Date published: 01 October 2025 | Author: Nina Rossi

Statutory demands are a powerful tool under Part 5.4 of the Corporations Act 2001 (Cth), but their effectiveness hinges on precision. 

Missteps, whether procedural or strategic, can derail your claim, expose you to cost orders, or even invalidate the demand entirely.

Here are some of the most frequent and costly errors:

1. Using the Incorrect Form 509H: Using outdated templates or omitting key details like ABNs or debt descriptions can render the demand defective.
2. Improper Service: Serving to the wrong address or via PO Box breaches section 109X. Always verify the registered office via ASIC.
3. Claiming Less Than $4,000: Demands below the statutory minimum are invalid. Check Regulation 5.4.01AAA for current thresholds.
4. Missing or Faulty Affidavits: For non-judgment debts, the affidavit must be sworn the same day and by someone with direct knowledge.
5. Using a PO Box as Creditor’s Address: A physical address in the same jurisdiction is required for service of any set-aside application.
6. Late Set Aside Applications: Companies have 21 days to respond. One day late is fatal.
7. Unverified Debt Claims: Courts reject hearsay or generic affidavits. Precision and direct knowledge are essential.
8. Abuse of Process: Using demands as leverage in disputes can backfire—courts won’t tolerate misuse.

At RossiLaw Solicitors, we help creditors and companies navigate statutory demands with confidence and compliance. Whether you're issuing a demand or defending one, precision matters.

📞 Need help with a statutory demand? Contact RossiLaw Solicitors today for tailored legal advice that protects your position and minimises risk.