What is the Court's role in relation to legal costs?
In general federal law proceedings, the Court normally awards costs to a successful party. They are intended to reimburse a party (usually the successful one) for their legal costs. The costs awarded are normally only part of the costs incurred. These are referred to as party-party costs. Costs may be awarded before a final hearing; for example if a party has not complied with a timetable and the other party brings the matter back to court for further directions.
Indemnity costs – the Court can award all costs reasonably and properly incurred where the conduct of a party warrants such an order being made. These costs are most frequently awarded when a party has declined an offer of settlement and has been awarded a sum less than that offered.
The Court is not responsible for overseeing private fee arrangements between a lawyer and client. These are referred to as solicitor-client costs. If you wish to dispute the fees charged by your lawyer, you need to contact the law society or institute in your state or territory.
How does the Court make a party-party costs order?
The rules in relation to party-party costs are found in Part 32 of the Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2025 (GFL Rules.
Unless the Court otherwise orders, the appropriate scale for a party-party costs order (other than bankruptcy) is the event-based scale in Schedule 2 of the GFL Rules.
Bankruptcy costs – a party entitled to costs in bankruptcy proceedings is entitled to costs in accordance with the Federal Circuit and Family Court of Australia (Bankruptcy) Rules 2021.
The Court has a general discretion to depart from the fixed event-based scale. Sometimes the Court may order that a specific amount of costs be paid. In these situations, the judge may assess the costs by using:
- the costs rules of the Federal Court of Australia, or
- another method for determining the amount of costs.
Taxation of costs in the Court is only possible when costs are fixed according to the Federal Court scales. There is no provision for taxation of costs if they are fixed according to Schedule 2. Judges will determine disputes about the calculation of costs under Schedule 2.
How can I dispute the fees charged by my lawyer?
If you are not happy with the fees charged by your lawyer, you should first explain your concerns to your lawyer and attempt to resolve the dispute.
If you are unable to resolve the dispute directly with your lawyer, contact the law society or institute in your state or territory. Each law society or institute has different procedures and timeframes in place for challenging the fees charged by your lawyer.
For a list of law societies and institutes in your State or Territory, visit the Court's website at www.fcfcoa.gov.au.
This fact sheet provides general information only and is not provided as legal advice. If you have a legal issue, you should contact a lawyer before making a decision about what to do or applying to the Court.
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