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Policy Bulletin 2026/5: Discretion under the Contributions Policy

30 July 2026

The Legal Aid NSW Board approved amendments to the Contributions Policy to remove discretion to reduce or waive contributions and strengthen contribution collection arrangements.

Background

The demand for legal services has reached an unsustainable level within the current budget environment. As part of a broader suite of savings initiatives, the Board has approved changes to strengthen the collection of contributions and support the financial sustainability of Legal Aid NSW. Contributions are an important source of revenue, and the changes streamline exemptions from initial contributions, remove discretion to reduce or waive contributions, and strengthen legal cost recovery. This includes removing the discretion not to take a charge over property and requiring applicants in family law property matters to sign an irrevocable authority to secure the recovery of contributions.

 

What has changed?

Contributions Policy 4: Exempted matters - clarifies where an applicant is not required to pay an initial contribution.

The Contributions Policy and Contribution Guidelines have been amended to remove:

  • discretion to reduce or waive an initial contribution,
  • discretion to reduce or waive a final contribution, and
  • discretion not to take a charge over property.

Contributions Policy 3.3 clarifies that a final contribution will be imposed even where a client divests of their property during the proceedings.  

The requirement to sign an irrevocable authority has been included at:

Start date

The changes apply to determinations made on or after 30 July 2026.

Contact

For further information, contact the Client Eligibility Unit at: T-CEU@legalaid.nsw.gov.au.