Guide
How to chase an unpaid invoice in Australia and New Zealand
Start with a friendly reminder, then a firmer one in writing, then a letter of demand, and only after that a debt collector or a small claims court. A late payment may just be an oversight, so the first reminder may be all it takes.
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Five steps, in order
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Check what was agreed
Look at the quote or contract for the due date, the payment method and anything agreed about late payment. If the deal was verbal, keep the emails or texts that show it.
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Send a reminder
Phone, email, write or call in to remind them, agree a new date, or offer a payment plan. When you invoice a larger business, Australia's small business ombudsman suggests contacting its accounts area once payment is 1 to 2 days overdue. In New Zealand, business.govt.nz suggests an email two business days after the due date and a phone call after a week with no reply.
business.gov.au · asbfeo.gov.au · asbfeo.gov.au · business.govt.nz
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Send a letter of demand
If reminders get no reply, put it in writing: how much is owed, what for, and the date to pay by. Make sure it's accurate, polite, signed and dated, only adds late-payment interest if your contract allowed it, and only mentions action you're prepared to take. Check who owns the business that owes you, because it may not be the person you dealt with.
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Get help to collect
A debt collector usually charges a commission of between 5% and 30% of the debt, and telling the customer you're about to use one may be enough to get paid. For help weighing up your options (the ombudsman doesn't collect debts), call its information line on 1300 650 460.
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Take it to small claims
If nothing else works, lodge a claim with the court or tribunal that hears debts of that size where you are. The table below has where to go.
Where to take it
| Where | Who hears it | Source |
|---|---|---|
| New South Wales | Local Court, Small Claims Division, up to $20,000 (General Division up to $100,000) | localcourt.nsw.gov.au |
| Victoria | Magistrates' Court for debts up to $100,000, or VCAT's Civil Claims List for unpaid services | mcv.vic.gov.au · vcat.vic.gov.au |
| Queensland | QCAT minor debt claims up to $25,000, for an amount the customer agreed to pay | qcat.qld.gov.au |
| Western Australia | Magistrates Court minor claims up to $10,000 (debt claims up to $75,000) | magistratescourt.wa.gov.au |
| South Australia | Magistrates Court minor claims up to $12,000; send a final notice and wait 21 days before filing, or you may not recover your filing costs | courts.sa.gov.au · courts.sa.gov.au |
| New Zealand | Disputes Tribunal for disputed debts up to $60,000; a debt the customer admits but won't pay goes to the District Court | disputestribunal.govt.nz · justice.govt.nz |
Stay on the right side of the law
The ACCC and ASIC debt collection guideline covers a business chasing its own customers, not just collection agencies.
- No harassment, force or pressure, and no unnecessary or excessive contact meant to wear the customer down. download.asic.gov.au
- Phone on weekdays between 7:30am and 9pm, and weekends between 9am and 9pm, the customer's time. Avoid national public holidays, and in South Australia any public holiday. download.asic.gov.au
- No more than 3 contacts a week or 10 a month is the recommended limit, and only when needed. download.asic.gov.au
- Don't threaten action you can't take or don't intend to take, and don't make a letter look like a court or lawyer's document when it isn't. download.asic.gov.au
- Don't pressure the customer through their partner, family or anyone else. download.asic.gov.au
- In New Zealand, the Fair Trading Act bans misleading claims and harassment when collecting debts. comcom.govt.nz
Stop it happening next time
- Put payment terms on every quote and invoice: how you want to be paid, by when, and what happens if it's late. For example, business customers might pay in 7, 14, 21 or 31 days. business.gov.au
- Invoice as soon as the work is done, and split long jobs into smaller payments. business.govt.nz
- Offer more than one way to pay. business.gov.au
Chased for you in Tradies Line
Turn reminders on and the unpaid invoices get followed up for you: 3 emails, then, once TradiesLine Pay is connected, 2 texts and up to 5 short AI calls that text the pay link. The calls go out on weekdays in business hours, every three days, and it all stops the moment the invoice is paid.
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Questions
How long should I wait before chasing an unpaid invoice?
Not long. In New Zealand, business.govt.nz suggests an email two business days after the due date. In Australia, when you invoice a larger business, the small business ombudsman suggests contacting its accounts area once payment is 1 to 2 days overdue.
Can I charge interest on a late invoice?
The government's business.gov.au site says to only put late-payment interest in a letter of demand if your contract specified it. If you're unsure, get legal advice.
What does a debt collector cost?
Commission rates mostly run between 5% and 30% of the debt.
How often can I call a customer about an unpaid invoice?
The ACCC and ASIC guideline recommends no more than 3 contacts a week or 10 a month, by phone on weekdays between 7:30am and 9pm and weekends between 9am and 9pm.
Where do I take an unpaid invoice in New Zealand?
The Disputes Tribunal hears disputed debts up to $60,000. If the customer admits the debt but won't pay, it goes to the District Court instead.
Checked against each government page on 6 October 2026. This is general information, not legal advice. For a free invoice that says what it must, see the quote and invoice templates.
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