Arbitration is an alternative form of dispute resolution (‘ADR’) where parties with a disagreement present their case to a neutral third party known as an arbitrator, who then determines an outcome to resolve a dispute.

A decision made by an arbitrator is legally binding on all parties and enforceable in Court, unless all parties agree that the arbitrator’s decision will not be legally binding .

Since 2010, all of Australia's states and territories have been governed by Commercial Arbitration Acts, a scheme of legislation which have created a uniform framework for commercial arbitration in Australia. This ensures consistency in the processes and outcomes of arbitrations across the country.  

Arbitration between countries is also regulated in Australia by the International Arbitration Act 1974 (Cth) .

Arbitration is a popular method for resolving commercial disputes, as it is efficient, impartial and enforceable . There are many professional arbitrators in Australia, and its arbitration industry is independent and sophisticated .