NCAT Unpaid Invoice Sole Trader NSW: Where to File

The Forum Question Every Sole Trader Gets Wrong

A client owes you A$6,500 for three months of graphic design work. You have the contract, the invoices, the email trail. Your first instinct is NCAT because it is cheaper and less formal than court. But here is the problem: NCAT's Consumer Claims List in the Consumer and Commercial Division handles consumer claims — disputes where a consumer bought goods or services from a supplier. If you are the supplier chasing an unpaid business invoice, you are on the wrong side of that definition.

Business-to-business debt recovery and supplier-chasing-customer claims do not qualify as consumer claims under Part 6A of the Fair Trading Act 1987 (NSW). They belong in the NSW Local Court Small Claims Division for amounts up to A$20,000 or, where an applicable statute gives NCAT jurisdiction, the NCAT Commercial List. Local Court claims up to A$100,000 go to the General Division.

When NCAT Is the Right Forum

NCAT works for a sole trader in two scenarios:

1. You are the consumer. You hired a contractor to build your website and they took the deposit and disappeared. You are the buyer of goods or services from a supplier acting in trade or commerce — that is a consumer claim under Part 6A.

2. You are responding to a consumer claim. If the consumer owes you money arising from the same supply transaction, you may raise a counterclaim during conciliation or file a cross-application. That is different from filing a standalone consumer claim to recover an invoice.

If your situation is "client hired me, I did the work, they did not pay the invoice" — that is debt recovery, not a consumer claim. Check whether the NCAT Commercial List has jurisdiction over your dispute or file in the Local Court.

Filing in the NSW Local Court Small Claims Division

For unpaid invoices up to A$20,000, the Local Court Small Claims Division is your path. The process:

1. Send a letter of demand — set a response deadline (typically 7 to 14 days) and state that you will file a Statement of Claim if the debtor does not pay
2. File a Statement of Claim via the NSW Online Registry (onlineregistry.lawlink.nsw.gov.au) — the Small Claims Division standard filing fee is A$179 for an individual (effective 1 July 2026)
3. Serve the claim on the defendant — personal delivery, post to their last known address, or email if they consented to electronic service
4. Wait 28 days — if the defendant does not file a Defence, you can apply for Default Judgment without a hearing
5. Attend the hearing if they defend — Small Claims hearings are informal (rules of evidence do not apply) and legal costs are tightly capped

The advantage of Small Claims Division for debt recovery: if the defendant does not respond within 28 days, you can apply for a Default Judgment administratively — something that does not exist in NCAT, where the applicant still has to establish the claim at a hearing if the respondent does not attend.

What About Amounts Over A$20,000?

Claims between A$20,001 and A$100,000 go to the Local Court General Division. This is more formal: full rules of evidence apply, legal costs follow the event (the loser usually pays the winner's costs), and the process involves formal pleadings and disclosure. For a sole trader, the cost exposure makes it worth considering whether a solicitor's initial consultation is justified.

Whether your claim belongs at NCAT or the Local Court, the foundational steps are similar — identifying the correct entity, sending a demand, gathering evidence, and meeting deadlines. The NCAT Consumer Claim Guide for NSW covers the NCAT pathway in detail, including the forum selection worksheet that helps you determine which tribunal or court fits your dispute.

See more New South Wales guides →