Buyer in one state, seller in another? Why NCAT can't hear your case (and where to go instead)
You bought a car, a caravan or goods from someone who lives in another state, the deal went wrong, and you've gone to lodge at NCAT — only to be told NCAT can't hear it. This isn't a mistake or a brush-off. Because of a 2018 High Court decision, Burns v Corbett, NCAT genuinely lacks the power to decide a dispute between residents of different states.
The good news: your rights don't change — the same Australian Consumer Law applies. Only the venue changes. This page explains when the problem is triggered, why it happens, and where to take your claim instead.
Information, not legal advice. Figures current as at 1 July 2025.
What this dispute is
In Burns v Corbett [2018] HCA 15, the High Court of Australia held that NCAT cannot exercise federal diversity jurisdiction — the jurisdiction over "matters between residents of different States" referred to in section 75(iv) of the Commonwealth Constitution. The Court found an implied limitation in Chapter III of the Constitution that prevents a state law from giving this kind of judicial power to a body that is not a "court of a State". NCAT, as a tribunal rather than a court, is not such a body.
The practical effect, as NCAT itself acknowledges, is that if — at the relevant time — one party is a resident of one state and the other party is a resident of a different state, NCAT cannot determine the dispute. It doesn't matter how clearly the goods were faulty or how strong your case is on the merits; the issue is the Tribunal's power to decide at all.
This bites most often in consumer matters: an interstate private sale of a car or caravan, online purchases from a seller in another state, or a tenancy or building dispute where one party has moved interstate. It is purely about residency of the parties — not where the goods are, not where the contract was made.
Time limits that bite
These deadlines are strict. The Tribunal can extend in some cases, but extensions are not automatic — they're weighed on length, reason, prospects and prejudice.
- At lodgementResidency is assessed at the relevant time — if the parties are in different states then, NCAT generally can't hear itBurns v Corbett [2018] HCA 15
- Before you lodgeCheck residency of every party early — discovering the problem after filing wastes time and feesPractical step
- Limitation periodsCourt claims have their own limitation periods (commonly up to 6 years for many contract and consumer claims) — verify yours before relying on itLimitation Act 1969 (NSW) — verify
- ACL claimsAustralian Consumer Law guarantee and misleading-conduct claims have their own time limits — confirm the applicable period for your claim typeACL / Competition and Consumer Act 2010 (Cth) — verify
The process, step by step
- 1
Work out whether the interstate problem is actually triggered
The trigger is residency of the parties, not the location of the goods or the contract. Ask: at the relevant time, is one party a resident of one state and the other a resident of a different state? If both parties are NSW residents, NCAT can hear it as normal — even if you bought a car that's now in another state.
The line can be genuinely uncertain — for companies, sole traders, and people who have recently moved, residency isn't always obvious. If you're unsure, get advice from LawAccess NSW or a Community Legal Centre before assuming NCAT is or isn't open to you.
- 2
If NCAT can hear it, lodge at NCAT as normal
Where both parties are NSW residents, the interstate problem simply doesn't arise — use the ordinary NCAT pathway for your dispute type (consumer goods and services, motor vehicle, tenancy, building, and so on). See our consumer refunds and motor-vehicle guides for the NCAT route.
NCAT is generally cheaper and less formal than a court, so if it's available to you, it's usually the better first option.
- 3
If it's an interstate dispute, take it to a NSW court
Where the diversity problem is triggered, a NSW court can hear the dispute, because a court — unlike NCAT — can exercise federal jurisdiction. As NCAT explains, you may still be able to use NCAT's processes to try to reach an agreed settlement, but to have a binding decision made, or to register and enforce any settlement, you generally need to go to the Local or District Court depending on the amount.
Critically, the court applies the same law NCAT would have — including the Australian Consumer Law. You are not losing your consumer guarantees by changing forum; you're pursuing the same rights in a different venue.
- 4
Pick the right court division by the amount claimed
In NSW, the rough structure is: the Local Court Small Claims Division for smaller claims (reported as up to around $20,000), the Local Court General Division for mid-range claims (reported as roughly $20,000 up to $100,000), and the District Court for larger amounts (its civil limit has been reported at up to $1,250,000, and higher by consent). These figures change from time to time — verify the current limits on the relevant court's website before you file.
The Small Claims Division is the most self-rep friendly: it's informal, the rules of evidence don't strictly apply, and legal costs are limited. For many faulty-goods consumer disputes, that's the natural home once NCAT is ruled out.
- 5
If the other party is interstate, consider their state's tribunal too
Burns v Corbett is a constraint on state tribunalsgenerally — other states' tribunals face the same limit. But depending on where the other party and the transaction are based, you may have an option in another state's system, such as VCAT (Victoria) or QCAT (Queensland), or that state's small-claims court. Which forum is appropriate, and which can practically deal with your dispute, turns on the specifics — take advice before lodging anywhere.
The same Australian Consumer Law applies nationally, so your substantive consumer rights travel with you whichever forum ends up hearing the claim.
Evidence that actually works
Cases are lost on missing documents more than on weak arguments. Get these in order before you file.
Proof of each party's residency
Addresses, licences, registration documents or correspondence showing where each party lived at the relevant time — this is what determines whether NCAT can hear it at all.
The contract or sale record
Ad, invoice, receipt, messages agreeing the sale — needed in any forum to establish the deal and its terms.
Evidence the goods or services were faulty
Photos, mechanic's or expert reports, fault logs — the same proof you'd need at NCAT supports the same ACL claim in court.
A record of what you've spent and lost
Repair quotes, towing, replacement costs and other losses — itemised, with receipts, to support the amount you claim.
Your communications with the other party
Emails, texts and call notes showing you raised the problem and what response you got.
Anything showing the value of the claim
It sets which court division is appropriate — keep the figure documented so you file in the right place.
Common reasons people lose
Lodging at NCAT when the diversity problem applies
If the parties are residents of different states at the relevant time, NCAT can't decide it — filing there anyway burns time and fees. Check residency first.
Assuming you've lost your rights
You haven't. The Australian Consumer Law still applies; only the forum changes. Don't give up a good claim because NCAT turned it away.
Filing in the wrong court division
Filing a claim above a division's monetary limit, or in the wrong court for the amount, causes delay. Confirm the current limits before you file.
Confusing where the goods are with where the parties live
The trigger is the parties' residency, not the location of the car, caravan or goods. Two NSW residents can use NCAT even for goods now interstate.
Missing a limitation period while you work out the forum
Sorting out the right venue can eat time. Court claims have their own deadlines — don't let one expire while you decide where to go.
Not getting advice on a genuinely uncertain residency question
Residency of companies or recent movers can be unclear. Guessing wrong sends you to the wrong forum — get free advice if it's not obvious.
Orders NCAT can make
This is the kind of order you can ask for — not a guarantee you'll get it. Frame your application around the order you actually want.
Money judgment / order to pay
A court can order a refund, damages or compensation under the Australian Consumer Law — the same substantive relief NCAT would have given.
Order to repair or replace
Where the consumer guarantees apply, a court can require the goods be repaired or replaced, or the price refunded.
Order setting aside or varying the contract
Depending on the claim (e.g. misleading or deceptive conduct), a court may have power to unwind or adjust the deal.
Registration and enforcement of a settlement
If you reach an agreed settlement (including with NCAT's help), a court can register and enforce it — NCAT can't make a binding decision in a diversity matter.
Costs (in some divisions)
Costs treatment differs by court and division — the Local Court Small Claims Division limits costs, while other divisions may allow more. Check before relying on recovering costs.
Free help
- NCAT — Federal jurisdiction
NCAT's own explanation of Burns v Corbett and what happens to interstate-party matters.
- Local Court of NSW — civil jurisdiction
Small Claims and General Division — confirm the current monetary limits here.
- District Court of NSW — jurisdiction
For larger civil claims — verify the current civil limit.
- LawAccess NSW — 1300 888 529
Free legal information line — good first call on whether NCAT or a court is right for you.
- ACCC — consumer guarantees
Your rights under the Australian Consumer Law, which apply whichever forum hears the claim.
- VCAT (Vic) and QCAT (Qld)
Other states' tribunals — may be relevant depending on where the other party is based.
Questions self-reps ask
Why can't NCAT hear my dispute with someone in another state?
Because of Burns v Corbett [2018] HCA 15. A dispute between residents of different states is a "matter" within the federal diversity jurisdiction (s 75(iv) of the Constitution).
The High Court held that an implied limitation in Chapter III of the Constitution stops a state law giving that judicial power to a body that isn't a "court of a State". NCAT is a tribunal, not a court — so it can't decide such matters, however strong your case.
What exactly triggers the problem?
The residency of the parties at the relevant time. If one party resides in one state and the other in a different state, the diversity jurisdiction is engaged and NCAT can't decide it.
It's not triggered by where the goods are, where the contract was made, or where the dispute arose. Two NSW residents can use NCAT normally even for a car now interstate.
Where do I take an interstate consumer claim instead?
To a NSW court, which — unlike NCAT — can exercise federal jurisdiction. Roughly: the Local Court Small Claims Division for smaller claims (reported as up to about $20,000), the Local Court General Division for mid-range (reported as roughly $20,000–$100,000), and the District Court for larger amounts (its civil limit has been reported at up to $1,250,000, more by consent).
These limits change — verify the current figures on the court's website before filing. The Small Claims Division is the most self-rep friendly.
Do I lose my consumer rights by going to court instead of NCAT?
No. The Australian Consumer Law applies nationally, and a court applies it the same way NCAT would. Only the forum changes — not your rights. A court can order a refund, repair, replacement, damages or compensation under the same law.
The main differences are formality and costs rules, which vary by court and division.
Can NCAT still help me reach a settlement even if it can't decide?
NCAT has indicated you may still be able to use its processes to try to reach an agreed settlement even in a diversity matter. But to get a binding decision, or to register and enforce a settlement, you generally need to go to the Local or District Court depending on the amount.
Don't rely on a handshake — get any agreement into a form a court can enforce. See our guide on enforcing NCAT orders for the enforcement mechanics.
What about other states — can I use VCAT or QCAT?
Burns v Corbett limits state tribunals generally, so others face the same constraint on different-state disputes. Depending on where the other party and transaction are based, you may have an option in another state's system — such as VCAT (Vic) or QCAT (Qld), or that state's small-claims court.
Which forum fits depends on the specifics — take advice before lodging anywhere. The Australian Consumer Law applies the same way nationally.
Related guides
- Consumer refunds at NCATThe standard NCAT route when both parties are NSW residents and the goods or service let you down.
- Motor vehicle 'lemon' disputesFaulty-car claims — and why an interstate private sale may need a court instead of NCAT.
- How to enforce NCAT orders in NSWHow orders and settlements get registered and enforced through the courts.
- Do I need a lawyer at NCAT?Representation, leave, and whether you need help once a matter moves to court.
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NCAT Tracker is not a law firm. This page is information, not legal advice. Figures, fees and statutory periods cited here are current as at 1 July 2025 and are CPI-indexed or amended from time to time — verify on ncat.nsw.gov.au and legislation.nsw.gov.au before you lodge.