Policy Bulletin 2023/5 Means Test changes

1 May 2023

The Legal Aid NSW Board has approved changes to the Legal Aid NSW Means Test.

Background

Legal Aid NSW undertook a Review of the Means Test in 2021/22. The Review made several recommendations that were approved by the Board, and include:

• Introducing reliable benchmarks for our income and asset test variables
• Increasing the income and assets test variables to reflect the cost of living in 2023
• Excluding certain assets
• Changing the Ability to Pay Test to the Lifestyle Test
• Developing a methodology for ongoing review of the Means Test, and
• Bringing in clearer guidance for the exercise of discretion and introducing non-economic indicators in the exercise of discretion.

Some of the main changes include:

Income

Family Tax Benefit (FTB) and rent assistance will now be included as income.

Excluded assets

The assets that applicants have received through reparation, recognition and redress scheme payments will now be excluded assets under the Means Test.

Home equity

The allowable home equity has increased from $521,100 to $815,000.

Where an applicant owns a home, they will be required to give a charge over the property to secure the total costs of providing the legal service where:

• the value of the  property is over $200,000, and
• the applicant is  seeking legal aid for an expensive matter, or
• the dispute is  about the property.

Expensive matters include, for example, criminal indictable matters, civil law matters in higher courts and family court proceedings.

Motor vehicles

The Means Test will no longer consider the value of motor vehicles when assessing an applicant’s eligibility under the means Test.

Methodology for ongoing review

Legal Aid NSW will review the income and assets test variables every two years. This includes:

• Deductions under  the Income Test such as housing costs, the cost of dependants, child support  and financially associated people
• Allowable assets  under the Assets Test such as equity in housing and allowable cash assets.

Commencement date

The changes apply to applications determined on and after 1 May 2023.

Contact for further information

Email Client Eligibility Unit