In Australia, solicitors (also known as lawyers but sometimes called attorneys) have diverse ways of charging fees depending on the nature of the legal matter at hand. The major fee structures include:

  • Fixed fees, where you pay based on different milestones of your matter as it progresses
  • “No Win, No Pay” arrangements where you only pay your legal fees if your matter is successful
  • Hourly billing

Fixed fees are a set amount charged for a specific service, making the cost predictable. “No Win, No Pay” is a model where clients are only charged if their case is successful, which is often used in personal injury law. Hourly billing is where clients are charged based on the amount of time the solicitor spends on their matter. Each area of law has its unique challenges which influence the fee structure.

Another aspect to consider is when legal fees are payable. Your solicitor may agree to defer payment until a house is sold (eg in deceased estates or family law matters) or until some other milestone is reached that would enable you to pay. This is a matter for negotiation between your solicitor and you and you are under no obligation to proceed with a solicitor’s costs agreement unless you are 100% satisfied with the method of legal fee charging that you are offered.

Here’s how these fee structures play out in different areas of law:

Migration Law

Migration law costs can vary based on your case details and the lawyer’s expertise. Costs may be influenced by visa prices and unforeseen challenges like appeals. You might see fixed-rate fees for certain services, or broader service fees for things like preparing for court hearings on migration issues.

Personal Injuries Law

In personal injuries law, a common arrangement is the “No Win, No Fee” model. Here, you won’t be charged unless your claim succeeds. The costs can be a fixed fee or a percentage of the compensation you get. This model helps lessen financial risks, especially in high-risk cases. Claimants may or may not need to pay for third party expenses like medical reports and barristers, depending on the specific solicitor’s costs agreement.

Family Law

Family lawyers (family attorneys as they’re called in other countries) usually charge by the hour. However, some lawyers may agree to a fixed fee or allow you to pay in installments or once you get a settlement, for example the sale of the family home. The fees can cover a range of services, from preparing legal documents to offering advice on mortgage documents.

Conveyancing

In conveyancing, fees are often split into legal fees and additional costs known as disbursements. Legal fees cover the lawyer’s professional services and might be fixed for standard matters. Disbursements cover extra costs like searches and settlement agency fees. The total fees can change based on the location and complexity of the transaction, with some firms offering flat rate fees.

Defamation Matters

For defamation matters, fixed-fee pricing is common for certain services like responding to legal notices. Most defamation cases are resolved outside of court, which may affect the cost. Solicitors might charge extra for more complex cases or if the matter goes to court.

Deceased Estates

Handling deceased estates involves various legal services. Lawyers may charge based on how complex the estate is. Some services, like obtaining probate, have regulated fees. Other services might be charged based on a percentage of the estate or according to its complexity. There’s also a fee-for-service model for comprehensive estate administration services, where the fees are determined based on the assets, liabilities, and number of beneficiaries involved.

Often legal fees are only payable after the estate has settled (assets are sold and received as cash in the solicitor’s trust account), but this depends on the particular solicitor’s costs agreement.

Each area of law has tailored fee structures to meet its unique challenges and requirements, ensuring fair compensation for the legal practitioners while considering the financial situation of the clients.