How to Chase Unpaid Invoices in Australia
What to actually do when an invoice goes 7, 14, 30, and 60 days overdue — including the legal options most Australian tradies don't know exist.
Or try it on the web →An unpaid invoice is one of the most expensive problems in trade. Time spent chasing is time not earning, and the longer an invoice sits past due, the lower the chance you'll ever collect it. The good news is there's a clear escalation path that resolves most cases inside 30 days without lawyers and without burning the relationship.
Day 1–7: Friendly reminder
Most overdue invoices aren't deliberate — clients forget, lose the email, or are waiting on their own customer to pay. A polite SMS or email on day 1 past due, then a follow-up at day 7, resolves the majority of cases. Keep the tone neutral and assume good faith. QuoteMate sends these automatically with templates that mention the invoice number, amount, due date, and a one-click payment link, so the client can pay without digging up the original invoice.
Day 14–30: Formal demand
If two reminders haven't worked, escalate to a formal letter of demand. State the original invoice details, total amount owing, any late-payment interest if specified in your terms, and a final pay-by date (usually 7 days). Reference your right to apply interest under the Late Payment of Commercial Debts standard (typically 8%–10% p.a. for B2B work) if you included it in your original quote. Most disputes get resolved at this stage because the client now sees you're documenting the trail.
Day 30+: Tribunals and debt collection
For amounts under $25,000 (NSW NCAT, VIC VCAT) or $20,000 (QLD QCAT), small claims tribunals are cheap, fast, and don't require a lawyer. Filing fees are around $50–$200 and you can usually get a hearing inside 8 weeks. For larger debts or commercial work, a debt collection agency (typically 10%–25% commission) is faster than court. The key is to have your trail documented: original quote, signed acceptance, invoice, reminders, demand letter. QuoteMate keeps all of this in one place per client.
Frequently Asked Questions
Yes, if it was specified in your original quote or contract terms. Standard rates are 8%–10% per annum for B2B debts. For consumer (residential) work, you'll need this clearly stated upfront.
Send a formal letter of demand first. If that doesn't work, your state's small claims tribunal (NCAT, VCAT, QCAT, etc.) is cheaper and faster than court for amounts under $20,000–$25,000.
For larger debts ($5,000+) or commercial clients, yes — debt collectors usually charge 10%–25% commission but are faster than court. For smaller residential debts, a tribunal is usually better value.
QuoteMate sends automated reminders at customisable intervals (e.g., 1 day, 7 days, 14 days past due), each with a one-click Square-hosted payment link. It also keeps the full audit trail (quote, acceptance, invoice, reminders) in one place if you ever need to escalate.