Demand For Payment for Australia

Demand For Payment Template for Australia

A Demand for Payment is a formal written document used in Australian jurisdictions to request payment of an outstanding debt or obligation. The document serves as an official notice to the debtor, outlining the amount owed, payment terms, and consequences of non-payment. It must comply with Australian Consumer Law, relevant state legislation, and ACCC/ASIC debt collection guidelines. This document typically precedes any legal action and serves as important evidence in any subsequent legal proceedings. It includes specific details about the debt, payment instructions, and statutory notices required under Australian law.

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What is a Demand For Payment?

A Demand for Payment is a crucial document in the debt recovery process under Australian law, serving as a formal step before potential legal proceedings. This document is typically used when previous informal attempts to collect payment have been unsuccessful, or when immediate formal action is required due to the nature or size of the debt. The demand must comply with the Australian Consumer Law, state-specific debt collection regulations, and the ASIC/ACCC Debt Collection Guidelines. It should clearly state the amount owed, the basis of the debt, payment deadlines, and potential consequences of non-payment. The document must maintain a professional tone while avoiding any harassment or undue pressure, as specified in Australian consumer protection laws. This Demand for Payment can be used across various sectors and can be issued by businesses, individuals, or their authorized representatives, forming an important part of the audit trail in debt recovery efforts.

What sections should be included in a Demand For Payment?

1. Sender Details: Full legal name, business name (if applicable), address, and contact information of the creditor

2. Date: Current date of the demand letter

3. Recipient Details: Full name and address of the debtor

4. Subject Line: Clear indication that this is a formal demand for payment

5. Debt Details: Specific amount owed, origin of the debt, date incurred, and any reference numbers

6. Payment History: Summary of any previous payments made and current outstanding balance

7. Payment Instructions: Clear details of how and when payment should be made, including payment methods and deadline

8. Consequences of Non-Payment: Clear statement of what actions will be taken if payment is not received by the specified deadline

9. Statutory Notices: Any required legal notices or warnings as per Australian consumer law

10. Signature Block: Signature, name, and title of the authorized person making the demand

What sections are optional to include in a Demand For Payment?

1. Interest Calculation: Include when charging interest on the outstanding amount, showing the calculation method and rate

2. Previous Communications: Reference to previous payment requests when this is not the first demand

3. Payment Plan Option: Include when willing to accept payment in installments or negotiate payment terms

4. Dispute Resolution Process: Include when required by industry regulations or when dealing with substantial sums

5. Supporting Documentation Notice: Reference to attached documents proving the debt, particularly useful for larger or complex debts

What schedules should be included in a Demand For Payment?

1. Statement of Account: Detailed breakdown of the debt, including original amount, any interest, fees, and payments made

2. Copy of Original Invoice(s): Copies of relevant invoices or contracts that gave rise to the debt

3. Payment History Record: Detailed record of all payments made and amounts outstanding

4. Interest Calculation Schedule: Detailed breakdown of interest calculations if interest is being charged

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Demand Letter

Sector

Cost

Free to use
Relevant Industries

Retail

Professional Services

Construction

Manufacturing

Healthcare

Education

Financial Services

Real Estate

Technology

Telecommunications

Utilities

Transportation and Logistics

Legal Services

Accounting Services

Consulting Services

Wholesale Trade

Agriculture

Relevant Teams

Accounts Receivable

Finance

Legal

Credit Control

Collections

Treasury

Risk Management

Operations

Commercial

Corporate Services

Administration

Debt Recovery

Relevant Roles

Credit Controller

Accounts Receivable Manager

Financial Controller

Credit Manager

Collections Officer

Finance Manager

Accounts Manager

Business Owner

Company Director

Chief Financial Officer

Debt Recovery Specialist

Legal Counsel

Practice Manager

Commercial Manager

Treasury Manager

Risk Manager

Operations Manager

Industries
Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010): Sets out consumer rights and protections, including regulations around debt collection practices and unfair contract terms. This is crucial for ensuring the demand for payment complies with consumer protection requirements.
Debt Collectors (Field Agents and Collection Agents) Act 2014: Regulates debt collection practices in Australia, including the manner in which payment demands can be made and communications with debtors.
ASIC/ACCC Debt Collection Guideline: for collectors and creditors: While not legislation per se, these guidelines provide important regulatory framework for debt collection practices and must be considered when making payment demands.
Limitation Act (varies by state): Establishes time limits for bringing legal action to recover debts. The specific act varies by state but typically sets a limitation period of 6 years for contract-based debts.
Privacy Act 1988: Governs how personal information can be handled, used, and disclosed in debt collection processes, including requirements for privacy notices and handling of personal information.
National Credit Code (Schedule 1 to the National Consumer Credit Protection Act 2009): Relevant if the debt relates to consumer credit, setting out requirements for credit providers and their debt collection practices.
Civil Procedure Acts (state-based): Governs the process for legal enforcement of debts through the court system if the demand for payment is not met.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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