Costs disclosure and costs agreements: what your lawyer must tell you in writing

If your legal costs are likely to exceed $750 (excluding GST and disbursements) in New South Wales, Victoria or Western Australia, your lawyer must tell you in writing how they will charge and give an estimate of total legal costs. Between $750 and $3,000 they may use the short Uniform Standard Costs Disclosure Form; above $3,000 a full disclosure is required. In Queensland the threshold is $1,500, with detailed disclosure above $3,000. Disclosure must be updated when there is a significant change, and a lawyer who fails to disclose can lose the protection of the costs agreement. Commercial and government clients are not entitled to disclosure.

This guide sits under the overview of lawyer fees in Australia. Thresholds were checked against regulator pages in October 2026; confirm them with the bodies listed under Sources.

Which law applies in your state

The rules outside the Uniform Law states follow similar principles but differ in detail, so check the local body. The rest of this guide focuses on the Uniform Law, with Queensland noted where it differs.

The disclosure bands

Because the threshold is about likely costs, a lawyer who expects a matter to grow should disclose early. A matter that starts as a $600 letter and turns into a $9,000 dispute needs disclosure once that becomes likely.

What a full disclosure must contain

Under the Uniform Law, a full disclosure must cover, in clear language:

• The basis on which costs will be calculated, such as hourly rates or fixed fees, and whether a scale applies
• An estimate of total legal costs, or a range with an explanation of the major variables if a single estimate is not possible
• Your rights: to negotiate a costs agreement, to receive a bill, to request an itemised bill, and to dispute the bill through the regulator or a costs assessment
• Billing intervals and interest on unpaid bills, if charged
• In litigation, an estimate of the costs you may recover if you win and the costs you may have to pay if you lose
• Any uplift fee in a conditional costs agreement, with the reason for it and the percentage or amount

The lawyer must also take reasonable steps to make sure you understand and consent to the proposed course of action and costs. Saying "yes" to an email you did not read is weak consent; asking questions and replying in writing is strong.

Updates: when the estimate changes

Disclosure is ongoing. If there is a significant change to anything disclosed, including the estimate, the lawyer must tell you as soon as reasonably practicable, with enough information to decide whether to continue.

Illustrative example: the original estimate is $12,000 to the end of mediation. After the other side files a cross-claim, the lawyer writes that the estimate to the end of mediation is now $19,000 to $23,000, explains why and asks for instructions. That is what an update should look like. A bill for $21,000 with no prior warning is not.

Costs agreements

A disclosure tells you how costs will be charged; a costs agreement is the contract. It can be a written agreement you sign, or in some cases a disclosure you accept in writing or by continuing to instruct the firm. A conditional (no win no fee) agreement must be in writing, signed by you and include a cooling-off period of at least five business days. See no win no fee and uplift fees.

Use the costs agreement checklist before signing.

What happens if the lawyer did not disclose

Under the Uniform Law, if a law practice fails to disclose when required:

• The costs agreement is void, so costs are recoverable only on a fair and reasonable basis
• You are not required to pay the costs until they have been assessed or a costs dispute is determined
• The firm cannot sue to recover the costs until then
• The failure may be unsatisfactory professional conduct or professional misconduct

There is a rule allowing a practice to fix some contraventions promptly, so not every error voids the agreement. If you think disclosure was missing, tell the firm in writing and see how to dispute a legal bill.

Third-party payers and commercial clients

If someone else is paying, such as an employer, a relative or an insurer, the firm may owe disclosure to them too. Commercial and government clients, such as listed companies and public bodies, are excluded from most disclosure protections because they are expected to negotiate their own terms. A sole trader or small business may not be excluded, so check the definition.

Frequently asked questions

Does disclosure apply to barristers?

Yes. A barrister engaged by your solicitor must disclose their costs to the solicitor, and the solicitor must pass the relevant information on to you as part of the total estimate. See barrister fees and disbursements.

Is a verbal estimate enough?

Not above the thresholds. Disclosure must be in writing. Keep the email or letter; it is your evidence if the bill is later disputed.

My lawyer said costs "depend on the other side". Is that a valid estimate?

Uncertainty is real in litigation, but the lawyer should still give a range and explain the main variables, for example "settles at mediation: $9,000 to $14,000; goes to a two-day hearing: $35,000 to $48,000".

Sources

• Victorian Legal Services Board + Commissioner — costs disclosure thresholds and consumer rights
• Legal Practice Board of Western Australia — costs disclosure and assessment in WA
• Office of the Legal Services Commissioner (NSW) — disclosure fact sheets and complaints
• Legal Services Commission (Queensland) — the $1,500 and $3,000 disclosure rules in Queensland
• Legal Services Council — Uniform Law, Uniform Rules and the standard disclosure form