A class action in Australia is a representative proceeding that allows one person (the “lead applicant”) to bring a claim on behalf of a group of people who have suffered similar loss or damage. Class actions are commonly commenced in the Federal Court of Australia under Part IVA of the Federal Court of Australia Act 1976 (Cth) or in the Supreme Court of New South Wales under Part 10 of the Civil Procedure Act 2005 (NSW).
To commence a class action, there must generally be at least seven group members with claims arising out of the same, similar, or related circumstances and raising at least one substantial common issue of law or fact. Importantly, Australian class actions are typically “opt-out,” meaning eligible group members are automatically included unless they formally opt out by a specified deadline.
Class actions commonly involve shareholder claims, product liability, consumer protection, financial services misconduct, data breaches, and employment underpayments. Proceedings may resolve through court-approved settlement or proceed to trial.
Engaging experienced NSW or Federal Court class action lawyers is critical to ensure proper case assessment, funding structure, and strategic forum selection.
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