Victorian Small Business Commission saves small businesses the time, stress and expense of legal action through VCAT or the courts

Victorian Small Business Commission

Almost 7,000 small businesses, farmers and commercial landlords contacted the Victorian Small Business Commission (VSBC) seeking information and assistance during Financial Year 2024-25. The VSBC’s website was also a trusted source of free advice and information, being accessed more than 311,000 times.  

1,611 applications were made for the VSBC’s alternative dispute resolution services, more than half of which concerned retail leasing disputes.

The most common causes of dispute between landlords and tenants were outstanding repairs and maintenance, the return of security deposits and disagreements over outgoings (expenses the landlord passes onto tenants).

Under the Retail Leases Act 2003 (the Act), disputes between a landlord and tenant must be mediated by the VSBC before they can be heard at VCAT. Examples of retail leases include shops, hair salons, gyms and cafes.

The VSBC also assists small businesses to resolve commercial disputes, the most common of which concerned unpaid money, disagreements on the quality of goods and services, undelivered goods and services, contractual rights and gig platforms and sole traders.

VSBC Dispute Resolution Officers contact the parties of a dispute to clarify the nature and detail of their disagreements and encourage them to negotiate an outcome they can both accept. 33% of disputes are resolved through this process, which is a free service to parties.

256 matters were progressed to a formal mediation, led by an impartial and nationally accredited mediator from the VSBC panel. 69% of these mediations resulted in the successful resolution of disputes where parties walked away with an agreement.

Businesses in dispute are encouraged to seek information, or apply for assistance, at vsbc.vic.gov.au

Quotes attributable to Victorian Small Business Commissioner Lynda McAlary-Smith

“Mediation, rather than litigation, allows businesses to preserve a commercial relationship. It’s also considerably less expensive and time-consuming than legal action through VCAT or the courts.”

“We frequently find that disputes stem from communication issues and misunderstandings which are aired and defused through the mediation process.”

“The VSBC plays an important role in providing free or low-cost access to justice that reduces case numbers at VCAT and our court system by impartially assisting parties to negotiate a way forward.”

Nick Edrington, [email protected], 0488 565 058