An application for minor debt is a claim to recover a debt in relation to an agreed and fixed amount of money, or liquidated demand, up to $25,000 (excluding interest) from another person, business, or company.
(This amount is prescribed in Schedule 3 of the Queensland Civil and Administrative Tribunal Act 2009)
Below you can learn about when you can and cannot make a minor debt dispute application to QCAT, how QCAT will decide a minor debt application and steps you need to consider if you are named as the respondent.
What do you need to know about Minor Debt Disputes?
Anyone can make a minor debt dispute application, including individuals or entities such as businesses or corporations.
To do so, the minor debt dispute application must:
- be for an amount no more than $25,000 (excluding interest)
- involve a previous agreement about payment of an amount of money
- have happened no more than 6 years ago (the date the agreement was made)
If the respondent lives interstate you can still make a minor debt dispute application with QCAT providing the agreement was initiated in Queensland.
When can a minor debt dispute application be made?
Debt disputes may be started relating to money owed for:
- loans not repaid
- IOUs
- an unpaid invoice, account or demand
- dishonoured cheques
- work performed and/or goods supplied when the cost was agreed beforehand (except if the dispute is with a consumer or trader)
- unpaid rental or hire fees (except for residential tenancy matters)
- the cutting and removal of overhanging branches
When can a minor debt dispute application not be made?
A minor debt dispute application cannot be made if:
QCAT cannot decide disputes involving debts worth more than $25,000 (excluding interest).
If the amount owing is more than $25,000 the applicant may choose to reduce the claim to $25,000 to lodge it with QCAT.
Disputes involving debts worth more than $25,000 are heard by other courts. Claims for amounts:
- up to $150,000 can be commenced in the Magistrates Court
- between $150,000 and $750,000 can be commenced in the District Court
- for any amount over $750,000 can be commenced in the Supreme Court
The applicant should seek independent legal advice about how to proceed.
A minor debt dispute application also cannot be made if:
- there was no previous agreement for the money to be paid
- the dispute is with a consumer or trader or the debt is related to a contract for the supply of goods and/or services where the amount was not agreed beforehand (consider consumer/trader disputes), for example the debt relates to:
- repair of a defect on a motor vehicle
- damage to property caused by a motor vehicle or from the use of a motor vehicle
- unpaid wages covered under the Fair Work Act
- a claim against a builder for losses associated with residential building work
- a dispute about a bond held by the Residential Tenancies Authority
What is the minor debt dispute process?
Before you begin the minor debt dispute process, it is important that the applicant and respondent understand their obligations and how a case is progressed by QCAT. This includes the applicant serving the application and the respondent making a response within set time frames or a decision can be made in their absence.
The applicant is responsible for providing a copy of the application to the respondent/s:
If you decide to make a minor debt dispute application, you need to be aware that you are required to ‘serve’ a copy of the application to the respondent. Serve means the act of giving documents to a person or business (such as a copy of an application you made about them). When serving (giving) any document to QCAT you should always serve (give) a copy to the other parties to the case.
There are specific procedures and rules for serving a document and you must ensure you understand and follow these when you apply.
How will your dispute be resolved at QCAT?
QCAT considers minor debt dispute applications in two ways:
- if your claim amount is less than $1,500, your matter will be listed for a hearing, without the need for mediation
- if your claim amount is greater than $1,500, your matter will be listed for a mediation, and if not resolved, listed for a hearing after
Mediation is a timely dispute resolution service in which a mediator assists parties to discuss their differences and find a solution that suits all parties to the dispute.
The mediator acts as an independent third party and guides the participants through a structured mediation process. The mediator is not there to make a decision about who is right or wrong, but rather, assists both parties in reaching an agreement.
If the parties do reach an agreement, the mediator may record the terms of the agreement in writing and each party will then sign the mediation agreement and receive a copy.
The parties may request that the agreement be made an order of QCAT.
If no agreement is reached at mediation, the matter will be set down for hearing on a different day.
If you are the respondent in a minor debt dispute:
If you have received an application for minor debt dispute and you are named as the respondent, it is important to understand the process you need to follow.
In minor debt disputes:
- you cannot make a counter claim against the applicant. You may be able to file another application type about the same dispute if you choose to do so. Consider obtaining independent legal advice in these circumstances to understand your options
- you are required to respond to the minor debt dispute application within specific timeframes and give the applicant a copy. If you do not respond and give the applicant a copy within 28 days of receiving the minor debt dispute application, the applicant can ask QCAT for a ‘decision by default’. A decision by default means a decision on the case will be made by QCAT in your absence and from the paperwork received
QCAT sets out the forms you need in order to respond to a minor debt application and the process for how minor civil disputes are decided after responding.
How long may QCAT take to finalise your matter?
The time for QCAT to finalise a case may vary depending on QCAT’s workload and the number of steps to be completed by parties as required by QCAT to resolve the dispute. The current average time to consider a minor debt dispute and finalise your case can be found on our expected timeframes page.
***Disclaimer – The above information was taken from the Queensland Civil and Administrative Tribunal website as accurate in October 2024. If any changes are made by the court from that date they may not be reflected in this post
