VCAT in Victoria: A Practical Guide for Small Businesses

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VCAT in Victoria: A Practical Guide for Small Businesses

How VCAT in Victoria works and  what to expect from the process

When a commercial dispute erupts, many business owners immediately picture a traditional courtroom: formal pleadings, wigs and gowns, strict rules of evidence and a process that can feel distant from the practical realities of running a business. In Victoria, however, a large proportion of business‑related disagreements actually play out somewhere quite different: at VCAT, the Victorian Civil and Administrative Tribunal. VCAT sits in a middle ground between the informality of a negotiation over coffee and the full formality of a court, offering a forum that is designed to be quicker, more accessible and less intimidating, while still producing decisions that are legally binding and enforceable against the parties. This means that, instead of your dispute disappearing into a black box of “legal process”, you are dealing with a specialist tribunal whose entire purpose is to resolve civil and administrative disputes efficiently, with a strong focus on practical outcomes and clear reasons. For commercial parties, that can make an enormous difference to both cost and strategy, because you are tailoring your approach to a tribunal that expects clarity, good preparation and a focus on the real issues.

In the commercial landscape, VCAT’s work is concentrated in areas where money, contracts and property intersect, so it ends up hearing many disputes that are absolutely central to how businesses operate. Domestic building disputes between owners (including small developers and investors) and builders are a major category: these often involve claims about defective or incomplete work, delays in completion, disputed variations, unpaid progress claims and arguments over practical completion and handover. At the same time, VCAT deals with consumer and trader disputes that have a direct commercial impact, such as situations where goods supplied to a business are faulty, services have not been performed with due care and skill, or marketing has strayed into misleading and deceptive conduct. Owners corporation matters are another important strand, because they affect how commercial and mixed‑use properties are managed, who pays for what repairs, and how common property is used; a fight over levies or neglected maintenance can quickly spill over into lost tenants and reputational damage if not resolved. Planning and permit reviews also sit within VCAT’s jurisdiction, and these can be critical for developers, landlords and tenants who depend on particular approvals for signage, fit‑outs, changes of use or redevelopment projects. When you put these threads together, it becomes clear that VCAT is not some peripheral body dealing only with “minor” issues, but a central forum where many of the disputes that shape commercial relationships in Victoria are determined.

Because VCAT’s jurisdiction is broad, the process needs to be structured yet flexible, and that is exactly how it tends to operate. Everything starts with the application: one party files a form, usually online, that explains in relatively plain language what the dispute is about, identifies the other party and sets out the orders they are asking VCAT to make. In a building dispute, for example, the applicant might be seeking a money order for the cost of rectifying defects, while in a consumer‑law context they might ask for a refund, compensation or a declaration that certain conduct breached the Australian Consumer Law. Once the application is lodged and the fee is paid, VCAT registers the case and notifies the other side, and from there the matter moves through a series of steps that are designed to narrow the issues, promote settlement where possible and, if necessary, prepare the case for a final hearing. Rather than leaping straight into a trial‑style hearing, VCAT often lists a directions hearing, mediation or compulsory conference, giving everyone a structured opportunity to clarify what is really in dispute and to consider whether there is a commercial solution that avoids a contested hearing.

Those pre‑hearing steps are not mere formalities; they are where much of the important groundwork is laid. At a directions hearing, a VCAT member or registrar will usually set timetables for filing more detailed documents, such as Points of Claim and Points of Defence, and for exchanging evidence like contracts, invoices, expert reports and email correspondence. This is where the Tribunal effectively says, “These are the questions we need answered, and this is the order in which you will provide your material,” which helps prevent the case from descending into a paper war without structure. Mediations and compulsory conferences, on the other hand, provide a confidential environment where the parties can test the strength of their positions, explore options for compromise and, very often, reach a settlement that saves time, money and stress. For businesses, this can be particularly valuable, because it allows them to factor in broader commercial considerations – such as ongoing relationships, cashflow and reputational risk – that might not be fully addressed in a blunt win‑or‑lose determination.

If the matter does not resolve at these earlier stages, it proceeds toward a final hearing, and this is where careful preparation really shows. In commercial disputes, evidence is king, and VCAT expects parties to arrive at the hearing with their documents in order, their witnesses organised and a clear narrative about what happened. That means gathering and indexing contracts, variations, tax invoices, payment records, emails, text messages, photographs, inspection reports and any expert opinions that support your case, then arranging them in a way that tells a coherent story. In a building matter, this might involve not only the original contract and plans, but also reports from building inspectors or quantity surveyors who have assessed the defects and priced the rectification work; in a consumer or services dispute, it might mean collating all communications that show what was promised, what was delivered and how you tried to resolve the issue before coming to VCAT. At the hearing itself, a VCAT member will explain the procedure, hear evidence from each side and any relevant witnesses, allow cross‑examination, and then listen to submissions about how the law applies to the facts. The atmosphere is more conversational and less rigid than a court, yet it is still formal enough that credibility, consistency and legal relevance matter a great deal, because the member must ultimately make findings of fact and law.

Once the hearing is finished, the case moves into the decision phase, which is where all of that preparation and advocacy is crystallised into binding orders. Sometimes, especially in simpler matters, the member will deliver their decision orally on the day, explaining their reasoning and the orders they are making – for example, that one party must pay a specified sum by a certain date, that certain works must be carried out, or that an application is dismissed. In more complex commercial cases, it is common for the decision to be “reserved”, meaning the member takes additional time to review the evidence and submissions and then provides written reasons. These written decisions are important not only because they tell you who has “won” and what orders have been made, but also because they set out the factual findings and legal reasoning that will govern any enforcement action or potential appeal. Appeal rights from VCAT are generally limited and usually confined to questions of law, often requiring permission from a higher court, so in most cases the VCAT hearing is your primary opportunity to put your case fully and persuasively. For a business, that makes it essential to treat the process seriously from day one, rather than assuming that you can “fix it later” if things go wrong.

All of this raises an obvious question: in a tribunal that aims to be user‑friendly and accessible, do you actually need a lawyer? The short answer is that you are not compelled to have one, but in many commercial disputes it is highly advisable to get at least some legal help, and there are good reasons for that. First, identifying the right legal framework is not always straightforward; a seemingly simple dispute about unpaid fees might involve contract principles, statutory implied warranties, consumer law, professional regulations and even limitation issues, and VCAT can only make orders within the scope of its statutory powers. A lawyer experienced in tribunal work can untangle these threads at the outset and help you frame your application or defence under the correct legislation, which reduces the risk of nasty surprises later. Second, drafting documents like Points of Claim or Points of Defence is a craft in itself: they need to tell your story in a clear, chronological and legally relevant way, without descending into a blow‑by‑blow account of every annoyance you have felt since the relationship began. Lawyers are trained to separate what is merely irritating from what is actually admissible and persuasive, and that discipline can be the difference between a case that the member can follow easily and one that feels muddled.

Beyond pleadings and legal theory, there is also the practical reality that evidence needs to be planned, not cobbled together at the last minute. Deciding whether you need an expert, and if so what questions they should answer, is something most business owners understandably find daunting, especially when they are already under pressure running their day‑to‑day operations. A lawyer can work with you to identify the gaps in your evidence, help brief the right experts, and ensure that witness statements and documents line up with the way the law actually works. During mediations and compulsory conferences, having someone who can reality‑test offers against likely outcomes – and who is not emotionally entangled in the dispute – often leads to more sensible settlements. At the hearing, legal representation means you have an advocate who is comfortable with questioning witnesses, making submissions, handling objections and responding on the spot to legal issues raised by the other side or by the member. Even if you ultimately decide to appear without a lawyer, many commercial clients find it invaluable to have “behind‑the‑scenes” advice on strategy, document preparation and what to expect on the day, so that when they walk into VCAT they feel organised, confident and able to focus on explaining their business story rather than worrying about procedural traps.

Taken together, these features make VCAT an important and, in many ways, attractive forum for resolving commercial disputes in Victoria, provided you approach it with your eyes open. It is less formal than a court, but it is still a legal tribunal; it is designed to be accessible, but it still demands careful preparation; and it often offers quicker, more cost‑effective outcomes, but only if you use its processes – directions hearings, mediations, compulsory conferences and hearings – thoughtfully and strategically. For businesses dealing with builders, suppliers, customers, owners corporations or planning authorities, understanding how VCAT works, and knowing when to bring in legal support, can turn a stressful and confusing episode into a manageable process with a clear path to resolution.

Lawyers can assist by:

• Explaining your legal position and realistic outcomes.
• Drafting or refining your application and Points of Claim/Defence.
• Organising evidence and briefing any experts.
• Handling directions, deadlines and negotiations.

FAQs

What is VCAT in Victoria?
It is the Victorian Civil and Administrative Tribunal – a specialist body that resolves many common disputes in a faster, more accessible way than the traditional courts, with legally binding decisions.

Do I always need a lawyer for VCAT?
No. Many people appear without a lawyer.

Is VCAT less formal than a court?
Yes. Hearings are generally more conversational, with fewer strict rules of evidence, but members still expect parties to be prepared and to follow directions.

Can VCAT’s decision be appealed?
In limited cases, you may be able to appeal to a higher court on a question of law.

How long does a VCAT case take?
Timeframes vary by list and how complex the matter is. Some matters resolve at mediation or a short hearing; others, particularly building and planning disputes, can take longer.

Please note the above article is general in nature and does not constitute legal advice.

Please email us info@iplegal.com.au if you need legal advice about your brand or another legal matter in this area generally.