How to Report Theft of Services in Australia?

Theft is a crime we are all familiar with and fear a lot. Typically, the term ‘theft’ refers to the act of stealing physical goods, such as a stolen wallet or some other personal belonging.

However, theft isn’t limited only to tangible goods.

Theft of services has now become a major concern, where businesses and individuals are denied payment for services they render. If you are a freelancer or a service provider, chances are you have encountered such a situation where you have delivered the work as agreed, and the client refused to pay.

The actual problem with theft of service is that many people don’t know what to do when they find themselves in such a situation. If someone has taken your time, skills, or labour without paying, this article will guide you through your rights and the legal steps you can take to recover what you're owed.

So, let’s get started!

What Is Theft of Services?

Theft of services is a legal term used to describe a crime committed when an individual obtains intangible, but valuable, services through dishonest or fraudulent means to avoid paying for them, even though they know that payment is required.

While there may not be a single unified definition for this offence, several state-level criminal codes in Australia cover it in various forms.

For example, in Victoria, the Crimes Act 1958 (Section 82) has terms for “Obtaining financial advantage by deception”.

Under this provision, if someone obtains a service without any intention of paying, or uses deceptive means to avoid payment, it could be considered criminal behaviour and not merely a civil dispute.

Steps to Report Theft of Services

Theft of services may fall under both criminal and civil offences; therefore, it is essential to take action to seek justice and hold the offender accountable.

If you have been a victim of this type of fraud, reporting it is a crucial step in protecting your rights and recovering what you are owed.

Here are some simple steps you can follow to report theft of services.

Save All Evidence

If you have to report someone for theft of services, you will need to provide evidence that you are authorised to recover financial damages.

Due to this reason, the first and foremost step in reporting the theft of services is to gather and save thorough evidence related to the services you performed for a client or any other individual.

It could be:

• Invoice: Any invoice you provided to your client or the person you render services for.
• Contract or written agreement: If you provide services under a type of written agreement, make sure to save this.
• Correspondence between you and the other person: Any text message, email, or call log between you and your client.
• Other documentation related to the service you provided: Photos of roof repairing, etc.

Having a clear timeline and proof will strengthen your case and help an authoritative or legal professional to assist you.

Communicate Directly with the Other Person

Before taking any legal action, it may be worth communicating with the client you render services to. By communicating directly, you may be able to receive your payment without taking any legal action.

It is also possible that there is some underlying reason why your client doesn’t want to pay you.

Considering this point, it is also important to note that theft of service is often confused with reasonable rejection, i.e., the customer doesn’t want to pay because the services provided were not as advertised or services don’t meet a reasonable standard of quality.

For example, if a roofer installs a new roof and the roof leaks, there is a chance that the customer will withhold the payment until the leak is fixed.

Hence, speaking directly with your client can clear any misunderstandings and resolve the underlying problems. If they reply with concerns or disputes about the service, try resolving them amicably.

However, if they ignore you, it may be time to move toward formal reporting.

Consider a Payment Plan

Most of the cases of theft of services are brought by the business owners against their clients and customers.

If you are a business owner and your clients or customers owe you a larger amount, you can offer them a better payment plan. The reason is that it is easier for people to pay in smaller instalments rather than one larger lump sum.

Note: Make sure to discuss various types of payment plans with your clients and choose the one most suitable for them.

Send a Demand Letter

If nothing resolves your problem, the next step you need to take is to send a demand letter for theft of services. Sending a demand letter is a quick, free, and highly effective process, having a high rate of success even with reluctant or forgetful debtors.

In this letter, you clearly state to the other party how much payment is due, and if it is not paid within a specified time, you intend to sue them in court.

Not only does a demand letter provide the debtor with the final chance to settle the matter amicably, but it also demonstrates that you have made reasonable efforts to resolve the issue out of court, which might prove to be favourable in legal proceedings.

While it is not universally required by law to send a demand letter, many regions, such as South Australia, mandate that a formal written notice be given before taking legal action for theft of services.

Hence, by sending a demand letter as a formal notice to the debtor, you meet this requirement.

Tip: While you can write and send a letter of demand on your own, it is often advisable to consult a lawyer. A professionally drafted letter ensures that all the essential details are included and that your claim is presented in a legally sound manner.

Consider Consulting with a Lawyer

If the letter of demand goes unanswered or the other party still refuses to pay you without any valid reason, consider consulting a lawyer.

A lawyer can help you understand your legal options and advise you about the best course of action that will ultimately strengthen your case.

They will also assist in determining the appropriate court (e.g., small claims tribunal, local court) for your case based on the amount owed and type of dispute (theft of service or simply a civil debt issue).

Tip: If the cost of legal counselling is a concern, you may be eligible for free legal advice through Community Legal Centres across Australia.

Suing for Theft of Services

If your legal advisor recommends you file a claim in your state or territory’s small claim court or tribunal, go for it.

You can sue for theft of service in small claim court under different legal theories. If there was a written contract between you and your client, you can sue for breach of contract. If there is no written contract, you can still sue for non-payment for the services rendered, relying on evidence.

In Australia, theft of services may be treated as either a civil complaint or a criminal offence, depending on the intent and circumstances.

Civil Complaint

This is the typical path for freelancers and service providers.

You file a claim in the appropriate tribunal (like NCAT in NSW or VCAT in Victoria).

Criminal Complaint

This is only applicable if you have strong proof of deliberate fraud or deception.

In such a case, you would file a complaint with the police, and they may pursue charges under state laws (e.g., Fraud under the Criminal Code or obtaining financial advantage by deception).

Criminal cases are less common but may apply in serious instances where the debtor’s actions were dishonest and intentional.

Conclusion

These days, theft is not limited to physical items and has spread to intangible goods, making theft of services a growing concern. If you are a freelancer or a service provider and have encountered such a problem, it is essential to report it to recover what you actually owe.

Before reporting, it is better to communicate directly with the client and try to find the underlying reason.

You can also offer simple payment plans for them.

If they ignore your messages or completely ghost you, it is recommended to consult a legal advisor and file a report in the respective court. If your evidence is strong enough to support your claim, you will receive the payment; otherwise, the court may dismiss your claim.

That is all.

Thanks for reading.

We wish you all the best.