts are paid here, and the court will expect you to have asked properly.
- 2
Consider mediation
The NSW Small Business Commissioner has no application fee and no charge to talk to a Mediation Officer. Formal mediation is $330 per party for up to four hours (including GST).
- 3
Get the customer's correct legal details
Use ABN Lookup and the ASIC register to find the exact legal name of the person or company, and an address for service. Suing a trading name or the wrong entity wastes time and fees.
- 4
Pick the right division and check the time limit
Up to $20,000 is the Small Claims Division. Over $20,000 and up to $100,000 is the General Division. Contract debts generally must be brought within six years.
- 5
File a statement of claim
Lodge it through the NSW Online Registry or at a Local Court registry, and pay the filing fee. Describe the debt simply: what you supplied, when, the invoice numbers and the amount.
- 6
Serve the statement of claim
The court can serve it by post for $56 per address, or you can arrange service yourself. Keep proof of service.
- 7
Wait 28 days, then act
If the customer pays, you are done. If they file a defence, the matter goes to a pre-trial review. If they do nothing, apply for default judgment.
- 8
Enforce the judgment if needed
A judgment is due immediately. If it is not paid, the main options are a garnishee order, an examination notice or a writ for levy of property.
What else to know
Which court: Small Claims or General Division
The Local Court of NSW hears civil claims up to $100,000. Its Small Claims Division hears claims up to $20,000, and its General Division hears claims over $20,000 and up to $100,000. Small claims are designed to be run without a lawyer. The NSW Small Business Commissioner notes that General Division matters usually require legal representation. Most unpaid invoices from small businesses sit comfortably inside the Small Claims Division.
What it costs (fees from 1 July 2026)
These are the main Local Court civil fees published by the court. The corporation fee applies if the party filing is a corporation, so a sole trader or partnership pays the standard fee. Fees usually change each 1 July, so check the court's fees page on the day you file.
The Local Court's fact sheet for defendants explains that the amount a defendant has to pay can include the fees the plaintiff paid to start the case, and sometimes interest. Include your filing and service fees in your claim.
Before you file: build a tidy evidence file
Small claims are less formal than other court work and the rules of evidence do not apply, but you still need to show what was agreed and what is owed. Gather the quote or contract and proof the customer accepted it, the invoices, delivery or completion records, every reminder and your notes of calls and promises. Put them in date order. If the customer has complained about the work, keep that correspondence too and be ready to explain your side.
Filing the statement of claim
The statement of claim is the document that starts the case. You are the plaintiff and your customer is the defendant. The NSW Online Registry lets you file it online, pay the fee and track the case. Name the defendant exactly as they appear on the ASIC or ABN register. If your customer is a company, use the company name and ACN, and its registered office is a valid address for service. Keep the description of the claim short and factual.
The 28 days after service
According to the Local Court, a defendant has 28 days from being served before further court action can be taken. In that time they can pay you, negotiate, lodge an acknowledgment of the debt, apply to pay by instalments, ask you for more information, or file a defence. If they lodge an acknowledgment of debt, the court will enter judgment against them. If they do nothing at all, you can apply to the court for default judgment.
If they defend the claim
In a defended small claims matter, the court holds a pre-trial review before setting a hearing. Its purpose is to help the parties narrow the issues and settle if they can, and many cases do settle at this point. If the matter goes to hearing, witnesses are generally not called unless the court decides otherwise, so your written material matters. Appeals from the Small Claims Division are limited to lack of jurisdiction or denial of procedural fairness, so treat the hearing as your one real chance to present your case.
Getting paid after judgment
A judgment is payable immediately. If the customer still does not pay, you can apply to enforce it. A garnishee order directs a bank or employer to pay money from the debtor's account or wages to you. An examination notice requires the debtor to give information about their finances, which helps you choose the right enforcement step. A writ for levy of property directs the Sheriff to seize and sell property, with extra costs added to the debt. The debtor can also ask the court for time to pay or to pay by instalments.
Time limits
In NSW, a claim on a contract generally has to be started within six years under section 14 of the Limitation Act 1969. Legal Aid NSW explains the six years runs from when the debt became owed, when it was last acknowledged, or when the last payment was made. Do not leave it that long. Evidence fades and debtors move or fold.
Is it worth it?
Weigh the filing fee, your time and the chance of collecting against the amount owed. A judgment against a business with no money or assets may be hard to enforce. If the debtor is a company and the debt is over $4,000 and genuinely undisputed, a statutory demand may be quicker (read our statutory demand guide first). If recovery looks unlikely, talk to your accountant about writing off the debt and claiming the tax and GST adjustments.
Final notice template (send this before you file)
Common questions
What is the small claims limit in NSW?
$20,000. The Small Claims Division of the Local Court hears claims up to $20,000. Claims over $20,000 and up to $100,000 go to the General Division.
How much does it cost to file a small claim in NSW?
From 1 July 2026 the filing fee for a statement of claim in the Small Claims Division is $179, or $358 if the plaintiff is a corporation. Having the court serve it by post costs $56 per address.
Do I need a lawyer for a NSW small claim?
No. The NSW Small Business Commissioner says you can represent yourself in the Small Claims Division. Advice can still help if the debt is disputed or large.
How long does the debtor have to respond?
28 days from being served with the statement of claim. After that, if they have not paid, settled or filed a defence, you can apply for default judgment.
Can I claim my filing fees back?
You can include them in your claim. The Local Court fact sheet notes that the amount a defendant pays can include the fees the plaintiff paid to start the case.
What if I win and they still do not pay?
The judgment is payable immediately, and you can apply for enforcement: a garnishee order on wages or a bank account, an examination notice to find out their finances, or a writ for levy of property.
Official sources
- Local Court of NSW: civil jurisdiction
- Local Court of NSW: fees (from 1 July 2026)
- NSW Online Registry (file a statement of claim)
- Local Court of NSW: Have you received a Statement of Claim? (fact sheet)
- NSW Small Business Commissioner: how mediation works and what it costs
- NSW Small Business Commissioner: I haven't been paid for a job I've completed
- Judicial Commission of NSW: limitation periods (Limitation Act 1969, s 14)
- Legal Aid NSW: types of debts and time limits
- ABN Lookup
- Search ASIC registers
Sources checked 22 October 2026. Rules and limits change, so check the official site before acting.
Related guides and tools
- What goes in a letter of demand in Australia?
- Can I use a statutory demand to recover an unpaid invoice from a company?
- Where do I make a small claim for an unpaid invoice in NSW, Victoria or Queensland?
- Late payment interest calculator
- Late payment cost calculator
- Free overdue invoice templates
- The 7 step overdue invoice playbook