The jurisdiction of the Disputes Tribunal doubled from $30,000 to $60,000 on 24 January 2026, causing significant changes for collecting medium sized debts. This increase is intended to improve access to justice and reduce the need for costly District Court litigation for medium sized disputes.

Before this reform, claimants with disputes between $30,000 and $60,000 faced a difficult choice: either pursue a costly and time consuming District Court proceeding or abandon part of their claim to fit within the former $30,000 Tribunal limit. The Tribunal’s increased jurisdiction means that claimants no longer need to trade value for accessibility, and many disputes that once required formal court action can now be resolved in a faster, more affordable and more pragmatic forum.

Other than the increase in the jurisdiction, and a new filing fee for claims over $30,000, nothing much has changed.

1. The Tribunal process itself remains the same. It is informal, inquisitorial, and aimed at substantial fairness rather than strict legal precedent.
2. Lawyers still cannot appear at hearings, although parties may seek legal advice beforehand.
3. Appeal rights are very restricted, and limited to procedural issues rather than legal errors.
4. Collecting undisputed debts is still outside the Tribunal’s role. In that case the appropriate approach will often be to apply to the District Court for orders for Summary Judgment.

What This Means for People and Businesses

The increased jurisdiction now allows many mid‑range disputes (between $30,000 and $60,000) to be heard in the Tribunal instead of the District Court. This allows faster hearing dates, reduced procedural delays, and lower costs for newly qualifying claims.

This change has some controversy. The Disputes Tribunal is very good at resolving smaller matters quickly and pragmatically without direct involvement from lawyers. However, larger disputes are now entering a forum where:

1. The Tribunal is required to have regard to the law but is not bound to give effect to strict legal rights or obligations, or to legal forms or technicalities. The law still matters in the Tribunal, but there is some flexibility - this makes outcomes unpredictable.
2. The absence of formal discovery of documents before hearing means that relevant evidence may not be disclosed.
3. The decision-makers don’t necessarily have legal backgrounds or education, and may make more errors than traditional Judges.
4. Parties who are not good at representing themselves may struggle to present their case effectively without the assistance of a lawyer at the hearing.
5. Tribunal decisions have very limited appeal rights, usually only on grounds of procedural unfairness not legal errors. 

For smaller disputes these issues may be an acceptable trade-off to achieve a quick and cheap result. For disputes up to $60,000, where that amount is an enormous sum of money for many people and businesses, these issues may be a real concern.

Claims Filed Before 24 January 2026

If a claim has already been filed under the old $30,000 limit with the excess abandoned to fit under the limit, the claim cannot be:

• amended later to add the abandoned amount; or
• withdrawn and refiled after 24 January 2026 to include the abandoned amount up to the $60,000 limit.

How we can help

Preparing strong evidence, detailed submissions, and presenting a clear, well-structured narrative are crucial steps to ensure your case is understood and properly considered by the Tribunal. This process involves gathering all relevant documents, organising supporting facts, and anticipating possible challenges to your position. For higher-value disputes, these preparations can significantly impact the outcome, as mistakes or omissions may lead to unfavourable decisions or missed opportunities for resolution.

In larger disputes before the Tribunal it will be especially important to obtain legal advice before lodging your claim or defence. Lawyers can help identify the strengths and weaknesses of your case, ensure that your submissions address the key issues, and guide you through procedural requirements that might otherwise be overlooked. This support can prove invaluable in navigating the Tribunal’s flexible approach to evidence and procedure, helping you to avoid costly errors and giving your case the best chance of success.

We will require a retainer to be paid prior to your first meeting, and we cannot assist with legal aid matters. Please note that, in accordance with our obligations under theLawyers and Conveyancers Act 2006, we cannot provide legal advice unless you have become a client of Smith and Partners and have received our Terms & Conditions of Engagement and Info for Clients.