NCAT Costs and Interest in Consumer Claims

The Default: Each Side Bears Their Own Costs

NCAT operates as a "no-cost" jurisdiction for consumer claims. Under section 60 of the Civil and Administrative Tribunal Act 2013 (NSW), each party pays their own expenses — filing fees, expert reports, travel, time off work — regardless of who wins.

This is a deliberate design choice. The tribunal aims to be accessible to self-represented consumers. If losing meant paying the trader's lawyer fees, most consumers would never file.

When Costs Can Be Awarded

The exception is "special circumstances." Section 60 gives the tribunal discretion to make a costs order when a party's conduct justifies it. The tribunal has found special circumstances where:

• A claim was frivolous, vexatious or had no reasonable prospect of success — the party filed knowing they had no case, effectively using the tribunal as a harassment tool
• A party unreasonably refused to participate in conciliation — they did not engage in good faith or rejected a clearly reasonable settlement offer
• A party failed repeatedly to comply with procedural directions — ignoring evidence deadlines, failing to attend without notice, or causing unnecessary adjournments
• A party engaged in dishonest or misleading conduct — fabricating evidence, providing false information to the tribunal

The bar is high. Simply losing a claim does not constitute special circumstances. The tribunal must find that the party's conduct went beyond ordinary litigation behaviour.

What Costs Can Be Recovered

The scope of a costs order depends on the case and the order made. Filing fees, expert reports and document expenses are not automatically recoverable.

Unrepresented parties cannot claim compensation for lost wages, personal time spent preparing the case, or general inconvenience. If a party had legal representation (with leave from the tribunal), the cost order may include reasonable legal fees, but the tribunal retains discretion to limit the amount.

How Interest Works

Pre-order interest is not automatic at NCAT. If the underlying contract specifies an interest rate for late payment, you can include that interest in your claim amount. If there is no contractual interest clause, the tribunal may award interest at its discretion under general equitable principles, calculated from the date the money became due.

Post-order interest does not accrue while the order remains at NCAT. However, once you register an unsatisfied NCAT monetary order in the NSW Local Court as a court judgment, interest accrues automatically under section 101 of the Civil Procedure Act 2005 (NSW) at the prescribed rate until the debt is paid. This is one of the practical reasons to register promptly rather than waiting months for voluntary compliance.

Cross Claims

If the trader says you owe money under the same transaction — for example, you are claiming a refund for defective goods and the trader counterclaims for unpaid balance — the respondent can raise a cross claim. Both claims are heard together in the same proceedings.

A respondent may raise a counterclaim during conciliation or file a cross-application, allowing both claims to be heard together. The tribunal then considers both claims on their merits and can make orders on each.

The strategic implication: if you have a strong claim but owe the trader a small amount under the same contract, settle the undisputed portion before filing. Walking into NCAT owing money on the same transaction gives the trader ammunition to offset your claim.

For a complete walkthrough of costs, interest, enforcement and every other stage of the process, the NCAT Consumer Claim Guide for NSW covers the entire consumer claim journey.

See more New South Wales guides →