This is a general, plain template — not a court document and not a lawyer's letter. Used well, it puts the account on a formal footing and gives the other side a clear, reasonable path to fix it.
What a good letter of demand includes
Keep it factual and complete:
- who you are and who the letter is to (correct legal entity names);
- the invoice or account number and what the debt is for;
- the exact amount owing and how it's calculated;
- a clear, reasonable deadline to pay or respond;
- how to pay and how to contact you with questions.
A simple structure you can adapt
"Dear [name], Our records show that [amount] remains outstanding on invoice [number] dated [date], for [goods/services]. We ask that payment is made by [date], or that you contact us before then to discuss the account. If you believe this amount is not owing, please let us know in writing so we can review it. You can pay by [methods]. If you have any questions, contact [name] on [phone/email]."
What to avoid
Don't format the letter to look like a court document or a letter from a law firm. Don't threaten action you don't intend or can't take, imply court action has already started, or overstate consequences. Don't add charges that aren't actually owed. A misleading or intimidating demand can breach the ACCC/ASIC debt collection guideline and undermine your own recovery.
After you send it
Give the deadline a chance to work, keep a copy, and note any response. If the account still isn't resolved, that documented, reasonable demand is exactly what a recovery agent (or a court, later) wants to see. That's the point to refer it to us.
This is a general template provided for information only. It is not legal advice and is not tailored to your situation or to the law in your state or territory. Have it reviewed by a qualified Australian lawyer before you use it, and never format a letter to look like a court document or a letter from a law firm.