Letter of Demand ACT: How to Write One Before Filing at ACAT

A letter of demand is the formal shot across the bow before you file at ACAT. While it's not a strict legal prerequisite for every civil dispute application, ACAT expects applicants to have attempted direct resolution before bringing a claim. Filing without a demand letter invites the question "did you even ask them to pay?" — and the tribunal member will want to see one attached to your application.

What to Include

A proper letter of demand contains seven elements:

1. Your full legal name and contact details
2. The respondent's full legal name and address
3. A clear, factual description of the dispute — what was agreed, what went wrong, when it happened
4. The exact amount you're claiming (or the specific action you want)
5. An itemised breakdown if the claim involves multiple invoices, repair costs, or individual items
6. Copies of key supporting documents — the contract, invoices, receipts, photos
7. A deadline for compliance, typically 14 calendar days from delivery

End with a clear statement that if the matter isn't resolved within the deadline, you'll lodge a civil dispute application with ACAT without further notice.

What Not to Write

Keep the tone professional and factual. No threats beyond stating you'll go to the tribunal. No aggressive language, no personal attacks, no inflated claims about legal costs you'll supposedly recover. An overly hostile demand letter can undermine your credibility at the hearing.

Don't overstate your position either. If you're claiming $6,000 for unfinished building work, state the original contract price, the work completed, and the shortfall — not "I'll sue you for everything you've got."

How to Deliver It

Delivery method matters because you'll need to prove the respondent received it. Three reliable options:

Registered post — the Australia Post tracking slip proves delivery date and the recipient's signature. This is the strongest proof.

Email — acceptable if you've been communicating with the respondent by email throughout the dispute. Keep the sent email and any read receipt. A delivery failure bounce means the email didn't arrive.

Hand delivery — if you deliver it in person, bring a witness and have them note the date, time, and the respondent's reaction in writing.

Timing and Limitation Periods

Sending a letter of demand does not pause the statute of limitations. In the ACT, most civil claims have a 6-year limitation period under the Limitation Act 1985 — 6 years from the breach of contract, the date the debt became due, or the date the damage was sustained.

If you're approaching that 6-year mark, don't wait the full 14 days. File with ACAT as soon as you can and note the demand letter in your application. The limitation clock only stops when the ACAT registry formally accepts your application.

After the 14 Days

If the respondent pays or agrees to a resolution, you're done. If they ignore the letter, dispute your claim, or offer less than what you're owed and you reject it, the next step is filing a civil dispute application with ACAT.

The ACAT civil dispute filing guide includes a demand letter worksheet and walks through every stage from here — application, service, conference, hearing, and enforcement.

See more Australian Capital Territory guides →