A letter of demand is the polite-but-unmistakable last warning before you go to court. Done well, it's often all you need. Done badly, it's a strongly worded suggestion that goes straight in the bin.
Why bother with a letter at all?
Three reasons. First, plenty of people pay the moment something official-looking lands — it turns a vague "I'll sort it" into a dated deadline. Second, courts and tribunals expect you to have tried to resolve the dispute before filing, and some (South Australia's minor civil claims, for example) effectively require a final notice first. Third, if you do end up in front of a decision-maker, a clear letter is Exhibit A that you were reasonable.
The seven ingredients
- Who you are and who they are. Use the respondent's exact legal name. If it's a business, look up the ABN on the Australian Business Register — suing "Dave's Plumbing" when the entity is "D.R. Smith Pty Ltd" makes orders harder to enforce.
- The facts, in order. Short numbered paragraphs. Dates, what was agreed, what you did, what they didn't do.
- The amount, and how you got there. Break it down. Invoice 1042: $1,850. Late fee per the agreed terms: $0 (don't invent extras).
- The deadline. A specific date, not "soon". 14 to 21 days is typical. We use 21.
- How to pay. BSB and account, PayID, whatever works. Remove every excuse.
- What happens next. You intend to file in the named court or tribunal and seek the amount plus filing fees and interest where allowed. Factual, not threatening.
- An off-ramp. Invite a written payment plan. People who can't pay all at once will often pay something.
The three mistakes
- Threats you can't (or shouldn't) make. "I'll ruin your credit", "I'll tell your boss", "I'll call the police" — those can cross into harassment or coercion under the Australian Consumer Law. Stick to lawful next steps.
- Essays. If it's longer than a page and a half, it's a rant. Cut it.
- Vague numbers. "Around two grand" invites an argument. "$2,180, made up of…" doesn't.
Then what?
Send it in a way you can prove — email with a read receipt, or registered post — and keep a copy. Then wait. If the deadline passes, you're ready to file. SueAnyone gives them 21 days (posted letters run from expected receipt), adds 3 days' grace, then unlocks your claim paperwork on day 24.
General information only, not legal advice. Written by the SueAnyone editorial team.