This legislation has been repealed.
(1) The Small Claims Court shall, in giving judgment, take into account any set-off and any counterclaim for a total amount not exceeding $10 000 established by the respondent or admitted by the applicant.
(2) If a set-off or counterclaim referred to in subsection (1) exceeds the amount for which the applicant would otherwise be entitled to judgment, the Small Claims Court shall give judgment for the respondent for the amount of the excess.
(3) If the respondent's total entitlement to any set-offs and in relation to any counterclaim exceeds $10 000, he or she may—
(a) abandon the excess by limiting the total amount claimed to $10 000; or
(b) apply to the Small Claims Court for an order under section 438 for the application to be heard as a claim under part 3.