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.
What an unpaid invoice actually costs you
More than the invoice total. On a $4,400 bathroom job you have usually already paid for materials on your trade account, so the money owing is mostly your labour, and the supplier bill lands in 30 days whether the client pays or not. Then there's the chasing: three phone calls, a couple of texts and a re-sent invoice is easily two hours of admin, which is $180–$200 of unpaid time at typical charge-out rates. The longer it drags, the worse your odds. An invoice that is 90 days overdue is far harder to collect than one chased in the first fortnight, so treat week one as the cheapest collection window you will ever get.
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.
When the client disputes the work instead of paying
A dispute and a debt need different handling. First, get the complaint in writing: ask exactly what is wrong and where. If it's a genuine defect, fix it fast, because a rectified defect removes the excuse and most clients pay within days. If only part of the job is disputed, ask for the undisputed balance now and resolve the rest separately — that's what a tribunal would expect anyway. If the work is sound and the dispute is a stalling tactic, put your paper trail in front of them: signed quote, written variations, completion photos. For building and construction work, every state also has security of payment legislation that lets you recover progress payments through fast adjudication instead of court.
How to stop unpaid invoices happening again
Collection starts at the quote, not the invoice. Take a deposit before you order materials (our deposits guide below covers the state rules). Break anything longer than a week into progress payments tied to milestones, so no single invoice is big enough to hurt. Put payment terms on the quote itself, and make them 7 days, not 30 — residential clients don't need trade terms. Most effective of all: take payment on site the moment the job is signed off. QuoteMate turns the quote into an invoice on the spot and takes card payment through Square before you've packed the ute, which beats any reminder schedule ever written.
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.
Legally, up to six years in most states and territories (three in the Northern Territory) before the debt is statute-barred. Practically, collect early — the odds fall away sharply after 90 days. If an invoice is heading past 30 days, escalate to a letter of demand rather than sending a fourth reminder.
You can usually suspend further work when payment terms are breached, and for commercial or staged construction work the security of payment acts set out a formal process for it. Don't remove installed materials — once fixed to the property they are generally no longer yours to take, and doing so can turn a debt you're owed into a claim against you.
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.