9. Discretions under the Means Test

Discretion can be exercised to

  • grant legal aid to an applicant when the Means Test provides that legal aid is only available in exceptional circumstances, such as:
  • grant legal aid to an older applicant with excess home equity.
  • waive the initial contribution or vary the level of contribution from the amounts specified in the Means Test. Initial contributions may only be waived or reduced in exceptional circumstances (see Contributions guideline 6.2).

9.1  Income exceeds the maximum threshold by up to 10%

Where there are exceptional circumstances, there is discretion to grant legal aid to an applicant whose net assessable income exceeds the maximum threshold by up to 10%

In determining whether there are exceptional circumstances, the delegated officer must consider the following factors:

Nature of proceedings and overall financial circumstances

Whether the applicant is unable to raise or access the funds necessary to pay for legal costs because of the nature of the legal proceedings and the applicant's overall financial circumstances.

See Means Test guideline 1.1: nature of proceedings and overall financial circumstances

Personal circumstances

Whether the applicant is experiencing personal circumstances that may impact on their ability to raise or access the funds necessary to pay for legal costs. 

See Means Test guideline 1.2: personal circumstances

Income

Whether the applicant is experiencing circumstances relating to their income (including income deductions) that may impact on their ability to raise or access the funds necessary to pay for legal costs.

See Means Test guideline 1.3: income

Once the delegated officer has determined there are exceptional circumstances, legal aid may be granted. The applicant must pay an income contribution in all matters.

Legal Aid NSW officers authorised under the Delegation Instrument clause 14 Implementing the Legal Aid NSW Means Test under s 35 may exercise this discretion.

In duty solicitor matters this discretion may also be exercised by private legal practitioners authorised to grant legal aid under the Legal Aid Commission Act 1979.


9.2  Income exceeds the maximum threshold by over 10%

Where there are exceptional circumstances, there is discretion to grant legal aid to an applicant whose net assessable income exceeds the maximum threshold by over 10%.

In determining whether there are exceptional circumstances, the delegated officer must consider the following factors:

Nature of proceedings and overall financial circumstances

Whether the applicant is unable to raise or access the funds necessary to pay for legal costs because of the nature of the legal proceedings and the applicant's overall financial circumstances.

See Means Test guideline 1.1: nature of proceedings and overall financial circumstances

Personal circumstances

Whether the applicant is experiencing personal circumstances that may impact on their ability to raise or access the funds necessary to pay for legal costs. 

See Means Test guideline 1.2: personal circumstances

Income

Whether the applicant is experiencing circumstances relating to their income (including income deductions) that may impact on their ability to raise or access the funds necessary to pay for legal costs.

See Means Test guideline 1.3: income

See Means Test guideline 1 for guidance on factors to be taken into consideration when exercising this discretion.

Once the delegated officer has determined there are exceptional circumstances, legal aid may be granted. The applicant must pay an income contribution in all matters.

Legal Aid NSW officers authorised under the Delegation Instrument clause 14.2 may exercise this discretion.

If the income contribution exceeds the allowable amount for the type of matter, see Means Test 9.3 below.


9.3  Contribution exceeds the allowable amount for the type of matter (cost of proceedings)

Where there are exceptional circumstances, there is discretion to grant legal aid to an applicant whose calculated contribution (on income and/or assets) exceeds the allowable amount for the type of matter (see Means Test guideline 5).

In determining whether there are exceptional circumstances, the delegated officer must consider the following factors:

Nature of proceedings and overall financial circumstances

Whether the applicant is unable to raise or access the funds necessary to pay for legal costs because of the nature of the legal proceedings and the applicant's overall financial circumstances.

See Means Test guideline 1.1: nature of proceedings and overall financial circumstances

Personal circumstances

Whether the applicant is experiencing personal circumstances that may impact on their ability to raise or access the funds necessary to pay for legal costs. 

See Means Test guideline 1.2: personal circumstances

Income

Whether the applicant is experiencing circumstances relating to their income (including income deductions) that may impact on their ability to raise or access the funds necessary to pay for legal costs.

See Means Test guideline 1.3: income

Assets

Whether the applicant is experiencing circumstances relating to their assets that may impact on their ability to raise or access the funds necessary to pay for legal costs. 

See Means Test guideline 1.4: assets

See Means Test guideline 1 for guidance on factors to be taken into consideration when exercising this discretion.

Once the delegated officer has determined there are exceptional circumstances, legal aid may be granted. The applicant must pay an income contribution in all matters.

Legal Aid NSW officers authorised under the Delegation Instrument clause 14.3 may exercise this discretion.


9.4  Granting legal aid to older applicants with excess home equity

The following table sets out the discretion available under the means test where it is an older applicant with excess equity in the home.

 

There is a discretion to disregard home equity in excess of the maximum ceiling when granting legal aid and calculating the assets contribution.

 

When is the discretion available

The discretion may be exercised where the applicant:

  • is aged over 65 years or 55 years if an Aboriginal or Torres Strait Islander person, and
  • is in receipt of an income tested pension or benefit, and
  • has lived in his/her home for 5 years or more, unless
    • it has been necessary to buy alternative housing by reason of disability or ill health, or
    • it has been necessary to buy a new house as a consequence of elder abuse.

Note: where legal aid is granted, the applicant must give a charge to secure the total costs of proceedings as a condition of the grant of legal aid.

Legal Aid NSW officers authorised under the Delegation Instrument clause 14.4 may exercise this discretion.


9.5  Waiving or varying contributions

The following table deals with the discretion concerning waiving or reducing a contribution amount.

There is a discretion to waive the income contribution or the assets contribution or vary the level of contribution (i.e. to increase or reduce the contribution amount) from the amount contained in the Means Test.

 
Discretion to waive or vary contribution
Discretion to increase contribution

The discretion to increase the level of contribution should be exercised taking account of, amongst other issues,

  • the likely cost of proceedings,
  • the type of proceedings, and
  • the overall financial position of the person making the application for legal aid.
Discretion to waive, or reduce, a contribution

Contributions based on assets and income will only be waived or decreased where Legal Aid NSW is satisfied that there are exceptional circumstances.

See Contributions guideline 2 and Contributions policy 1.2.

Who can exercise discretion?

Legal Aid NSW officers authorised under the Delegation Instrument clause 14.2 may exercise this discretion.