In Victoria you have two main options. You can apply to the Victorian Civil and Administrative Tribunal (VCAT) for unpaid goods or services, where from 1 July 2026 the application fee for a claim of up to $15,000 is $67.40 (standard) or $202.10 (corporate). Or you can file a complaint in the Magistrates' Court of Victoria, which hears civil debts up to $100,000, with standard filing fees from $176.20 and corporate fees from $352.30 depending on the amount. Once a Magistrates' Court complaint is served, the debtor has 21 days to file a defence, or you can ask for default judgment. Defended claims under $10,000 go straight to arbitration. Send a final notice first, and consider low cost mediation through the Victorian Small Business Commission.
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, VCAT or the Magistrates' Court. Many debts are paid here, and the Magistrates' Court expects you to make a genuine attempt to resolve the dispute before you file.
- 2
Consider mediation
The Victorian Small Business Commission (VSBC) offers preliminary help and low cost mediation. For most commercial disputes each party pays $300 (including GST) for a half day or $600 for a full day. The Dispute Settlement Centre of Victoria also offers free mediation. Both are voluntary.
- 3
Get the debtor's exact legal details
Use ABN Lookup and the ASIC register to find the correct legal name and address. A trading name is not enough. VCAT cannot help with companies that are deregistered or in liquidation, so check that too.
- 4
Choose VCAT or the Magistrates' Court
VCAT suits straightforward unpaid goods and services claims and has lower fees, but expect a long wait. The Magistrates' Court hears debts up to $100,000 and has a default judgment process if the debtor does not respond. Claims over $100,000 go to a higher court.
- 5
Prepare and file
For the Magistrates' Court you file a complaint (Form 5A) with an overarching obligations certification (Form 4A) and a proper basis certification (Form 4B), in person or by post, and pay the filing fee. For VCAT you apply online through myVCAT or with a paper form and pay the application fee by card.
- 6
Serve the debtor
In the Magistrates' Court you serve a copy of the complaint and two blank notices of defence (Form 8A), then complete a sworn affidavit of service (Form 6A). A complaint is valid for service for 12 months from filing.
- 7
Wait 21 days, then act
If a Magistrates' Court complaint is not defended within 21 days of service, apply for an order in default of defence (Form 21A). For a debt, no supporting affidavit is needed. If it is defended, claims under $10,000 go to arbitration.
- 8
Enforce if they still do not pay
The court does not enforce judgments automatically, so you must apply. Options include a summons for oral examination, a warrant to seize property, attachment of debt or earnings, and an instalment order. A VCAT monetary order can be recorded in the Magistrates' Court and enforced the same way.
What else to know
At a glance: Victoria
These are the key figures from the official sites, checked 27 October 2026. Fees change each 1 July.
VCAT or the Magistrates' Court?
VCAT's goods and services list covers claims such as a service you have not been paid for, unpaid money and breach of contract, and one of its own examples is a business chasing the balance of an installation job. Its fees are much lower than the court's. The trade off is time. VCAT says to expect about 52 weeks from applying to a mediation or hearing in general, and it sends a timetable order about 16 weeks after it accepts a civil claims application. The Magistrates' Court costs more to file, but if the debtor ignores your complaint you can apply for default judgment after 21 days, without a hearing. For a clear, undisputed debt from a customer who has simply gone quiet, that can be quicker. If you are unsure, get legal advice. The VSBC notes that general business disputes can go directly to VCAT or the courts.
What it costs in the Magistrates' Court (from 1 July 2026)
The filing fee depends on the amount you claim and your fee payer category. Individuals, sole traders, partnerships, not-for-profits and businesses with turnover under $200,000 in the last financial year pay the standard fee. Businesses with turnover over $200,000 pay the corporate fee. The court says the filing fee can be claimed as costs on top of the amount in your complaint, and fees paid for enforcement can be added to the debt.
What it costs at VCAT (from 1 July 2026)
For goods and services claims under the Australian Consumer Law and Fair Trading Act 2012, the application fee is $67.40 (standard) or $202.10 (corporate) for a claim of up to $15,000, and $222.80 (standard) or $673.50 (corporate) for a claim over $15,000 or an unspecified amount. Concession fee payers pay no application fee. VCAT may also charge hearing fees and fees for mediation or a compulsory conference, which must be paid at least 5 business days before the first hearing day. VCAT publishes its fee categories, so check which one applies to you.
Mediation first: the VSBC and DSCV
The Victorian Small Business Commission delivers low cost dispute resolution for small businesses. A Dispute Resolution Officer first contacts both parties to try to resolve the matter, and the VSBC reports that 33% of matters were resolved at that stage in 2024-25. If both sides agree, it then appoints a mediator, and a successful mediation ends with signed terms of settlement that are legally binding. The VSBC currently warns of delays of about 20 weeks in responding to enquiries and applications, so factor that in. The Dispute Settlement Centre of Victoria offers free, voluntary and confidential mediation, and the Magistrates' Court points to it as a way to resolve a dispute before filing.
Before you file: build a tidy evidence file
Gather the quote or contract and proof the customer accepted it, the invoices, delivery or completion records, every reminder you sent and notes of calls and promises to pay. Put them in date order. In the Magistrates' Court your statement of claim is set out in numbered paragraphs stating the facts, so a clean timeline makes it easy to write: what you supplied, when, the invoice numbers and the amount owing.
The overarching obligations and proper basis certifications
Victoria's Civil Procedure Act 2010 requires parties to act honestly, cooperate and make a genuine attempt to resolve the dispute. That is why the Magistrates' Court asks you to file Form 4A (overarching obligations) and Form 4B (proper basis, confirming your claim is not frivolous, vexatious or an abuse of process) with your complaint. Keep your final notice and any offer of a payment plan, because they show you tried.
Interest on the debt
If your terms of trade set an interest rate on overdue invoices, you can include that in your claim. Separately, Victoria fixes a penalty interest rate on outstanding civil judgments, currently 10% a year and unchanged since 1 February 2017. The Magistrates' Court says it is calculated on the money ordered to be paid, usually backdated to the date the complaint was filed, and runs until the debt is paid in full. Our late payment interest calculator uses this rate as one of its options. Read our guide on charging interest for the difference between an agreed contract rate and a court rate.
Getting paid after judgment or a VCAT order
Winning does not mean the money arrives. The Magistrates' Court lists five enforcement actions: a summons for oral examination (to find out the debtor's finances), a warrant to seize property, attachment of debt (for example, money in a bank account), an attachment of earnings order and an instalment order. A VCAT monetary order can be recorded in the Magistrates' Court on request to VCAT, and once recorded all of those enforcement options are available. Orders over $100,000 are enforced in the County or Supreme Court.
Time limits
VCAT says you should generally apply within six years of the dispute, and if it is older the other party may argue the case should be dismissed. Court claims on a contract debt are also generally subject to a six year limit under the Limitation of Actions Act 1958. Do not wait that long. Evidence fades and debtors move or close.
Is it worth it?
Weigh the fee, your time and the chance of collecting against the amount owed. A judgment against a business with no money or assets can be hard to enforce. If the debtor is a company and the debt is over $4,000 and genuinely undisputed, a statutory demand is another option (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, and tighten your payment terms so it does not happen again. Working across states? Compare our NSW small claims guide and Queensland QCAT guide.
Final notice template (send this before you file)
Common questions
What is the small claims limit in Victoria?
Victoria has no separate small claims court. The Magistrates' Court hears civil disputes up to $100,000, and defended claims under $10,000 go straight to arbitration. VCAT also hears unpaid goods and services claims, with a lower application fee for claims of up to $15,000.
How much does it cost to file a debt claim in the Magistrates' Court of Victoria?
From 1 July 2026 the standard filing fee is $176.20 for up to $1,000, $367.90 for over $1,000 to $10,000, $559.50 for over $10,000 to less than $40,000 and $839.30 for $40,000 or more. Corporate fees (turnover over $200,000) are double. You can claim the fee as costs.
How much does a VCAT claim for an unpaid invoice cost?
From 1 July 2026 a goods and services application for up to $15,000 costs $67.40 for standard fee payers or $202.10 for corporate fee payers. Over $15,000 it is $222.80 or $673.50. Hearing and mediation fees may be extra.
How long does the debtor have to respond in Victoria?
In the Magistrates' Court, 21 days after the complaint is served. If they do not pay or file a defence, you can apply for default judgment.
Can a business take an unpaid invoice to VCAT?
Yes. VCAT's goods and services list covers a service you have not been paid for and unpaid money, and its examples include a business chasing an unpaid installation bill. It cannot help if the company is deregistered or in liquidation.
Does the Victorian Small Business Commission help with unpaid invoices?
It provides low cost dispute resolution for small businesses, starting with preliminary help and then mediation if both parties agree. Most commercial mediations cost each party $300 for a half day or $600 for a full day, including GST.
What is the penalty interest rate in Victoria?
10% a year, the rate fixed for outstanding civil judgments since 1 February 2017. It applies to judgments, not automatically to unpaid invoices.
Official sources
- Magistrates' Court of Victoria: starting a civil matter
- Magistrates' Court of Victoria: Civil Fees and Costs Ready Reckoner (from 1 July 2026, PDF)
- Magistrates' Court of Victoria: civil fees and fee payer categories
- Magistrates' Court of Victoria: resolving a dispute (arbitration under $10,000)
- Magistrates' Court of Victoria: default judgments
- Magistrates' Court of Victoria: enforcement of civil debt and penalty interest
- Magistrates' Court of Victoria: recording a VCAT monetary order
- VCAT: goods and services disputes
- Victorian Small Business Commission
- Victorian Small Business Commission: FAQs, including mediation costs
- Victorian Small Business Commission: the VSBC, VCAT and the courts
- Dispute Settlement Centre of Victoria (free mediation)
- Supreme Court of Victoria: penalty interest rates
- Limitation of Actions Act 1958 (Vic)
- ABN Lookup
- Search ASIC registers
Sources checked 27 October 2026. Rules and limits change, so check the official site before acting.