Late Fee Estimator
Wondering how much interest you can charge on unpaid invoices? Use our free Late Fee Calculator to estimate legally compliant interest charges for overdue business payments in Australia. Protect your cash flow with accurate calculations based on standard commercial rates.
Estimated Totals
Interest Accrued
$0.00
New Invoice Total
$0.00
Did you know? You must have a prior agreement (like signed terms of service) stating your late payment interest rate to legally enforce it in Australia.
Are you legally allowed to charge a late fee?
In Australia, charging interest on overdue invoices is legal, but there are strict rules you must follow to ensure it's enforceable.
Prior Agreement is Required
As guided by the ACCC and Australian contract law, you cannot simply add a late fee to an invoice if it wasn't previously agreed upon. Your terms of trade or quote must explicitly state the interest rate before you begin work.
Avoid "Penalty" Rates
Your rate must be a genuine pre-estimate of your loss (e.g., covering debt recovery costs or bank interest), not a punishment. Rates between 8% and 12% per annum are commonly used.