Legal Aid Act 1977

For the purposes of the making or enforcement of any order for costs, or the determination of any entitlement to costs, in a proceeding before a court or tribunal to which a legally assisted person is a party, that person shall be deemed to be liable to pay the ordinary professional costs of the legal services provided to the person in or in connection with that proceeding and any disbursements (including barristers’ fees) and out-of-pocket expenses incurred in or in connection with the provision of those services.

If an amount is recoverable by a legally assisted person (whether in a proceeding or under a settlement or compromise) in respect of the matter in which the legal assistance was given, the person is liable to pay to the commission an amount equal to so much of that amount as the chief executive officer, having regard to guidelines determined by the commission under section 12 (e), determines but the amount so determined shall not exceed the amount by which the sum of—

the ordinary professional costs (including solicitor and client costs) of the legal services provided to the person in the proceeding or matter in respect of which legal assistance was provided; and

any disbursements (including barristers’ fees) and out-of-pocket expenses incurred in or in connection with the provision of those services;

In determining the amount that a legally assisted person is liable to pay under subsection (2), the chief executive officer shall have regard to—

the amount actually recovered by the legally assisted person; and

any failure by the legally assisted person to take action to recover the amount recoverable, including any failure to comply with a direction of the chief executive officer under subsection (4).

The chief executive officer may give directions to a legally assisted person requiring the person to take specified action to recover an amount that is recoverable by the person in respect of the matter in which legal assistance was given.

If an amount is recoverable by a legally assisted person (whether in a proceeding or under a settlement or compromise) in respect of the matter in which the legal assistance was given, the chief executive officer may, by signed writing, direct the legally assisted person to assign the person’s right to recover the amount to the commission within 28 days after the day on which the direction is given.

If a legally assisted person fails to comply with a direction under subsection (5) to assign to the commission the person’s right to recover an amount, the legally assisted person shall be deemed to have assigned to the commission the person’s right to recover the amount at the expiration of the period during which any action by way of reconsideration or review may be taken under part 6 in relation to the decision to give the direction.

Subsection (6) does not apply if the decision to give the direction with which the legally assisted person has failed to comply has, under part 6, been—

varied so that the direction is negated; or

set aside and replaced with a decision in accordance with which the direction is negated.

If a right to recover an amount is assigned to the commission under a direction under subsection (5), or is to be deemed to be assigned to the commission in accordance with subsection (6), the commission shall, for the purpose of recovering the amount, stand in the place of the legally assisted person and may use the name of the legally assisted person and all remedies which would, but for the assignment or the operation of subsection (6), be available to the legally assisted person in any proceedings to recover the amount.

An amount owing under a law may be recovered as a debt in a court of competent jurisdiction or the ACAT (see Legislation Act, s 177).