When your publisher fails to pay royalties, it can cause serious disruption to your income, reputation, and creative plans. You’re not alone – many Australian authors experience delays or underpayments.
This guide, prepared by our publishing lawyers, explains what to do if your royalties aren’t being paid. You’ll learn how to review your contract, gather evidence, escalate legally, and protect your rights in future publishing deals.
Key Takeaways
Start by reviewing your royalty, audit, and termination clauses.
Preserve statements, emails, and sales data as evidence.
Issue a formal notice of breach before escalating.
You may have legal remedies under the Copyright Act, Corporations Act, or Australian Consumer Law.
Use mediation or litigation based on the amount owed and your commercial goals.
Future-proof your deals with audit rights, late-payment clauses, and clear reversion triggers.
Why Publishers Stop Paying Royalties
Some common reasons include:
Cash-flow problems or insolvency
Accounting errors or misreporting
Broad set-off clauses that withhold income
Disputes about net receipts or sub-licensing revenue
For a broader overview of how royalties are calculated, paid, and enforced, visit our Australian Guide to Royalties.
Step-by-Step: What to Do If You’re Owed Royalties
1. Review Your Publishing Agreement
Look for clauses that define:
Royalty rate and how it’s calculated (e.g. RRP vs. net receipts)
Payment frequency and reporting obligations
Audit or inspection rights
Breach and termination process
Reversion rights if the book is out of print or unpaid
To understand how royalties and advances work under typical publishing deals, see our detailed breakdown in Royalties and Advances in Publishing Contracts.
2. Gather Evidence of Non-Payment
Helpful documents include:
Recent royalty statements
Emails confirming sales or explaining delays
Sales reports from online publisher platforms
Contracts or payment schedules
3. Send a Formal Notice of Breach
Clearly state:
Which clauses have been breached
A deadline for payment (e.g. 14 days)
Your intention to pursue audit, termination, or other legal action if payment is not made
We can help you prepare this for you and send it on your behalf.
4. Exercise Your Audit Rights
If your contract allows, engage an accountant to review the publisher’s books and:
Verify sales and royalty data
Uncover unpaid digital or foreign rights income
Strengthen your position in negotiations or court
5. Escalate Using Statutory Remedies
Statute | Key Section | Author Benefit |
Copyright Act 1968 (Cth) | s 115, s 116A | Sue for infringement and additional damages if the publisher continues exploiting rights after termination |
s 459E | Serve a statutory demand (≥ AUD $4,000) to pressure payment or commence winding-up | |
Australian Consumer Law (CCA sch 2) | s 18, s 21 | Claim misleading or deceptive conduct for false royalty statements or unconscionable conduct |
Even if your publisher isn’t infringing copyright, they may be liable for misrepresenting royalty earnings.
6. Try Mediation or Expert Determination
Many publishing agreements require alternative dispute resolution (ADR) before court action. ADR can:
Cut legal costs
Preserve your professional relationship
Provide a confidential, faster resolution
7. Consider Court Action
If the publisher refuses to settle or the breach is serious, litigation may be necessary.
Use Federal Court or state Supreme Court
Time limits may apply (6 years for contract breaches and 3 years for copyright infringement)
Be prepared for cost orders if litigation is unreasonable or aggressive
Protect Your Royalties in Future Publishing Contracts
Clauses to Insist On
Quarterly royalty statements and digital access to data
Late-payment interest tied to RBA cash rate
Audit at publisher’s cost if errors exceed 5%
Automatic reversion of rights if sales drop or payment is late
Narrow, well-defined set-off clauses
Negotiation Tips for Authors
Use royalty rate guides from the Australian Society of Authors
Avoid broad definitions of “net receipts” that exclude sub-licensing
Engage a publishing lawyer before signing
Watch for termination traps hidden in minor clauses
If your publisher is withholding royalties, contact our team for a confidential assessment. We assist authors across Australia with fixed-fee contract reviews, audits and dispute resolution.
If you suspect your publisher has breached your agreement, read our guide on What Happens If My Publisher Breaches the Agreement for legal steps and strategies.
Frequently Asked Questions
How long do I have to claim unpaid royalties in Australia?
Generally six years from the date each royalty payment became due, under limitation statutes in every state and territory.
Can I terminate my contract if my publisher stops paying royalties?
Yes, if the agreement treats non-payment as a material breach and the publisher fails to remedy after notice.
Not sure if your contract needs a legal check? Here’s why A Publishing Agreement Review is Important before signing or enforcing your rights.
What evidence do I need to prove non-payment?
Royalty statements, sales reports, emails acknowledging sales, and any audit findings provide strong proof of the debt.
Are there government agencies that can help me?
The Australian Competition and Consumer Commission (ACCC) may investigate misleading or deceptive conduct, and ASIC can act if the publisher is insolvent, but they do not recover your royalties directly.
What happens if my publisher goes into liquidation?
You can lodge a proof of debt with the liquidator and seek reversion of rights; however, unsecured creditors often receive only a partial distribution.
Explore the full publishing process (from manuscript to bookstore) in our Guide to Publishing a Book in Australia.
