NCAT Cross Claim and Counterclaim in the Consumer Division

A customer has filed an NCAT consumer claim against you, but they still owe you money for work you completed. Simply defending the claim will not recover what they owe. You need to file a counter-application.

NCAT Does Not Use a Counterclaim Form

In the NSW Local Court, a defendant can file a Cross-Claim within the same proceedings. NCAT's Consumer and Commercial Division works differently — there is no standalone counterclaim form attached to the respondent's case.

Instead, you lodge a separate Consumer Claim Application naming yourself as the applicant and the original applicant as the respondent. You reference the existing NCAT file number so the registry links both matters to be listed and heard together.

This is a new application with its own filing fee, not an addendum to the existing case.

When a Counter-Application Makes Sense

You have an independent claim against the applicant arising from the same transaction. Common scenarios for respondents:

• A customer disputes the quality of work but has not paid for the portions already completed
• A buyer wants a refund for part of a service while you have unreimbursed material costs
• The applicant received goods or services beyond what they paid for

The claim must fall within NCAT's consumer jurisdiction under Part 6A of the Fair Trading Act 1987. If it involves a residential building contract, it belongs on the Home Building list instead. If it involves a private (non-business) transaction, it goes to the Local Court.

Filing Fees

The fee depends on the amount you are claiming:

Concession rates (25% of the standard fee) apply if you hold an eligible pension card or have a Legal Aid grant.

How to File

1. Complete a Consumer Claim Application form (the same form an applicant uses to start proceedings)
2. Include the existing NCAT file number in the application
3. Set out the factual basis for your claim and the orders you want
4. Pay the filing fee
5. File through NCAT Online Services or at a registry
6. Serve a copy on the other party

Once filed, the registry will link your counter-application with the original claim. Both matters are typically listed on the same hearing date, and the tribunal considers them together.

What If Your Claim Is Outside NCAT's Jurisdiction

If your claim does not fit the consumer-and-supplier relationship required by Part 6A — for example, a pure contract debt between two businesses with no consumer guarantee element — you cannot use NCAT. You would need to commence separate proceedings in the Local Court (up to $100,000) or the District Court (above $100,000).

You can still defend the existing NCAT claim by reducing the amount owed. If the applicant claims $8,000 for defective work and you can show $3,000 worth of work was completed satisfactorily, the tribunal may reduce the award to $5,000. But recovering the unpaid portion requires your own separate action.

The Responding to an NCAT Consumer Claim guide covers counter-applications alongside the four response paths available to respondents.

See more New South Wales guides →