NCAT Letter of Demand NSW: How to Write One Before Filing

Why Send a Letter of Demand

A letter of demand isn't legally required before filing at NCAT, but it's standard practice — and skipping it can hurt you at the hearing. The letter demonstrates to the tribunal that you made a genuine attempt to resolve the dispute before filing. It also establishes a clear timeline and gives the trader one last chance to fix the problem, which sometimes works.

From a tactical standpoint, a well-written demand letter forces the trader to respond on the record. If they ignore it, that becomes evidence of their unwillingness to resolve the dispute. If they make a partial offer, it shows you tried.

What the Letter Must Include

Keep it factual, structured, and specific. The letter should contain:

Your details and the trader's details. Use the trader's full legal name — not just their trading name. If they're a company, include the ACN and registered office address from an ASIC search. For a sole trader, use their full personal name as shown on ABN Lookup. Getting the name right here is important because you'll need the same correct name when you file your NCAT application.

A clear description of the transaction. State when you bought the goods or services, what you paid, the contract or invoice number, and what was supposed to be delivered. Be chronological and precise.

What went wrong. Describe the defect, the failure, or the breach. Date-stamp everything — when the problem first appeared, when you reported it, and what the trader did (or didn't do) in response. Attach copies of supporting evidence: photos of defective goods, inspection reports, text messages, or emails showing you raised the issue.

What you want. State the specific remedy: a full refund of a specified amount, completion of the contracted work, replacement of the goods, or payment to cover rectification costs. Reference the Australian Consumer Law if applicable — for instance, that the goods failed to meet the consumer guarantee of acceptable quality under section 54 of the ACL.

A deadline. Give the trader 7 to 14 days to respond or comply. State the exact date (not just "two weeks"). Make it clear that you'll file a claim at NCAT if the matter isn't resolved by that date.

Payment details. If you're seeking money, include your bank details or specify how you want to be paid. This removes any excuse for delay if they do decide to pay.

Sample Structure

Here's a skeleton (fill in the specifics for your situation):

1. Heading: "Letter of Demand"
2. Date
3. Your full name and address
4. Trader's full legal name, ACN/ABN, and registered address
5. Subject line: reference number, invoice, or brief description
6. Paragraph 1: the transaction — what you bought, when, and how much you paid
7. Paragraph 2: the problem — what went wrong, with dates
8. Paragraph 3: prior attempts to resolve — when you contacted them and their response
9. Paragraph 4: the demand — what you want, the legal basis, and the deadline
10. Paragraph 5: the consequence — you'll file at NCAT if the deadline passes without resolution
11. Sign and date

Attach copies (not originals) of contracts, receipts, photos, and correspondence.

How to Send It

Use a delivery method that creates a paper trail:

• Registered Post (Australia Post): produces a tracking number and delivery confirmation. This is the standard method. Keep the lodgement receipt.
• Email with read receipt: acceptable if the trader has previously used that email address for business correspondence. Save the sent email and any read confirmation.
• Hand delivery: have someone over 16 deliver it in person and note the date, time, and who accepted it. This counts as personal service.

Avoid relying only on text messages or social media — a letter or email creates a clearer record of the demand and any response.

The Deadline Doesn't Pause Your Time Limit

One critical point: the three-year limitation period for NCAT consumer claims keeps running while you wait for a response to your demand letter. If you're already close to three years since the problem arose, don't let the demand process eat your remaining time. Send the letter, but also prepare your NCAT application so you can file immediately if the deadline passes.

For a complete walkthrough — from writing the demand through filing, serving, and attending the hearing — the NCAT consumer claim guide covers the entire process with a letter of demand drafting checklist.

See more New South Wales guides →