Small claims vs commercial debt recovery — when to pick which

When a debt has gone past the polite-chase stage, you have three real options: keep chasing, hand off to recovery, or sue in a tribunal / small-claims court. Here's how to choose.

Tribunals & small claims

Each state has a tribunal:

  • NSW: NCAT (up to $40k for consumer-trader matters).
  • VIC: VCAT (Civil Claims List, up to $100k for general consumer).
  • QLD: QCAT (up to $25k for minor civil disputes).
  • WA: Magistrates Court Minor Cases ($10k cap).
  • SA: SACAT for some matter types; Magistrates Court for general.
  • TAS / NT / ACT: equivalent tribunals or magistrate-level courts.

Filing fees range from $80-$400. Self-represented is common. Hearings typically scheduled 2-4 months out.

Recovery platforms

No court appearance. Self-service debtor portal handles 80% of recoveries; documented prior-recovery sequence supports a tribunal filing if escalation is needed.

When tribunal makes sense

  • One-off large debt ($5k+) where the debtor has assets.
  • Debtor genuinely refuses to pay despite acknowledging the debt.
  • You have time and patience for the process.

When recovery makes sense

  • High volume of smaller debts (the maths against tribunal filing fees doesn't work for $400 debts).
  • Debtor non-response is the issue (tribunal escalation works on debtors who'll respond once formally summoned, not always — and a recovery platform's portal often gets a response first).
  • You want consistent process, not bespoke.

When both makes sense

A recovery platform handles the large majority via portal; the tail that genuinely needs court action gets filed by you (or your solicitor) with the recovery platform's documentation supporting the application.