Bear in mind that mediation is (from Fair Trading’s point of view) an exercise in compromise and getting a problem off the books, so to speak. They are not there to adjudicate on the rights and wrongs of the problem.
From your point of view, its a necessary prerequisite to action at NCAT and an opportunity to show the other side that you are serious. The actual strength of your case is an entirely different matter that can only be assessed by NCAT. But you can’t go to the Tribunal without having been to mediation.
I have been to mediation once and it was pathetic. The other owner wouldn’t undetake not to continue breaking by-laws (very loud parties that went on all night) and the mediator told me that I couldn’t complain about both the level of noise and the hours when it occurred.
It ended with me explaining (mansplaining?) strata law to the mediator (she loved that) and telling both of them that all I wanted was to tick the mediation box so I could pursue this at the Tribunal. That had the desired effect and the other party started to behave thereafter.
Now, I could have gone in there having told my contacts at Fair Trading what I was doing and it would have been a very different result. But I wanted to find out what it was like for people who don’t have a newspaper column to fall back on.
So keep your expectations low and if an acceptable compromise is offered, tell them you want it in writing by a certain date (maybe two weeks hence) or you will be proceeding to NCAT.