DEBT COLLECTION FEES
Most Australian debt collectors charge commission of 5% to 30% of what they recover, according to business.gov.au. Chargetree is no recovery, no fee. There’s nothing to pay upfront, and our fee is 15% of what we recover on debts under $5,000, or 10% on debts of $5,000 or more.
UPDATED 15 NOVEMBER 2026
What you’ll pay, compared
The fee that matters is what you pay when a debt is recovered, but the extras add up too. Here’s what each option usually costs.
Chargetree
Typical agency
Lawyer
Upfront or listing fee
None
Sometimes, per debt
Usually a retainer or fixed fee
Letter of demand
Included
Often a separate fee
A fixed fee per letter
If nothing is recovered
Nothing
Usually nothing on commission, but fixed fees still apply
You pay legal fees either way
If money is recovered
15% under $5,000, 10% from $5,000
Usually 5–30% commission
Hourly or fixed fees
Payment plans and part payments
Included
Varies
Varies
Court costs
Extra, only if you choose legal action
Extra
Extra
How much do debt collectors charge in Australia?
Most debt collection agencies in Australia work on commission. business.gov.au says rates usually range from 5% to 30% of the value of the debt. Where your quote lands in that range depends on the debt:
Age matters most. A 60-day debt is easier to recover than a two-year-old one, so it usually costs less.
Small debts often attract a higher percentage or a minimum fee.
Collecting from individuals comes with stricter rules under the ACCC/ASIC Debt Collection Guideline than collecting from businesses.
Businesses that lodge debts regularly can often negotiate a better rate.
Court costs are usually extra, even with a no recovery, no fee agency.
The five ways debt collection agencies charge
Fee model
How it works
Typical use
Commission (no win, no fee)
A percentage of what’s recovered, and nothing if nothing is recovered
Most agency work
Fixed-fee letter of demand
A flat fee per letter, paid whether or not you’re paid
Fresh, undisputed debts
Subscription
A monthly or annual fee, sometimes with lower commission
Businesses lodging debts every month
Legal fees
Hourly or fixed fees for demands, court filings and enforcement
Disputed or large debts
Debt sale
You sell the debt for a small share of its value
Old debts you’ve given up on
What commission costs on a $5,000 invoice
Say a customer owes you $5,000 and it’s recovered in full. These rates come from the market range. Chargetree charges 10% on a $5,000 debt, so you’d keep $4,500.
Commission
You receive
Fee
10%
$4,500
$500
20%
$4,000
$1,000
30%
$3,500
$1,500
The fair comparison is with the money you’d otherwise never see. A $5,000 debt written off is $5,000 gone.
Who pays debt collection fees?
The business that hires the debt collector pays the fee. You can only pass collection costs on to your customer if your terms of trade clearly said so before the work was done, and some states restrict it. In Queensland, for example, a collector can only require payment of the debt itself, plus court costs once legal action has started. Get advice before adding fees to a debt.
Costs to ask any agency about
Listing or set-up fees per debt
Letter of demand fees
Search or skip-tracing fees
Fees if you withdraw a debt, or if your customer pays you directly
Legal referral and court costs
How long recovered money sits in a trust account before you’re paid
Frequently asked questions
How much do debt collectors charge in Australia?
Most Australian debt collectors charge commission of 5% to 30% of the amount they recover, according to business.gov.au. Older, smaller or harder debts sit at the top of that range.
What percentage do debt collectors take?
Usually between 5% and 30% of what they recover. Some agencies charge a flat fee for letters of demand or an annual subscription instead of, or as well as, commission.
Do debt collectors charge if they don’t recover anything?
Most agencies work on a no win, no fee basis, so you pay nothing if nothing is recovered. Check for fixed fees, such as letters or searches, that apply either way.
Who pays debt collection fees in Australia?
The business that hires the collector pays. Collection costs can only be passed to the customer if the original terms allowed it, and some states, such as Queensland, restrict what a collector can ask for.
Is a debt collector cheaper than a lawyer?
For undisputed debts, usually yes, because most collectors only charge when they recover. Lawyers usually charge whether or not you’re paid, and they’re the right choice for disputed or large debts.
Does Chargetree charge anything upfront?
No. There are no upfront, listing or subscription fees for collections. You only pay a share of what’s recovered: 15% on debts under $5,000, or 10% on debts of $5,000 or more.
