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What the New $60,000 Disputes Tribunal Limit Means for You

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From 24 January 2026, the Disputes Tribunal will be able to hear claims of up to $60,000, which is double its previous limit. This change, introduced under the Disputes Tribunal Amendment Act 2025, means many more disputes can now be resolved quickly and affordably, without the need to go to court. Whether you’re an individual, tradesperson, or small business owner, this expanded jurisdiction could make a real difference in how you handle civil disputes.

Why This Matters

Under the current legislation, individuals and businesses with claims between $30,000 and $60,000 face a dilemma: pursue costly litigation in the District Court or abandon part of their claim to fall within the Tribunal's lower monetary threshold. For example, if you have a claim for say $40,000 you can either:

  • File in the Tribunal: Save on legal costs and benefit from a faster process, but abandon $10,000 of your claim.
  • File in the District Court: Retain the full claim amount but incur legal costs, longer timelines, and uncertain recovery of legal cost if you win.

The jurisdictional increase aims to close this gap, offering a more practical forum for “mid-range” disputes.

Key Changes

The Key changes are:

  • Jurisdiction Increase: Claims up to $60,000 can now be heard by the Tribunal.
  • Tiered Filing Fees: A new fee of $468 applies to claims over $30,001, reflecting the higher value and benefit of these disputes.

Legal Representation rules remain unchanged. Therefore parties still cannot be represented by lawyers during hearings, maintaining the Tribunal's informal and cost-effective nature.

What to Watch For

While the increased cap is a welcome development, we foresee it bringing with it some new challenges:

  • Higher Complexity: Larger claims may involve more nuanced legal and factual issues, testing the Tribunal's informal processes.
  • Fairness vs. Legal Precision: Decisions are based on fairness and substantial merits rather than strict legal rules, which may lead to inconsistent outcomes.
  • Limited Appeal Rights: Appeals are only allowed in cases of procedural unfairness, potentially prompting more judicial reviews in the High Court.

Additionally, the Ministry of Justice announced plans to allow successful applicants to recover filing fees from respondents, helping ensure costs don’t fall on those who have been wronged.

How We Can Help

Navigating the Tribunal process can be daunting—especially for higher-value or complex claims. While legal representation is not permitted during hearings, we can assist with:

  • Evaluating the merits of your claim or defence
  • Preparing and structuring your claim
  • Gathering and presenting evidence effectively
  • Advising on strategy and settlement options
  • Determining the most suitable forum for your dispute

With the Tribunal now handling more substantial claims, thorough preparation is more important than ever. If you're unsure how the changes affect your situation, get in touch for tailored advice.

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George Steyn
Senior Associate
Litigation & Dispute Resolution
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© McVeagh Fleming 2025
This article is published for general information purposes only.  Legal content in this article is necessarily of a general nature and should not be relied upon as legal advice.  If you require specific legal advice in respect of any legal issue, you should always engage a lawyer to provide that advice.

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What the New $60,000 Disputes Tribunal Limit Means for You

What the New $60,000 Disputes Tribunal Limit Means for You

From 24 January 2026, the Disputes Tribunal will be able to hear claims of up to $60,000, which is double its previous limit. This change, introduced under the Disputes Tribunal Amendment Act 2025, means many more disputes can now be resolved quickly and affordably, without the need to go to court. Whether you’re an individual, tradesperson, or small business owner, this expanded jurisdiction could make a real difference in how you handle civil disputes.

Why This Matters

Under the current legislation, individuals and businesses with claims between $30,000 and $60,000 face a dilemma: pursue costly litigation in the District Court or abandon part of their claim to fall within the Tribunal's lower monetary threshold. For example, if you have a claim for say $40,000 you can either:

  • File in the Tribunal: Save on legal costs and benefit from a faster process, but abandon $10,000 of your claim.
  • File in the District Court: Retain the full claim amount but incur legal costs, longer timelines, and uncertain recovery of legal cost if you win.

The jurisdictional increase aims to close this gap, offering a more practical forum for “mid-range” disputes.

Key Changes

The Key changes are:

  • Jurisdiction Increase: Claims up to $60,000 can now be heard by the Tribunal.
  • Tiered Filing Fees: A new fee of $468 applies to claims over $30,001, reflecting the higher value and benefit of these disputes.

Legal Representation rules remain unchanged. Therefore parties still cannot be represented by lawyers during hearings, maintaining the Tribunal's informal and cost-effective nature.

What to Watch For

While the increased cap is a welcome development, we foresee it bringing with it some new challenges:

  • Higher Complexity: Larger claims may involve more nuanced legal and factual issues, testing the Tribunal's informal processes.
  • Fairness vs. Legal Precision: Decisions are based on fairness and substantial merits rather than strict legal rules, which may lead to inconsistent outcomes.
  • Limited Appeal Rights: Appeals are only allowed in cases of procedural unfairness, potentially prompting more judicial reviews in the High Court.

Additionally, the Ministry of Justice announced plans to allow successful applicants to recover filing fees from respondents, helping ensure costs don’t fall on those who have been wronged.

How We Can Help

Navigating the Tribunal process can be daunting—especially for higher-value or complex claims. While legal representation is not permitted during hearings, we can assist with:

  • Evaluating the merits of your claim or defence
  • Preparing and structuring your claim
  • Gathering and presenting evidence effectively
  • Advising on strategy and settlement options
  • Determining the most suitable forum for your dispute

With the Tribunal now handling more substantial claims, thorough preparation is more important than ever. If you're unsure how the changes affect your situation, get in touch for tailored advice.

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