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Accounts Receivable Demand Letter for Australia

Accounts Receivable Demand Letter Template for Australia

A formal written communication used in Australian jurisdiction to demand payment of outstanding accounts receivable. This document serves as a critical step in the debt collection process, formally requesting payment of overdue amounts while complying with Australian consumer protection laws, debt collection guidelines, and privacy regulations. The letter outlines the debt details, payment requirements, and potential consequences of non-payment, while maintaining professional standards and adhering to the ACCC/ASIC debt collection guidelines and relevant state-specific legislation.

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What is a Accounts Receivable Demand Letter?

The Accounts Receivable Demand Letter is a crucial business document used in Australian jurisdiction when formal payment collection efforts become necessary. This document is typically employed after regular invoicing and payment reminders have been unsuccessful, but before initiating legal proceedings. It serves as a formal notification to debtors about outstanding payments and potential consequences of non-payment, while complying with Australian Consumer Law, Privacy Act 1988, and state-specific regulations. The letter must balance firmness with professionalism, including specific debt details, payment deadlines, and clear instructions for resolution, while adhering to proper debt collection practices outlined in ACCC/ASIC guidelines.

What sections should be included in a Accounts Receivable Demand Letter?

1. Sender Details: Full legal name, business address, and contact information of the creditor

2. Date: Current date of the letter

3. Recipient Details: Full legal name and address of the debtor

4. Subject Line: Clear identifier of the letter's purpose, including reference numbers

5. Debt Details: Specific amount owed, date incurred, and nature of the debt

6. Payment History: Summary of any partial payments made and remaining balance

7. Demand Statement: Clear statement of payment demand and deadline

8. Payment Instructions: Specific details on how and where to make the payment

9. Legal Consequences: Statement of potential legal action if payment is not received

10. Closing: Professional closing with contact information for response

What sections are optional to include in a Accounts Receivable Demand Letter?

1. Previous Communications: Reference to prior attempts to collect the debt, used when multiple collection attempts have been made

2. Payment Plan Options: Offered payment arrangements or settlement options, included when willing to negotiate terms

3. Interest and Penalties: Details of additional charges or interest accruing, included when applicable per contract terms

4. Dispute Rights: Information about the debtor's right to dispute the debt, required for consumer debts

5. Business Relationship Value: Reference to ongoing business relationship, included when attempting to maintain future business relations

6. Statutory Declarations: Required legal statements under relevant laws, included for consumer debts or specific jurisdictional requirements

What schedules should be included in a Accounts Receivable Demand Letter?

1. Invoice Copies: Copies of all relevant unpaid invoices

2. Contract Extract: Relevant sections of the contract or agreement showing payment terms

3. Statement of Account: Detailed statement showing all transactions, payments, and current balance

4. Payment History Log: Documentation of all payment attempts and communications

5. Proof of Delivery: Evidence that goods or services were delivered, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Demand Letter

Sector

Cost

Free to use
Relevant legal definitions




















Clauses
















Relevant Industries

Retail

Manufacturing

Professional Services

Construction

Healthcare

Technology

Financial Services

Wholesale Trade

Transport and Logistics

Education

Consulting

Real Estate

Relevant Teams

Accounts Receivable

Finance

Legal

Credit Control

Collections

Treasury

Administration

Corporate Services

Risk Management

Business Operations

Relevant Roles

Accounts Receivable Manager

Credit Controller

Financial Controller

Finance Manager

Accounts Manager

Credit Manager

Collections Specialist

Finance Director

Business Owner

Accountant

Legal Counsel

Credit Analyst

Financial Administrator

Treasury Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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