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In October Parliament passed legislation raising the jurisdictional limit of the Disputes Tribunal from $30,000 to $60,000. The change to the jurisdictional limit, passed under the Disputes Tribunal Amendment Act 2025, is set to come into effect on 24 January 2026.
This change is important as it may lead to an increase in access to justice for more claimants. The Disputes Tribunal handles civil disputes that fall below the jurisdictional remit of the District Court. It is designed to be a cost-effective and less formal pathway to provide redress for civil wrongs, with the Tribunal’s referees making their decisions with greater emphasis on fairness, rather than on the application of strict legal rules.
This legislative change arises from concerns regarding access to justice. The current jurisdictional limit of $30,000 often forces applicants to choose between incurring potentially significant legal costs in the District Court (which can accommodate their claim in its entirety) or abandoning part of their claim to fit within the jurisdictional bounds of the Disputes Tribunal to save on costs.
Minister of Justice Paul Goldsmith predicts that this change will benefit around 2,000 applicants per year. This will significantly enlarge the Tribunal’s role within New Zealand’s justice system.
The Minister has also announced plans to allow referees to order respondents to pay the fees of successful applicants, the rationale behind this change being that the costs of justice should not fall on the wronged party. Currently, application fees begin at $61 and increase in size based on the value of the claim. Under the new legislation there will be a filing fee of $468 for all claims of $30,001 or more which is designed to reflect the value obtained by applicants who receive a cost-effective remedy for claims of a greater value.
While the amendment will address certain access to justice issues, this development does not come without broader questions around consistency of rulings. Now that claims of significantly greater value will be decided in the Disputes Tribunal, it is worth noting that the outcomes of such claims could hinge on principles of natural justice applied by the Tribunal’s referees, as opposed to being subject to the consistency of legal precedent.
If you have any questions relating to these changes contact Ben Molloy on @email or 09 306 0605 to discuss how this may impact on the resolution of your civil dispute.