1. Why slander and libel collapsed into one claim
  2. The players in a defamation dispute
  3. The four elements of a defamation claim
  4. The 10-employee rule: which businesses can sue
  5. The concerns notice and offer to make amends
  6. The defences a publisher can rely on
  7. Time limits: the one-year clock
  8. Where small businesses most often get caught
  9. When a defamation lawyer adds value
  10. Start with the concerns notice, not the courtroom

When a customer, competitor or ex-employee says something false about your business, the words "slander" and "defamation" get used almost interchangeably. In casual conversation, slander means something spoken and defamation means the general idea of damaging someone's reputation. But in Australian law those labels no longer describe different claims. Every state and territory abolished the old distinction between slander and libel years ago, and today one unified cause of action called defamation covers everything from a throwaway comment at a networking event to a viral Google review.

That single framework is worth understanding properly because it decides three things for your business: whether you can sue when your reputation is attacked, what you must do before you can start proceedings, and what defences are available when your own content is the problem. This guide walks through how the framework operates end to end, including who the players are, what triggers a claim, the pre-court process you cannot skip, and where the law is most likely to catch a small business out.

Why slander and libel collapsed into one claim

The old common law treated spoken and written defamation differently. Slander was generally less serious, often requiring the claimant to prove actual financial loss, while libel was actionable on its own. Australian parliaments removed that split when they adopted a set of uniform defamation laws. In New South Wales, s 7 of the Defamation Act 2005 (NSW) states plainly that the distinction at general law between slander and libel is abolished, and that "the publication of defamatory matter of any kind is actionable without proof of special damage."

The other states and territories each enacted their own Defamation Act based on the same model provisions, so the rules are substantially the same wherever the publication happens or the claim is heard. The practical result is that whether the damaging statement was made in a podcast, a Facebook post, a letter, a live radio interview or a video, the same legal test applies. The differences that remain are practical rather than legal. A spoken remark is usually harder to prove later because you may not have a record of exactly what was said, while written content tends to spread further and stay online longer. Those differences affect your evidence and your strategy, but not the elements of the claim itself.

The players in a defamation dispute

Before the law does anything, it helps to know who is on the field:

  • The aggrieved person: The individual or eligible corporation whose reputation was harmed. They must show that the publication caused, or is likely to cause, serious harm to their reputation.
  • The publisher: The person or entity that communicated the defamatory matter. Under the legislation this is not limited to the author. Replying to a review, sharing a post, or quoting someone else's allegations can all make a business a publisher.
  • Digital intermediaries: Platforms, hosts and internet service providers that carry content written by others. They now have their own limited exemptions from liability, which we cover below.
  • The court: A judicial officer decides whether the serious harm threshold is met, and can dispose of weak claims early without a trial.

The central tension runs between the aggrieved person's interest in protecting their reputation and the publisher's interest in free expression, including the right to criticise and comment. Australian defamation law tries to balance those two interests through the elements of the claim, the defences, and a compulsory pre-court process designed to settle most disputes before anyone sees a courtroom.

The four elements of a defamation claim

To succeed in defamation, the claimant must establish four things:

  1. Publication to a third party: The matter must have been communicated to at least one person other than the claimant. A private conversation where only the claimant and the speaker are present is not enough.
  2. Identification: The matter must identify the claimant, whether by name or in a way that makes them reasonably identifiable to the audience.
  3. Defamatory meaning: The matter must carry an imputation that would lower the claimant in the estimation of ordinary reasonable members of the community.
  4. Serious harm: Since the 2021 reforms, the claimant must also show that the publication caused, or is likely to cause, serious harm to their reputation. This is now a separate element of the cause of action under s 10A of the Defamation Act 2005 (NSW), and it operates as a filter that removes trivial or marginal claims early.

The serious harm element deserves particular attention because of how it is administered. The judicial officer, not a jury, decides whether it is established, and they can do so before the trial begins, including on their own motion. If the element is not made out, the proceedings can simply be dismissed. For an excluded corporation, the bar is even more specific: harm to reputation does not count as serious unless it has caused, or is likely to cause, the corporation serious financial loss.

What counts as serious harm is assessed against the whole picture, including how widely the matter was published, what it said, and the position of the claimant. Evidence of cancelled orders, lost leads, terminated contracts or partners pulling back is powerful, while a handful of views on a low-traffic page may fall short.

The 10-employee rule: which businesses can sue

Not every business can bring a defamation claim. Section 9 of the Defamation Act 2005 (NSW) provides that a corporation has no cause of action for defamation unless it was an "excluded corporation" at the time of the publication. A corporation qualifies as excluded if:

  • its objects do not include obtaining financial gain for its members or corporators (broadly, it is not-for-profit), or
  • it has fewer than 10 employees and is not an associated entity of another corporation,

and in either case it is not a public body. When counting employees for this test, part-time employees are taken into account as an appropriate fraction of a full-time equivalent, so a business with five full-time and six half-time staff is treated as having eight employees and can still sue.

The rule exists to stop large companies using defamation law to silence criticism. If your company has 10 or more employees, you generally cannot sue for defamation, and you need to look at other avenues such as injurious falsehood, which is a separate common law tort that typically requires proof that the statement was false, was made maliciously and caused financial loss, or at platform-level remedies such as takedown requests and flagging under the platform's own content policies.

One important detail: an individual associated with a corporation can still sue in their own right even where the corporation cannot. If a review defames both the company and its founder personally, the founder may have a claim even though the company does not.

The concerns notice and offer to make amends

Australian defamation law deliberately forces the parties to attempt resolution before litigation. Section 12B of the Defamation Act 2005 (NSW) provides that an aggrieved person cannot commence defamation proceedings unless they have given the proposed defendant a concerns notice, and the imputations they intend to rely on were particularised in that notice.

A concerns notice must be in writing, specify where the matter can be accessed, inform the publisher of the defamatory imputations the person considers are carried about them, and describe the harm they consider amounts to serious harm. For an excluded corporation it must also set out the financial loss it considers serious. If the notice fails to particularise these matters adequately, the publisher can send a further particulars notice and the claimant must respond within 14 days. A claimant who fails to do so is taken not to have given a concerns notice at all, which means their claim cannot proceed.

Once a concerns notice is given, the publisher has a limited window to respond. Under s 14 of the Defamation Act 2005 (NSW), an offer to make amends must be made within 28 days of receiving the notice (or 14 days after further particulars are supplied in some cases). An offer typically includes a correction, an apology, removal or takedown of the matter, and sometimes compensation. If the offer is accepted and carried out, the aggrieved person cannot continue an action. If the publisher makes an offer within time that is reasonable in all the circumstances and the claimant rejects it, the failure to accept operates as a defence to any later action under s 18.

Two protections make this process workable. First, an apology does not constitute an admission of fault or liability, and is not admissible as evidence of fault or liability in civil proceedings, under s 20. A business can apologise and fix the problem without conceding the legal claim. Second, statements and admissions made in connection with the making or acceptance of an offer to make amends are generally inadmissible in later proceedings, so the settlement discussion itself does not come back to haunt either side.

The defences a publisher can rely on

If your business publishes content about other people, whether in ads, blog posts, emails, testimonials or replies to reviews, you need to know the defences available if you are sued. The main ones are set out in Part 4 of the Defamation Act 2005 (NSW):

  • Truth (justification): The imputations carried by the matter are substantially true. This is the complete answer to a defamation claim.
  • Contextual truth: The matter carried other imputations that are substantially true, and the imputations complained of do not further harm the claimant's reputation because of that truth.
  • Honest opinion: The matter was an expression of opinion rather than a statement of fact, the opinion related to a matter of public interest, and it was based on proper material.
  • Qualified privilege: The recipient had an interest in receiving the information and the publisher's conduct in publishing it was reasonable in the circumstances.
  • Public interest: Introduced with the 2021 reforms, s 29A provides a defence where the matter concerns an issue of public interest and the publisher reasonably believed publication was in the public interest. The court weighs factors such as how seriously the imputations were put, whether suspicions were distinguished from proven facts, whether the publisher tried to obtain and publish the claimant's side of the story, and what verification steps were taken.
  • Innocent dissemination: A subordinate distributor, such as a bookseller, newsagent or provider of a service, who neither knew nor ought reasonably to have known the matter was defamatory, and whose lack of knowledge was not due to negligence, can rely on this defence under s 32.

Digital platforms have additional protection. A new Division 2A of the Act exempts digital intermediaries from liability where their role was limited to providing caching, conduit or storage services, they did not initiate the publication, select its recipients, edit the content or promote it, and they took action to remove or disable access when notified in certain circumstances. The exemption can be determined early in proceedings, before a full trial. This matters for businesses that host user-generated content such as reviews, comments or customer galleries: if you are purely a passive host you may escape liability, but the moment you edit, promote or endorse the content, the protection is at risk.

Time limits: the one-year clock

Defamation claims run on a strict one-year limitation period, and online content does not give you a rolling deadline. Under s 14B of the Limitation Act 1969 (NSW), an action is not maintainable if brought after one year from the date of publication. For matter published electronically, the date of publication is the day the matter was first uploaded for access or sent to a recipient, not the day you happened to discover it or the day someone re-shared it. In effect, the clock starts once and does not reset on every new view or share, so delay can be fatal.

There is one statutory safety valve. If a concerns notice is given within 56 days before the limitation period expires, the period is extended by the balance: 56 days minus the days remaining when the notice was given. That gives the amends process room to work without the claim expiring mid-negotiation, but it does not rescue a business that waits months after discovering the publication.

Where small businesses most often get caught

The framework trips up businesses in a handful of recurring ways:

  • Firing back at a bad review: Responding to a harsh but true review with specific allegations about the customer, such as suggesting they are a fraudster or a stalker, creates a fresh publication that can itself be defamatory. Keep replies factual and professional.
  • Comparative advertising with implied wrongdoing: It is fine to say your product is better. It is not fine to suggest a competitor is dishonest, unsafe or breaching the law unless you can prove it.
  • Quoting third-party claims: Repeating an allegation is still publishing it. Retweeting, sharing or quoting a customer's accusation without checking whether it is defensible exposes you to the same claim as making the allegation yourself.
  • Photos and commentary: Posting a photo or video of a person and adding commentary that implies misconduct can be defamatory even if the image itself is not.
  • Recording conversations for evidence: If a damaging statement was spoken and you are tempted to record it, check the recording laws that apply in your state first. Consent and notice requirements vary, and an unlawfully obtained recording can create a separate legal problem that has nothing to do with defamation.
  • Assuming you can sue: Companies with 10 or more employees are frequently surprised to learn they have no defamation cause of action at all, and that their only options are the more demanding torts or platform-level action.

When a defamation lawyer adds value

The pre-court process is designed to be used with care, and that is where a lawyer earns their fee. Drafting a concerns notice that particularises the defamatory imputations correctly is a technical exercise: get it wrong and the notice may be defective, the 28-day clock may never start, and the claim can be barred. A lawyer can also give you a realistic read on whether the serious harm threshold is met before you commit to a dispute, which saves you from funding a claim that a judicial officer will dismiss at the first hurdle.

On the other side of the table, if your business receives a concerns notice, the 28-day window to decide whether to make an offer to make amends is short. A lawyer can assess the strength of your defences, advise whether a reasonable offer will protect you, and negotiate terms that achieve a takedown, correction and confidentiality without admitting liability. Early advice is usually much cheaper than defending a proceeding, and in most disputes the outcome is a commercial one: a correction, an apology and a commitment not to repeat the claims, documented so the matter stays closed.

Start with the concerns notice, not the courtroom

The single most consequential decision in any defamation matter is how you enter the statutory process, because everything else flows from it. The concerns notice is simultaneously the document that particularises the imputations you must live with for the rest of the claim, the trigger for the publisher's 28-day amends window, and the mechanism that protects you from the one-year limitation bar if you act within 56 days of it expiring. A business that treats it as a formality and sends a generic letter has often waived its best chance of a fast resolution and created defects that a court can later exploit. A business that gets the notice right, or responds to one with a carefully considered offer, controls the pace, the cost and usually the outcome. Before you draft a statement of claim, or before you post that strongly worded reply, make the concerns notice and the amends process your starting point.