VCAT Consent Orders: How to Settle a Dispute and Make It Binding

What Consent Orders Are

Consent Orders are a formal VCAT order that records a settlement both parties have agreed to. Once a VCAT Member issues Consent Orders under Section 93 of the VCAT Act 1998, the agreement becomes legally enforceable — identical in effect to an order made after a contested hearing.

This matters because a private settlement, even a written one, is not a VCAT order. A written settlement may still be a contract, but a party may need to bring a separate claim to enforce it. Consent Orders can be registered in the Magistrates' Court for monetary orders up to $100,000; larger orders go to the County or Supreme Court for enforcement.

When Settlement Makes Sense

Settlement can happen at any point: before the hearing, during mediation, at a compulsory conference, or even at the door of the hearing room. Common scenarios where settling is practical:

• You accept that you owe some of the money but disagree on the full amount
• The cost of preparing for a hearing (time off work, gathering evidence, stress) outweighs the disputed amount
• You want to pay in instalments rather than face a lump-sum order
• The applicant is willing to accept completion of unfinished work instead of monetary compensation

Settling does not mean you were wrong. It means both parties decided a known outcome is better than an uncertain one.

How to Negotiate a Settlement

Mark all written offers "Without Prejudice." This prevents either party from producing compromise offers as evidence of liability at a later hearing. If settlement talks fail, the Member deciding the case will not know what either side was willing to accept.

Be specific about what you are offering. "I will pay $2,500 in three monthly instalments of $834 starting 1 December 2026" is a settlement offer. "I might be able to pay some of it" is not.

Negotiate directly or through VCAT's processes. VCAT's mediations and compulsory conferences are designed for settlement. If you are negotiating outside those sessions — by email, phone, or in person — keep written records of every offer and counter-offer.

Drafting Terms of Settlement

When both parties agree on terms, put them in writing before asking VCAT to issue Consent Orders. The terms should cover:

1. The agreed amount (if monetary) or the agreed actions (completion of work, return of goods)
2. Payment timeline — lump sum by a specific date, or instalments with exact amounts and due dates
3. What happens if a payment is missed — typically, the full remaining balance becomes immediately payable
4. Withdrawal of the application — usually the applicant agrees to withdraw or the parties jointly request discontinuance
5. Costs — in most Consent Orders, each party bears their own costs (this is the VCAT default under Section 109)

Both parties sign the terms and submit them to VCAT with a joint request for Consent Orders. If the agreement is reached at a mediation or compulsory conference, the mediator can help record the terms, but only VCAT can issue the orders.

What Happens After Consent Orders Are Made

Once Consent Orders are issued, the primary proceedings are formally concluded. The hearing date (if one was listed) is vacated.

If the other party does not comply with the Consent Orders — for example, they miss an instalment payment — you do not need to start a new VCAT case. Register monetary orders up to $100,000 in the Magistrates' Court of Victoria; larger orders go to the County or Supreme Court. You can then apply for enforcement through that court's processes, such as a Warrant to Seize Property, an Attachment of Earnings order, or an oral examination to discover the debtor's assets.

Settlement vs Withdrawal

Two ways a VCAT case ends without a contested hearing:

Withdrawal (Section 74): The applicant withdraws the application entirely, with or without the respondent's agreement. This ends the case but does not create any enforceable obligation. If the respondent promised to pay in exchange for withdrawal, that promise is only a private contract.

Consent Orders (Section 93): Both parties agree on terms and ask VCAT to make them into orders. This creates a binding, enforceable obligation backed by the tribunal's authority.

If you are a respondent settling a claim, always push for Consent Orders rather than bare withdrawal. An applicant who withdraws can (in some circumstances) re-file later. Consent Orders close the matter and give you an enforceable document if the applicant has obligations under the settlement.

For the full procedure — from reading the VCAT papers through to settlement, hearing, and post-decision options — the VCAT response guide covers each step.

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