ByLawyers News and Updates

Commercial law AI prompts – All States

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The following new commercial law AI prompts have been added to the Companies, Trusts, Partnerships and Joint Ventures guides:

  • By Lawyers AI Prompt – Letter to client with advice on shareholders agreement;
  • By Lawyers AI Prompt – Letter to client with advice on discretionary trust deed;
  • By Lawyers AI Prompt – Letter to client with advice on unit trust deed;
  • By Lawyers AI Prompt – Letter to client with advice on partnership agreement;
  • By Lawyers AI Prompt – Letter to client with advice on joint venture agreement.

These new commercial law AI prompts will assist practitioners advising clients on complex documentation for the various types of entities.

AI prompts are transforming legal document drafting. Technical precision in prompting artificial intelligence can significantly improve the utility and credibility of its output, especially when the AI draws exclusively from data contained in client matters and not from outside sources.

A well-drafted AI prompt acts like a clear direction from a senior lawyer to a junior about how to prepare a document. It sets precise parameters for the task, identifies the required information and where it must be drawn from, specifies the document’s form and any legal or procedural rules with which it must comply, and forbids the use of external or unauthorised sources, including invention – or in AI’s case, hallucination.

The outcome of using an AI prompt in a matter that contains sufficient reliable data is a competent first draft of a document that the lawyer can then refine and perfect, either with or without further input from AI.

Even if sufficient data is not available in the matter to satisfy the prompt’s requirements for the document, the AI will identify the missing data the lawyer needs to obtain via instructions or other means.

By Lawyers is pleased to introduce AI prompts to our publications, helping our subscribers harness the power of LEAP’s Matter AI.

Costs agreements – All states

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Enhancement of By Lawyers costs agreements

All By Lawyers costs agreements have been reviewed, consolidated, and reformatted to ensure they are in strict compliance with all applicable regulatory requirements in each state and territory, and to improve presentation and readability.

A good cost agreement precedent provides transparency, reduces disputes with clients over fees, and ensures that firms get paid. It is important these documents are correct, however, the increasing complexity of cost disclosure requirements makes this difficult. By Lawyers precedents provide firms with accurate and effective costs agreements for all matter types in all jurisdictions.

Summary of key changes

  • A key enhancement is the inclusion of a Terms and Conditions section, which consolidates general information that applies across all matters.
  • All related information has been grouped together to assist with readability and comprehension.
  • A Next steps section has been added, outlining the steps required to be taken by the client to move the engagement forward.
  • The automation in relation to fees, disbursements, and internal expenses has been improved for LEAP users.
  • The scopes of work, now available under each cost agreement on the matter plans, have been enhanced. For LEAP users, scopes of work can be added to a costs agreement via the Insert Clause feature. See Inserting a Clause on the LEAP Community page. Alternatively, all users can simply cut and paste the scope into the precedent.

New categories of costs agreements

The By Lawyers costs agreements have been simplified into 4 categories in most states and territories:

  1. Costs agreement: suitable for most matters.
  2. Costs agreement – Estate administration: specific to applications for probate and letters of administration and administering the estate.
  3. Conditional costs agreement: suitable for litigation such as personal injury claims where the firm agrees to act on a no win no fee basis.
  4. Conditional costs agreement – Uplift fee: suitable for litigation in jurisdictions where the relevant legislation permits an uplift to be applied to the total costs for a successful outcome.

The new costs agreements and scopes of work have been added, as appropriate, to folder A. Getting the matter underway on all matter plans.

Criminal AI prompts – NSW

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New criminal AI prompts have been created.

The following By Lawyers AI prompts have been added to the matter plans for Local Court Criminal and Traffic:

  1. Brief to counsel

  2. Submissions for a s 9 application

  3. Submissions for a s 10 application

  4. Submissions for a bail application

  5. Letter to medico-legal expert requesting a report for sentencing

These new criminal AI prompts will assist practitioners appearing for clients in criminal and traffic matters in the NSW Local Court.

AI prompts are transforming legal document drafting. Technical precision in prompting artificial intelligence can significantly improve the utility and credibility of its output, especially when the AI draws exclusively from data contained in client matters and not from outside sources.

A well-drafted AI prompt acts like a clear direction from a senior lawyer to a junior about how to prepare a document. It sets precise parameters for the task, identifies the required information and where it must be drawn from, specifies the document’s form and any legal or procedural rules with which it must comply, and forbids the use of external or unauthorised sources, including invention – or in AI’s case, hallucination.

The outcome of using an AI prompt in a matter that contains sufficient reliable data is a competent first draft of a document that the lawyer can then refine and perfect, either with or without further input from AI.

Even if sufficient data is not available in the matter to satisfy the prompt’s requirements for the document, the AI will identify the missing data the lawyer needs to obtain via instructions or other means.

By Lawyers is pleased to introduce AI prompts to our publications, helping our subscribers harness the power of LEAP’s Matter AI.

Claim farming – NSW

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Claim farming is the practice of giving or receiving consideration for a claim referral or potential claim referral or soliciting or inducing a claimant to make a claim for personal injury. This practice is now banned under the Claim Farming Practices Prohibition Act 2025 (the Act) which came into effect on 9 April 2025.

When the Act applies

The Act applies to all personal injury claims as defined in s 11 of the Civil Liability Act 2002, including intentional torts. Some personal injury claims are not covered, including dust diseases claims, claims relating to tobacco use, workers compensation, and motor vehicle accident claims.

Criminal consequences

The Act makes breaches of its provisions a criminal offence with a maximum penalty of $55,000.

Section 5 makes it an offence to contact a person:

  • to solicit them to make a claim for personal injury damages; or
  • to refer them to a third party to provide services in relation to a claim; or
  • using a third party to contact a person for the above purposes,

if the person making the contact receives a fee or other benefit, or agrees or expects to receive a fee or other benefit, or asks that someone else receive a fee or other benefit because of the contact.

Section 6 makes it an offence to:

  • provide or receive a fee or other benefit for the referral of a claim in civil proceedings; or
  • enter into agreements or arrangements relating to referrals of claims for a fee or other benefit.

Professional consequences

Conduct contrary to the Act by a lawyer can also amount to unsatisfactory professional conduct or professional misconduct irrespective of whether the lawyer has been convicted of an offence under the Act. Section 165B of the Legal Profession Uniform Law Application Act 2014, which sets out the conduct capable of amounting to unsatisfactory professional conduct or professional misconduct, was amended to include contraventions of the Act.

Costs consequences

The Act further inserts s 61A to the Legal Profession Uniform Law Application Act 2014 which provides that if a lawyer breaches the Act and is convicted, legal costs cannot be charged or recovered for the claim and any costs that have been paid must immediately be refunded. The costs can be recovered as a debt by the client.

Exceptions

Some exceptions apply to the application of the Act. It is not an offence if a lawyer acting for a claimant refers the matter to another person providing a service for the claim, or the claim is transferred because the law practice is sold.

There is also an exception for advertising, marketing, or promoting a legal practice: s 7.

Publication updates

The By Lawyers Personal Injury (NSW) guides have been updated accordingly.

First home – WA

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First home owner and off-the-plan duty changes

Changes have been introduced to the value caps for vacant land and established homes in WA that qualify for the first home owner concessional rate of duty, along with measures to extend and expand the off-the-plan duty concession.

The changes apply to transactions entered into from 21 March 2025.

RevenueWA expects to configure its systems to apply the new rates in early May 2025. Any eligible transactions entered into on or after 21 March 2025 that settle before the changes are implemented can be reassessed for a refund of duty after settlement.

Transfer duty – First home

First home owners buying an established or new home, or buying vacant land and then entering onto a contract to build a home on it and receiving a first home owners grant, can apply to be assessed at the first home owner rate of duty.

When the unencumbered value of a first home in Perth and Peel is:

  • up to $500,000 – no duty is payable;
  • between $500,001 and $700,000 – $13.63 per $100, or part thereof, above $500,000 is payable;
  • over $700,000 – full duty is payable, and no reduced rate applies.

When the unencumbered value of a first home in regions outside Perth and Peel is:

  • up to $500,000 – no duty is payable;
  • between $500,001 and $750,000 – $11.90 per $100, or part thereof, above $500,000 is payable;
  • over $750,000 – full duty is payable, and no reduced rate applies.

When the unencumbered value of vacant land purchased by an eligible first home buyer anywhere in WA, is:

  • up to $350,000 – no duty is payable;
  • between $350,001 and $450,000 – $15.39 per $100, or part thereof, above $350,000 is payable;
  • over $450,000 – full duty is payable, and no reduced rate applies.

Off the plan duty concession

For new off-the-plan homes within strata developments:

  • the expiry date of the existing duty concession is extended from 30 June 2025 until 30 June 2026;
  • no duty is payable for dwellings purchased before construction has commenced up to $750,000, with a 50% duty concession for properties valued above $850,000; and
  • a 75% duty concession is available for dwellings purchased while under construction up to $750,000, with a 37.5% duty concession for properties valued above $850,000.

This applies to all dwellings within strata and community title schemes, including townhouses and villas, not just multi-tiered developments.

Publication updates

The By Lawyers Purchase of Real Property (WA) guide has been updated, including the commentary and the Retainer Instructions – Purchase of Real Property.

 

Retirement Villages – QLD

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By Lawyers are pleased to have published a new guide for Retirement Villages (QLD).

With a separate matter plan, commentary, and precedents, the new guide is available as part of the Conveyancing (QLD) publication.

 

Buying a retirement unit

The Retirement Villages (QLD) guide assists practitioners acting for buyers and residents. It sets out the practical steps of conducting a standard residence contract transaction, and highlights important aspects of the law that must be complied with.

The commentary covers in retail the:

  • relevant considerations when taking instructions and advising on a retirement village transaction, including its potential effects on the age pension and rent assistance from the Commonwealth government;
  • types of residence rights, registered and unregistered, that are available to buyers and residents;
  • types of entry payments that can be required under a residence contract, such as a purchase price or an ingoing contribution;
  • stamp duty, goods and services tax and capital gains tax implications;
  • the standard outgoings of a retirement unit that will be payable;
  • important documents that must be obtained before advising on a residence contract, such as compulsory pre-contractual disclosure documents and financial documents of the scheme;
  • necessary steps in entering and completing a residence contract.

Moving into, living in, and exiting a retirement unit

The commentary further deals with:

  • taking occupation of a unit, recurrent charges and other financial considerations during residence;
  • the obligations of residents and scheme operators after moving into and during residence at the retirement village;
  • ending a residence in a retirement village, including termination, the sale of the accommodation unit, exit fees, exit entitlements and sharing in capital gains or losses;
  • available options to resolve village disputes such as mediation and applying to the Queensland Civil and Administrative Tribunal (QCAT) and appeals processes.

Practical precedents

The guide also contains helpful precedents, including:

  • Retainer Instructions;
  • To Do List;
  • Checklist of Important Considerations – Retirement Village; and
  • Letter to Client Providing Advice on Residence Contract.

For detailed guidance on property transactions and additional relevant precedents, the Retirement Villages – QLD guide is best used in conjunction with the By Lawyers conveyancing and property publications: Purchase of Real Property (QLD) and Leases (QLD).

ADVO – NSW

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From 31 March 2025, new offences for knowingly contravening an apprehended domestic violence order (ADVO) apply.

The new offences are found in s 14(1A)–(1C) of the Crimes (Domestic and Personal Violence) Act 2007.

Section 14(1A) makes it an offence to knowingly contravene an ADVO with the intention of causing physical or mental harm to the protected person under the order, or to cause the protected person to fear for their safety or that of another person. A maximum penalty of 3 years imprisonment or 100 penalty units, or both, applies.

Section 14(1B) provides that a person intends to cause a protected person:

  • physical or mental harm; or
  • to fear for their safety or the safety of another person,

if the person knows the conduct is likely to cause that harm or fear.

Under s 14(1C), a person who:

  • knowingly contravenes an ADVO against them; and
  • on at least two other occasions in the 28 days immediately preceding the contravention, also knowingly contravened:
    • an ADVO in relation to the same person who was protected under the ADVO the person contravened earlier; or
    • the same ADVO, whether or not in relation to that same protected person; or
    • an ADVO arising from the same application under Part 10 of the Crimes (Domestic and Personal Violence) Act 2007, whether or not in relation to the same protected person, and
  • the conduct would be considered by a reasonable person to be likely to cause the protected person physical or mental harm, or to fear for their safety or the safety of another person, whether or not that harm or fear was actually caused,

is guilty of an offence subject to a maximum penalty of 5 years imprisonment or 150 penalty units, or both.

The By Lawyers Apprehended Violence Order (NSW) guide has been updated accordingly.

Franchising Code – FED

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A new Franchising Code of Conduct operates from 1 April 2025.

The new code is set out in Chapter 2 of the Competition and Consumer (Industry Codes-Franchising) Regulation 2024. Sections have been significantly reordered and renumbered from the previous code in Schedule 1 to the Competition and Consumer (Industry Codes-Franchising) Regulation 2014. The new code of conduct generally applies to all franchise agreements entered into, renewed, extended or transferred on or after 1 April 2025. However, some changes apply from later dates under transitional provisions relating to franchise agreements and disclosure requirements.

Amendments

Key changes to franchise agreements and disclosure requirements under the new code include:

Franchise agreements

  • Removal of the requirement for franchisors to create, maintain, or provide a Key Facts Sheet for prospective franchisees. This applies from 1 April 2025.
  • Restrictions on restraint of trade clauses where a franchise agreement contains an option for the franchisee to renew or extend the agreement and the franchisor does not do so. This applies to agreements entered into, transferred, renewed, or extended on or after 1 April 2025.
  • Franchisees must be compensated for early termination in certain circumstances. Agreements are required to specify how compensation is determined. This applies to agreements entered into, transferred, renewed, or extended on or after 1 November 2025.
  • Franchisees must have a reasonable opportunity to make a return on any investment required by the franchisor as part of entering into the agreement. This applies to agreements entered into, transferred, renewed, or extended on or after 1 November 2025.
  • Franchisors may, on certain expanded grounds, terminate a franchise agreement with 7 days’ notice. This applies to agreements entered into, transferred, renewed, or extended on or after 1 April 2025.
  • Franchisees can opt out of both disclosure and the 14-day cooling-off period if a new agreement with the same franchisor is substantially similar to their current agreement. This applies from 1 April 2025.
  • Marketing and cooperative funds are now combined as a specific purpose fund to which franchisees contribute and which must be used for a specified purpose related to the business’s operation. This applies from 1 November 2025. Franchisors are to operate existing marketing and cooperative funds in compliance with the old code until this time.
  • The Australian Small Business and Family Enterprise Ombudsman now has the ability to name and shame franchisors who refuse to engage in or who withdraw from alternative dispute resolution processes. This applies from 1 April 2025.

Disclosure requirements

From 1 November 2025, all disclosure documents must include certain information set out in Schedule 1 of the Regulation.

Additional information to be provided in the new disclosure document includes:

  • telephone number and email address of former franchisees;
  • whether a franchisee could face competition from businesses not associated with the franchisor; and
  • details about whether the franchisee is required to undertake significant capital expenditure during the term of the franchise agreement.

Any materially significant facts that arise between the preparation of a disclosure document and when it is provided to a potential franchisee must also be disclosed.

A franchisor need not include the new requirements for specific purpose funds and significant capital expenditure in its disclosure document until 1 November 2025, but may choose to do so.

From 1 April 2025, the franchisor’s Franchise Disclosure Register profile must also include:

  • any convictions for a serious offence;
  • any relevant judgment in civil proceedings;
  • any relevant bankruptcy or insolvency; and
  • whether its franchise agreement provides for arbitration of disputes.

Publication updates

The By Lawyers precedents Franchise Agreement and Model Disclosure Document for Franchisee or Prospective Franchisee precedents, available on the Sale of Business and Purchase of Business matter plans for each state, and the commentary on Franchises, have all been updated accordingly.

Family Law regulations – FED

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The following changes to various regulations under the Family Law Act apply from 1 April 2025:

The new provisions are substantially the same as the old ones, but they are renumbered and have minor drafting changes to modernise them and support the operation of the Family Law Act after some recent amendments.

Regulation 53 of the 2024 Regulations now contains the prescribed Information Sharing Agencies for the purpose of the Federal Circuit and Family Court of Australia being able to issue Information Sharing Orders.

The superannuation regulations support Parts VIIIB and VIIIC of the Family Law Act 1975 by prescribing:

  • the methods and factors for valuing superannuation interests;
  • the way in which superannuation payment flags and splits are put into effect; and
  • the information that trustees must provide to parties to property proceedings, and to couples negotiating a superannuation agreement.

The Family Dispute Resolution Practitioners Regulations provide for the accreditation, certification, and administration of such practitioners.

By Lawyers Divorce, Children, Financial Agreements and Property Settlement guides have been updated to reflect the new regulations as required.

The following FCFCOA forms have changed to update references to the regulations:

  • Consent order kit;
  • Application for consent orders;
  • Superannuation information kit;
  • s 60I Certificate of Dispute Resolution;
  • Application in arbitration;
  • Form 1 (previously Form 1A) – Request for service abroad of judicial documents and certificate;
  • Form 2 – (previously Form 2A) – Summary of the documents to be served;
  • Form 6 – Application for arbitration;
  • Form 7 – Application relating to relevant property or financial arbitration;
  • Form 8 – Application to register arbitration award;
  • Form 9 – Application to register decree affecting registered arbitration award;
  • Response to an application in an arbitration;
  • Subpoena in arbitration.

The new version of the s 60I certificate must be used after 1 April 2025 but certificates in the old form issued within 12 months will still be accepted.

Foreign purchasers – FED

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Ban on foreign purchasers buying established dwellings

Between 1 April 2025 and 31 March 2027, foreign purchasers are precluded from buying an established residential dwelling in Australia, unless an exemption applies. This includes persons with temporary visas and foreign-owned companies.

A foreign person is defined in s 4 of the Foreign Acquisitions and Takeovers Act 1975. See Guidance Note 2 Key Concepts published by The Treasury for further information. A foreign person can include individuals, corporations, trusts, and other entities.

The ban does not apply to newly constructed or off-the-plan properties. However existing restrictions for foreign purchasers continue to apply.

The ban applies to individuals holding temporary visas, who were previously allowed to purchase existing dwellings if they studied or worked in Australia and were approved by the Foreign Investment Review Board (FIRB). Such applications to the FIRB will no longer be approved.

Where a foreign purchaser has a Foreign Investment Review Board approval or exemption certificate issued before 1 April 2025, they can rely on it.

Exemptions

Exemptions to the ban mean that purchases are permitted:

  • by permanent residents;
  • by New Zealand citizens;
  • by spouses, as joint tenants, if one of them is an Australian citizen, permanent resident, or New Zealand citizen;
  • for investments that significantly increase housing supply or support the availability of housing supply; and
  • for properties intended for accommodation under the Pacific Australia Labour Mobility (PALM) scheme.

Issues to consider

Legal representatives need to be satisfied that foreign purchasers are aware of the consequences of contracting to buy an established dwelling if an exemption does not apply. The ATO will enforce the ban through enhanced screening of foreign investment proposals for residential properties, and penalties apply to breaches. The Government will fund the ATO from 2025-26 financial year to enforce the ban.

Publication updates

By Lawyers Conveyancing publications in all states have been updated, including the commentaries in the Purchase of Real Property guides and 1001 Conveyancing Answers. They include in-depth information on determining who is a foreign person and whether exemptions from the ban apply.

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