Legal Profession Act 2007

In conducting an assessment of legal costs, a costs assessor must consider – whether or not it was reasonable to carry out the work to which the legal costs relate; and whether or not the work was carried out in a reasonable manner; and the fairness and reasonableness of the amount of legal costs in relation to the work, except to the extent that section 328 or 329 applies to any disputed costs.

In considering what is a fair and reasonable amount of legal costs, a costs assessor may have regard to any or all of the following matters:whether the law practice and any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf complied with this Act, any other relevant legislation, the regulations or the legal profession rules; any disclosures made by the law practice under Division 3 (Costs disclosure); any relevant advertisement as to – the law practice's costs; or the skills of the law practice or of any Australian legal practitioner or Australian-registered foreign lawyer acting on its behalf; the skill, labour and responsibility displayed on the part of the Australian legal practitioner or Australian-registered foreign lawyer responsible for the matter; the retainer and whether the work done was within the scope of the retainer; the complexity, novelty or difficulty of the matter; the quality of the work done; the place where, and circumstances in which, the legal services were provided; the time within which the work was required to be done; any other relevant matter.

In conducting an assessment of legal costs payable by a non-associated third party payer, the costs assessor must also consider whether it is fair and reasonable in the circumstances for the non-associated third party payer to be charged the amount claimed.