NCAT & Home Building Disputes

19 September 2025 in Building and Construction Law | 5 min read | skip to FAQs

This article outlines the scope and role of the New South Wales Civil and Administrative Tribunal (NCAT) Sydney with an emphasis on how it relates to Home Building.

Function of NCAT

NCAT exists to resolve disputes efficiently and economically, with proceedings lacking the full formalities found in the court system, presided over by subject experts rather than judges. NCAT decisions share the same legal force as court judgements. NCAT was established in 2014 to streamline existing tribunals into a single system for specialist tribunals in the state. It was established by the Civil and Administrative Tribunal Act 2013, which remains the primary (but not sole) legislation concerned with the overall operation of NCAT Sydney.

The Structure of NCAT : The Divisions 

Cases brought before NCAT are managed through its divisions:

1. Administrative and Equal Opportunity Division (concerned with administrative decisions and anti-discrimination complaints)
2. Consumer and Commercial Division (concerned with disputes including but not limited to consumer claims, motor vehicle consumer claims, tenancy issues, and home building)
3. Guardianship Division (concerned with applications about people who may need legally appointed decision makers)
4. Occupational Division (concerned with government decisions about occupational licensing and professional misconduct complaints)

NCAT also has an Appeal Panel which hears appeals arising from decisions made in the original divisions.

NCAT Sydney and Home building Claims

The Consumer and Commercial Division has jurisdiction for home building claims. Section 48K of the Home Building Act 1989 NSW (“Act”) provides the scope of NCAT’s jurisdiction in homebuilding matters. Relevant points to consider include:

1. The monetary jurisdiction is $500,000 (48K (1))
2. Claims arising from the provision of goods and services (or lack thereof) must be lodged within three (3) years of the supply (48K (3) and 48K (4))
3. Claims in relation to a contract of insurance, arising from residential building work must be lodged within 10 years of the completion of the building work (48K (6))
4. Claims arising from a breach of statutory warranty must be lodged within the limit provided for in the warranty, which is six (6) years for major defects and two (2) years for any other defect (48K (7))

How long does it take for an NCAT Decision?

Generally, if a claim is for under $30,000, NCAT will give its decision within six (6) weeks from the end of the hearing. If the claim exceeds this amount, NCAT Sydney will generally give its decision within three (3) months of the hearing’s conclusion. This is only a general guide, as the circumstances in each case will determine the date of the decision.

Reasons a claim cannot be made to NCAT

Crucially, NCAT does not have jurisdiction for claims in equity. This is an area of law that arises in uncommon circumstances such as constructive trust or estopple. An example of this is the matter of Baumgartner v Baumgartner  [1987] HCA 59; (1987) CLR 137. More commonly, NCAT does not deal with disputes that arise from the Design and Building Practitioners Act 2020 (NSW) or Building and Construction Industry Security of Payment Act 1999 (NSW).

NCAT also does not have jurisdiction in relation to proceedings where one or more parties (excluding a company) are located in another state, for instance, Burns v Corbett [2018] HCA 15.

The Role of NSW Fair Trading

Usually, an applicant must initially refer the dispute to NSW Fair Trading. NCAT Sydney will require proof of the NSW Fair Trading Investigation before accepting any application. Section 48D of the Act provides for the Fair Trading investigation regarding a dispute, while section 48E authorises the investigator to make a rectification order requiring the contractor to complete the work as per the directions of the order. Since every contractor licence mandates compliance with rectification orders, obtaining an order can be an effective way to resolve the dispute without having to initiate further proceedings. However, if the dispute is brought to NCAT, any Fair Trading order will cease to have effect.

Exemptions to an initial review by NSW Fair Trading

1. Appealing against a decision concerning an insurance contract mandated under section 92 of the Act
2. Recovering a debt by a contractor
3. A cross-claim (where a defendant would sue the plaintiff) in an existing matter
4. When the time for lodging a claim will expire within 3 months
5. Claims against unlicensed contractors
6. Claims by an applicant regarding a subcontractor’s defective work
7. Claims involving deregistered companies
8. Claims against companies under administration or liquidation
9. Claims against individuals declared bankrupt

The Importance of Evidence to Support the Claim to NCAT

If a claim is to be pursued through NCAT, it is important to gather evidence supporting the claim. This may include:

1. NSW Fair Trading Correspondence, including any rectification order
2. Any contract or agreement concerning the matter
3. Insurance Certificates
4. Building Reports
5. Details of the Contractor’s Licence
6. Any statements or affidavits (statements that are sworn or affirmed to be true)

Confirming the Identity of the Party

When making a claim against another party, it is essential to identify the correct name and or legal entity. The correct address of the other party will also be required to ensure the proper service of letters or any other relevant document. The Australian Securities and Investments Commission (“ASIC”) is a good source to check this information.

NCAT Fees for Home Building Disputes 

Homebuilding disputes fall under the General Consumer or Commercial Proceedings in terms of fees. The standard fees for claims will depend on the amount of the claim:

1. Claims under $10,000: $60
2. Claims between $10,000 and $30,000: $125
3. Claims exceeding $30,000: $322

Corporation’s fees are double the standard fees. Reduced fees are at a quarter of the standard rate, rounded to the nearest dollar.

Who pays the Legal Costs?

Section 60 of the Civil and Administrative Tribunal Act 2013 (NSW) provides that except in special circumstances each party will pay its own legal costs. However, rule 38 of the Civil and Administrative Tribunal Rules 2014 (NSW) provides that the Tribunal may make an order for legal costs where the amount claimed or in dispute is more than $30,000.

Do you need a Lawyer to Represent you?

NCAT proceedings are conducted in a less formal manner than other court proceedings and any party may be self represented. However, many NCAT Sydney proceedings can be complex, particularly home building claims, so it is in your best interests to engage an experienced building and construction lawyer. Section 45 of the Civil and Administrative Tribunal Act 2013 (NSW) provides that a party can apply to seek the leave of the Tribunal to be legally represented, this application will usually be made by the party’s legal representative.

Are NCAT findings legally Enforceable?

NCAT orders are as enforceable as legal judgements. However, NCAT cannot enforce its own order, this may be done by the Local Court. Any NCAT order can be certified by NCAT and once the order is certified, it can be registered with the Local Court for enforcement. Form 45 (which can be sourced from the Local Court website), can be used to register the order, form 45 is attached to NCAT’s certified copy of the order, and the form can be filed for registration at any Local Court. This will give the order the same effect as a Local Court judgement.

There is a six (6) year time limit to register the order with the Local Court, and a 12 year time limit to enforce what is now the Local Court judgement.

How can BSM Sydney Lawyers assist you?

Despite NCAT being designed to be more user friendly than the court system, we understand that it will still be a daunting process for both plaintiffs and defendants to manage. This is particularly in home building matters that tend to be generally complex. The expert Building and Construction lawyers at Brander Smith McKnight Sydney Lawyers have over 30 years experience in construction and are acknowledged as industry experts. The construction lawyers at BSM lawyer Sydney can assist with disputes, contract management, correspondence, applications, and any matters arising from construction disputes, building design, planning, safety and certification issues, environmental planning, residential apartments and strata. BSM construction lawyers regularly appear at NCAT and are renowned as highly proficient advocates. If a matter is particularly complex, we have a panel of experienced barristers that we have worked with for many years.

BSM construction law firm Sydney has experience at all levels of the construction industry from home owners through to multi-million dollar engineering and infrastructure projects. We pride ourselves on working hard and achieving the best possible outcome for all of our clients. Our senior building lawyers offer a free, no obligation 20-minute consultation where we can discuss your needs and formulate a plan for you.

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BSM Lawyer Sydney has offices conveniently located in Sydney CBD, Sutherland, Parramatta, Shellharbour and Wollongong