How much does a statutory demand cost in Australia?
A statutory demand under section 459E of the Corporations Act 2001 (Cth) typically costs $800-$2,500 in legal fees to draft and serve. If the demand is complied with, that is the full cost. If it is set aside under section 459G, legal costs can rise to $15,000-$50,000+. If it leads to winding up under section 459P, further $10,000-$40,000 to obtain orders.
The core demand
A statutory demand under section 459E of the Corporations Act 2001 (Cth) is served when a debt of at least $4,000 is due and payable from a company. The demand must be in prescribed Form 509H and supported by an affidavit unless based on a judgment debt. Legal fees to prepare and serve: $800-$2,500.
If the company applies to set it aside
The company has 21 days under section 459G to apply to set aside the demand on grounds of genuine dispute, offsetting claim, or defect. Defending a set-aside application: $8,000-$25,000 in legal fees. Losing a set-aside is expensive — indemnity costs are often awarded where the demand was unsupported.
Winding up application
If the demand is not complied with and not set aside, a winding-up application under section 459P can be filed. Filing fees around $5,250 (Federal Court 2025-26 corporation rate). Legal fees to obtain winding-up order: $10,000-$40,000 depending on opposition. ASIC fees apply on appointment of a liquidator.
How I draft statutory demands fast
I draft Form 509H statutory demands and supporting affidavits in current Corporations Act 2001 (Cth) compliant format, including correct debt descriptions and supporting evidence. For commercial lawyers this is a routine high-volume workflow.
Common issues
- Service must be on the company's registered office — not just any office
- A genuine dispute of any debt element is enough to set aside — the threshold is low
- Using a statutory demand to recover a disputed debt is an abuse of process
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