Work out what a late-paying client actually owes you — invoice plus interest.
For sole traders and small firms staring at an overdue invoice. Works out the contractual interest you can charge, and points you to the faster Security of Payment route.
Sound familiar?
- “The invoice is weeks overdue and the excuses have started.”
- “You don't know if you're even allowed to charge interest.”
- “Chasing it is eating your evenings and you're getting nowhere.”
What this tool does
Calculates the interest on an overdue invoice using the interest rate in your contract (pre-filled at 10% p.a. as a common default). Australia has no automatic statutory late-payment interest, so this is what your contract entitles you to — plus a copyable figure for your chaser.
Defaults to today's date.
Pre-filled at 10% as a common default. Use the rate your contract actually states — if it's silent, you generally can't charge interest, so add a clause next time.
What the law actually says
- •Unlike the UK, there's no automatic statutory interest or fixed compensation here. You can only charge interest if your contract says so — which is why it should.
- •For a commercial debt, Security of Payment is usually the fast route: serve a payment claim, and if they don't schedule a payment in time the amount can become a debt.
- •For an undisputed debt against a company of $4,000.00 or more, a statutory demand is a powerful (and serious) step. Guidance only — not legal advice.