In determining the amount of damages to be awarded in any defamation proceedings, a court must ensure that there is an appropriate and rational relationship between the harm sustained by the plaintiff and the amount of damages awarded [Defamation Act 2005 (SA) s 32].

As at 1 July 2025, damages for non-economic loss are limited to a maximum of $500,000 [s 33(3); Government Gazette 29 May 2025]. This is indexed annually. It is quite possible for someone to show that they have been defamed but not receive substantial damages.

The maximum damages amount is to be awarded only in the most serious cases [s 33(2)]. The court can, however, award aggravated damages, if warranted in the circumstances, and this is made separately to any award of damages for non-economic loss [s 33(2a), (2b)].

Compensation for actual economic loss may be awarded separately and is not capped.

The state of mind of the defendant generally is not relevant in awarding damages but an apology or correction are factors that can be taken into consideration [ss 34, 36].

The court may not award exemplary or punitive damages for defamation [s 35]. This is consistent with the purpose of a damages award in defamation to compensate an injured plaintiff and not punish the defendant.