Letter of Demand Template (Australia)
Get Paid Without a Lawyer or a Debt Collector
Our letter of demand template turns an ignored invoice into a formal demand for payment in under 10 minutes. Send the Hard version as a final demand, or the Soft version to keep the customer.
Since 2009, our law firm has helped 10,200+ Australian entrepreneurs with easy-to-use legal templates + solutions. Read what 500+ clients say about Legal123
From Unpaid Invoice to Formal Letter of Demand in 10 Minutes
Instant Online Access to Your Template
Log into your Legal123 dashboard after purchase. You’ll see your Letter of Demand template ready to use alongside any other templates you’ve purchased. Works on any device, no downloads, no software.
Fill in the Smart Form Online
Answer a few simple questions about your unpaid debt – debtor’s details, amount owed, payment deadline and how you want to be paid. Skip the legal jargon – we translate everything into plain English.
Download Your Letter of Demand as a PDF
Hit “Generate” and get a professionally formatted PDF. Your details are set out in legally tested language drafted by Australian commercial lawyers. Ready to send by email or post.
What’s Included in the Letter of Demand Template?
- Hard version (Final Demand) – Sets a firm deadline and states you will start court action if the debt is not paid. No negotiation.
- Soft version – Firm but friendly. Use it when you want to keep the client relationship. Offers payment options: the full amount, a reduced amount or instalments.
- Smart online form – Generates your letter as a PDF in minutes.
- Video walkthrough – Watch us fill in the form, step by step.
- Extra video, 5 FAQs – Accepting a lesser amount, claiming costs and interest, no response to your letter, no response to your claim, getting paid after judgment.
- Still not paid? Guide – How to file a claim in your state’s small claims court or tribunal, with links to the official forms.
- Email support – Technical support if you get stuck.
- Unlimited use – One purchase covers every debt you chase.
Ripped Off by a Website Designer. Paid Back in a Day.
The Problem
David runs BoatStripes.com.au, a business selling custom boat logos and stripes. He paid a website designer $4,500 up front to build his new site, but the work was never delivered. For weeks he chased the designer by phone and email and got excuses, then silence. A debt collector wasn’t interested in a debt that size. A lawyer’s letter would have cost a big share of what he was owed. It looked like he would have to write the money off.
The Fix
David bought our Letter of Demand template and filled in the online form in a few minutes. He chose the Hard version: a formal final demand setting out exactly what was owed, a deadline to pay, and notice that he would file a claim in court if the money didn’t arrive. That turned an easy-to-ignore request into a clear legal consequence. The designer paid in full the next day.
Excellent and easy to use web site. From the USA, I needed an AU format for some claims letters and found exactly what I needed.
Thank you legal123, I used your template today so as to assist a client with growing outstanding debtors and found the template and your advice etc very straightforward. Very impressive.
The letter was great. I actually retyped it onto my own letterhead for more impact. The client didn't pay all that he owed but he did pay some. So now I need the info to take him to court. And with Legal123 I have the confidence to do this.
Letter of Demand Template $99 +GST
Is This Letter of Demand Template Right for You?
- Format: PDF letter, generated from an online form
- Versions: Hard (Final Demand) and Soft (negotiation)
- Time to Complete: Under 10 minutes
- Jurisdiction: All Australian states and territories
- Price: $99 +GST, one-time purchase, unlimited use
- Last Reviewed: October 2026
Australian-Specific Provisions
- Payment deadline: You set the date, with notice that you will start proceedings in your state’s court or tribunal
- Small claims steps: For all 8 states and territories
- Soft version: Payment options of the full amount, a reduced amount or instalments
Alternative Names
- Demand Letter
- Letter of Demand for Payment
- Payment Demand Letter
- Final Notice
- Notice of Demand
- Debt Recovery Letter
Perfect For
- Businesses and sole traders with unpaid invoices
- Freelancers, consultants and contractors chasing payment
- Anyone owed money under a contract or private loan
- Customers who paid for work that was not delivered
Not Suitable For
- Replying to a letter of demand you have received (read our guide)
- Debts older than 6 years (3 years in the NT)
- Disputes where the amount or the work itself is contested: get legal advice first
Further Information
What Is a Letter of Demand and When Should You Send One?
Australian small businesses were paid an average of 6.0 days late in the June 2026 quarter, and Xero’s March 2026 research put the cost of late payment at $15,257 a year for the average small business. A letter of demand is the cheapest formal step you can take before going to court.
A letter of demand is a formal written request for payment of a debt. It states what is owed, why, the deadline to pay, and what you will do if the debt is not paid, usually start proceedings in court. It is not a court document and does not create a debt, but it shows a court you gave the debtor a fair chance to pay.
Can I Send a Letter of Demand Without a Lawyer?
Yes. No law says a lawyer must send it. A letter on a lawyer’s letterhead can add weight, but it costs far more than the debt is often worth. A clear, formal letter of demand template gets most debts paid, and you can file a small claim yourself if it does not.
Hard or Soft: Which Version Should You Send?
Send the Soft version when you want to keep the customer or you are open to instalments or a reduced amount. Send the Hard version when you have asked enough and are ready to go to court. Many businesses send the Soft version first and the Hard version as the final demand. Give 7 to 21 days to pay, which shows a court you were reasonable.
How Long Do You Have to Chase a Debt?
Six years from the date payment fell due in every state and the ACT. Three years in the Northern Territory. These limits apply to ordinary contract debts such as unpaid invoices and loans. Debts under a deed have longer periods.
| State or territory | Time limit for a contract debt |
|---|---|
| NSW | 6 years (Limitation Act 1969, s 14) |
| VIC | 6 years |
| QLD | 6 years |
| WA | 6 years |
| SA | 6 years |
| TAS | 6 years |
| ACT | 6 years |
| NT | 3 years (Limitation Act 1981, s 12) |
What If They Still Don’t Pay?
File a small claim. Each state has a low-cost court or tribunal for smaller debts, and you can run the claim yourself.
| State | Where to file | Limit |
|---|---|---|
| NSW | Local Court, Small Claims Division | Up to $20,000 |
| VIC | Magistrates’ Court of Victoria | Civil claims up to $100,000 |
| QLD | QCAT, minor debt claim | Up to $25,000 (excluding interest) |
| WA | Magistrates Court, minor case claim | Up to $10,000 |
| SA | Magistrates Court, minor civil action | Up to $12,000 |
| TAS | Magistrates Court, minor civil claim | $15,000 or less |
| ACT | ACT Civil and Administrative Tribunal (ACAT) | Under $25,000 |
| NT | NTCAT, small claims | Up to $25,000 |
Filing fees change every 1 July; check your court’s fee page. Step by step: How to Write a Letter of Demand in Australia.
Frequently Asked Questions
Is this letter of demand template valid in every Australian state?
Yes. A letter of demand is not a court form, so the same letter works in every state and territory. The small claims steps included with the template cover all 8 jurisdictions.
Can I send a letter of demand without a lawyer?
Yes. No law requires a lawyer. Our template gives you a formal, lawyer-drafted letter for $99 +GST, a fraction of what a law firm charges to send one.
Is there a free letter of demand template in Australia?
Yes, but most free templates are a single generic letter, and many are written for US law. Ours includes Hard and Soft versions, a video walkthrough, small claims steps for your state and technical support, for $99 +GST.
Can I use this letter of demand template in NSW?
Yes. If the debtor does not pay, debts up to $20,000 go to the Small Claims Division of the NSW Local Court.
Can I use it in Queensland?
Yes. Unpaid debts up to $25,000 (excluding interest) can be claimed at QCAT as a minor debt claim.
Is a letter of demand legally binding?
No. It is a formal request, not a court order. Its job is to get you paid without court, and to show a court you gave the debtor a fair chance if you do need to file a claim.
How long should I give the debtor to pay?
You choose the deadline. Between 7 and 21 days is common, and shows a court you acted reasonably.
How should I send my letter of demand?
By email and by post to the debtor’s business or home address, or to the address for notices in your contract. Keep a copy and proof that you sent it.
How long do I have to send a letter of demand?
Six years from the date payment fell due in every state and the ACT, three years in the Northern Territory. Do not wait: the older a debt, the harder it is to collect.
What if the debtor ignores my letter of demand?
File a claim in your state’s small claims court or tribunal. The template includes step-by-step instructions and links to the official forms for every state.
Do I get the letter in Word or PDF?
PDF, generated from the online form. To change it, fill in the form again and download a new letter.
What if I am not satisfied with the template?
At Legal123, we take great pride in providing high-quality, effective, and easy-to-use legal templates. We guarantee that our templates are legally sound for the circumstances described in the product details.
If you have questions about whether this template is right for you, we encourage you to contact us before purchasing.
While we do not provide refunds for change-of-mind or incorrect purchases, we will happily assist with any concerns about product suitability. In the rare event of a technical issue preventing you from using the template, we will provide a full refund if we cannot resolve it. Find more details about our guarantee here.
Letter of Demand Template $99 +GST