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Final notice or letter of demand for an unpaid invoice in Australia

A final notice is the last message you send before you decide what to do next. A letter of demand puts the same request in a formal tone, with a deadline attached.

Updated 28 September 2026

The short answer

A letter of demand is a written request for payment that states how much is owed, what it is for and the date it must be paid by. Send it only after your reminders have been ignored. Keep a copy, and send it by registered post with a signed proof of delivery so you can show it arrived.

What a letter of demand is

A final notice is the last reminder you send before you stop chasing by email. A letter of demand is that same request in a formal tone: the amount, the reason and a deadline. The federal small business site describes it as the step to take when reminders have not worked.

It is not a court document, and sending one does not start a legal case. Its value is a dated record showing you asked for the money and gave a fair chance to pay.

When it is worth sending

  • Your reminders set out the invoice and a payment date, and were ignored.
  • Your records are in order: the agreement or quote, the invoice and the emails.
  • You know who actually owes the money, which may not be the person you dealt with.
  • You are prepared to take it further. A deadline you will not follow up is worth less than no deadline.

A demand can inflame a dispute even when it is necessary, so weigh the relationship against the amount owing.

  • The invoice number and date, and the date payment was due.
  • The exact amount outstanding, including any GST, and how you reached it.
  • A deadline that names a date, not "as soon as possible".
  • How to pay, with the bank details or a payment link.
  • What happens next if the money does not arrive by then.
  • Any interest you are adding, and only where the contract allows it.
  • Copies of the invoice and any supporting documents.
  • Your business name, a contact for questions, your signature and the date.

A template you can copy

Replace everything in [SQUARE BRACKETS] and delete the lines that do not apply.

What not to put in a letter

Australian consumer law covers the way a business asks for money, and it binds the creditor as well as any collector they engage.

  • No physical force, coercion or undue harassment.
  • No misleading statements about the debt, or about its legal status.
  • No threat of action you are not permitted to take, or do not intend to take.
  • Nothing about the police or criminal charges, unless there is more to it than non payment.
  • No threat to list the debt with a credit reporting body unless you are allowed to and will do it.

How to prove you sent it

  • Send by registered post and keep the signed proof of delivery card, as the federal small business site recommends.
  • Keep a copy exactly as sent, with the date and signature on it.
  • For email, send from your own account, keep the sent item and attach the invoice.
  • If the letter is returned, note the date and try a second method.
  • Check the correct legal name and registered address on the business register first.
  • Put the deadline in your own calendar, because the date matters if you file later.

How it fits with the next steps

  1. Send the reminders your process provides, and record what was sent and when.
  2. Send the demand with a named deadline, and keep proof that it arrived.
  3. If the deadline passes, decide whether the amount justifies an application to the tribunal or lower court where you are.
  4. Check the time limit for a claim before you wait any longer.
  5. If you obtain an order and it is unpaid, enforcement is a separate step with its own fees.

The stage before the demand is worth automating. The app sends four reminders after the due date, at 3, 10, 21 and 35 days, and stops them when the invoice is paid.

Get the reminders handled, then send the demand yourself

Start on the free plan

Questions people ask

Is a letter of demand a legal document?
No. It is a written request for payment, not a court form, and sending one does not start a legal case. Its main use is as a dated record that you asked for the money.
How long should the deadline be?
Give a date rather than a number of weeks. There is no single figure in the federal guidance, and some official guidance treats about 28 days as reasonable.
Can I add interest to the amount?
Only if your contract or terms allow it. The federal small business site says include a late payment interest rate only if the contract specified one.
What if the demand is ignored?
The letter does not change the debt. Your options are usually to negotiate a payment plan, get advice, or apply to the tribunal or court that hears small debt claims where you are.

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