Best Way to File an ACAT Claim as a Sole Trader With an Unpaid Invoice

If you're a sole trader in the ACT with an unpaid invoice under $25,000 and you want the cheapest, most practical way to get your money back, file a civil dispute application at ACAT yourself. The filing fee for individuals is $93–$707 depending on the amount, the process is designed for people without lawyers, and for a documented debt with a clear paper trail — issued invoice, contract or written agreement, proof of completed work — the procedure is straightforward enough to handle with a good guide.

Hiring a solicitor to chase the same invoice typically costs $3,000–$15,000 in representation fees, which often exceeds the debt itself on smaller invoices. A one-off consultation ($300–$500) can be worthwhile if the debtor is disputing whether the work was done properly, but for a clear "I did the work, here's the invoice, they won't pay" situation, self-filing is the rational choice.

Why ACAT Works Well for Sole Trader Invoice Disputes

ACAT handles civil disputes up to $25,000 in an informal tribunal setting — no wigs, no formal discovery, no jury. A tribunal member runs the hearing conversationally, reviews the evidence both sides present, and makes an order. Most hearing slots are 30–60 minutes.

For sole traders, the evidence chain is typically clean: you have a quote or contract, you completed the work (photos, delivery receipts, email confirmations), you issued an invoice with payment terms, and the client hasn't paid. That paper trail is exactly what ACAT is built to evaluate.

The complications that do trip up sole traders are procedural, not legal:

• Identifying the right respondent: if your client is a company, you need the correct legal entity name and ACN (not just the trading name). A company search on ASIC Connect costs $9 and confirms the entity you're suing actually exists.
• Interest calculation: you can claim interest on the unpaid amount from the date payment was due. Under the Court Procedures Rules 2006, the pre-judgment rate is 8.35% per year from 1 July through 31 December 2026; use ACAT's interest calculator for the applicable rate over the full period. Getting this calculation right in your application adds to the amount you recover.
• Service requirements: ACAT usually serves the application by prepaid post. If you choose to serve it yourself, follow ACAT's directions and provide proof of service, normally an Affidavit of Service unless ACAT specifies otherwise.

The Filing Sequence for an Unpaid Invoice

The usual process is:

1. Send a letter of demand — give the debtor 14 calendar days to pay. ACAT recommends trying to resolve the dispute before filing; the letter can document that effort. It should state the amount, the invoice reference, and that you intend to file at ACAT if not paid.

2. Lodge the application — use the civil dispute application form, attach the invoice, the demand letter, and proof of service of the demand letter. Pay the filing fee ($93 for claims up to $3,000; $195 for $3,001–$15,000; $707 for $15,001–$25,000 — these are individual rates; corporate rates are higher but sole traders filing as natural persons pay the lower rate).

3. Service — ACAT usually serves the application by prepaid post. If you tell ACAT when you lodge the application that you will serve it yourself, follow ACAT's directions and provide proof of service, normally an Affidavit of Service unless ACAT specifies otherwise.

4. Attend the initial Directions Hearing — ACAT lists this after the response due date, and each party must attend. The Member or Registrar may make final orders or schedule a conference, mediation, or hearing.

5. If no resolution, prepare for the next step ACAT directs — organise your evidence (contract, invoice, delivery proof, email correspondence, interest calculation) into an indexed bundle for a conference or hearing. The hearing is conversational but the member needs to see the documents.

6. After the order — if ACAT orders payment and the debtor still doesn't pay, enforcement goes through the ACT Magistrates Court (garnishee orders, property seizure orders).

The Making an ACAT Civil Dispute Claim guide walks through each of these steps with the exact forms, compliance requirements, and deadline tracking.

Common Traps for Sole Traders

Filing as the wrong entity. If your ABN is registered to you personally (sole trader), you file as a natural person and pay the lower fee. If your business is a company, name it by its registered legal name and ACN; corporate fees are $185–$1,415, but a not-for-profit or corporation with prior-year turnover under $200,000 can pay the natural-person rate by lodging ACAT's turnover form. If you are in a partnership, name each individual partner. Filing as the wrong entity means the order may not be enforceable.

Missing the 6-month lapsing rule. An application is taken to be dismissed if no party takes a step in the proceeding for six months after the last step; a party may ask ACAT to reinstate it.

Emailing documents ACAT will not accept. ACAT accepts emailed documents only when they total fewer than 40 pages, use fewer than three attachments, no lodgement fee is payable, and they are not colour documents, ZIP files or cloud-storage links. A civil dispute application that requires a fee must be lodged online or in hard copy; the online form has a 7 MB total attachment limit. ACAT deletes emails containing credit card details without processing them.

Not claiming filing fees and interest. Your claim amount can include the ACAT filing fee and statutory interest from the date payment was due. Many sole traders file for just the invoice amount and leave money on the table.

Who This Is For

• Sole traders and freelancers owed money for completed work where the client won't pay
• Tradespeople with a signed contract or accepted quote and documented completion
• Service providers with a clear invoice trail and no genuine dispute about whether the work was done
• Anyone whose unpaid invoice is under $25,000 and based in the ACT

Who This Is NOT For

• Disputes where the client genuinely contests the quality of work (you may need legal advice on liability)
• Invoices where no written agreement exists and the terms are contested
• Amounts over $25,000 (the ACT Magistrates Court handles those, though you can abandon the excess to stay in ACAT)
• Recovery against a company that's been deregistered or is in liquidation (different process entirely)

What About Free Help?

The Consumer Law Centre (CARE Consumer Law) has a free ACAT duty lawyer on Mondays for eligible people, with advice and assistance in consumer law, debt recovery, consumer credit and simple contract disputes. Legal Aid ACT's free Helpline provides legal information and referrals, not legal advice by phone; it can arrange an appointment with a lawyer if needed. Neither service files the claim for you.

For most sole trader invoice disputes with documented evidence, a procedural guide and a quick check with the Consumer Law Centre duty lawyer, if you are eligible, can help you prepare without spending thousands on legal fees.

Frequently Asked Questions

Can I claim the ACAT filing fee back from the debtor?

Yes. If ACAT orders the respondent to pay, you can include the filing fee in your claim. Many applicants don't realise this and absorb the fee as a cost of recovery. Include it in your application from the start.

What if the debtor is a company — can I still file at ACAT?

Yes. File against the company using its registered legal name and ACN (check ASIC Connect for $9). If the company's annual turnover is under $200,000 or it's a registered non-profit, it can apply for the individual filing fee rate, but that's the respondent's concern, not yours.

How long does the whole process take from filing to order?

From filing, ACAT lists an initial Directions Hearing after the response due date, which is usually 21 days after service. At that hearing, the Member or Registrar decides what happens next and may make final orders or schedule a conference, mediation, or hearing. The time to an order depends on those directions and hearing dates. Keep the proceeding active to avoid the 6-month lapsing rule.

What if the debtor just ignores the claim?

The respondent usually has 21 days after service to respond. ACAT lists an initial Directions Hearing after the response due date; if a party does not attend, the Tribunal may make final orders without hearing from them. ACAT usually serves the application, but if you elect to serve it yourself, you must provide proof of service, normally an Affidavit of Service unless ACAT specifies otherwise.

Is there a time limit for filing an unpaid invoice claim?

The general limitation period for contract claims in the ACT is six years from the date the cause of action arose (typically the date payment was due under the invoice). Don't wait until the last month — proceedings take time and you need to serve the respondent before the limitation expires.

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