How to write a letter of demand that actually gets you paid

A letter of demand is the polite-but-unmistakable last warning before you go to court. Done well, it's often all you need. Done badly, it's a strongly worded suggestion that goes straight in the bin.

Why bother with a letter at all?

Three reasons. First, plenty of people pay the moment something official-looking lands — it turns a vague "I'll sort it" into a dated deadline. Second, courts and tribunals expect you to have tried to resolve the dispute before filing, and some (South Australia's minor civil claims, for example) effectively require a final notice first. Third, if you do end up in front of a decision-maker, a clear letter is Exhibit A that you were reasonable.

The seven ingredients

1. Who you are and who they are. Use the respondent's exact legal name. If it's a business, look up the ABN on the Australian Business Register — suing "Dave's Plumbing" when the entity is "D.R. Smith Pty Ltd" makes orders harder to enforce.
2. The facts, in order. Short numbered paragraphs. Dates, what was agreed, what you did, what they didn't do.
3. The amount, and how you got there. Break it down. Invoice 1042: $1,850. Late fee per the agreed terms: $0 (don't invent extras).
4. The deadline. A specific date, not "soon". 14 to 21 days is typical. We use 21.
5. How to pay. BSB and account, PayID, whatever works. Remove every excuse.
6. What happens next. You intend to file in the named court or tribunal and seek the amount plus filing fees and interest where allowed. Factual, not threatening.
7. An off-ramp. Invite a written payment plan. People who can't pay all at once will often pay something.

The three mistakes

• Threats you can't (or shouldn't) make. "I'll ruin your credit", "I'll tell your boss", "I'll call the police" — those can cross into harassment or coercion under the Australian Consumer Law. Stick to lawful next steps.
• Essays. If it's longer than a page and a half, it's a rant. Cut it.
• Vague numbers. "Around two grand" invites an argument. "$2,180, made up of…" doesn't.

Then what?

Send it in a way you can prove — email with a read receipt, or registered post — and keep a copy. Then wait. If the deadline passes, you're ready to file. SueAnyone gives them 21 days (posted letters run from expected receipt), adds 3 days' grace, then unlocks your claim paperwork on day 24.