Disputes Tribunal Amendment Bill passes

A law that delivers on part of the Government's business relief package announced in February in response to the global financial crisis has been passed by Parliament today, Justice Minister Simon Power said.

The Disputes Tribunals Amendment Act 2009 will allow a cost-effective way to resolve disputes and improve access to the Disputes Tribunal.

It will increase the maximum claim level of the Disputes Tribunal from $7,500 to $15,000, or, with the consent of both parties, from $12,000 to $20,000.

"This will allow parties to resolve their disputes in a more cost-effective manner," Mr Power said.

"Small businesses and individuals will have improved access to the Disputes Tribunal, and the Act will reduce the costs associated with resolving disputes."

The increase in the maximum claim level is one of a number of initiatives announced by the National-led Government in early February to assist small businesses through the economic downturn. It is designed to lighten the load of small businesses.

"The Act will allow up to an additional 3,600 cases annually to be heard in the Disputes Tribunal. These cases would previously have not had a forum appropriate to the value of their claim or would have been heard in the district court.

"This increase will enable individuals, households, and particularly small businesses to resolve their claims more quickly.

"This will be of assistance, particularly in the current economic climate.

"I would not rule out further changes to the threshold, as long as the character of the tribunal can be maintained," Mr Power said.

"Changes were also proposed in other areas of the Disputes Tribunal. There may be an opportunity to evaluate these proposals once the current changes have been implemented and assessed."

The Disputes Tribunal Amendment Act will enter into law on 1 August 2009.