Contributions guidelines

6.1.1 - Why do clients have to pay an initial contribution?

Legal Aid NSW operates with limited funds, and the collection of contributions from our clients is an important source of funding which allows us to maintain the legal services we provide. The provision of legal services by Legal Aid NSW involves significant costs and expenses.

Imposing a contribution communicates to our clients and the community generally, that legal aid is not free and legally aided persons should contribute to the costs of providing the legal service.

6.1.2 - When does an initial contribution need to be paid?

When a grant of aid is made, the grant letter informs the legally aided person of the amount of the initial contribution and the due date for payment.

If the grant letter has not been sent directly to the client, their lawyer must provide this information to the client as soon as possible.

6.1.3 - What is the due date?

The due date is 30 days from the date of the grant letter.

By the due date, either:

• the initial contribution must be paid in full, or
• the client must have entered into a payment arrangement.

6.1.4 - What happens if the initial contribution is not paid by the due date?

• The initial contribution becomes a debt to Legal Aid NSW.
• Interest will accrue on the initial contribution amount.
• As payment of the initial contribution is a condition of the grant of aid,  legal aid may be terminated where the contribution amount is $1000 or more  [see Termination Policy].

6.1.5 - My client can't pay the initial contribution

Contributions can be paid by instalments. If you arrange for your client to pay by instalments, you must inform the Accounts Receivable Unit (ARU) on accounts.rcble@legalaid.nsw.gov.au so that automated reminder letters are not sent to your client.

Interest is charged on debts being paid by instalments once the thirty days has passed.

If your client owns real property, the initial contribution can be secured by a Charge – please see charge procedures for more information.

The initial contribution may be reduced in exceptional circumstances.

See Contribution guideline 6.2 for information on exceptional circumstances.

Note: Once the matter is concluded, the initial contribution can only be changed to a lower amount by a write-off. Only officers with a delegation can authorise a write-off.

6.1.6 - What payment methods are available?

For inhouse clients the following payment options are available:

• By BPAY using internet banking. Your BPAY details can be found in the letter you received from Legal Aid NSW advising you of your debt. You can also obtain your BPAY details from any Legal Aid NSW office or by calling us on (02) 9219 5189.
• By Centrepay. Please complete the Centrepay consent form and email it to Legal Aid NSW at accounts@legalaid.nsw.gov.au.  Otherwise you can mail it to ARU, Legal Aid NSW, PO Box K847, Haymarket NSW 1240, or drop it in at any Legal Aid NSW office. Go to servicesaustralia.gov.au/centrepay for more information.
• By Credit Card (MasterCard or Visa) online or by calling us on (02) 9219 5189. There is a 0.4% surcharge for credit card payments. When paying online you need to enter your File Reference, which is "F" followed by your Legal Aid File ID. e.g. If your Legal Aid File ID is 14C001122, your File Reference is F14C001122. Pay online now.
• By Cheque or Money Order made payable to Legal Aid NSW and posted to: Legal Aid NSW, PO Box K847, Haymarket NSW 1240.

6.2.1 - Where the applicant has requested a reduction of the minimum ($75) contribution

The minimum $75 contribution may be waived where Legal Aid NSW is satisfied the applicant:

• is in custody [civil and family law matters],
• is in long term institutional care or residential rehabilitation care,
• is in immigration detention,
• is a victim of domestic violence,
• has a mental illness or intellectual disability,
• is homeless,
• is a refugee living in the community, or
• is a child without a financially associated person.

The determining officer has the delegation to waive the minimum $75 contribution in these circumstances. See Delegation Instrument clause 17.

6.2.2- Where an applicant in custody requests a waiver of the minimum ($75) contribution

The minimum $75 contribution may be waived where Legal Aid NSW is satisfied:

• the applicant has a Local Court summary matter, and
• the applicant is in custody, and
• the assessed initial contribution is $75.

The determining officer has the delegation to waive the minimum $75 contribution in these circumstances. See Delegation Instrument clause 17.

6.2.3 - Where the contribution amount calculated is based on savings or assets the applicant has at the time of applying for legal aid

Legal Aid NSW will consider that savings, shares or any asset that can be converted into cash is available to contribute towards the costs of providing the legal service (ie the calculated contribution amount) unless Legal Aid NSW is satisfied there are exceptional circumstances.

Guidance on exercising discretion

In determining whether there are exceptional circumstances the delegated officer may consider, but not limited to, the following:

• whether the applicant has disclosed that the cash savings will be used to pay the cost of moving home as the applicant is currently living in unstable housing or fleeing domestic or family violence;
• whether the applicant disclosed that the savings have been put aside as an emergency fund due to a history of DFV;
• whether the applicant disclosed that the savings will be used to support changes in the applicant’s household following care or family law proceedings.

Only Grade VI solicitors (inhouse) and Grade V solicitors (Grants) have the delegation to reduce an initial contribution that is over $75. See Delegation Instrument clauses 17 and 18 for the delegation and the amount by which an initial contribution can be reduced.

Where assets are earmarked for emergencies

Where an applicant has savings that:

• are earmarked to pay an outstanding bill and failure to pay that bill would mean the applicant is unable to access an essential utility such as water, gas or electricity, or
• are required to pay immediate essential medical expenses,

the determining officer may exclude these assets when determining eligibility under the Means Test and/or the initial contribution.

For officers with the delegation to reduce the contribution in these circumstances see Delegation Instrument clause 17.

See Contribution guideline 6.1.5 for information on clients paying by instalments.

6.2.4 - Where the contribution amount calculated is based on the applicant's income

Where the contribution amount calculated is based on the applicant’s income, Legal Aid NSW will consider that an applicant's income is available to contribute towards the costs of providing the legal service (ie. the calculated contribution amount), unless Legal Aid NSW is satisfied there are exceptional circumstances.

Guidance on exercising discretion

In determining whether there are exceptional circumstances, the delegated officer may consider, but is not limited to, the following:

• whether the applicant has disclosed domestic or family violence and is currently living in unstable housing which may require extra weekly expenditure
• whether the applicant is living in unstable housing and most of their income is spent on sustaining the expense of temporary housing
• whether the applicant is behind or at risk of falling behind on mortgage or rental payments, whether the applicant has difficulty meeting essential utility payments such as electricity, water, phone or gas).

Only Grade VI solicitors (inhouse) and Grade V solicitors (Grants) have the delegation to reduce an initial contribution that is over $75. See Delegation Instrument clauses 17.3 and 18.2 for the amount by which an initial contribution can be reduced.

Where an applicant is unable to pay the calculated contribution amount upfront, Legal Aid NSW will ask the applicant to enter into a payment arrangement so the contribution amount can be paid in instalments. See Contribution guideline 6.1.5 for information on clients paying by instalments.

6.3.1 - Refunding an initial contribution

Initial contributions will only be refunded if the calculated initial contribution amount is more than the total costs and expense of providing the legal service.

Case sample

Robert had an initial contribution of $1900 imposed for his District Court matter. He paid the initial contribution amount. When the matter was finalised the total costs and expense of providing the legal service in the matter was $1750. Robert will be refunded $150.

Note: Costs include professional fees (including those of an inhouse lawyer)  and disbursements.

Note: The minimum contribution amount will never be reimbursed to a client.

6.5.1 - Where a legally aided person owns real property

Legal Aid NSW will determine that the contribution to legal costs will be equal to the total costs and expense of providing the legal service:

• where the legally aided person owns real property.

Note: The total costs and expenses will include costs incurred under s 33 of the Act. Any initial contribution paid will be subtracted from the total amount.

See also Contributions Policy 6.2.3.3

6.5.2 - Where a legally aided person’s financial circumstances have changed

Where Legal Aid NSW is aware the legally aided person’s financial circumstances have changed at the time of making the s 46 determination, the officer making the determination must request an updated financial statement from the legally aided person.

This might happen where a legally aided person, for example:

• returns to work,
• receives a tax return,
• receives inheritance,
• has confiscated assets returned,
• wins money, or
• receives a compensation pay out (not related to the grant of aid).

Once an updated financial statement is received, the final contribution must be calculated using the final contribution scale.

Note: this guideline does not apply to veteran matters under Part II of the Veterans' Entitlements Act 1988 (Cth) or under the Military Rehabilitation and Compensation Act 2004 (Cth) where the means test is not applied.

6.5.3 - When the legally aided person recovers money

Where a legally aided person recovers money, the contribution to legal costs payable will be equal to total costs and expense of providing the legal service, subject to the following exceptions:

Family Law property settlement proceedings

Where legal aid is granted for Family Law property settlement proceedings, the total costs and expense of providing the legal service will be imposed on any settlement monies received that is more than $30,000.

Centrelink and Child Support back payments

Legal Aid NSW will not take into account any money received by way of back payment in social security matters or lump sum amounts received in child support matters when calculating the contribution to legal costs.

All other legally aided matters

• Where a person recovers $5,000 or less: Legal Aid NSW will not take into account any money recovered up to $5,000 when calculating the contribution to legal costs.

• Where a person recovers more than $5,000: The total costs of providing the legal service will be imposed on any amount recovered over $5,000.

6.5.4 - When a legally aided person recovers or retains an interest in real property

Where a legally aided person recovers or retains an interest in real property, the contribution to legal costs payable will be equal to the total costs and expense of providing the legal service.

Note: Where a legally aided person owns real property they must give a charge to secure the total costs of providing the legal service as a condition of the grant of legal aid: See also Contributions Policy 6.2.2

Note: Where a charge is not taken as a condition of the grant, and the legally aided person is unable to pay the total costs of providing the legal services, a charge must be taken over the property to secure the contribution amount.

6.5.5 - When costs are awarded to the legally aided person

Where costs are awarded in favour of the legally aided person, those costs will be paid to Legal Aid NSW.

The contribution amount must be calculated and the legally aided person advised of the final contribution amount.

In calculating the final contribution amount Legal Aid NSW will also take into account whether:

• the legally aided person owns real property (see Contributions guideline 6.5.1),
• the legally aided person's financial circumstances have changed (see Contributions guideline 6.5.2),
• the legally aided person has recovered money (see Contributions guideline 6.5.3), or
• the legally aided person has recovered or retained an interest in real property (see Contributions guideline 6.5.4).

If there is a shortfall between the amount of costs awarded and the contribution amount, the legally aided person will be required to pay the difference in accordance with either Contributions Guideline 6.5.3, 6.5.4 or 6.5.6.

6.5.6 - When legal aid is terminated

Where legal aid is terminated, in calculating the contribution amount Legal Aid NSW will take into account whether:

• the legally aided person owns real property (see Contributions guideline 6.5.1),
• the legally aided person's financial circumstances have changed (see Contributions guideline 6.5.2),
• the legally aided person has recovered money (see Contributions guideline 6.5.3), or
• the legally aided person has recovered or retained an interest in real property (see Contributions guideline 6.3.4).

Inhouse matters

Where legal aid is terminated because the legally aided person has decided to be privately represented, the inhouse lawyer must seek an undertaking from the private lawyer before transferring the file, to protect the final contribution amount where it is likely the person will recover an interest in property or money and the contribution is not secured by way of charge.

Assigned matters

Where legal aid is terminated because the legally aided person has decided to be privately represented, the Grants Division must seek an undertaking from the private lawyer to protect the final contribution amount where it is likely the person will recover an interest in property or money and the contribution is not secured by way of charge.

Date last published: 11 March 2024

Where Legal Aid NSW determines that a final contribution amount will be imposed:

• the legally aided person must be informed in writing of the contribution amount, and
• provided with forty-two (42) days in which to pay the total amount.

6.6.1 - Where a client seeks a reduction in the final contribution amount

Where the legally aided person seeks a reduction in the contribution amount within the forty-two (42) days, they must be informed that a reduction in the final contribution will only be made in exceptional circumstances.

See Contributions policy 6.2.3.11 Reducing a contribution to legal costs to determine whether there are exceptional circumstances.

6.6.2 - Where a legally aided person disputes the contribution amount

Where a legally aided person disputes the contribution amount, the calculated amount must be reviewed for any error in calculation. 

If an error is detected the final contribution amount must be recalculated and the legally aided person informed of the new amount. The legally aided person will be given thirty (30) days to pay the recalculated contribution.

Where the legally aided person disputes the contribution amount in an assigned matter, they are entitled to have the private lawyer’s bill of costs assessed. See Contributions policy 6.2.3.10.

6.6.3 - Where the contribution amount is not paid within forty-two (42) days

Where a legally aided person does not:

• dispute the contribution amount, or
• seek a reduction in the contribution amount,

and the contribution is not paid within the forty-two (42) days, it must be recorded as a debt and referred to Accounts Receivable Unit for recovery.

A legally aided person is entitled to have the costs paid to a private lawyer assessed (see s.40 of the Legal Aid Commission Act 1979).

A legally aided person may dispute the final contribution to be paid because of the costs paid to the private lawyer.

6.7.1 - Procedure if legally aided person disputes the contribution to legal costs because of costs paid to the private lawyer

Consider whether there are any circumstances which would lead to a reduction in the contribution to legal costs. Refer to Contributions policy 6.2.3.11 Reducing a contribution to legal costs for guidance on what can be taken into consideration when reducing contribution to legal costs.

If the calculated contribution amount is not changed Legal Aid NSW will:

• advise the assigned lawyer in writing that their costs have been disputed and request an itemised account setting out the client’s right to have costs assessed under s 40 of the Act;
• when the itemised account is received, send a copy to the legally aided person requesting information as to which items are disputed;
• provide the legally aided person with fourteen (14) days in which to respond to this request and inform the legally aided person at this time that private lawyers are paid in accordance with the Legal Aid Fee Scale and the costs paid to private lawyers are significantly less than commercial rates and monitored carefully by Legal Aid NSW;
• forward any response to the private lawyer for their consideration, and
• refer the client to the Supreme Court Costs Assessment Scheme or the Family Court Taxation Service, if the private lawyer does not agree to reduce the bill of costs.

6.7.2 - Where the legally aided person is referred to costs assessment

In referring the legally aided person to costs assessment, Legal Aid NSW should:

• provide the legally aided person with specific details of the cost of having costs assessed (at least $120 or 1% of the bill, whichever is greater) and inform them they may be required to pay costs of assessment and the private lawyer’s costs of the assessment process.
• advise the legally aided person that the disputed contribution amount is a debt owed to Legal Aid NSW and the debt will be referred to the Accounts Receivable Unit.

A person has 12 months to apply for assessment of a bill, even if the contribution (or bill) has already been paid.

6.7.3 - Responsibility for following up the debt

The Accounts Receivable Unit will be responsible for following up the debt.

6.7.4 - Where costs assessment reduces the private lawyer’s bill of costs

In the event the client has paid the contribution amount and the costs assessment certificate reduces the original amount paid to the lawyer, the difference may be repaid to the client.

Legal Aid NSW may recoup the difference paid to the legally aided person from the private lawyer.

6.8.1 -  Reducing a contribution to legal costs

There is discretion to reduce the contribution to legal costs where Legal Aid NSW is satisfied there are exceptional circumstances. Only Directors have the delegation to reduce the contribution.

6.10.1 Refunding a contribution to legal costs

The only time a contribution to legal costs can be refunded is where the original amount was incorrect.

If, for example, a legally assisted person has paid a contribution to legal costs and the amount paid is greater than the total costs and expenses of providing the legal service, the legally assisted person will be reimbursed the difference.