QCAT Unpaid Invoice Claim — Small Business Debt Recovery in Queensland

You completed the work, sent the invoice, chased the payment three times, and the client still has not paid. If you are a sole trader, freelancer, or small business owner in Queensland with an unpaid invoice up to $25,000, QCAT's minor debt jurisdiction exists for exactly this situation.

Is QCAT the Right Forum?

Your claim fits QCAT's minor debt category if:

• The amount owed is a fixed, agreed sum — an invoice for completed work, a dishonoured payment, a loan balance
• The total is $25,000 or less (excluding interest)
• The debt is not statute-barred — the Limitation of Actions Act 1974 (Qld) gives you six years from the date the invoice became overdue

If the client disputes the quality of your work rather than simply not paying, the matter may be reclassified from a minor debt (Form 3) to a consumer and trader dispute (Form 1). The distinction matters because the forms, procedural rules, and available remedies differ. Our post on QCAT application forms explains how to tell which form applies.

Before You File: The Demand Letter

QCAT does not require a formal letter of demand for minor debt claims, but sending one is essential. A well-drafted demand letter:

• Proves the debt was due and the debtor had a chance to pay
• Supports an interest claim under your contract or QCAT's prescribed rate
• Supports cost recovery at the hearing (filing fees, search fees)
• Often resolves the matter without a filing fee

Give the debtor 7 to 14 calendar days to pay. Send the letter by registered post or email with delivery confirmation so you have proof they received it. If they ignore it, that silence becomes part of your evidence bundle. See our guide to QCAT demand letters for a detailed walkthrough.

Identify the Debtor Correctly

This step trips up more small business claimants than any other. You must name the correct legal entity in your application — the exact registered name, not just the trading name on their shopfront or invoice.

• If the debtor is a sole trader, search the ASIC Business Names Register to find the individual behind the trading name. Name them as: "Jane Smith trading as Smith Design Studio"
• If the debtor is a company, search ASIC to confirm the company name, ACN, and registered office address. Name them as: "Smith Enterprises Pty Ltd ACN 123 456 789"

An order against the wrong entity is unenforceable. You cannot garnishee a bank account that belongs to a company when your order names the sole trader, or vice versa. ASIC search fees are modest and recoverable as part of your costs if you win.

Filing the Application

For a liquidated debt — a fixed sum that is agreed or precisely calculable — you file Form 3 (Application for minor civil dispute – minor debt). Include:

• An itemised breakdown of the amount owed (invoice numbers, dates, amounts)
• Interest calculation (contractual rate, or the rate under QCAT Practice Direction 2013/09)
• Recoverable costs (filing fee, ASIC search fee)
• Copies of the contract, invoices, demand letter, and proof of delivery

Filing fees range from $96.30 (claims up to $1,000) to $405.60 (claims $10,001 to $25,000), effective 1 July 2026.

You can file through the QCase portal or in person at the QCAT Principal Registry in Brisbane or any Magistrates Court acting as a regional QCAT registry.

After Filing: Service and the 28-Day Window

Once filed, you must serve the respondent within 90 days. For individual debtors, that means personal service. For companies, you can post the sealed application to their registered office under section 109X of the Corporations Act 2001.

After service, the respondent has 28 days to file a Form 7 response. If they don't respond, you can apply for a default decision — an order in your favour without a hearing.

The Bottom Line for Small Businesses

QCAT's minor debt process is designed to be accessible without a lawyer. Filing fees are modest relative to the amounts at stake, the procedure is streamlined, and QCAT is a no-cost jurisdiction — meaning the respondent cannot claim their legal fees against you even if you lose (though you also cannot recover your own legal fees if you win).

The biggest risk is not the process itself — it is delay. Every month you wait to file is a month closer to the six-year limitation deadline, and a month the debtor has to move assets, close accounts, or wind up their business.

Our QCAT filing guide covers the full debt recovery process step by step — including a Filing Route Verification Matrix, demand letter template, service tracker, and interest calculation worksheet.

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