Make it easy to pay on time
Prevention beats chasing. Agree payment terms before the work starts and put them on the quote and the invoice. Make the invoice easy to act on: a clear due date, your bank details or payment link, the job or order it relates to, and who to contact with questions.
If you’re registered for GST, a valid tax invoice must show certain details. The ATO’s tax invoice guidance lists them. See our guide to GST on quotes and invoices.
A simple reminder schedule
| When | What to send |
|---|---|
| 3 days before due | A friendly heads-up with the invoice attached |
| Due date | A short note that payment is due today |
| 7 days overdue | A polite reminder asking them to confirm when it will be paid |
| 14 days overdue | A phone call to the person who approves payments |
| 30 days overdue | A firm written reminder that states next steps |
Wording that works
Keep it short, specific and free of blame:
Hi [First name],
A quick note that invoice 1042 for the hot-water replacement was due on 14 October and is still showing as unpaid. Could you let me know when we can expect payment? If it’s already been paid, please send the remittance and I’ll match it up. Thanks!
Offering an out (“if it’s already been paid”) lets people save face, and asking “when” gets a commitment rather than a vague promise.
Pick up the phone
After a couple of emails, a call is often fastest. You’ll find out if the invoice went to the wrong person, if there’s a dispute, or if the business is struggling and needs a payment plan. Note what was agreed and follow up in writing.
Offer a payment plan when it helps
If a good customer is genuinely struggling, a payment plan often recovers more than a hard line. Agree the amounts and dates in writing, keep the plan short, and pause new work until it’s back on track if your terms allow. A customer who is treated fairly through a tough patch often stays with you for years.
When to escalate
If an invoice is well overdue and the customer isn’t responding, you can send a formal letter of demand, use a debt collection service or, for small amounts, approach your state or territory’s small claims process. Get advice if you’re unsure. Keep every reminder and call recorded so you have a clear history.
Keep it visible
Overdue invoices are easy to forget when you’re busy. Keep one list of what’s outstanding and review it weekly. NovaSoft One’s invoice register shows outstanding and overdue invoices next to each customer, with payments recorded against them, so the whole team can see who needs a reminder.
Common questions
Can I charge interest on late payments?
Only if your terms allow it and the customer agreed to those terms. Put any late-payment terms on your quote and invoice before the work starts.
Should I stop work for a customer who hasn’t paid?
It depends on your agreement. If your terms allow it, pausing new work until overdue invoices are paid is common. Tell the customer clearly and in writing.
This guide is general information for Australian businesses, not legal, tax or financial advice. Check anything specific to your situation with a qualified adviser or the relevant government agency.