How to chase unpaid invoices as a tradie

What's the first thing to do when an invoice is overdue?

Send a polite reminder on or just after the due date, with the invoice attached and a payment link. Most late payments are forgetfulness, not refusal. Automatic reminders handle this step without you lifting a finger.

A simple escalation timeline

1. Due date: automatic reminder with a payment link.
2. 7 days overdue: a phone call. Ask if there's a problem with the work or the invoice. Fix genuine issues quickly.
3. 14 days overdue: a firmer written reminder stating the amount, the original due date and a new deadline.
4. 30 days overdue: a letter of demand giving a final date (usually 7 to 14 days) and stating what you'll do next.
5. After the deadline: lodge a claim with your state's tribunal or local court, or use a debt collection service.

Where can tradies take unpaid debts?

Each state has a tribunal or court for smaller claims, such as NCAT in New South Wales, VCAT in Victoria and QCAT in Queensland, with local courts for larger amounts. Filing fees are modest for small claims, and you don't usually need a lawyer.

What is security of payment?

Security of payment laws give construction contractors a fast statutory process to claim payment and apply for adjudication when a claim is unpaid or disputed. They apply to construction work under a construction contract, not to every trade invoice, and treatment of residential work differs by state.

Strict time limits apply. The main Acts for the three biggest states are below.

• NSW: Building and Construction Industry Security of Payment Act 1999 (NSW).
• Victoria: Building and Construction Industry Security of Payment Act 2002 (Vic).
• Queensland: Building Industry Fairness (Security of Payment) Act 2017 (Qld).

Other states and territories have their own Acts. Check yours or get advice early, because the time limits are short.

How do you stop invoices going overdue in the first place?

• Invoice the day the job finishes, not at the end of the week.
• Agree payment terms in writing on the quote.
• Take deposits on larger jobs, within your state's limits for residential building work.
• Add a card payment link to every invoice. Paying in two taps removes the excuse.
• Use progress claims on longer jobs so you're never carrying the whole cost.

See our guide to payment terms for tradies.

General information only, not legal advice.

Sources

• Building and Construction Industry Security of Payment Act 1999 (NSW)
• Building and Construction Industry Security of Payment Act 2002 (Vic)
• Building Industry Fairness (Security of Payment) Act 2017 (Qld)
• NCAT