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While Australia may be a relatively small nation, it is rapidly ascending the ranks as one of the world’s most litigious jurisdictions – a shift showing no signs of slowing and one that demands businesses, courts, and lawyers alike remain increasingly proactive in navigating this evolving landscape.
In recent years, Australia has been steadily rising through the ranks as one of the world’s most litigious nations, with both damages and the volume of cases reaching trial continuing to climb at a rapid pace.
And that momentum shows no sign of slowing – if anything, it is accelerating further rather than easing anytime soon.
Janine Clark, partner at Clyde & Co, shared she has witnessed this surge firsthand, warning that in 2026 and beyond, there are “no signs of slowing down” when it comes to litigation.
One of the clearest indicators of this shift, she noted, is the expansion of court jurisdictional limits, which has effectively raised the ceiling on the value of claims that can be brought before certain courts.
“This is reflected in the NSW District Court increasing its jurisdictional limit in 2022 from $750,000 to $1.125 million, and Queensland set to follow suit in 2027 from $750,000 to $1.5 million in order to appropriately manage the volume of claims both in number and increase in damages,” she said.
Acknowledging that there are “numerous” drivers behind Australia’s rise as one of the world’s most litigious countries, Clark pointed to a convergence of pressures – including “social inflation”, rising litigation costs, increasing psychological injury claims, and medical cost inflation alongside post-COVID-19 delays in treatment – as key forces behind the shift.
The consequences of this shift are already being felt across the economy and across almost every corner of society.
Clark highlighted that growing litigation is pushing up public liability costs and premiums for businesses, with risks once largely confined to construction now increasingly spreading across a broader range of industries as Australia’s workforce becomes more flexible.
“The growth of claims and take, for example, worker-to-worker (WTW) claims have been identified as a significant driver of increasing public liability claims costs and premiums,” she said.
“Whilst initially confined to the construction industry, WTW claims have expanded to other diverse industries as Australia embraces a more flexible workforce.”
Referencing the Insurance Council of Australia, she pointed to a stark rise in costs, noting that the average price of public liability insurance has increased by between 50 and 60 per cent since 2019.
On top of rising insurance premiums, Clark also emphasised that businesses are facing higher deductibles and excesses for worker-to-worker claims compared with standard liability policies, effectively forcing them to shoulder a significantly greater share of financial risk.
“As well as experiencing high insurance premiums, businesses also carry higher deductibles and excesses for WTW claims compared with standard liability excesses, meaning they must carry more financial risk for these claims,” she said.
However, while litigation continues to rise, she warned that this trend could carry significant long-term consequences for the legal system.
Specifically, Clark warned that this risk is heightened where processes aren’t streamlined, pointing to the Personal Injuries Proceedings Act 2002 as an example of how effective pre-action regimes can enable earlier, more efficient resolution of claims.
“Potentially, if certain processes are not streamlined (take, for example, the Personal Injuries Proceedings Act 2002 in Queensland, which provides an effective pre-action regime for early resolution of claims),” she said.
So when it comes to addressing this issue and thriving in an increasingly litigious environment, Clark stressed that proactive risk management is no longer optional for businesses, but an essential step in reducing underwriting risk and strengthening resilience in this evolving landscape.
“Risk management in business is now critical. Implementing, enhancing, and documenting appropriate practices and procedures can go a long way in potentially reducing underwriting risk,” she said.
At the same time, she noted that lawyers must remain alert to potential reforms and be prepared to respond as they emerge, particularly as momentum around civil liability reform continues to build.
“In addition, the ICA is considering Civil Liability Reform and as such, lawyers will need to be aware of any changes to the civil system and be ready to meet them as they arise,” she said.
