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Debt Collection in Australia

Debt Collection in Australia

Small, medium or large companies, sole traders included, might be in the position of asking for support in collecting debts in Australia. In most cases, a debt collection agency performs the necessary steps for recovering the money, thus avoiding procedures that may include court proceedings.

Our company formation agents in Australia can provide you with information about how debt collection is performed here. Of course, our team can also provide the necessary legal support in any type of debt collection formality.

What rules of law regulate debt collection in Australia?


Debt collection in Australia is concluded following the legislation applicable here. There are many regulations which can be relevant to debt collection, some of which refer to consumer protection laws. In the list below, our consultants in company formation in Australia invite you to discover the legal framework that establishes how debt collection can be completed here:

  • the Competition and Consumer Act 2010 and the Australian Consumer Law;
  • the Australian Securities and Investments Commission Act 2001, Part 2, Division 2;
  • the National Consumer Credit Protection Act 2009 and the National Credit Code;
  • the Bankruptcy Act 1966.

How do debt collectors get in touch with the debtor?

Communication is the key for a proper recovery of debts in Australia, and a debt collection agent will initiate the amicable procedure in this sense, by contacting the company and by following these steps:

  • the debtor is informed about the current payments he/she needs to take care of;
  • details about legal aspects involved (if the payments are not respected in due time) can be offered or reminded;
  • new payment terms and arrangements can be established between the parties involved;
  • if an alternative payment is available, the conditions for this method can be proposed.

We invite you to address to our specialists in company formation in Australia if you are a foreign investor looking for debt recovery in this country. Our team will act only with compliance to the Australian laws regarding the debt collection.

When can one get in touch with a debtor in Australia?


The legislation applicable in Australia is very clear as to how a debt collection agency or any other party providing debt collection services can get in touch with a debtor. There are very clear basic procedures to be followed and the debt collector must also have a specific conduct, which does not involve harassment, physical force, misleading conduct or misleading information.

Outside of this, it is important to know that a debt collector must contact a debtor only during specific hours. In the list below, our specialists in company incorporation in Australia present you what constitutes reasonable hours of contact, based on the manner in which the debt collector contacts the debtor:

  • provided that the debt collector addresses the debtor by telephone, he or she can call starting from 7:30 AM, and no later than 9 PM, as long as the calls are made during business days (Monday to Friday);
  • the debt collector can also call during weekends, but the call hours are between 9 AM and 9 PM;
  • when addressing the debtor in person, the debt collector can arrive at the premises of the debtor between 9 AM and 9 PM throughout the entire week;
  • for business in-person meetings, the debtor can go to the company’s premises during the company’s regular working hours and during weekends, from 9 AM to 5 PM.


There is also another matter that is of importance concerning the procedure of debt collection in Australia, and this is the frequency of contact. A normal frequency of contact, that can’t be considered harassment, is defined as a contact of maximum 3 times per week or 10 times per month.

In general, when the debt collector addresses the debtor, there must be a plausible reason for contact. However, the frequencies of contact mentioned above refer to other means of contact outside of in-person meetings, as the legislation stipulates that only 1 in-person meeting per month is sufficient.

Recovering debts through the courts in Australia

The debt collection in Australia can be concluded through the procedures made in the court of law in this country. The procedural rules and the territory law are at the base of the debt recovery procedures in Australia, which can also be used by those who will open a LLC in Australia and will enter the debt collection procedure on a corporate level.

It is good to know that the repossession of the securities and/or assets might be part of the debt collection in Australia. For more details on this subject, as well on the procedure on how to open bank account online in Australia, you can refer to our specialists.  

The collection of debts in Australia can be dealt in the courts of law if the amicable procedures did not outcome as expected. Feel free to address our team of company incorporation agents in Australia and find out details about debt collection. You can also rely on our team if you want to find out other information investors may be interested in, such as how you can open a company in Australia.

Our consultants can provide legal assistance to those who need to collect a debt if they are a local or a foreign citizen. Of course, our services are also designed for corporate needs. Thus, if you want to open a company in Australia and at some point, you will have to collect debts from your business partners, associates and clients, you can rely on our team.

Foreign investors who want to set up a company in Australia can receive legal representation during the steps concerning the registration of a new legal entity, but they can also address to our team for assistance on immigration matters. Our consultants can present the list of visas designed for business purposes and select the one that is most suitable to your situation.

If you want to complete the immigration and registration formalities as fast as possible, you can save a lot of time by purchasing a shelf company in Australia.

This is a legal entity that you can purchase and which benefits from almost all the characteristics of a newly formed company, which is a major advantage for investors who do not have the time to participate in/wait for all the incorporation procedures to be completed.

The shelf company in Australia usually comes in the form of a private limited company, the most common way to start a business here. For more details on this way of starting a business, as well as on other options for investments in this country, do not hesitate to address our team.

We invite you to contact our consultants in company incorporation in Australia for corporate services, which also include tax advice, compliance, accounting, mergers and acquisitions, reorganization and debt collection in Australia.