How to get money owed to you in Australia

If someone owes you money, start by getting your facts and paperwork in order, then attempt an informal resolution and follow with a short, clear written demand. If that fails, move to the cheapest effective formal route—an industry dispute scheme where appropriate, a small‑claims or tribunal application, or a magistrates court claim—and finally enforce any judgment by garnishee, seizure or instalment order if necessary. This sequence minimises cost and preserves your options if the debtor is insolvent or disputes the debt.

Understanding this sequence—and the limits that apply in different states—lets you make a realistic choice about whether to negotiate, sue, or walk away.

Gather the documents that matter first

Before you contact the other party or start any formal process, assemble the evidence a court or tribunal will want. That typically includes the contract or written agreement, invoices, delivery receipts, timesheets or completion photographs, email and SMS exchanges, and bank statements showing non‑payment. Good records do two things: they make a strong case if you must file, and they help you spot whether the issue is a simple administrative error or a genuine dispute about quality, scope or timing.

ASIC’s guidance to businesses emphasises early record‑keeping and assessment when facing payment problems; keeping clear, chronological files will also help if a liquidator or trustee becomes involved later (ASIC guidance on financial difficulties).

Try to resolve it quickly: contact, negotiate, then send a written demand

Many unpaid invoices are resolved at this stage. Call the debtor to check whether there is a genuine cashflow problem, a billing error, or a disputed item. Where appropriate, offer a short payment plan or an agreed date for full payment. Keep notes of every conversation.

If informal contact does not produce payment, send a concise written letter of demand. A useful demand states the amount owing, why it is owed (contract, invoice number, dates), any attempts you made to resolve the matter, and a clear deadline for payment (commonly 7–14 days). Explain the next step you’ll take if the deadline passes (for example, lodge a tribunal claim or commence court proceedings) without threats; that keeps the demand professional and credible.

A well‑framed written demand can persuade an organisation to prioritise payment, and it creates a paper trail that is valuable in tribunal or court proceedings. ASIC’s business guidance recommends early negotiation and clear written steps to preserve remedies (ASIC guidance on financial difficulties).

Use industry dispute channels when they apply

If the debt is with a regulated financial firm—such as a bank, insurer or superannuation fund—use the company’s internal dispute resolution process and, if unsuccessful, escalate to the Australian Financial Complaints Authority (AFCA). ASIC points business users toward these industry dispute routes as cheaper, simpler alternatives to court for financial disputes (ASIC guidance on financial difficulties).

For ordinary business‑to‑business unpaid invoices, consider free templates and dispute‑resolution advice available through government resources before moving to litigation; this preserves your position and keeps costs lower.

When to start a tribunal or court claim

If negotiation and any applicable dispute scheme fail, the next step is a tribunal or court claim. For relatively small amounts you will usually use your state or territory’s small‑claims division (NCAT in NSW, VCAT in Victoria, QCAT in Queensland, and equivalent magistrates or tribunals elsewhere). Monetary limits, forms and fees vary between jurisdictions, so check the relevant tribunal or magistrates court website in your state.

Legal Aid Queensland explains that creditors can apply for a money order and that courts may enter default judgment if the defendant does not respond—an outcome that can speed enforcement (Legal Aid Queensland—'I owe money').

Before you file, estimate whether the likely recovery justifies the court fees and your time. For larger or more complex claims (guarantees, mortgages, disputed accounts), get legal advice. If the debtor raises a genuine factual dispute, you will need to prove the elements of your claim—contract terms, delivery, acceptance and non‑payment—so your earlier evidence gathering matters.

Enforcing a judgment: practical tools and limits

If a tribunal or court orders the debtor to pay and they still do not, you can use enforcement tools. Common measures include garnishee orders against bank accounts or wages, writs of execution that allow seizure and sale of property, and instalment arrangements ordered by the court. Names and procedures differ by state; enforcement may also be limited by protected assets (for example, some household goods or minimum income thresholds).

Legal Aid Queensland describes these enforcement options and cautions that they require additional steps and costs. Weigh the debtor’s apparent ability to pay before spending heavily on enforcement (Legal Aid Queensland—'I owe money').

Insolvency changes everything

If the debtor is insolvent—an individual who is bankrupt or a company in liquidation—your path to recovery is different. A liquidator or trustee controls the debtor’s assets and distributes proceeds to creditors in priority order. If the debtor has no unencumbered assets, a judgment may not yield cash. ASIC’s insolvency guidance explains the limitations of recovery through bankruptcy or liquidation and why secured creditors often have the best chance of recovery (ASIC: personal bankruptcy & liquidation information).

If you suspect insolvency, seek professional advice early: a registered liquidator or a lawyer can advise whether you should lodge a proof of debt, apply to be a secured creditor, or challenge preferential payments.

Practical trade‑offs: cost, time and state differences

Three pragmatic constraints shape most decisions: the cost of pursuing the debt, the debtor’s apparent ability to pay, and procedural differences between states. Courts and tribunals remain available, but their monetary caps, forms, fees and enforcement names vary—so use your state’s court or tribunal resources for precise steps and forms. Legal Aid Queensland recommends getting targeted legal help when the sums are large or insolvency is claimed (Legal Aid Queensland—'I owe money').

A realistic example: a small supplier owed $3,000 should usually begin with a phone call and a written demand, then a small‑claims application if necessary; by contrast, a $50,000 disputed invoice may justify early legal advice and a magistrates court filing.

What you should do next

1. Gather contract, invoices, delivery proofs and communications. 2. Call the debtor, then send a clear written demand with a short deadline. 3. Use an internal dispute process or AFCA if the counterparty is a financial firm. 4. If unpaid, file in the appropriate tribunal or magistrates court for your state. 5. If you obtain judgment and the debtor still refuses, pursue enforcement options—but check the debtor’s solvency first.

If you prefer a professionally prepared written demand to present your case clearly and cheaply before escalating, consider a specialist document service that drafts a firm, notarised demand from the facts you supply. For one option, see .

There is no guaranteed route to payment: sometimes a debtor is genuinely assetless or insolvent, and legal action costs can exceed the amount recoverable. Use the steps above to choose the least costly effective path, and get legal or insolvency advice when the claim is large, the debtor claims insolvency, or the facts are seriously contested.

For help preparing a professional demand letter, BeforeSuit can help you prepare your next steps.