Arbitration Agreement Template (Australia)
Updated on 8 August 2026
Australia has two arbitration regimes, and which one applies to your agreement is decided by where the arbitration is seated and whether it is domestic or international. Domestic commercial arbitration runs on the Commercial Arbitration Acts of the states and territories — substantially uniform legislation, based on the UNCITRAL Model Law, that the jurisdictions adopted from 2010 onwards, beginning with New South Wales. International commercial arbitration seated in Australia runs on the federal International Arbitration Act 1974.
That makes the seat clause the most consequential term in an Australian arbitration agreement: it decides which Act supervises the process and which Supreme Court can appoint an arbitrator, decide a challenge or set aside an award. The widely copied free template this page replaces never identifies a seat at all. It also names a single arbitrator in a blank with no appointing authority behind it, contradicts itself on costs, lets the award be disclosed to third parties inside its own confidentiality clause, and tells the parties they may still sue over "Constitutional or civil rights" — a sentence borrowed from a US context that means nothing here.
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Arbitration Agreement
This Arbitration Agreement is made on between , ABN or ACN , of and , ABN or ACN , of (each a Party and together the Parties).
Each Party enters into this Agreement in the course of business, has had the opportunity to obtain independent legal advice, and has had the opportunity to negotiate its terms. The Parties intend this to be a negotiated agreement between businesses rather than a standard form imposed on one of them.
1. Disputes Covered
Any dispute, claim or difference arising out of or in connection with the dated , including any question about its existence, validity, breach or termination, is to be referred to and finally resolved by arbitration under this Agreement.
2. Seat and Applicable Legislation
The seat of the arbitration is . The law governing the underlying contract is . The seat is unaffected by where any hearing is physically held.
This is a domestic commercial arbitration. It is governed by , being the Commercial Arbitration Act in force at the seat, and the Supreme Court of that State or Territory exercises the supervisory jurisdiction that Act confers, including in relation to appointment of arbitrators, challenges and setting aside an award.
3. Rules and Appointment of the Tribunal
The arbitration is to be conducted under the ACICA Arbitration Rules in force when the arbitration is commenced, which are incorporated into this Agreement, and ACICA is to appoint the tribunal in accordance with those Rules where the Parties do not agree.
The tribunal is to consist of one arbitrator, agreed by the Parties or, failing agreement, appointed as set out above.
Any arbitrator is to have the following qualification or experience: . Every arbitrator must be and remain impartial and independent, must disclose before accepting appointment any circumstance likely to give rise to justifiable doubts as to their impartiality or independence, and must continue to disclose any such circumstance arising afterwards.
4. Language, Venue and Procedure
The language of the arbitration is . Hearings may be held at or by video conference as the tribunal directs after consulting the Parties. The tribunal is to adopt procedures suited to the circumstances of the case and set a timetable proportionate to the amount in dispute and the complexity of the issues, avoiding unnecessary delay and expense.
5. Interim Measures and Court Assistance
Either Party may apply to the tribunal for interim measures, and may apply to a court for urgent interim relief before the tribunal is constituted or for assistance in taking evidence. Doing so is not a breach of this Agreement or a waiver of the agreement to arbitrate.
Nothing in this Agreement prevents either Party from applying to a court of competent jurisdiction for an injunction or other equitable relief to restrain the actual or threatened infringement, misuse or disclosure of intellectual property or confidential information.
6. Costs
The Parties advance the tribunal's fees and expenses and any institutional charges in equal shares. In its award the tribunal may allocate those costs, and each Party's reasonable legal and expert costs, between the Parties as it considers appropriate having regard to the outcome and the conduct of the arbitration.
7. Confidentiality
The existence of the arbitration, all submissions and evidence in it, and the award are confidential. A Party may nonetheless disclose them to its professional advisers, auditors and insurers on a confidential basis, so far as necessary to enforce or challenge the award or to protect a legal right, and where required by law, by a court, or by a regulator. This obligation survives the conclusion of the arbitration.
8. The Award
The award is to be in writing, is to state the reasons on which it is based, and is final and binding on the Parties. The Parties agree that the award may be enforced in any court of competent jurisdiction, and that where recognition or enforcement is sought outside Australia the award is intended to be enforceable under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
9. General
This Agreement survives termination, expiry or rescission of the underlying contract. Nothing in it excludes, restricts or modifies any guarantee, right or remedy that cannot be excluded under the Australian Consumer Law. If any provision is unenforceable, the remainder continues in effect. Notices are to be in writing to for the first Party and for the second Party. This Agreement may be executed in counterparts and by electronic signature.
First party
Date:
Second party
Date:
Which Act applies, and why the seat decides it
The Commercial Arbitration Acts are uniform legislation adopted by each state and territory to create a single domestic arbitration law across Australia, incorporating much of the 2006 UNCITRAL Model Law with modifications for the domestic setting. New South Wales was first, with the Commercial Arbitration Act 2010 commencing on 1 October 2010, and the other jurisdictions followed; all Australian states and territories now operate as Model Law jurisdictions.
Because the legislation is state and territory based, naming Sydney, Melbourne, Brisbane or Perth as the seat is not decoration — it selects the Act and the supervising Supreme Court. This template asks for the seat as a required field and prints the Act that goes with it, so the agreement identifies its own supervisory framework rather than leaving the parties to work it out during a dispute.
Where a party is foreign, or the subject matter is genuinely international, the International Arbitration Act 1974 applies instead and brings the Model Law and the New York Convention with it. The template asks the domestic-or-international question directly, because the answer changes the framework, the enforcement route and often the choice of institution.
Getting a tribunal constituted
The failure in the source template is structural: it names one arbitrator in a blank, with no institution and no appointing authority, so the first disagreement over a name stops the process. The Commercial Arbitration Acts do provide a court-appointment backstop, but starting a private dispute resolution process with a Supreme Court application is an expensive way to begin.
This template offers institutional arbitration — the Australian Centre for International Commercial Arbitration and the Resolution Institute are the usual Australian choices — or ad hoc arbitration under the UNCITRAL Rules with a named appointing authority. Either way, the agreement contains a mechanism that works without a court.
It also sets the number of arbitrators and the appointment fallback. One arbitrator suits most commercial disputes; three suits high-value or technical matters, with each side appointing one and the two appointees selecting the chair. Arbitrator independence is handled properly too, with a continuing duty to disclose anything likely to give rise to justifiable doubts about impartiality and a route for challenges.
Unfair contract terms: the Australian limit that catches templates
The most commercially relevant limit on an Australian arbitration clause is not in the arbitration legislation at all. Since November 2023 it has been unlawful to include, apply or rely on an unfair term in a standard form contract with a consumer or a small business, and the penalties are substantial — up to $50 million for corporations and $2.5 million for individuals, depending on the contravention. A small business for this purpose is one employing 100 or fewer people or with annual turnover under $10 million.
That reaches arbitration clauses. A dispute clause in a standard form contract that forces a small supplier into an expensive private forum, imposes costs that are disproportionate to the value of likely claims, or binds one side while leaving the other free to litigate, is exactly the shape of term the regime targets.
This template responds in the drafting rather than by warning and moving on. The clause binds both parties equally, cost allocation is a single explicit choice rather than two contradictory ones, small-value claims can be carved out to a tribunal or court, and the agreement notes that it is intended for negotiated business-to-business use rather than as a standard form imposed on consumers or small businesses without advice.
Costs, confidentiality and the award
Confidentiality is a particular strength of the Australian domestic regime, which contains express confidentiality provisions rather than leaving the question to implication. This template protects the existence of the arbitration, the submissions and the award, with practical exceptions for professional advisers, auditors and insurers, for enforcing or challenging the award, and where a law, court or regulator requires disclosure. The source template's approach — absolute confidentiality during the process, then permission to hand the award to unspecified third parties afterwards — protects nobody.
On costs, the template makes you choose once: either the tribunal's fees and each side's legal costs are split evenly whatever happens, or the tribunal may allocate both in the award. The source lets the arbitrator award costs to the winner in one clause and fixes the arbitrator's own fee as shared equally regardless of who was right in the next.
The award is written, reasoned, final and binding, and the parties agree it may be enforced in a court of competent jurisdiction. Where enforcement abroad is likely, the seat determines the award's nationality for New York Convention purposes. The template deliberately avoids imposing a fixed completion deadline on the tribunal: a deadline written into the agreement and then missed hands a losing party an argument about the tribunal's authority.
Clause-by-clause guide
- Scope of disputes
- Covers disputes arising out of or in connection with the contract, including questions of existence, validity and termination, so the scope is not itself the first argument.
- Domestic or international
- Selects between the state or territory Commercial Arbitration Act and the federal International Arbitration Act 1974, which changes the framework and the enforcement route.
- Seat of arbitration
- Names the city and jurisdiction, which fixes the applicable Act and the supervising Supreme Court. Kept separate from the hearing venue.
- Rules and appointing authority
- Institutional rules with a built-in appointment route, or ad hoc arbitration with a named appointing authority so the clause cannot deadlock.
- Number and qualification of arbitrators
- One or three, any required expertise, and the fallback where a party fails to appoint or the two appointees cannot agree on a chair.
- Impartiality and disclosure
- A continuing duty to disclose circumstances likely to give rise to justifiable doubts about impartiality, with a route for challenges.
- Interim measures and court assistance
- Preserves applications to the tribunal and to the court for urgent relief and evidentiary support without waiving the agreement to arbitrate.
- Costs
- One rule — split evenly, or allocated by the tribunal in the award — rather than the source template's two contradictory ones.
- Confidentiality
- Protects the proceedings and the award with workable exceptions for advisers, insurers, enforcement and legal or regulatory obligation.
- The award and enforcement
- Written, reasoned, final and binding, enforceable in court, and travelling internationally under the New York Convention according to the seat.
Australian compliance checklist
Confirm the position for your seat and your counterparty before signing.
Identify the applicable Commercial Arbitration Act
Domestic commercial arbitration is governed by substantially uniform Commercial Arbitration Acts in each state and territory, based on the UNCITRAL Model Law. The seat determines which Act applies and which Supreme Court supervises.
ACICA - Commercial Arbitration ActsUse the federal Act for international arbitration
International commercial arbitration seated in Australia is governed by the International Arbitration Act 1974, which gives effect to the Model Law and the New York Convention. Decide which regime you are in before drafting.
International Arbitration Act 1974Name the seat, not just a hearing venue
Without a seat there is no identified Act and no identified supervising court. Naming a city where hearings will be held does not do the same job.
Give the clause a working appointment route
Institutional rules supply an appointing body. For ad hoc arbitration, name an appointing authority in the agreement so a disagreement about a single arbitrator does not require a Supreme Court application.
Check the unfair contract terms regime before using this as a standard form
Since November 2023 it has been unlawful to include, apply or rely on an unfair term in a standard form contract with a consumer or a small business, with penalties up to $50 million for corporations and $2.5 million for individuals. Small business means 100 or fewer employees or turnover under $10 million.
ACCC - a guide to unfair contract terms for businessesKeep the clause mutual and proportionate
A dispute clause that binds one side but not the other, or that imposes costs out of proportion to the likely claim value, is the shape of term the unfair terms regime targets. Consider a small-claims carve-out for low-value disputes.
Do not treat employment disputes as arbitrable by default
Unfair dismissal, general protections and other statutory workplace claims have their own statutory pathways. An arbitration clause in an employment contract does not simply divert them into private arbitration.
Keep enforcement in mind when choosing the seat
Where a counterparty or its assets sit overseas, the award travels under the New York Convention and the seat fixes its nationality for that purpose.
New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards
How to complete this arbitration agreement
- Identify the parties and the contract. Name both parties and the contract the arbitration agreement attaches to, or describe the dispute if you are signing after one has arisen.
- Choose domestic or international. The document prints the applicable framework — the state or territory Commercial Arbitration Act, or the federal International Arbitration Act 1974.
- Fix the seat and the rules. Enter the seat, then choose institutional rules or ad hoc arbitration with a named appointing authority, and set one or three arbitrators.
- Set carve-outs and the cost rule. Decide on interim relief and small-claims carve-outs, and choose whether costs are split evenly or allocated by the tribunal.
- Review and sign. Check the language, hearing arrangements and notice addresses, then download the DOCX or PDF and keep it with the underlying contract.
Frequently asked questions
Which law governs a domestic arbitration in Australia?
The Commercial Arbitration Act of the state or territory where the arbitration is seated. Those Acts are substantially uniform across the country and are based on the UNCITRAL Model Law, but they are state and territory legislation, so the seat selects both the Act and the supervising Supreme Court.
When does the International Arbitration Act apply instead?
For international commercial arbitration, which the federal International Arbitration Act 1974 governs, giving effect to the Model Law and the New York Convention. This template asks whether the arbitration is domestic or international because the answer changes the framework and the enforcement route.
What is the difference between the seat and the hearing venue?
The seat is the legal place of the arbitration and fixes the applicable Act and the supervising court. The venue is simply where people meet, and can be anywhere or online. A clause naming only a venue has not fixed the things a seat fixes.
Do I need ACICA or another institution?
No, but if you arbitrate ad hoc the agreement itself has to adopt a rulebook — usually the UNCITRAL Rules — and name an appointing authority. Institutional arbitration costs more in administrative fees and removes the deadlocks that ad hoc drafting tends to leave.
Can I put an arbitration clause in my standard terms?
Be careful. Since November 2023 it has been unlawful to include, apply or rely on an unfair term in a standard form contract with a consumer or a small business, with substantial penalties. A one-sided or disproportionately expensive dispute clause is the kind of term the regime targets, so keep it mutual and consider a small-claims carve-out.
Is an arbitration award confidential in Australia?
The domestic regime contains express confidentiality provisions rather than leaving it to implication, and this template reinforces that with practical exceptions — advisers, insurers, enforcement or challenge, and legal or regulatory obligation. What it does not do is allow the award to be handed to unspecified third parties, as the source template does.
One arbitrator or three?
One is faster and cheaper and fits most commercial disputes. Three suits high-value or technically complex matters and lets each side participate in constituting the tribunal. The template writes the correct appointment mechanism either way, including what happens if a party fails to appoint.
Should the agreement set a deadline for the award?
Better not to. A fixed period written into the agreement looks efficient but gives a losing party an argument that the tribunal lost its authority when it passed. This template asks the tribunal to set a proportionate timetable in consultation with the parties instead.
Related templates
Disclaimer
This template and guide are for general information only and are not legal advice, and no Australian legal practitioner has reviewed them for your matter. Take advice before including an arbitration clause in a standard form contract with consumers or small businesses, or in an employment contract.
