Disputes Tribunal limit lifts to $60,000, to allow 2000 compensation claims each year

Thursday, 23 October 2025

Justice Minister Paul Goldsmith thinks about 2000 people each year will benefit from being able to take their claims for compensation of $30,000 to $60,000 to the Disputes Tribunal.

People seeking reparation for civil wrongs done to them will now be able to sue for up to $60,000 at the Disputes Tribunal.

Legislation doubling the tribunal’s limit from $30,000 to $60,000 passed its third reading in Parliament on Thursday, and will come into force early next year.

The Disputes Tribunal sits below the District Court, and hears cases that range from fencing disputes to failures by tradies and retailers to abide by their legal obligations. More than 13,000 people turn to it every year.

But critics of the old $30,000 limit claimed there was a huge justice gap, as it was prohibitively costly for people with claims of less than $100,000 to seek compensation through the higher courts.

Some suggested raising the limit to $100,000, but that was rejected.

Justice Minister Paul Goldsmith estimated another 2000 claims per year would be taken under the increased limit, many from people who would have abandoned part of their claim to fit within the jurisdiction.

Jamie Makgill of Mangahwai took a case to the Disputes Tribunal after mistakenly putting a diesel exhaust fluid in his fuel tank at a Mobil station.

“The tribunal is a quick and inexpensive way for New Zealanders to settle civil disputes, without facing expensive legal fees. This comes at a time when low-cost dispute resolution is increasingly important for many,” he said.

Not everyone was entirely on board with the plan to lift limits, with critics concerned that tribunal referees would be able to impose life-altering sums of compensation against people with limited appeal rights.

However, the Tenancy Tribunal already has a limit of $100,000, and so does the Motor Vehicle Disputes Tribunal.

But Goldsmith said: “We need to improve access to justice so New Zealanders can get on with their lives. Court delays affect everyone, the profession included. It just takes one thing to be out of place and everything grinds to a halt. Another adjournment. Justice delayed once more.”

The changes to tribunal law will also allow the tribunal to award the filing fee back to successful applicants.

“Currently, filing fees vary from $61 to $468 depending on the size of the claim, and this can often be a cost barrier for people, particularly when an applicant isn’t seeking money,” he said.