Running a business in Australia can be exciting and rewarding, but it also comes with challenges — one of the most serious being debt disputes. If you’ve ever had a client who refuses to pay, or if your business has been on the receiving end of collection actions, you may have heard of a statutory demand . Statutory demands are powerful legal tools under the Corporations Act 2001 (Cth) . They are not just formal letters — they are official notices that can quickly escalate into winding-up proceedings if ignored. For business owners, directors, and creditors alike, understanding how statutory demands work is critical to protecting your rights and avoiding severe financial consequences. In this guide, we’ll break down everything you need to know about statutory demands in Australia — how they work, when to use them, how to respond, and the risks for both sides. What Is a Statutory Demand? A statutory demand is a formal notice issued under section 459E of the Corporations Act ...