Letter of demand: free template

What is a letter of demand?

A letter of demand is a formal letter asking someone to pay money they owe you by a set date, and telling them what you will do if they don’t — usually start a claim in your state’s local court or tribunal. It is the normal first step before a small claim, and courts and tribunals expect to see that you tried to sort the dispute out before filing.

What to include

Legal Aid NSW says a letter of demand should state how much is owed and why, when it was due, and what you will do if it isn’t paid. A complete letter covers:

• Your name and address, the date, and the other party’s name and address.
• What the money is for — the invoice, loan, damage or agreement — with dates.
• The exact amount, and when it was due.
• A clear deadline to pay.
• What you will do if they don’t: start proceedings in a named court or tribunal.
• How to pay you.

If there is an apprehended violence order between you, get legal advice first — Legal Aid NSW warns that sending a letter may breach it.

How long to give them

14 days is common, and is the example the WA Magistrates Court uses; Legal Aid NSW’s sample letter allows about two weeks. The NT Government suggests 28 days for debts. In South Australia you must allow at least 21 days — the form above sets that automatically when you choose SA.

Is a letter of demand required?

• South Australia: effectively yes. Before a minor civil claim you must give written notice of your intention to sue — the court’s Final Notice form or a letter of demand with your full name and address for service and the action and relief you will seek — and wait at least 21 days. If you don’t, you can’t recover your filing costs.
• Victoria: to start a claim in the Magistrates’ Court you file a certification (Form 4A) that you made a genuine attempt to resolve the dispute, and a letter of demand is the usual evidence of it.
• Everywhere else: recommended rather than required. The NT Government says you should send one, the ACT tribunal encourages you to resolve the dispute first and attach your letter, and the WA court lists it as an option.

The federal “genuine steps” statement under the Civil Dispute Resolution Act 2011 applies only in the Federal Court and the Federal Circuit and Family Court, not to state small claims.

Where to claim if they don’t pay

Limits checked against each court or tribunal’s own site on 18 October 2026. Filing fees vary by state and amount, so check the forum’s fee page before you file.

Letter of demand in NSW

Most debt claims up to $20,000 go to the Small Claims Division of the NSW Local Court. NCAT’s consumer claims list, up to $100,000, is only for consumers claiming against a business that supplied goods or services, and you must apply within three years. You can claim pre-judgment interest only if the debt is $1,000 or more, from the day after it was due until you file, at the contract rate or else the court rate — 8.35% for July to December 2026. Rental bonds are held by NSW Fair Trading through Rental Bonds Online; if a tenant disputes a landlord’s claim on the bond, the landlord has 14 days from the notice to apply to NCAT.

Letter of demand in Queensland

QCAT hears minor debt disputes up to $25,000, excluding interest, where the agreement is no more than six years old; larger claims go to the Magistrates Court, up to $150,000. Rental bonds are held by the Residential Tenancies Authority: when a claim is lodged, the other party has 14 days to request dispute resolution, the RTA tries conciliation, and an unresolved dispute can then go to QCAT.

Letter of demand in Victoria

The Magistrates’ Court hears civil claims up to $100,000 and sends defended claims under $10,000 straight to arbitration; you must certify that you tried to resolve the dispute first. Disputes about goods and services, including unpaid money for them, can go to VCAT, which treats claims under $15,000 as small claims, with a lower fee and generally no lawyers. Rental bonds are held by the RTBA; bond disputes go to Rental Dispute Resolution Victoria first, then VCAT.

Time limits

You have six years to sue on a simple contract debt in New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania and the ACT, and three years in the Northern Territory. Part-payment or a written acknowledgment of the debt can restart the period. A letter of demand does not pause it.

Keep it firm, not threatening

The Australian Consumer Law and the ASIC Act prohibit physical force, undue harassment and coercion in collecting payment, and the SA Law Handbook notes that threatening legal proceedings solely to intimidate can amount to coercion. Say only what you will actually do — start a claim — and say it once.

This page explains general rules as of October 2026. It is not legal advice. For a large claim, a complex dispute or a time limit that is close, speak to a lawyer, your state’s Legal Aid or a community legal centre.