Joint Costs Advisory Committee submission
18 August 2026
The Law Council recently provided a submission to the Joint Costs Advisory Committee (JCAC) as part of its 2026 consultation on the quantum of costs allowable to legal practitioners under the costs scales of the federal courts. The submission emphasised the importance of ensuring that parties awarded costs are not left materially out of pocket following litigation and reiterated the Law Council’s longstanding concern that current federal costs scales have failed to keep pace with the actual costs of legal practice.
The Law Council submitted that the JCAC should look beyond routine annual increases and support a broader review of federal costs scales and methodologies. It noted that existing scales do not adequately reflect contemporary billing practices, market conditions, technological developments or the intellectual work undertaken by legal practitioners. The submission also highlighted concerns that inadequate costs recovery may undermine access to justice and discourage litigants from pursuing legitimate claims.
The submission recommended that the federal courts undertake a comprehensive review of their costs frameworks, similar to that which was undertaken in Victoria, including consideration of a time-costing model. It also called for an update to the Federal Court’s National Guide to Counsel Fees, which has not been revised for 13 years, and for reforms to certain Federal Circuit and Family Court of Australia costs scale items that do not adequately reflect the skill, experience and work required in modern litigation.
The Law Council further submitted that any future adjustments to costs scales in response to artificial intelligence (AI) and other legal technologies should be evidence-based. While acknowledging that AI may improve efficiency in some circumstances, the submission emphasised that legal practitioners remain responsible for professional judgment, supervision and compliance with their obligations, and that the impact of AI on legal costs varies significantly across practice areas.
Last Updated on 18/08/2026