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Demand Letter Template
A demand letter is a formal written request for payment or performance, sent before commencing legal proceedings. Use our free Australian template to demand an overdue debt, enforce a contract, or seek compensation in a letter that is clear, professional, and consistent with state Limitation Acts and court pre-action requirements.
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Harbour Digital Pty Ltd
Level 12, 1 Martin Place, Sydney NSW 2000
+61 2 9876 5432
accounts@harbourdigital.com.au
25 April 2026
Southern Ventures Pty Ltd
45 Collins Street, Melbourne VIC 3000
RE
FORMAL DEMAND — UNPAID INVOICE / OUTSTANDING PAYMENT (INV-2026-042)
Dear Southern Ventures Pty Ltd,
We write to formally demand payment of the sum of 8,500.00 AUD (Australian dollars) which is currently owed to Harbour Digital Pty Ltd (ABN 12 345 678 901). This demand relates to the following matter:
PARTICULARS OF CLAIM
Please note that interest is accruing on the outstanding amount at the rate of 10% per annum from the date the amount became payable. We reserve the right to claim all accrued interest as part of any legal proceedings.
CONSEQUENCES OF NON-PAYMENT
If payment is not received within the specified deadline, we intend to pursue all available legal remedies without further notice, which may include:
We trust this matter can be resolved without the need for legal proceedings and urge you to respond promptly and in good faith. Please direct all correspondence regarding this matter to the address set out above.
We write to formally demand payment of the sum of 8,500.00 AUD (Australian dollars) which is currently owed to Harbour Digital Pty Ltd (ABN 12 345 678 901). This demand relates to the following matter:
PARTICULARS OF CLAIM
Reference: INV-2026-042
Original Due Date: 31 March 2026
On 1 March 2026, Harbour Digital Pty Ltd (ABN 12 345 678 901) delivered digital marketing services to Southern Ventures Pty Ltd pursuant to the Services Agreement dated 15 February 2026. Invoice INV-2026-042 for 8,500.00 AUD was issued on 1 March 2026 with payment due by 31 March 2026. Despite follow-up communications on 7 April 2026 and 18 April 2026, the invoice remains unpaid as at the date of this letter.
You are required to pay the full outstanding amount of 8,500.00 AUD within 14 days of the date of this letter. Payment should be made by bank transfer, bank cheque, or other mutually agreed method. Please reference this demand letter when making payment.Original Due Date: 31 March 2026
On 1 March 2026, Harbour Digital Pty Ltd (ABN 12 345 678 901) delivered digital marketing services to Southern Ventures Pty Ltd pursuant to the Services Agreement dated 15 February 2026. Invoice INV-2026-042 for 8,500.00 AUD was issued on 1 March 2026 with payment due by 31 March 2026. Despite follow-up communications on 7 April 2026 and 18 April 2026, the invoice remains unpaid as at the date of this letter.
Please note that interest is accruing on the outstanding amount at the rate of 10% per annum from the date the amount became payable. We reserve the right to claim all accrued interest as part of any legal proceedings.
CONSEQUENCES OF NON-PAYMENT
If payment is not received within the specified deadline, we intend to pursue all available legal remedies without further notice, which may include:
(a) Filing a claim in the NSW Local Court (jurisdiction up to 100,000 AUD), or the NSW District Court / Supreme Court for larger claims;
(b) Engaging a debt collection agency in accordance with the ACCC/ASIC Debt Collection Guideline for Collectors and Creditors (2014);
(c) Reporting the debt to credit reporting agencies as permitted by the Privacy Act 1988 (Cth) and the Australian Privacy Principles;
(d) Recovery of all legal costs and disbursements incurred in connection with this matter.
We trust this matter can be resolved without the need for legal proceedings and urge you to respond promptly and in good faith. Please direct all correspondence regarding this matter to the address set out above.
YOURS FAITHFULLY
Harbour Digital Pty Ltd
Date: ____________________
Method of Delivery: This letter was sent via _____________________ (registered post / courier / email) on 25 April 2026. A copy has been retained for the sender's records.
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What Is a Demand Letter?
A demand letter is a written request from a creditor or aggrieved party to a debtor or wrongdoer requiring payment, performance, or remediation by a specified deadline. It identifies the obligation, the amount due or conduct required, and the consequences of non-compliance, typically the commencement of legal proceedings or referral to debt recovery.
In Australia, demand letters are routinely used to recover unpaid invoices, enforce contractual obligations, pursue damages for breach of contract, and open pre-litigation negotiations. Most Australian courts and tribunals expect parties to have attempted genuine pre-action correspondence before filing. The Federal Court's Central Practice Note (CPN-1) requires parties to take genuine steps to resolve disputes, and section 4 of the Civil Dispute Resolution Act 2011 (Cth) applies to federal proceedings.
Sending a formal demand can also be important for the running of the limitation period. Under state Limitation Acts — Limitation Act 1969 (NSW), Limitation of Actions Act 1958 (Vic), Limitation of Actions Act 1974 (Qld), Limitation Act 2005 (WA), and equivalents — contract and debt claims are generally time-limited to 6 years (3 years for some claims). A demand letter does not stop the clock, but it can evidence the cause of action and trigger obligations on the debtor to respond.
What's Covered in This Template
Our demand letter covers every element needed to make a compelling pre-litigation demand.
Sender and Recipient
Full legal names and addresses of the creditor and debtor.
Background and Context
Brief description of the contract or transaction giving rise to the obligation.
Amount or Action Demanded
Precise amount, interest calculation, or specific performance sought.
Basis for the Demand
Reference to the contract, invoice, or legal right relied on.
Evidence of Debt
Reference to unpaid invoices, statements, or other documents.
Interest and Costs
Interest claimed at contractual or statutory rates and debt recovery costs.
Payment Instructions
Bank account, BPAY, or other payment methods for settlement.
Deadline
Clear deadline for payment or response, typically 7, 14, or 21 days.
Consequences Statement
Outline of intended proceedings if the demand is not met.
Record of Prior Communications
Summary of previous requests and any response.
Preservation of Rights
Reservation of all other rights and remedies.
Contact for Response
Details for the debtor to respond, negotiate, or provide payment confirmation.
How to Create a Demand Letter
Follow these steps to produce a professional, enforceable demand letter in minutes.
- 1
Enter Party Details
Provide the creditor's and debtor's legal names and addresses.
- 2
Describe the Obligation
Summarise the contract, invoice, or legal basis for the demand with dates and references.
- 3
State the Amount and Interest
Specify the amount owed, interest calculation, and any recovery costs.
- 4
Set Payment and Deadline
Provide payment instructions and a clear deadline for compliance.
- 5
Review and Download
Add consequences, reservation of rights, and evidence, then download the PDF.
Why Doxuno documents are different
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Always current
Always current with the law
Templates carrying statute references are continuously updated as the law changes. Your document always reflects the current legal framework.
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Legal Considerations
A demand letter is the first formal step in most debt recovery and contract dispute matters.
This template is for informational purposes only and does not constitute legal advice. For significant debts, consider engaging an Australian legal practitioner or debt recovery agency.
Reviewed for Australian law
Limitation Periods
Under state Limitation Acts, contract and simple debt claims are generally time-barred 6 years after the cause of action accrues (3 years for claims under the Australian Consumer Law in some circumstances). Deeds have a 12-year limitation period in most states. A demand letter does not pause the limitation clock, so delay is not recommended.
Interest on Commercial Debts
Contractual interest applies if expressly stated. In the absence of a contractual rate, state Supreme Court pre-judgment interest rates (such as the rate set under the Uniform Civil Procedure Rules 2005 (NSW) Part 36) apply on judgment, currently around 8-10%. Business-to-business late payment is also regulated by the Business Payment Times Reporting Act 2020 (Cth) for large enterprises.
Insolvency Demand — Statutory Demand
For debts of $4,000 or more owed by a corporation, a creditor may serve a Creditor's Statutory Demand under section 459E of the Corporations Act 2001 (Cth). Failure to pay or apply to set aside within 21 days creates a presumption of insolvency, enabling a winding-up application. A statutory demand is distinct from an ordinary demand letter and must meet strict form requirements.
Bankruptcy Notices
For debts of $10,000 or more owed by an individual, a creditor with a judgment debt may serve a Bankruptcy Notice under section 41 of the Bankruptcy Act 1966 (Cth). Non-compliance within 21 days constitutes an act of bankruptcy. A creditor's petition for a sequestration order may then be presented to the Federal Circuit and Family Court.
Frequently Asked Questions
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