The Appeal Costs Board is responsible for the administration of the Appeal Costs Act 1998 (Vic) ("AC Act"). The Board serves a function similar to that of a compensation tribunal: in certain circumstances it may reimburse parties for their legal costs incurred as a result of circumstances beyond their control. The principle underlying the AC Act is that when the justice system administered by the State is responsible for errors and delays in the courts (i.e. not the fault of a criminal defendant or civil litigant), the State should bear the financial cost of those errors and delays.

There are six main categories for reimbursement of costs: two in civil (successful appeals and discontinued trials) and four in criminal trials (adjournments, successful appeals, appeals by the Director of Public Prosecutions (DPP) and discontinued trials).

In recent years the AC Act has undergone many changes that affect how the Board functions. These amendments now require a court to consider an order for costs before granting an indemnity certificate when a criminal proceeding is adjourned. The amendments also: