(1) In proceedings that:
(a) are dealt with as small claims proceedings (see section 199); or
(b) relate to section 74, 96, 177D or 179K of the National Credit Code (which deal with hardship and postponement orders);
a party to the proceedings may be ordered by the court to pay costs incurred by another party to the proceedings only in accordance with subsection (2).
(2) The party may be ordered to pay the costs only if:
(a) the court is satisfied that the party brought the proceedings vexatiously or without reasonable cause; or
(b) the court is satisfied that the party's unreasonable act or omission caused the other party to incur the costs.