ByLawyers News and Updates

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.

Sexual harassment – QLD

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From 1 March 2025, all businesses with operations in Queensland are required to have a written prevention plan to manage the risks associated with sexual harassment and sex or gendered-based harassment. The requirement arises under the Work Health and Safety Act 2011 (Qld) and the Work Health and Safety Regulation 2011 (Qld).

Any business without such a plan in place or that has not taken reasonable steps to make workers aware of the plan, is in breach of the Regulation and subject to fines of up to $6,000 per offence.

By Lawyers 101 Staff Handbook, part of the popular Practice Management publication, includes a national Discrimination, harassment and bullying policy that is an excellent starting place for QLD firms needing to comply with the legislative requirements.

More detailed state-specific resources are available on the WorkSafe QLD website, including a prevention plan template.

The commentary in the By Lawyers Practice Management publication will assist Queensland practitioners in formulating their management plan and reducing their risk. It includes a detailed discussion about sexual harassment with specific areas of focus for the legal profession and links to relevant cases involving law firms. There is also an outline of the factors that should be considered when implementing firm policies to ensure that they have the desired effect and prevent discriminatory and other unwelcome workplace practices.

Cash reporting – FED

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Solicitors no longer have cash reporting obligations under the Financial Transaction Reports Act 1988 (FTR Act). However, changes that commence on 31 March 2026 will place significant new obligations on law firms for initial and ongoing AML/CTF due diligence.

The FTR Act was entirely repealed with effect from 7 January 2025 by Schedule 11 of the Anti-Money Laundering and Counter-Terrorism Financing (Amendment) Act 2024 (the Amending Act).

The Amending Act substantially amends the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) to place new obligations on lawyers who perform certain work as reporting entities. However, the relevant amendments to the AML/CTF Act do not commence until 31 March 2026.

From 7 January 2025 solicitors are no longer regulated under the FTR Act, and do not need to report significant cash transactions of $10,000 or more, or the equivalent in foreign currency, to AUSTRAC. See AUSTRAC’s webpage Repeal of the Financial Transaction Reports Act 1988 for more information.

In the interim, solicitors still have professional obligations that can in some circumstances require cash reporting. See the The Law Council of Australia’s National Legal Profession Anti-Money Laundering & Counter-Terrorism Financing Guidance Note 2 for more information.

The By Lawyers Practice Management publication has been updated in line with the repeal of the FTR Act.

The changes that commence on 31 March 2026 will be significant for most law firms, with new due diligence and reporting obligations. By Lawyers will be updating our publications with information and guidance about these requirements when they commence.

Professional bodies for lawyers and conveyancers around the country already have substantial information available about these changes on their websites. Practitioners can expect professional legal education providers to focus on the topic in the coming 12 months, and legal software providers such as LEAP to provide efficient application-based solutions.

AI Use Policy – All states

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An AI Use policy has been added to the By Lawyers 101 Staff Handbook.

The policy provides for the responsible use of artificial intelligence within a firm to enhance efficiency and productivity while safeguarding confidentiality, legal integrity, and professional standards.

The AI use policy requires adherence to strict quality assurance measures.

The 101 Staff Handbook is found in the Practice Management guide. This helpful publication provides policies for all aspects of managing a legal practice that firms can either adopt or amend as required.

AML/CTF – All states

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A Bill currently before Federal parliament expands the existing AML/CTF regime under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the Act) to real estate professionals, dealers in precious metals and precious stones, and professional service providers, including lawyers, conveyancers, accountants, and trust and company service providers. These are all known as reporting entities.

The Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (Cth) will have a substantial impact on law firms and some preparation will be required before its commencement.

Commencement

The Bill’s main provisions commence in March 2026.

Customer due diligence

Requirements for a reporting entity to identify their customer through initial Customer Due Diligence (CDD) include:

  • if the customer is an individual, taking reasonable steps to establish they are who they claim to be, including if they are a politically exposed person;
  • identifying the customer’s ML/TF risk;
  • collecting information about the customer appropriate to ML/TF risk; and
  • verifying the customer information using independent and reliable data that is appropriate to ML/TF risk.

Ongoing CDD requirements require reporting entities to monitor their customers to appropriately identify, assess, manage, and mitigate the ML/TF risks they may reasonably face in providing services. This includes reviewing and updating customer information and monitoring for unusual transactions and behaviours that may give rise to a suspicious matter reporting (SMR) obligation.

Reporting entities may apply simplified CDD, and must apply enhanced CDD, as part of initial and ongoing CDD in certain prescribed circumstances.

Simplified CDD gives reporting entities more discretion, provided the customer’s ML/TF risk is low and other requirements are met, to apply simplified initial and ongoing CDD.

Reporting entities must apply enhanced CDD appropriate to customer risk in certain specified circumstances, or if the customer is high ML/TF risk. In these cases, reporting entities are required to collect and/or verify additional information relevant to mitigating the identified higher risk, and must be reasonably satisfied that they know and understand the identity of their customer.

In enhanced CDD scenarios, ongoing CDD must also be adjusted to ensure it is appropriate to the ML/TF risk of the customer and meets specific requirements to be set out in the AML/CTF Rules.

Policies

Reporting entities must have internal policies for AML/CTF that meet the requirements of the Rules that need to cover:

  • how the reporting entity will inform its governing body of the money laundering, terrorism financing, and proliferation financing risks faced by the reporting entity in its provision of designated services;
  • designating an AML/CTF compliance officer;
  • designating a senior manager responsible for approving any changes to the ML/TF risk assessment or AML/CTF policies;
  • how the reporting entity will undertake due diligence on staff engaged by the reporting entity whose role in the reporting entity may allow them to facilitate serious financial crimes or whose role is relevant to AML/CTF compliance;
  • how a reporting entity will provide risk awareness and management training to staff engaged by the reporting entity;
  • how, and when, to conduct an independent review of its AML/CTF program; and
  • any other matters provided for in the AML/CTF Rules.

Privilege

Section 242 of the Act already provides that it does not affect the law relating to legal professional privilege. The Bill provides stronger protections for the disclosure of information or documents that are subject to legal professional privilege to reflect the fact that lawyers are to be included in the regime.

Offence

The Bill creates a new offence intended to prevent the reporting entity disclosing information to their clients, such as the fact they have made a suspicious matter report, if it could reasonably prejudice an investigation.

Act repealed

The Bill also repeals the Financial Transaction Reports Act 1988 (FTR Act).

Guidance

The Law Council of Australia has issued Guidance for the profession on these changes.

Publication updates

By Lawyers publications will be amended as required to account for these changes. Specific amendments are likely to include First steps in all commentaries, the Conveyancing and Property guides in each jurisdiction, and the Practice Management guide.

In the interim, this overview of the Bill’s impact is being added to the Looking to the Future summary of forthcoming significant amendments in the Reference Materials folder of all By Lawyers publications.

Comparative CPD requirements

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In all states and territories of Australia legal practitioners are required, as a condition of their practising certificates, to participate in compulsory professional development and training. Although the requirements are reasonably uniform, the terminology differs. In some states the requirement is known as Continuing Legal Education (CLE), or Mandatory Continuing Legal Education (MCLE). In others it is known as Compulsory Professional Development (CPD). There are also different requirements for barristers and solicitors.

For consistency, Continuing Professional Development (CPD) is used in this guide.

In each jurisdiction, the relevant one-year period begins on 1 April and ends on 31 March.

The CPD requirements in each state and territory are summarised below:

AUSTRALIAN CAPITAL TERRITORY

Annual Mandatory Continuing Professional Development (CPD) = 10 units

Core Areas

A minimum of one CPD unit from each of the following areas:

  • Legal ethics and professional responsibility;
  • Practice management and business skills;
  • Professional skills; and
  • Substantive law and procedural law.

Section 47 of the Legal Profession Act 2006 (ACT) and the Law Society of the ACT CPD Guidelines.

NEW SOUTH WALES

Annual Mandatory Continuing Professional Development = 10 units

Compulsory Fields

A minimum of one unit per year from each of the following fields:

  • Ethics and Professional Responsibility;
  • Practice Management and Business Skills;
  • Professional Skills; and
  • Substantive Law.

Legal Profession Uniform Continuing Professional Development (Solicitors) Rules 2015 and s 52 of the Legal Profession Uniform Law (NSW).

NORTHERN TERRITORY

Annual Mandatory Continuing Professional Development (CPD) = 10 points

Core Competencies

A minimum of one point per year from each of the following mandatory competency areas:

  • Ethics and professional responsibility;
  • Practice management and business skills; and
  • Professional Skills in legal practice.

Schedule 2 of the Legal Profession Regulations 2007.

QUEENSLAND

Annual Mandatory Continuing Professional Development (CPD) = 10 units

Mandatory Core areas

A minimum of one unit per year in each of the following mandatory core areas:

  • Practical legal ethics;
  • Practice management and business skills; and
  • Professional skills.

Part 6 of the Queensland Law Society Administration Rule 2005.

SOUTH AUSTRALIA

Annual Mandatory Continuing Professional Development (MCPD) = 10 units

Required Areas

A minimum of one unit per year from each of the following required areas:

  • Practical legal ethics;
  • Practice management and business skills; and
  • Professional skills.

Legal Practitioners Education and Admission Council Rules 2018.

TASMANIA

Annual Mandatory Continuing Professional Development (CPD) = 10 units

Mandatory Core Competency Areas

A minimum of one unit per year from each of the following mandatory competency areas:

  • Practical legal ethics;
  • Practice management and business skills; and
  • Professional skills; and
  • Substantive law.

Law Society of Tasmania’s Practice Guideline 4 – Continuing Professional Development Scheme and s 56 of the Legal Profession Act 2007.

VICTORIA

Annual Mandatory Continuing Professional Development (CPD) = 10 units

Compulsory Fields

A minimum of one unit per year from each of the following compulsory fields:

  • Ethics and Professional Responsibility;
  • Professional Skills;
  • Substantive Law; and
  • Practice Management and Business Skills.

Legal Profession Uniform Continuing Professional Development (Solicitors) Rules 2015 and s 52 Legal Profession Uniform Law.

WESTERN AUSTRALIA

Annual Mandatory Continuing Professional Development (CPD) = 10 points

Mandatory Competency Areas

A minimum of one point per year from each of the following mandatory competency areas:

  • Practice management;
  • Professional skills;
  • Ethics and professional responsibility; and
  • Substantive law.

Legal Profession Act 2008, Legal Profession Rules 2009 and Legal Profession Regulations 2009.

Summary of continuing professional development activities

CPD Activity Activity format Formula
Max CPD Maximum number of CPD units that can be completed in a day.

  • TAS maximum = 6.
 N/A
Attendance Course, seminar, workshop, lecture, conference, discussion group, multimedia or web-based program.

  • TAS maximum = 3
  • WA maximum = 6
  • All other Jurisdictions = No limit.
 1 Hour = 1 CPD
Study Private study of audio/visual material recording of an event that occurred in the CPD year.

  • NT maximum = 5
  • QLD, VIC, ACT = No limit.
 1 Hour = 1 CPD
View View or listen multimedia or web-based program.

  • ACT – No limit
  • NT maximum =5
  • SA maximum = 5
  • TAS maximum = 5
  • WA maximum = 4.
 1 Hour = 1 CPD
Private Private study of audio/visual material update solicitor’s knowledge and skills.

  • ACT – No limit
  • NSW maximum = 5
  • NT maximum =5
  • QLD maximum = 5
  • VIC maximum = 5.
 1 Hour = 1 CPD
Research Research, preparation or editing of a legal article.

  • ACT maximum = 5
  • NSW maximum = 5
  • NT maximum =5
  • QLD maximum = 5
  • SA maximum =5
  • TAS maximum = 3
  • VIC maximum = 5
  • WA maximum = 5.
 1,000 words = 1 CPD
Activity preparation Preparation of CPD activities.

  • ACT maximum = 5
  • NSW maximum = 5
  • NT maximum =5
  • QLD maximum = 5
  • SA maximum =4
  • TAS maximum = 4
  • VIC maximum = 5.
 1 Hour = 1 CPD
Presenting. Presentation of a CPD activity.

  • ACT maximum = 5
  • NT maximum =5
  • QLD maximum = 5
  • SA maximum =4
  • VIC maximum = 5.
 1 Hour = 1 CPD
Present WA Presentation of a CPD activity and commentator.

  • WA maximum = 6.
 1 hour – 2 CPD
Membership actives Membership of legal committee, taskforce or practice section of a law association or similar body.

  • ACT maximum = 3
  • NSW maximum = 3
  • NT maximum =3
  • QLD maximum = 3
  • SA maximum =5
  • TAS maximum = 3
  • VIC maximum = 3.
 2 hours = 1 CPD
Graduate study Post graduate study.

  • NT maximum = 5
  • TAS maximum =5.
 1 Hour = 1 CPD
Specialist Completion of a specialist accreditation program. 10 points incl compulsory
Practice Management Completion of practice management course. 10 points incl compulsory

Uniform Legal Profession Law – WA

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By Lawyers are preparing for the Legal Profession Uniform Law in Western Australia

Legal Profession Uniform Law (LPUL) is due to commence in Western Australia on 1 July 2022.

By Lawyers guides and precedents will be updated in due course.

Overview

The WA provisions are contained in the Legal Profession Uniform Law Application Bill 2021 (WA) which will replace the Legal Profession Act 2008 and the Law Society Public Purposes Trust Act 1985 on commencement.

Simplified and standardised regulations for WA legal practitioners will align with those in New South Wales and Victoria. The Uniform Law is governed by the Legal Services Council and the office of the Commissioner for Uniform Legal Services Regulation. Each participating jurisdiction has a representative on the council which sets the rules and policy underpinning the Uniform Law. The Commissioner oversees dispute resolution and compliance functions.

The WA Legal Services and Complaints Committee and the Legal Practice Board will continue to carry out complaint and investigation functions, the granting of practising certificates, and professional development.

Costs disclosure and billing under the LPUL

While the Uniform Law makes sweeping changes, those which impact day-to-day practice the most relate to costs disclosure and billing.

Costs disclosure

Written costs disclosure must be given when instructions are taken or as soon as reasonably practical after. It must include the basis on which costs will be calculated and an estimate of the total costs. It must be updated if there is any significant change.

The client must be informed of their rights to negotiate a costs agreement, receive a bill, request an itemised bill, negotiate the billing method and the availability of costs determination.

If a law practice fails to meet its disclosure obligations, then any cost agreement with the client is void and the client is not required to pay the legal costs. The firm cannot commence or maintain any proceedings for recovery of legal costs until they have been assessed, or the dispute is determined by the Legal Practice Board. A contravention can also result in disciplinary action.

Firms must take all reasonable steps to ensure the client has understood and given consent to the proposed conduct of the matter and the proposed costs.

Disclosure obligations vary depending on the estimated costs in a matter. Disclosure is not required if costs are not expected to exceed $750 excluding GST and disbursements. Where costs are not expected to exceed $3000 excluding GST and disbursements, the prescribed uniform standard disclosure form can be used.

Billing under the LPUL

A bill may be lump sum or itemised. A client who receives a lump sum bill may request an itemised bill. The request must be made within 30 days after the date on which the legal costs became payable and must be complied with within 21 days after receiving the request.

If the costs in an itemised bill are higher than the a lump sum bill, the additional costs will only be recoverable where the client was told that the costs in any itemised bill may be higher – and the additional costs are determined to be payable after a costs assessment or binding determination.

Each bill or a covering letter accompanying each bill must be signed by a principal of the firm, or nominate a principal as responsible for the bill.

A law practice must not charge for the preparation or delivery of a bill.

Each bill must include or be accompanied by a written statement setting out the options available to the client in the event of a dispute about the costs and any time limits which may apply.

Interest can be charged on costs unpaid 30 days or more after a complying bill has been given. Interest can only be charged where the bill contains a statement that interest will be payable and the rate chargeable. The maximum rate is prescribed; currently it is 2% above the cash rate target specified by the Reserve Bank of Australia at the time the bill was given.

The billing provisions of the Uniform Law do not apply if the client is a commercial or government authority

Cost assessment procedure

The Uniform Law does not change the procedure for party / party cost assessments in Western Australia. The procedure and form for an assessment of costs is set out at rule 4.7 of the Consolidated Practice Directions of the Supreme Court.

By Lawyers guides:

All WA specific By Lawyers guides will be amended to cover the Legal Profession Uniform Law. So too will the relevant WA commentary and precedents in Federal guides and reference materials.

The main changes will include:

  • New LPUL compliant costs agreements and short form costs disclosure for all WA guides, Federal guides including Family Law, Employment Law, Companies, Trusts, Joint Ventures and Superannuation.
  • Updates to the 101 Costs Answers reference manual, which will also include the LPUL compliant costs agreements.
  • Updates to the ‘Example invoice incorporating notification of client’s rights’ and the stand-alone ‘Notification of client’s rights’ precedents available on all WA and Federal matter plans.
  • Updates to the commentary on professional executor regulations in the Probate and Letters of Administration guides.
  • Updates to the costs section in the Wills commentary including the ‘Conflicts concerning practitioner’s own interests’ section and the ‘Solicitors as executors’ section.
  • Updates to the WA trust accounting section in the By Lawyers Practice Management guide.
  • Updates to 101 Costs Answers.
  • Updates to the ‘Solicitor mortgages’ section in the Mortgages commentary.

Anti-money laundering – All states

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Anti-money laundering policy

Commentary on the importance of law firms having an anti-money laundering policy has been added to the By Lawyers Practice Management guide. This new section of commentary assists firms to deal with the risk of money laundering and suggests procedures that can be adopted to reduce those risks.

This new commentary contains links to the Anti-Money Laundering Guide for Legal Practitioners published by the Law Council of Australia. There are also links to helpful guidance materials published by the various state Law Societies.

By Lawyers Practice Management guide

The Practice Management guide provides assistance for all firms, whether start-up, breakaway, or well established. It covers the following main areas:

  • How to perform a Legal Practice Health Diagnostic Check – a very useful tool for identifying existing strengths and areas where the firm can improve, or as a check-list for start ups.
  • Business planning for a law firm – including a SWOT analysis and environmental scan.
  • Ethics and professional responsibility – crucial to establishing and maintaining reputation and managing risk.
  • The solicitor/client relationship – how to value and manage client relationships.
  • The essentials of managing the work performed by law firms including, matter and data management, financial management and trust accounting.

The publication also contains many helpful precedents, such as:

  • Example costs disclosures.
  • Example invoices.
  • An example mission statement for a law firm.
  • A risk management plan.
  • Employment forms – including an application for employment and a new employee check-list.
  • An example asset register.
  • Forms for conducting file reviews.
  • Document safe custody records.
  • An example law firm client satisfaction survey.

Retainer instructions – Practice management – All states

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A folder containing ALL of the By Lawyers Retainer Instructions precedents has been added to the Practice Management guide.

One of the most important tasks when acting in all areas of law is taking the initial instructions. At the commencement of the engagement with the client it is crucial to take accurate, comprehensive instructions covering every necessary aspect of the matter, so the scope of the retainer can be agreed, the issues identified and understood and the client properly advised.

Every By Lawyers matter plan has these Retainer Instructions precedents, drafted and refined by experienced practitioners to make this critical process as efficient as possible. They assist practitioners to obtain all relevant information up-front.

To make it easier to access these key precedents, especially when seeing new clients where a file has not yet been opened, all 123 of them are now available from a dedicated Library of retainer instructions in the By Lawyers Practice Management guide, under Folder A: The Practice.

This enhancement will greatly assist our website subscribers, making all the Retainer Instructions available via a single subscription to the Practice Management guide, at no additional cost. For users accessing By Lawyers via the exclusive arrangements with LEAP Legal Software, the availability of these precedents all together in one guide makes it very easy to save or print the relevant Retainer Instructions for any matter type to use in the initial conference with a client even before a dedicated client file is opened.

Staff handbook – All states

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The By Lawyers 101 Policies & Procedures guide has been re-named 101 Staff Handbook.

101 Staff Handbook is part of the By Lawyers Practice Management publication.

The handbook provides numerous policies and procedures to assist with management of a legal practice. These can be adopted or adapted by the firm as required.

Practitioners can also use this resource to assist their commercial clients with implementing appropriate policies and procedures in their businesses.

The extensive, practical content in the handbook covers all areas of legal practice. It includes the following most recent additions:

  • Managing client communications – Policies and procedures covering all aspects of firm communications including phone, email and written correspondence, plus a comprehensive complaint handling procedure.
  • Confidential information – A policy on protection of confidential information, which includes breaches.
  • Intellectual property – A simple policy for protecting the firm’s existing IP and dealing with any new IP created by team members in the course of their employment.
  • Working from home – A policy which clarifies the rights and obligations of team members and the firm in relation to working from home arrangements.

 

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