Legal Costs in Australia, Explained

Australian solicitors typically charge in one of three ways. Hourly rates are common for litigation and complex advisory work, with the rate depending on the seniority of the lawyer doing the work. Fixed fees are widely offered for predictable matters such as conveyancing, simple wills or company incorporations. Conditional or 'no win, no fee' arrangements are sometimes available in personal injury and certain commercial disputes, where the solicitor agrees to be paid only if the matter succeeds.

Each approach has advantages. Hourly billing reflects the actual time spent; fixed fees provide certainty; conditional fees reduce upfront cost in return for a higher fee on success.

Disbursements are out-of-pocket expenses the solicitor pays on your behalf and recovers from you. They include things like court filing fees, search and registration fees, barristers' fees, expert reports and travel. They are separate from the solicitor's professional fees and should be itemised on your invoices.

If your legal costs are likely to exceed a threshold set by your state or territory, your solicitor must give you a written costs agreement before starting work. This document sets out the scope of the engagement, the rates and likely disbursements, the basis on which the solicitor's costs may change, and your rights if you are dissatisfied.

Read the costs agreement carefully. Ask questions about anything that is unclear. A good solicitor will welcome the conversation — it sets the relationship up for success.

Your solicitor should give you an estimate of total costs at the start of the matter and update you when circumstances change. If your matter develops in a way that materially affects the cost, the solicitor must tell you and give you the option to reconsider how to proceed.

Solicitors' fees and most disbursements attract GST. Money you pay on account is usually held in the firm's trust account until it is earned, and the firm must account to you for how it is spent. Invoices should be sufficiently detailed for you to understand what has been done and on what date.

If you believe a bill is too high, raise the issue with the solicitor first. If you cannot resolve it, you can ask the firm to have the bill assessed by an independent costs assessor, or contact the legal regulator in your state or territory for guidance. Strict time limits apply, so act promptly.

You can help manage costs by being organised, providing complete information at the start, asking your solicitor to focus on what you actually need and avoiding unnecessary correspondence. Lawyers charge for their time, so anything that saves them time saves you money.