Statutory demand minimum amount
In short
The debt must exceed the statutory minimum to support a statutory demand — currently $4,000. Verify the figure against the current Corporations Regulations before relying on it. Debts at or below the threshold cannot ground a statutory demand, though other recovery options remain available.
The Corporations Act 2001 sets a minimum amount — the "statutory minimum" — that a debt must exceed before a statutory demand can be issued. The figure is prescribed by regulation and can change.
The current threshold
The statutory minimum is currently $4,000. Always confirm the current figure before issuing, as it has been changed by regulation in the past.
If your debt is below the threshold
A single debt at or below the minimum cannot support a statutory demand. Depending on the circumstances you may be able to aggregate multiple debts, or pursue the debt through a letter of demand or court proceedings instead.
Do not use a statutory demand for a genuinely disputed debt. If the debtor disputes the debt on genuine grounds, or has an offsetting claim, a statutory demand can be set aside and cost orders may follow. If in doubt, seek advice before proceeding.
References
- Corporations Act 2001 (Cth) — incl. s 459E (statutory demand)
- Corporations Regulations 2001 — prescribed form and statutory minimum
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