VCAT Counterclaim: How to File One Against the Applicant

Defence vs Counterclaim — the Distinction That Matters

Being served with a VCAT claim puts you in a defensive position: someone wants money or orders against you, and you need to respond. But what if the applicant actually owes you something?

A defence (Points of Defence) disputes the applicant's claim. You are saying "you are wrong about what happened" or "you are not entitled to what you are asking for."

A counterclaim goes further. You are saying "not only should I not pay you — you should pay me." A counterclaim is an independent legal action brought by the respondent against the applicant, arising from the same dispute.

Common scenarios where a counterclaim makes sense:

• A contractor sues you for an unpaid invoice, but the work was defective and you paid a second contractor to fix it
• A car seller sues for the balance of the purchase price, but the car had undisclosed mechanical faults that cost you thousands to repair
• A service provider claims outstanding fees, but their substandard service caused you to lose business

How to Lodge a Counterclaim

A counterclaim is a new VCAT application — it goes through the same process as if you were filing a claim from scratch, with one critical addition: you quote the existing VCAT reference number so the registry joins the two matters and they are heard together.

Step 1: Log into myVCAT and select "New Application" for the Goods and Services case type.

Step 2: Enter the applicant's details as the respondent to your counterclaim (the roles are reversed for this second application).

Step 3: Quote the existing VCAT reference number in the application. This tells the registry to link the cases.

Step 4: Set out your claim — what happened, what loss you suffered, and what orders you want VCAT to make. Be specific about amounts.

Step 5: Pay the application fee.

Counterclaim Fees

Defending a VCAT claim costs nothing — respondents pay no fees to file Points of Defence. But a counterclaim is a new application, so fees apply.

The fee depends on your fee category and the value of your counterclaim:

Concession rates apply to Healthcare Card and Pensioner Concession Card holders. The standard rate applies to individuals, sole traders, and small businesses with annual turnover under $300,000. These are the 2026 fee regulation rates (from 1 July 2026).

If the fee is a hardship, you can apply for fee relief using VCAT's Fee Relief form.

Timing Your Counterclaim

File the counterclaim as early as possible — ideally when you file your Points of Defence or shortly after. If you wait until the week before the hearing, VCAT may adjourn both matters to give the applicant time to respond to your counterclaim, which delays everything.

Filing early also lets the tribunal list both the original claim and your counterclaim for the same mediation or compulsory conference, where a settlement that resolves everything at once is more likely.

What Happens at the Hearing

If both matters proceed to a final hearing, the Member considers the applicant's claim and your counterclaim together. They might order the applicant to pay you, order you to pay the applicant, order a set-off (netting the amounts against each other), or dismiss both claims.

A counterclaim carries the same evidentiary burden as any other claim. You need documents proving your loss: invoices, receipts, photos, quotes, expert reports. The VCAT response guide covers evidence preparation, hearing procedure, and every other step from the respondent's perspective.

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