Guide · updated November 2026

Statutory demands: a cautious explainer

If the debtor is a company and owes at least $4,000, a creditor's statutory demand under the Corporations Act is another option. It's a serious step with strict rules and a 21-day response period, and it can't be used for genuinely disputed debts. Get legal advice before using one.

For most small debts, a letter of demand followed by a small claims application is simpler and lower risk.

More: Letter of demand for an unpaid invoice: what to include · Unpaid invoice reminder emails that actually get paid · Recovering an unpaid invoice in NSW · Recovering an unpaid invoice in Victoria · QCAT minor debt claims for unpaid invoices · Can you charge interest on late invoices? · Payment plan agreements for overdue invoices