Decide whether the debt can support a creditor’s statutory demand
MaintainedLast reviewed
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- Extract invoice dates, credits and payments into a schedule of amounts said to be due, and flag any description that does not match the proposed demand.
- What the lawyer must review
- Work from section 459E, regulation 5.4.01AAA and Form 509H
- Treat the schedule as an aid only
- Decide whether to demand on the source documents
- Written for / version
- Written for AustraliaNZ
Open a jurisdiction version of this task to see which instruments apply.
The work product
Forum. Australia. A creditor’s statutory demand under the Corporations Act 2001 (Cth).
Produce. A short note that the debt can be demanded, or that it cannot, with the net amount and whether each debt is a judgment debt.
Have ready. The contract, invoices, credits and payment records; Corporations Act 2001 sections 9 and 459E; Corporations Regulations 2001 regulation 5.4.01AAA and Form 509H.
Example of the limit. The schedule shows $4,000 of invoices and a $400 credit. Section 459E(1) uses “at least the statutory minimum”. Form 509H note 2 says the amount must exceed the statutory minimum. The lawyer resolves that difference against the current text before a figure near $4,000 is printed.
Stop and hand it back when
- A debt is contingent, prospective, or not yet due and payable.
- The deponent cannot say, from their own knowledge, that they believe there is no genuine dispute about the existence or amount of the debt.
Sources for this task were checked on 2026-09-22.
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Extract invoice dates, credits and payments into a schedule of amounts said to be due, and flag any description that does not match the proposed demand. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- Open section 459E(1), section 9 and regulation 5.4.01AAA. For a demand served on or after 1 August 2021, the $20,000 limb does not apply. The amount otherwise prescribed is $4,000.
- Compare section 459E(1) (“at least the statutory minimum”) with Form 509H note 2 (“must exceed the statutory minimum”) before a figure on that threshold is inserted.
- Take credits and payments off the schedule from the source documents. Leave out any amount that is not due and payable.
- If any debt is not a judgment debt, an affidavit is required. A judgment debt is described with the court and the date of the order. The demand is not issued unless the deponent can hold the belief in Form 7 paragraph 5 from their own knowledge.
Sources
- Corporations Act 2001 (Cth), compilation 27 August 2026 (C2026C00382) · 2026-09-22
- Corporations Regulations 2001, compilation 1 September 2026 (F2026C00854), including Form 509H · 2026-09-22
Suggested working checks from the linked public source. Read that source before you rely on the check. This is not a record that the check has been done.