Unpaid Brisbane invoices and the limits on late fees

When a customer does not pay, an accurate claim is more useful than an inflated demand. A Brisbane supplier should separate the agreed price, any genuine dispute about performance and any contractual interest or collection charge before deciding where to pursue recovery.

Updated October 2026

Prove the contract and the amount due

Keep the accepted quote, purchase order, agreed terms, delivery records, variations and invoice history. Identify the contracting customer rather than relying only on a trading name. A late fee printed for the first time on an invoice may not have become part of the contract. Assess what was communicated and accepted before work or supply began.

A fee is not valid merely because it is written down

In Paciocco v Australia and New Zealand Banking Group Ltd (2016) 258 CLR 525; [2016] HCA 28, the High Court upheld the bank’s late payment fees against the challenges considered. The case examined legitimate interests and the penalty doctrine in its particular credit card context. It does not approve every supplier’s late charge. The clause, amount, protected interests and any applicable unfair contract terms legislation need separate review.

Choose the Queensland forum and check time

Section 10 of the Limitation of Actions Act 1974 (Qld) generally provides six years from accrual for simple contract actions. Other claims and circumstances can differ. QCAT’s minor civil dispute jurisdiction under the Queensland Civil and Administrative Tribunal Act 2009 can include qualifying minor debt claims up to $25,000. The amount alone does not decide jurisdiction; consider the claim’s character, territorial connections and the parties. Larger or different claims may belong in a court.

Keep the recovery proportionate

Send a demand that explains the principal and any additional sums separately, allowing a realistic response. Negotiations do not themselves stop a limitation period. Consider a documented instalment arrangement alongside proceedings, and investigate solvency before spending heavily. If the customer alleges defects or a set-off, assess that issue before assuming the debt can be dealt with as an uncomplicated unpaid invoice.

Key legislation and cases

Author: Deanna Ding

Last updated: October 2026

Jurisdiction: Queensland, Australia

Disclaimer: This article provides general information only and does not constitute legal, financial or tax advice. The law may change and its application depends on individual circumstances. You should obtain professional advice before acting on the information contained in this article.