Class action risk 2026

2025 in review

Section 1: filing rates

The new norm?

In last year's report, we suggested we may have reached a point where the annual number of class action filings could be expected to sit between approximately 45-50 claims. The 55 total filings across 2025 are supportive of that ballpark prediction. However, when the filings are assessed in detail the picture that emerges is quite different to what may be inferred from the headline filing rates.

At the half-year mark, a total of 36 class actions had been commenced, but filings slowed considerably over the back half of the year with only 19 class actions commenced across the final six months of 2025 (the same number of filings as the final two months of 2024).

The filings in the first half of the year were dominated by 19 junior doctor underpayment claims that were initiated on the same day by the same plaintiff law firm. If these claims are viewed in the aggregate as a single set of proceedings (as illustrated by the dotted line on the chart), the total filings in 2025 materially declines to a near decade low of 37 new claims. When viewed through this lens, 2025 may be considered a muted year of class action activity, although there are a number of reasons why it would be premature to jump to any conclusions suggesting that class action risk is on the decline, including that:

  • There are a number of important judgments set to be handed down in 2026, including in relation to the assessment of damages under the Australian Consumer Law and in the context of shareholder claims that will have a bearing on future claims.
  • As a consequence of the elevated filing rates over recent years, there are still a large number of cases working their way through the courts (including on appeal). While there continues to be growth in the number of firms pursuing class actions, there are resourcing challenges and risks for plaintiff firms in running a large number of claims at the same time, including the exposure to adverse costs orders with claims filed in the Supreme Court of Victoria (in circumstances where a group costs order has been made). As these proceedings resolve we expect that filings will gain momentum as class action promoters look to replenish their portfolio of claims.
  • There are emerging areas of risk where new filings may accelerate over the years ahead, including in relation to competition class actions and cyber-related claims (particularly if the direct right of action reform to the Privacy Act is enacted).

Section 2: filings by type

A big year for employment claims

In 2025, employment claims shot to the top of the pack as the most common form of filing, marking a move away from consumer-related claims that have dominated the class action landscape over the last five years. However, the significant rise in employment claims should be viewed with caution as the total filing numbers are distorted by two clusters of very similar filings, accounting for 24 of the 28 claims filed across the year (as discussed in further detail in the employee claims section  of this report).

The employment claims filed in 2025 involved a range of subject matters, including the alleged underpayment of junior doctors at public hospitals, state-affiliated healthcare centres and major retailers, in addition to claims alleging sexual harassment and discrimination in the workplace.

While there was a material decline in consumer class actions, the subject matter of the consumer claims remained relatively broad, including claims brought against automakers associated with alleged manufacturing defects, claims relating to alleged excessive insurance premiums, card surcharges and the quality of care provided to residents at aged care facilities.

There were five shareholder class actions commenced in 2025, broadly in line with the number of filings in 2024. The subject matter of these claims concerned earnings guidance disclosures, alleged accounting errors, production and cost projections provided by a mining business  and broader corporate governance issues, including the scope and nature of transactions with related parties.

In a continuation of a trend that has emerged over recent years, public interest class actions remain a serious area of risk, particularly for government and state-affiliated enterprises. In 2025, public interest claims accounted for just under 10% of class action filings, including claims alleging discriminatory practices associated with 'Work for the Dole' initiatives in indigenous communities and the inadequate provision of healthcare and medical treatment to Aboriginal and Torres Strait Islander people.

Whether the move away from consumer claims was a temporary blip that will readjust in 2026 remains to be seen. Interestingly, when the abnormal concentration of junior doctor underpayment claims is considered in aggregate, the proportion of consumer filings in 2024 sits at 30%, broadly in line with recent years. In light of the ongoing broad base of subject matters raised in consumer claims and the regulatory focus on cost-of-living issues, we wouldn't be surprised if consumer class actions bounce back in 2026 and account for a more substantial proportion of filings.

Section 3: filings by sector

Donut chart showing the share of class action filings by sector in 2025. Healthcare accounts for the largest share at 40%, followed by government at 20% and retail and hospitality at 16%, with smaller shares across mining, infrastructure, industrials, banking and financial services, and technology.

Healthcare dominates

In 2025, the healthcare sector was the target of the highest number of class action filings, accounting for 40% of claims filed. However, the high proportion of healthcare filings was principally attributable to the irregular volume of junior doctor underpayment class actions (discussed further in the employee claims section of this report).  

In a continuation of a trend that has emerged over recent years, claims against the Government once again represented a significant proportion of class action filings in 2025, accounting for 20% of total claims. Like recent years, many of the claims against the Government were public interest class actions brought on behalf of indigenous communities.

Looking elsewhere:

  • Retail and hospitality claims made up 16% of class actions filed in 2025. These claims were in large part made up by the cluster of class actions filed late in the year against five retailers for alleged underpayments and the failure to provide mandated breaks.
  • Once again, the major banks did not face a class action (now for the fourth year in a row). The flurry of activity involving the banks in connection with the Financial Services Royal Commission is now well and truly in the rear-view mirror. The three claims brought against financial institutions in 2025 related to alleged excessive insurance premiums, 'flex commissions' charged by an auto financier and a shareholder class action brought against a fintech company.
  • Only three class actions were filed in the industrials sector in 2025, all involving automakers relating to diesel emissions, paint peeling and other alleged manufacturing defects.

Section 4: filings by jurisdiction

Federal Court remains the go-to jurisdiction

Once again, in 2025 the Federal Court remained the jurisdiction of choice for class action filings, accounting for 80% of new claims filed for the year. This represents a significant uptick on recent years where the Federal Court has seen approximately two-thirds of annual filings.

The Supreme Court of Victoria remained the second most popular jurisdiction, having firmly cemented itself as the most-favoured alternative to the Federal Court following the introduction of the 'group costs order' regime in 2020 (which permits plaintiff lawyers to obtain contingency fees in class action proceedings). However, in an interesting development, the proportion of filings in the Supreme Court of Victoria has tailed off, dropping from more than 30% of claims in 2022 and 2023 to account for less than 10% of new claims filed in 2025.

There were a smattering of fillings across other state jurisdictions, typically involving claims giving rise to discrete localised issues, including:

  • four claims in the Supreme Court of New South Wales
  • one claim in the Supreme Court of Queensland
  • one claim in the Supreme Court of Tasmania.

In 2026, we expect the Federal Court will remain the go-to jurisdiction, particularly following the High Court's ruling giving common fund orders the green light (discussed further in the funded claims section of this report). While its proportion of filings may have dipped in 2025, it is also likely the Supreme Court of Victoria will remain the second option given the High Court's confirmation that contingency fees are not permitted outside Victoria (also discussed in the funded claims section of this report).