Guides · Local Court civil claims
How to make a small claim in the NSW Local Court.
Most everyday money disputes in New South Wales, an unpaid invoice, a bond a landlord will not return, a job done badly, are worth less than twenty thousand dollars. Those disputes belong in the Small Claims Division of the Local Court. It is built to be quick, cheap and usable without a lawyer. This guide sets out how a small claim works: who can use it, the money limit, how to file a statement of claim, what happens at the hearing, and what you can recover if you win.
By Aaron Kernaghan · Published 30 August 2026
What is the Small Claims Division?
The Local Court of New South Wales has two civil streams. The Small Claims Division handles claims up to twenty thousand dollars. The General Division handles claims above that, up to one hundred thousand dollars. The small claims stream is deliberately informal. The rules of evidence do not apply in full, hearings are short, and the magistrate or assessor can run the case in the way that best suits it. It is the part of the court system designed for ordinary people with ordinary disputes.
This guide is general information about how the process works. It is not advice on your dispute, and the right step depends on the facts. If your claim is close to the limit, or the other side has raised a cross-claim, the choice of division and the way you frame the claim can matter, and it is worth getting advice before you file.
What kinds of disputes go to small claims?
The Small Claims Division deals with civil money claims. The common ones are debts and unpaid invoices, money owed under a contract, the cost of repairing faulty work, the return of a deposit or bond, and damage to property. If what you want is a sum of money, and the sum is twenty thousand dollars or less, the small claims stream is usually the right home for it.
Some disputes do not belong here even if the amount is small. Tenancy disputes go to the NSW Civil and Administrative Tribunal, not the Local Court. Motor accident personal injury claims run under their own scheme. Building disputes may go to the Tribunal instead. If you are not sure your claim belongs in the Local Court, that is the first thing to check, because filing in the wrong forum wastes the filing fee and time.
How much can you claim in the Small Claims Division?
The limit is twenty thousand dollars. If your claim is worth more, you can still use the Small Claims Division by abandoning the excess, which means agreeing to accept twenty thousand dollars and give up the rest. Whether that is sensible depends on how much you are giving up. If the true value is well above the limit, the General Division of the Local Court, which goes up to one hundred thousand dollars, is the better fit.
You cannot split one claim into several smaller claims to get under the limit and dodge the higher court. The court looks at the substance of the dispute. If the real claim is worth forty thousand dollars, dividing it into two claims of twenty thousand is not allowed and can be struck out.
How do you start a small claim?
A claim starts with a statement of claim. This is the document that sets out who you are suing, how much you say they owe, and the short story of why. You file it with the Local Court, pay the filing fee, and then serve a copy on the other side. Filing is done online through the NSW Online Registry or in person at a registry. Our guide on the statement of claim explains what the document must contain and the mistakes that get claims struck out.
Before you file, send a letter of demand. It sets out the debt, gives a deadline to pay, and warns that you will start proceedings if they do not. A demand is not compulsory, but courts expect parties to try to resolve a dispute first, and a clear demand often produces payment without any filing fee at all.
What happens after you file?
Once served, the other side has twenty-eight days to respond. If they do nothing, you can ask the court for default judgment, which is judgment in your favour because they did not defend. Our guide on default judgment explains how that works. If they file a defence, the matter is listed for a pre-trial review, and then, if it does not settle, a small claims hearing.
The small claims hearing is short and informal. Each side tells the assessor their version and hands up their documents. There is usually no formal cross-examination and the strict rules of evidence do not apply. The decision is given on the papers and the argument, and it is final in the sense that there is only a very limited right of appeal from a small claims decision, confined to questions such as a denial of a fair hearing.
What does a small claim cost, and can you get your costs back?
The main cost is the filing fee, which depends on whether you are an individual or a corporation and is set by regulation. There is also a service fee if you use the sheriff or a process server. If you win, the court can order the other side to repay your filing and service costs and any interest on the debt. What it will not usually order in the Small Claims Division is your legal costs. Professional costs are restricted in small claims, which is part of what keeps the stream cheap.
That restriction cuts both ways. If you lose, you are generally not exposed to the other side's legal bill either, only to their filing and service costs. This is one of the attractions of the Small Claims Division for a self-represented party, and one reason the amount at stake often does not justify paying a lawyer to run the hearing. Our guide on costs in Local Court civil claims explains how costs differ between the two divisions.
You have won, now what?
A judgment is not money in your hand. It is a court order that the other side owes you a sum. If they still do not pay, you have to enforce the judgment, using tools such as a garnishee order against wages or a bank account, a writ against their property, or an examination to find out what they own. Our guide on enforcing a judgment debt sets out the options.
The lesson people learn late is that winning and being paid are two different things. Before you spend time and a filing fee, it is worth asking whether the other side has any money or assets to pay a judgment. A judgment against a person with nothing is worth little. A short check at the start can save a lot of effort at the end.
Primary sources: the Local Court civil jurisdiction is set by the Local Court Act 2007 (NSW), and civil procedure is governed by the Civil Procedure Act 2005 (NSW) and the Uniform Civil Procedure Rules 2005 (NSW). Filing is through the NSW Online Registry. Local Court civil judgments are searchable on JADE.
Common questions
How much can you claim in the NSW Local Court Small Claims Division?
Up to twenty thousand dollars. Claims between twenty thousand and one hundred thousand go to the General Division of the Local Court. If your claim is worth more than twenty thousand but you want the simplicity of small claims, you can abandon the excess and accept the limit, though that means giving up the rest of the claim.
Do you need a lawyer to make a small claim in NSW?
No. The Small Claims Division is designed to be used without a lawyer. Hearings are informal, the strict rules of evidence do not apply, and legal costs are generally not recoverable, so many people run these claims themselves. For a larger or more complex matter, or one with a cross-claim, advice is worth getting before you file.
How do you start a small claim in the NSW Local Court?
File a statement of claim with the Local Court, online through the NSW Online Registry or in person, pay the filing fee, and serve a copy on the other side. Sending a letter of demand first is sensible, because it often produces payment without any need to file.
What happens if the other side ignores the claim?
They have twenty-eight days to file a defence. If they do nothing, you can apply for default judgment, which is judgment in your favour because the claim was not defended. You then have to enforce that judgment if they still do not pay.
Can you get your legal costs back in a small claim?
Usually not. Professional legal costs are restricted in the Small Claims Division, which keeps the stream cheap and accessible. If you win, the court can order the other side to repay your filing fee, service costs and interest, but not your solicitor's fees in the ordinary case.
To speak to a litigation lawyer, call Aaron Kernaghan on 0421 717 019.
This article is written by Aaron Kernaghan, Special Counsel at Good Legal Lawyers, as at 30 August 2026. It is general information and reflects the personal opinion of the author only. It is not legal advice, it is not a substitute for advice on your own matter, and it does not purport to be accurate or complete. The law changes and procedure varies from case to case. For advice on a specific matter, contact Aaron Kernaghan on 0421 717 019 or contact the firm.
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