How to Chase Overdue Invoices in Australia (And Actually Get Paid)
A no-nonsense guide for Aussie tradies and sole traders. Clear timelines, copy-ready reminder templates, escalation steps, and the tools that quietly do the chasing for you.
Free plan available - Auto-Reminders free on your first 3 invoices, unlimited on Pro at A$19/month
The schedule
Invio's automatic reminders, 21 days drawn to scaleDefault cadence, adjustable per stageDay -7
First reminder
Early heads-up before due
Day -3
Second reminder
Final nudge before due
Due date
On due date
Reminder that payment is due today
Day +3
First overdue reminder
Gentle nudge
Day +7
Second overdue reminder
Firm follow-up
Day +14
Final notice
Last reminder before action
Not drawn
Invio stops sending. No late fee, no escalation - what's next is yours.
Day -7
First reminder
Early heads-up before due
Day -3
Second reminder
Final nudge before due
Due date
On due date
Reminder that payment is due today
Day +3
First overdue reminder
Gentle nudge
Day +7
Second overdue reminder
Firm follow-up
Day +14
Final notice
Last reminder before action
Not drawn
Invio stops sending. No late fee, no escalation - what's next is yours.
Six stages, counted from the invoice's due date - not the day it was sent. Every stage but the due-date reminder can be moved within a small preset range for a given invoice; none of them can be scheduled freely. The whole sequence stops the moment you mark the invoice paid, whether you do that yourself or it happens automatically on a card payment through Invio.
After the final notice, Invio does not add a late fee or chase any further - escalating is always your decision, covered below. If you and your customer agreed to late-payment terms, write them in the invoice's notes; Invio stores what you type but never calculates or applies a fee for you.
Why Aussie tradies struggle to get paid on time
If you're a sparky, plumber, builder, painter, or any kind of sole trader in Australia, you already know the story. The job's finished, the invoice is sent, and then - silence. Days turn into weeks. Meanwhile fuel, materials, and that next Bunnings run still need paying.
A few things make Australian tradie cashflow especially tight:
Main contractor delays. Subbies often wait on a head contractor who is waiting on a developer who is waiting on a bank. Your $4k invoice can sit at the bottom of someone else's pile.
Retentions on construction work. A percentage of progress payments is often held back until practical completion or the defects liability period ends. That money is yours, but you do not see it for months.
EOFY squeeze. Around 30 June, customers tighten up, BAS and PAYG instalments fall due, and one slow payer can wreck a whole month.
Rising costs. Diesel, timber, copper, and consumables do not wait. Every week an invoice sits unpaid is a week you're effectively financing your customer's business.
The "she'll be right" tax. Most tradies hate chasing payments. It feels rude. So invoices drift, and the longer they drift, the harder they get to collect.
Chasing overdue invoices isn't about being aggressive. It's about having a calm, repeatable system so you do not have to think about it - or feel awkward - every time.
Chase it yourself: a manual timeline
Before any chasing makes sense, the original invoice has to be valid and it has to go out fast - the same day you finish the job, with clear payment terms (7 or 14 days, BSB and account number, reference), so it's easy to pay from a phone. If the ABN, GST details, or the buyer details are off, a customer has an easy excuse to delay. Make sure it meets the Australian tax invoice requirements first. This is the sequence for chasing BY HAND, counted from the due date - the same clock Invio's own automatic schedule uses, except this one is you sending each message yourself.
Due date
Gentle reminder
A short, friendly nudge on the day payment is due, or a day or two after. Re-attach the invoice with your BSB and account number. Assume it's slipped down the inbox, not being ignored.
Day +7
Follow-up
Check the payment landed okay. Still warm, no pressure, no implied accusation - just a quick "in case it got missed".
Day +14
Firm reminder
Clear that the invoice is overdue. Restate the amount, due date, and how to pay. Ask for a date by which payment will be made.
Day +21
Pick up the phone
A two-minute call beats five emails. Stay calm and ask straight: "When can I expect this to be paid?" Confirm the answer in writing the same day.
Day +30
Final notice / escalation
Send a final notice referencing the steps you've already taken, the consequences (your state tribunal, a debt collector, or a payment claim if applicable), and a hard deadline.
Day +35+
Act on the warning
If nothing has happened, follow through. Empty threats train customers to ignore you. Move into your state or territory tribunal, a security of payment claim, or hand it to a collector.
If you're working under a construction contract, security of payment legislation exists in every Australian state and territory (starting with NSW in 1999, and now including the NT) that lets you issue your invoice as a formal payment claim and triggers a fast statutory adjudication process if the payer doesn't respond properly. The exact Act name and timeframes differ by state, so check with a construction lawyer or your state's building/fair-trading authority before relying on it - but it's a powerful tool many subbies don't use.
How to write a polite but firm payment reminder
The single biggest mistake tradies make is rewriting the reminder from scratch every time - usually while annoyed. Use templates. They keep the tone steady and stop you blowing up a customer relationship on a bad day.
Before you send any reminder, double-check the invoice is correct and uses your real trading name, ABN, and the right BSB and account number. If you don't have one yet, start from the free Australian tax invoice template. These three are for chasing by hand - if you'd rather Invio send the nudge on its own, turn on Auto-Reminders.
Template 1
Friendly nudge - Day +7
Tone: warm, no blame. You are assuming it slipped through.
Template 2
Firm reminder - Day +14
Tone: still respectful, but clear this is now overdue and you need a date.
Template 3
Final notice - Day +30
Tone: businesslike. You are documenting the trail in case it goes further.
Send the first two by email. The final notice is worth sending by both email and a physical letter or courier-tracked envelope if the amount is significant.
When to escalate: calls, debt collectors, and tribunals
The phone call (do not skip this)
A short, direct phone call solves more overdue invoices than any email. Keep it calm and factual: confirm they received the invoice, confirm the amount, and ask when it will be paid. Do not apologise for asking - you did the work. Always follow up the call with a quick email summarising what was agreed, so there is a written trail if things escalate later.
Your state or territory civil tribunal
Australia doesn't run one national small-claims body - each state and territory has its own low-cost tribunal for civil and small-business disputes (for example NCAT in New South Wales, VCAT in Victoria, or QCAT in Queensland), designed for everyday people and small businesses without needing a lawyer. Claim limits vary by state and change from time to time - check your own state or territory tribunal's website for the current limit and filing fee before you apply.
You will need your invoice, evidence of the work (quotes, photos, signed job sheets, text messages), and your trail of reminders. That is why keeping the written chase organised matters from day one.
Debt collectors
Commercial debt collection agencies will chase debts on your behalf, usually for a percentage of what they recover or a flat fee. They're most useful when the customer is clearly avoiding you, the amount is large enough to justify the cost, and you're willing to burn the relationship. For most tradie-sized invoices, your state or territory tribunal is the better first stop.
Security of payment legislation
If you're a subbie on a construction job, you can issue your invoice as a formal payment claim under your state or territory's security of payment Act. The payer then has a set period to respond with a payment schedule. If they don't respond properly within the timeframe, the claimed amount typically becomes payable through a fast adjudication process, and you have stronger recovery options. The rules and timeframes differ by state - check with a construction lawyer or your trade association before relying on it, but for many tradies this is the most powerful tool in the box.
Nothing on this page is legal advice. For sizeable debts or contested invoices, check with a lawyer, your state's small business commissioner, or your trade association.
Why automated invoice reminders save hours every month
Think about what manual chasing actually costs you. Even ten unpaid invoices a month - pretty modest for a busy tradie - means ten times you're writing a reminder, second-guessing the tone, checking the bank, and probably putting it off because you're tired after a long day on the tools.
A few hours of evening admin a month, every month, year after year. That's real money, and it's often the work tradies push to the weekend or skip entirely. Skipped chasing means slower payment, which means worse cashflow, which means more stress.
Consistency. Every invoice gets chased on the same schedule, whether you're flat-out, on holiday, or just plain tired.
No awkwardness. It's the system writing, not you. Customers get used to it and respond faster - no hard feelings.
Faster payment. Reminders go out the moment they're due, not a week later when you remember.
Invio's Auto-Reminders are free to start - your first 3 invoices, ever, can auto-chase at no cost. Pro (A$19/month) runs the chase on every invoice you send, unlimited, quietly in the background, on the schedule drawn above.
A fixed default schedule, not a blank page
The six stages drawn above - three before the due date and the due date itself, three after - fire on their own once Auto-Reminders is switched on for an invoice. Each stage but the due-date one can be nudged within a small preset range; nothing here needs to be built from scratch.
Branded reminder emails
Reminders go out under your trading name with the original invoice attached, so they look professional and the customer has zero excuse to claim they never got it.
Stops once you mark it paid
The moment an invoice is marked paid - by you, or automatically on a card payment through Invio - it drops out of the reminder run. No awkward "please pay" email arriving after the customer has already paid.
See every chase from the dashboard
Open the dashboard and see which invoices are overdue, which reminders have gone out, and which customers need a phone call rather than another email.
Chase Overdue Invoices FAQs
Common questions from Aussie tradies and sole traders about getting paid on time.
How long can a customer take to pay an invoice in Australia?
When should I start chasing an overdue invoice?
Can I charge interest or late fees on overdue invoices in Australia?
What is the small claims limit in Australia?
Should I use a debt collector for an unpaid invoice?
How do automated invoice reminders work in Invio?
Stop chasing, start getting paid
Invio sends polite, branded reminders on its default schedule, stops as soon as you mark the invoice paid, and gives you a clear view of who still owes you. Free on your first 3 invoices, unlimited on Pro at A$19/month.
Free plan included - Auto-Reminders free to start, unlimited on Pro at A$19/month