{"id":"F2025L01591","name":"Legal Services Directions 2025","slug":"legal-services-directions-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":443086,"registerId":"F2025L01591-fast-fetch-1775957994752","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"Part 1 —Preliminary\n\n","sortOrder":0},{"sectionNumber":"Div 1","sectionType":"division","heading":"General","content":"Division 1 —General\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Dictionary\n\n5  Schedules\n\n6  Simplified outline of these Directions\n\nDivision 2 —Application of these Directions\n\n7  Who is required to comply with these Directions?\n\n8  The Attorney-General may grant exemptions and modifications\n\n9  Application—criminal prosecutions and related proceedings\n\n10  Interaction with functions of Commonwealth agencies\n\nPart 2 —Tied areas of Commonwealth legal work\n\n11  Simplified outline—who must comply with this Part?\n\n12  Meaning of tied work\n\nDivision 2 —Directions about tied work\n\n13  Direction related to tied work\n\n14  Tied providers: Cabinet work, constitutional law work and national security legal work\n\n15  Tied providers: public international law work\n\n16  Tied providers: tied drafting work\n\n17  Briefing counsel and other legal experts\n\n18  Providers other than tied providers may be approved to do tied work\n\n19  Categories of work not covered by the tied work rules\n\n20  Tied work not performed by tied providers: entities must give copies of advice to OLSC\n\nPart 3 —Sharing advice within Government\n\n21  Simplified outline—who must comply with this Part?\n\nDivision 2 —Sharing advice within Government\n\n22  Purpose of Part and general policy on consulting and sharing\n\n23  Consultation\n\n24  Exception to consultation requirement—urgency\n\n25  Exception to consultation requirement—where disclosure inappropriate or unlawful\n\n26  Exception to consultation requirement—routine matters\n\n27  Exception to consultation requirement—written agreements\n\n28  Responsibility of administering entity upon consultation\n\n29  Resolving disagreements about interpretation of legislation\n\n30  Sharing advice with the Attorney-General\n\n31  Sharing advice that may be significant to other Commonwealth agencies\n\nDivision 3 —Advice on constitutional law issues\n\n32  Advice on constitutional law issues\n\nPart 4 —Reporting on significant issues\n\n33  Simplified outline—who must comply with this Part?\n\n34  Purpose of this Part\n\nDivision 2 —Directions about significant issues\n\n35  Reporting on significant issues\n\n36  Settling claims and litigation that give rise to significant issues\n\nPart 5 —Claims and litigation\n\n37  Simplified outline of this Part\n\nDivision 2 —The model litigant obligation\n\n38  Simplified outline—who must comply with this Division?\n\n39  Informational note—policy of this Division\n\n40  The model litigant obligation\n\n41  Nature of the obligation\n\n42  Merits review proceedings\n\n43  Alternative dispute resolution\n\nDivision 3 —Claims and litigation by or against the Commonwealth or entities\n\n44  Simplified outline—who must comply with this Division?\n\n45  Entities must comply with instructions from the Attorney‑General\n\n46  Acting in accordance with legal principle and practice\n\n47  Disclosure of terms of settlement\n\n48  Entities to receive written legal advice before starting court proceedings\n\n49  Suppression orders\n\nDivision 4 —Obligations of corporate Commonwealth entities with respect to claims and litigation\n\n50  Obligations of corporate Commonwealth entities\n\nDivision 5 —Jurisdiction of State and Territory bodies\n\n51  Simplified outline—who must comply with this Division?\n\n52  Attorney‑General must approve objection to the jurisdiction of State and Territory courts\n\n53  Attorney‑General must approve submission or objection to the powers of certain State and Territory bodies\n\nDivision 6 —Use of in-house lawyers for court litigation\n\n54  Simplified outline—who must comply with this Division?\n\n55  Use of in‑house lawyers for court litigation\n\nDivision 7 —Public interest immunity\n\n56  Simplified outline—who must comply with this Division?\n\n57  Public interest immunity\n\nDivision 8 —Reliance on limitation periods\n\n58  Simplified outline—who must comply with this Division?\n\n59  Reliance on limitation periods\n\nPart 6 —Settling monetary claims\n\n60  Simplified outline—who must comply with this Part?\n\n61  Purpose of this Part\n\n62  Claims in respect of which this Part applies\n\nDivision 2 —Directions about settling monetary claims\n\n63  Settling monetary claims involving the Commonwealth or an entity\n\n64  Criteria for settling monetary claims against the Commonwealth or an entity\n\n65  Criteria for settling monetary claims commenced by the Commonwealth or an entity\n\n66  Exceptional circumstances—referral to OLSC\n\n67  Release and indemnity\n\nPart 7 —Engagement of Counsel\n\n68  Simplified outline—who must comply with this Part?\n\n69  Commonwealth policy on selecting and engaging counsel\n\n70  Engagements to which this Part applies\n\nDivision 2 —Engagement of counsel\n\n71  Content of briefs—model litigant obligation\n\n72  Content of briefs—rates\n\n73  Content of briefs—bankruptcy\n\n74  Directions about the selection of counsel\n\n75  Daily rates and other fees payable to counsel\n\n76  Negotiating hourly rates\n\n77  Other matters regarding counsel fees\n\n78  Entity must give information to OLSC\n\n79  Seeking approvals regarding counsel rates\n\n80  Indexing daily rate thresholds\n\n81  Meaning of index number\n\nPart 8 —Procurement of external legal services providers\n\n82  Simplified outline—who must comply with this Part?\n\n83  Meaning of pro bono legal work\n\nDivision 2 —Procurement of external legal services providers\n\n84  Pro bono and other matters to be taken into account in selecting external legal services providers\n\n85  Obligation to provide assistance, documents and information\n\nPart 9 —Assistance to eligible Commonwealth employees and officials in legal proceedings etc\n\n86  Simplified outline—who must comply with this Part?\n\n87  Purpose of this Part\n\n88  Key terms\n\n89  Requests to which this Part applies\n\n90  Matters outside the scope of this Part\n\nDivision 2 —Who is the decision-maker?\n\n91  Decision-maker\n\nDivision 3 —General rules: when approvals must not be granted\n\n92  Cases in which decision-maker must not grant approval\n\n93  Cases in which decision-maker needs Attorney-General’s approval—challenges to validity or conduct of inquiries\n\nDivision 4 —General rules: what financial assistance may be granted?\n\n94  Types of costs that may be approved\n\n95  Amount of assistance that may be approved\n\nDivision 5 —The decision-making process: considerations relevant to grant of approvals\n\n96  Granting approvals—the primary consideration\n\n97  Refusing an application where the eligible person failed to give notice in reasonable time\n\nDivision 6 —The decision-making process: deferral, conditions and consultation\n\n98  Deferral of approvals\n\n99  Placing conditions on approvals\n\n100  Conditions on approvals for certain costs—civil proceedings\n\n101  Conditions that must not be placed on approval—criminal proceedings\n\n102  Consultation with OLSC in sensitive cases\n\n103  Seeking exemption from requirements of this Part—exceptional circumstances\n\nDivision 7 —Obligations where assistance has been approved\n\n104  Entity must monitor costs on an ongoing basis\n\n105  Refusing to pay assistance where condition not followed\n\n106  Ensuring that counsel are engaged in accordance with Part 7\n\n107  Compliance with model litigant obligation\n\nPart 10 —Entity responsibility and compliance\n\nDivision 1 —Responsibilities of accountable authorities\n\nSubdivision 1 —Preliminary\n\n108  Simplified outline—who must comply with this Division?\n\nSubdivision 2 —Responsibilities of entities and their accountable authorities\n\n109  Responsibilities of accountable authority—compliance with directions and related matters\n\n110  Responsibilities of accountable authority—pro bono work by legal services providers\n\n111  Third parties\n\nSubdivision 3 —Accountable authorities of certain corporate Commonwealth entities\n\n112  Responsibilities of accountable authority of certain corporate Commonwealth entities\n\nDivision 2 —Addressing non-compliance with these Directions\n\n113  Simplified outline—who must comply with this Division?\n\n114  Contractual provisions regarding penalties for non-compliance with these Directions\n\n115  Issuing instructions in relation to non-compliance\n\nPart 11 —Obligations of persons appointed under section 63 of the Act\n\n116  Obligations of persons appointed under section 63 of the Act to receive service\n\nPart 12 —Application, transitional and savings provisions\n\n117  Decisions and instruments made before commencement\n\n118  Processes begun before commencement\n\n119  Obligations incurred before commencement\n\n120  Financial years\n\n121  Non-compliance with the Legal Services Directions 2017\n\n122  References to the Legal Services Directions 2005 or the Legal Services Directions 2017\n\nSchedule 1—Summary of application of these Directions\n\nSchedule 2—Repeals\n\nLegal Services Directions 2017\n\n \n\nPart 1—Preliminary\n\nDivision 1—General  \n\n1  Name\n\n  This instrument is the Legal Services Directions 2025.\n\n","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument 2 March 2026. 2 March 2026\n\nNote:  This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"3  Authority\n\n  This instrument is made under section 55ZF of the Judiciary Act 1903.\n\n","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Dictionary","content":"4  Dictionary\n\nNote:  A number of expressions used in these Directions are defined in the Act, including the following:\n\n(a)  legal practitioner;\n\n(b)  Commonwealth legal work.\n\n  In these Directions:\n\naccountable authority has the meaning given by subsection 12(2) of the Public Governance, Performance and Accountability Act 2013.\n\nAct means the Judiciary Act 1903.\n\nadministering entity has the meaning given by section 23.\n\nAGS has the meaning given by section 2 of the Act.\n\nclaim means the assertion of a legal right or entitlement by or against the Commonwealth or an entity.\n\nCommonwealth agency means a non-corporate Commonwealth entity, a corporate Commonwealth entity or a Commonwealth company.\n\nCommonwealth company has the meaning given by subsection 89(1) of the Public Governance, Performance and Accountability Act 2013.\n\nCommonwealth entity has the meaning given by section 10 of the Public Governance, Performance and Accountability Act 2013.\n\nCommonwealth Procurement Rules means the Commonwealth Procurement Rules in force under subsection 105B(1) of the Public Governance, Performance and Accountability Act 2013.\n\ncorporate Commonwealth entity has the meaning given by paragraph 11(a) of the Public Governance, Performance and Accountability Act 2013, but does not include a person or body that is taken to be a non-corporate Commonwealth entity for the purposes of the finance law.\n\ncounsel:\n\n (a) includes a legal practitioner who is engaged as counsel to provide legal services; and\n\n (b) does not include a legal practitioner who is engaged in any other capacity to provide legal services.\n\nNote: Each jurisdiction has laws limiting who is entitled to engage in legal practice. In some jurisdictions, for instance, a person may be admitted as a barrister and solicitor, and may practise as both. \n\n A reference to counsel extends to a legal practitioner who, although not from the bar, is engaged as counsel to conduct or advise on litigation, or to provide advice. It does not extend, for example, to a legal practitioner who is engaged to provide advice in their capacity as a solicitor. \n\nengaging entity has the meaning given by section 70.\n\nentity means the following:\n\n (a) a non‑corporate Commonwealth entity;\n\n (b) the Australian Human Rights Commission;\n\n (c) the Australian Pesticides and Veterinary Medicines Authority;\n\n (d) the Independent Health and Aged Care Pricing Authority;\n\n (e) the Murray‑Darling Basin Authority;\n\n (f) the National Offshore Petroleum Safety and Environmental Management Authority.\n\nexternal legal services provider means a legal services provider external to the person or body to which the legal services are to be provided, but does not include counsel or a government legal services provider.\n\nfinance law has the meaning given by section 8 of the Public Governance, Performance and Accountability Act 2013.\n\nGBE means a government business enterprise within the meaning of the Public Governance, Performance and Accountability Act 2013.\n\ngovernment legal services provider means:\n\n (a) AGS; or\n\n (b) an entity or part thereof that provides legal services to other entities.\n\nlegal services expenditure, in relation to an entity, means the entity’s internal and external legal services expenditure, including:\n\n (a) expenditure on counsel; and\n\n (b) expenditure on legal services obtained from a government legal services provider.\n\nlitigation, unless otherwise indicated, includes proceedings before courts, tribunals, inquiries, in arbitration and other alternative dispute resolution processes, and the preparation for such proceedings.\n\nmodel litigant obligation has the meaning given by section 40.\n\nnon‑corporate Commonwealth entity has the meaning given by paragraph 11(b) of the Public Governance, Performance and Accountability Act 2013, and includes a person or body that is taken to be a non-corporate Commonwealth entity for the purposes of the finance law.\n\nOLSC means the Office of Legal Services Coordination in the Attorney‑General’s Department, or any person within the Department on whom the Secretary confers the function of administering these Directions.\n\npro bono legal work has the meaning given by section 83.\n\nrequesting entity has the meaning given by section 23.\n\nroutine, in relation to a matter, has the meaning given by subsection 26(1).\n\nsettlement means the consensual resolution of a claim or litigation.\n\nNote: This includes the following:\n\n(a) settlements that are facilitated by a mediator;\n\n(b) settlements that, though consensual, will be the subject of further consideration or orders by a court, tribunal, or other person or body – for instance, where the settlement must be approved by a court. This includes class action settlements, agreeing to seek consent orders, and agreeing to joint party submissions on relief.\n\ntied provider has the meaning given by section 12.\n\ntied work has the meaning given by section 12.\n\nGeneral notes\n\nLawful expenditure\n\n1 In addition to the requirements in these Directions, Commonwealth agencies must comply with the finance law when making arrangements for the provision of legal services. For example, under section 15 of the Public Governance, Performance and Accountability Act 2013, the accountable authority of a non‑corporate Commonwealth entity has a duty to promote the proper use of public resources (that is, the efficient, effective, economical and ethical use of public resources) by the entity. Further, under section 21 of that Act, the accountable authority of a non‑corporate Commonwealth entity must govern the entity in a way that is not inconsistent with the policy of the Australian Government. These duties will apply in relation to arrangements for the provision of legal services to the entity.\n\nWho can institute proceedings in the name of the Commonwealth\n\n2 If a non‑corporate Commonwealth entity that is not a body corporate wishes to institute proceedings in the name of the Commonwealth, the proceedings will need to be instituted by the Attorney-General or a person appointed by the Attorney‑General under section 61 of the Act. In these circumstances, if a relevant appointment is not in place, the details should be forwarded to OLSC to enable the issue of an appointment under section 61 to be referred for decision by the Attorney‑General.\n\n The Attorney-General can appoint the accountable authority of an entity as a person who may institute relevant proceedings under section 61 of the Act.\n\nWho can receive service in proceedings to which the Commonwealth is a party\n\n3 Section 63 of the Act provides that, where the Commonwealth is a party to a suit, all process in the suit required to be served upon it shall be served upon the Attorney‑General, or upon some person appointed by the Attorney-General to receive service. The Attorney‑General may, for that purpose, appoint a lawyer who provides legal services to the Commonwealth or a Commonwealth agency.\n\nOther relevant rules and policies\n\n4 In addition to these Directions, other rules and policies are relevant to the provision of legal services, including the following:\n\n(a) the policy on giving indemnities and guarantees by the Commonwealth and Commonwealth agencies;\n\n(b) the policy on insurance and handling of liability claims by Commonwealth agencies that operate under the Commonwealth’s self‑managed fund for insurable risks, Comcover;\n\n(c) the Parliamentary Business Resources Regulations 2017, which deal with the provision of assistance to Ministers for legal proceedings;\n\n(d) section 63 of the Act, which deals with service of process when the Commonwealth or a State is a party to a suit.\n\n In 2025, information about the policy referred to in paragraphs (a) and (b) could be obtained from the Department of Finance’s website (https://www.finance.gov.au).\n\nCo-ordinated procurement arrangements\n\n5 The Commonwealth Procurement Rules also contain requirements that affect the procurement of legal services. In particular, certain bodies must, or may, use whole-of-government arrangements for procuring goods and services (co-ordinated procurement arrangements). At the time these Directions were made, there was a co-ordinated procurement arrangement for legal services, known as the Whole of Australian Government Legal Services Panel.\n\n Information about that Panel could, in 2025, be viewed on the Attorney-General’s Department’s website (https://www.ag.gov.au). OLSC guidance material on the arrangement could be viewed on the same website. \n\n","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Schedules","content":"5  Schedules\n\n (1) Schedule 1 to this instrument has effect.\n\n (2) Each instrument that is specified in Schedule 2 to this instrument is amended or repealed as set out in the applicable items in that Schedule, and any other item in that Schedule has effect according to its terms.\n\n","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Simplified outline of these Directions","content":"6  Simplified outline of these Directions\n\nThese Directions are a binding set of rules about Commonwealth legal work, issued by the Attorney-General under section 55ZF of the Act.\n\nThese Directions set out important rules to manage, in a whole-of-government manner, legal, financial and reputational risks to the Commonwealth’s interests. They give entities the discretion to manage their particular risks, which entities are in the best position to judge, while providing a supportive framework of good practice.\n\nArrangements made by an entity for the provision of legal services are to ensure the delivery of efficient and effective services.\n\nPart 1 deals with a range of preliminary matters, including the application of these Directions. In particular, section 7 sets out the persons and bodies to whom these Directions apply.\n\nThe application of this instrument is also summarised in Schedule 1, and in the simplified outlines to certain Parts and Divisions. However, these summaries are for general information, and are not a complete statement of the persons and bodies to whom particular directions are capable of applying.\n\nPart 2 deals with tied areas of Commonwealth legal work. Broadly speaking, it requires that certain kinds of legal work can only be done by tied providers (subject to certain exceptions).\n\nPart 3 deals with the sharing of advice within Government; in particular, the circumstances in which certain entities must consult with each other about requests for advice.\n\nPart 4 sets out certain entities’ obligations to report on significant issues, and to seek the Attorney-General’s approval before settling claims or litigation involving significant issues.\n\nPart 5 deals with various aspects of how the Commonwealth, and certain Commonwealth entities, are to handle claims and conduct litigation. Part 6 sets out requirements that apply to the settlement of monetary claims by or against the Commonwealth and certain entities.\n\nPart 7 deals with the engagement of counsel.\n\nPart 8 sets out rules regarding the procurement of external legal services providers.\n\nPart 9 deals with the provision of assistance to eligible individuals in legal proceedings.\n\nPart 10 sets out various responsibilities that apply to accountable authorities of certain Commonwealth entities, including reporting obligations. It also sets out some obligations that apply to entities themselves. Amongst other things, the Part deals with responding to non-compliance with these Directions.\n\nPart 11 sets out the obligations of persons who are appointed under section 63 of the Act to receive service on behalf of the Commonwealth.\n\nPart 12 sets out certain application, transitional and savings provisions.\n\nDivision 2—Application of these Directions\n\n7  Who is required to comply with these Directions?\n\n (1) A direction set out in this instrument applies to the following:\n\n (a) unless the direction provides otherwise—the following entities:\n\n (i) a non‑corporate Commonwealth entity;\n\n (ii) the Australian Human Rights Commission;\n\n (iii) the Australian Pesticides and Veterinary Medicines Authority;\n\n (iv) the Independent Health and Aged Care Pricing Authority;\n\n (v) the Murray-Darling Basin Authority;\n\n (vi) the National Offshore Petroleum Safety and Environmental Management Authority;             \n\n (b) any other person or body mentioned in subsection 55ZG(1) of the Act:\n\n (i) to which the direction is expressed to apply; or\n\n (ii) which the Attorney‑General under this subparagraph, instructs to comply with the direction; or\n\n (iii) subject to subsection (2), that handles claims, or conducts litigation, in the name of or on behalf of the Commonwealth or a Commonwealth agency.\n\n (2) The direction applies to a person or body referred to in subparagraph (1)(b)(iii) only in respect of conduct in which they engage in the course of handling such claims or conducting such litigation.\n\nNote: The simplified outlines to certain Parts and Divisions of this instrument, and Schedule 1, broadly summarise the persons and bodies to which particular Parts or provisions of these Directions apply. However, these are only a general guide, and are not a comprehensive statement of the application of this instrument.\n\n","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"The Attorney-General may grant exemptions and modifications","content":"8  The Attorney-General may grant exemptions and modifications\n\n (1) The Attorney-General may:\n\n (a) exempt a person or body from compliance with one or more of these Directions; or\n\n (b) modify the application of these Directions to a person or body.\n\n (2) The Attorney-General may impose conditions on an exemption or modification.\n\n (3) These Directions do not apply to a person or body to the extent set out in the exemption or modification, provided they comply with any conditions imposed under subsection (2).\n\n","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Application—criminal prosecutions and related proceedings","content":"9  Application—criminal prosecutions and related proceedings \n\n  These Directions:\n\n (a) do not apply to Commonwealth legal work carried out by or on behalf of a Commonwealth prosecuting authority that involves instituting and carrying on criminal prosecutions and related proceedings; but\n\n (b) do apply in accordance with their terms to Commonwealth legal work undertaken in the course of responding to or defending criminal prosecutions and related proceedings.\n\nNote: However, Commonwealth prosecuting authorities should nonetheless consult with AGS and the Attorney-General’s Department, when appropriate, about any constitutional law issues, or the interpretation of Australia’s or another country’s obligations under international law, that arise in the course of work mentioned in paragraph (a).\n\n","sortOrder":8},{"sectionNumber":"10","sectionType":"section","heading":"Interaction with functions of Commonwealth agencies","content":"10  Interaction with functions of Commonwealth agencies \n\n  These Directions are not intended to override any legislative requirement or authority concerning a Commonwealth agency’s functions (in particular, the role of the Director of Public Prosecutions).   \n\n","sortOrder":9},{"sectionNumber":"Part 2","sectionType":"part","heading":"Tied areas of Commonwealth legal work","content":"Part 2—Tied areas of Commonwealth legal work\n\n","sortOrder":10},{"sectionNumber":"11","sectionType":"section","heading":"Simplified outline—who must comply with this Part?","content":"11  Simplified outline—who must comply with this Part?  \n\nSubsection 15(2) also applies to corporate Commonwealth entities and Commonwealth companies.\n\nFurther, this Part applies to some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\n","sortOrder":11},{"sectionNumber":"12","sectionType":"section","heading":"Meaning of tied work","content":"12  Meaning of tied work\n\n (1) The following are tied work:\n\n (a) Cabinet work;\n\n (b) constitutional law work;\n\n (c) national security legal work;\n\n (d) public international law work;\n\n (e) tied drafting work.\n\n (2) In this Part:\n\nCabinet work means legal advice that is:\n\n (a) either:\n\n (i) to be considered by Cabinet or relied on in preparing a Cabinet submission or memorandum; or\n\n (ii) on a legislative proposal (other than a proposal for subordinate legislation) to be considered for adoption by government, or on draft legislation (other than subordinate legislation) for introduction into Parliament; and\n\n (b) for paragraph (a)(i)—is intended, at the time the advice is obtained, to be considered by Cabinet or relied on in preparing a Cabinet submission or memorandum.\n\nconstitutional law work:\n\n (a) means the interpretation and application of the Constitution and constitutional principles, including:\n\n (i) the interpretation and application of those principles that define or limit the functions, privileges, powers and structures of the 3 branches of the Commonwealth government; and\n\n (ii) the interpretation and application of the constitutions of the States; and\n\n (b) includes:\n\n (i) interpreting statutes or instruments by reference to the Constitution; and\n\n (ii) determining whether the Commonwealth is bound by a State or Territory law.\n\nnational security legal work means any Commonwealth legal work of which national security interests form a material aspect, including where national security interests:\n\n (a) substantively inform the work’s legal analysis; or\n\n (b) materially impact legal or factual issues relating to the work.\n\npublic international law work means any of the following:\n\n (a) international litigation and arbitration;\n\n (b) advice involving Australia’s or another country’s obligations under international law;\n\n (c) advice on treaty negotiation;\n\n (d) advice on implementing a treaty (including bilateral agreements);\n\n (e) domestic litigation involving a significant public international law issue.\n\nNote 1:  A reference to a treaty in this definition is intended to include international instruments of less than treaty status (such as memoranda of understanding between Australia and other countries and non‑binding declarations and recommendations adopted by international organisations).\n\nNote 2: For example, paragraph (a) of the definition of public international law work applies to legal work involving proceedings before:\n\n(a)  the International Court of Justice; or\n\n(b)  a World Trade Organisation dispute panel or appellate body; or\n\n(c)  an arbitral tribunal, or some other form of internationally constituted tribunal.\n\nNote 3:  For example, paragraph (b) of the definition of public international law work applies to legal work involving requests concerning:\n\n(a)  Australia’s or another country’s obligations under international law generally or under a particular treaty to which Australia or the country is a party; and\n\n(b)  requests for advice under legislation which implements a treaty where the obligations under that treaty are an issue. This covers requests for advice about whether certain conduct by the Commonwealth is permitted by legislation which implements a treaty, where the request gives rise to a question as to whether Australia had met its international law obligations under that treaty.\n\n However, paragraph (b) of the definition does not cover advice on procedural aspects of an exercise of power under the legislation where those procedural aspects are unrelated to a question of Australia’s international law obligations.\n\nNote 4: For example, paragraph (c) of the definition of public international law work applies to legal advice preparatory to, or in the course of, treaty negotiations.\n\nNote 5:  For example, paragraph (d) of the definition of public international law work applies to advice on implementing a treaty (including bilateral agreements), including on changes to legislation and practice necessary to become a party to a treaty.\n\nNote 6:  For example, paragraph (e) of the definition of public international law work applies to legal work involving litigation where a court will or may decide whether Australia or another country has acted in conformity with its international law obligations (including as an incidental or indirect aspect of the case). It is not intended to apply to legal work involving litigation that involves legislation which implements a treaty if it merely involves interpretation of that legislation or of the treaty for the purposes of applying that legislation and it does not raise the question whether Australia has complied with its international obligations.\n\nNote 7: Litigation referred to in paragraph (e) of the definition of public international law work is still to be referred to OLSC if it raises significant issues as described in section 35.\n\ntied drafting work means Commonwealth legal work that consists of drafting any of the following:\n\n (a) government Bills;\n\n (b) government amendments of Bills;\n\n (c) regulations;\n\n (d) Ordinances and regulations of external Territories and Jervis Bay Territory;\n\n (e) other legislative instruments made or approved by the Governor‑General;\n\n (f) proclamations that are commencement instruments within the meaning of the Legislation Act 2003.\n\ntied provider, in relation to Commonwealth legal work, means an entity that this Part indicates the work is tied to.\n\n","sortOrder":12},{"sectionNumber":"Div 2","sectionType":"division","heading":"Directions about tied work","content":"Division 2—Directions about tied work \n\n","sortOrder":13},{"sectionNumber":"13","sectionType":"section","heading":"Direction related to tied work","content":"13  Direction related to tied work\n\n (1) If an entity (including a tied provider) obtains tied work, it must obtain the work in accordance with this Part.\n\n (2) An entity may obtain tied work from:\n\n (a) a tied provider of that work; or\n\n (b) a legal services provider who:\n\n (i) is not a tied provider of that work; but\n\n (ii) has been approved to undertake the work in accordance with section 18; or\n\n (c) if the Office of Parliamentary Counsel has arranged for another legal services provider to undertake tied drafting work—that provider.\n\n (3) In addition, a tied provider may, for the work in respect of which it is a tied provider, obtain tied work from a legal services provider briefed in their capacity as counsel or another legal expert.\n\nNote: For subsection (3), the counsel or other legal expert does not need to be approved under section 18.\n\n","sortOrder":14},{"sectionNumber":"14","sectionType":"section","heading":"Tied providers: Cabinet work, constitutional law work and national security legal work","content":"14  Tied providers: Cabinet work, constitutional law work and national security legal work \n\n (1) The following is tied to AGS and the Attorney‑General’s Department:\n\n (a) Cabinet work;\n\n (b) constitutional law work;\n\n (c) national security legal work.\n\n (2) Despite paragraph (1)(a), an entity may do the following:\n\n (a) put forward legal advice to be considered by Cabinet that was not prepared by AGS or the Attorney‑General’s Department, where the advice was obtained before the entity formed the intention mentioned in paragraph (b) of the definition of Cabinet work;\n\n (b) obtain support or guidance from its in-house legal area in preparing a Cabinet submission or memorandum, including by obtaining advice from that in-house legal area on legislation administered by the entity where that advice involves no more than the application of a settled interpretation of the law to the facts;\n\n (c) obtain advice from its in-house legal area as to whether legislation would be required to implement a proposal prepared by that entity for consideration by Cabinet (excluding advice as to whether legislation would be required to authorise expenditure on the proposal).\n\nNote: For paragraph 14(2)(a)—this situation may arise where, for instance, a matter was the subject of litigation before it was brought to Cabinet.\n\n (3) Where an entity relies on subsection (2), it must:\n\n (a) expressly inform Cabinet:\n\n (i) that the advice was not prepared by AGS or the Attorney‑General’s Department; and\n\n (ii) of the date of the advice and who provided it; and\n\n (b) otherwise comply with its tied work obligations.\n\n","sortOrder":15},{"sectionNumber":"15","sectionType":"section","heading":"Tied providers: public international law work","content":"15  Tied providers: public international law work \n\n (1) Public international law work is tied to:\n\n (a) the Attorney‑General’s Department; and\n\n (b) AGS; and\n\n (c) in relation to paragraphs (a), (b), (c) and (d) of the definition of public international law work—the Department of Foreign Affairs and Trade.\n\n (2) If an entity, a corporate Commonwealth entity or a Commonwealth company requests public international law work from AGS, it must:\n\n (a) notify the Office of International Law (OIL); and\n\n (b) give OIL the opportunity to express a view on the matter (whether from a policy or legal perspective).\n\nNote: This requirement is intended to ensure compliance with Australia’s international obligations and avoid any risk that Australia might take inconsistent positions on international matters which might arise from portfolio‑specific policy approaches.\n\n","sortOrder":16},{"sectionNumber":"16","sectionType":"section","heading":"Tied providers: tied drafting work","content":"16  Tied providers: tied drafting work\n\n  Tied drafting work must be undertaken or arranged by the Office of Parliamentary Counsel.\n\n","sortOrder":17},{"sectionNumber":"17","sectionType":"section","heading":"Briefing counsel and other legal experts","content":"17  Briefing counsel and other legal experts\n\n  An entity may only brief counsel or another legal expert (such as an academic) on tied work through, and with the agreement of:\n\n (a) AGS; or\n\n (b) the Attorney‑General’s Department, in respect of areas where the Department undertakes tied work; or\n\n (c) the Department of Foreign Affairs and Trade, in respect of work covered by paragraphs (a) to (d) of the definition of public international law work.\n\n","sortOrder":18},{"sectionNumber":"18","sectionType":"section","heading":"Providers other than tied providers may be approved to do tied work","content":"18  Providers other than tied providers may be approved to do tied work \n\n (1) The Attorney‑General may approve a particular legal services provider other than a tied provider to undertake tied work.\n\n  (2) The approval may be subject to one or more conditions.\n\nNote 1: For example, conditions could be:\n\n(a)  that:\n\n(i) any advice prepared by the provider is to be settled in consultation with, and reflect any comments made by, a tied provider; and\n\n(ii) the instructing entity pay the costs of the tied provider to consider and prepare comments about the advice; or\n\n(b) that where one or more entities are instructing on the matter, the approval applies only to that entity or those entities, and that matter.\n\nNote 2: If a tied provider wishes to engage a legal services provider other than a tied provider to undertake tied work, it will need approval to do so (see section 13). However, this does not apply when a tied provider,  for the work in respect of which it is a tied provider, briefs counsel or another legal expert (see subsection 13(3)).  \n\n","sortOrder":19},{"sectionNumber":"19","sectionType":"section","heading":"Categories of work not covered by the tied work rules","content":"19  Categories of work not covered by the tied work rules\n\n  This Part does not affect the following:\n\n (a) the in‑house work that was, as at the time these Directions were made, undertaken by entities in negotiating standard bilateral treaties (such as double taxation and social security agreements);\n\n (b) in-house legal work undertaken by entities that identifies a tied work issue, or supports the entity’s engagement with a tied provider in respect of the issue;\n\n (c) public international law work, where the Attorney‑General has approved the use of the agency’s in‑house legal area in the performance of that work;\n\n (d) the role of the Solicitor‑General.\n\nNote: For paragraph (a)—this captures the in‑house preparation of bilateral agreements on certain matters in a standard format which had already been the subject of international law advice from OIL, AGS or the Department of Foreign Affairs and Trade.\n\n","sortOrder":20},{"sectionNumber":"20","sectionType":"section","heading":"Tied work not performed by tied providers: entities must give copies of advice to OLSC","content":"20  Tied work not performed by tied providers: entities must give copies of advice to OLSC\n\n (1) If:\n\n (a) a legal services provider is approved to undertake tied work under section 18; and\n\n (b) in the course of doing the work, the provider prepares an advice relating to tied work for an entity;\n\nthat entity must, upon request, give a copy to OLSC in an electronically searchable form.\n\n (2) OLSC may give the advice to any tied provider of the relevant category of legal work.\n\n","sortOrder":21},{"sectionNumber":"Part 3","sectionType":"part","heading":"Sharing advice within Government","content":"Part 3—Sharing advice within Government\n\n","sortOrder":22},{"sectionNumber":"21","sectionType":"section","heading":"Simplified outline—who must comply with this Part?","content":"21  Simplified outline—who must comply with this Part?  \n\nThis Part also applies to some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\n \n\nDivision 2—Sharing advice within Government\n\n","sortOrder":23},{"sectionNumber":"22","sectionType":"section","heading":"Purpose of Part and general policy on consulting and sharing","content":"22  Purpose of Part and general policy on consulting and sharing\n\nThe purpose of this Part is to promote consultation, collaboration and information-sharing across government on the interpretation of legislation with the aim of reaching, as far as possible, consistency in statutory interpretation across the Commonwealth.\n\nTo that end, Commonwealth agencies are encouraged to raise concerns or questions about the meaning of legislation with the administering entity before seeking advice, so as to:\n\n(a) give the administering entity the opportunity to consider whether the policy requires change; and\n\n(b) minimise legal costs by identifying whether the administering entity already has an answer to the question.\n\nThere is a general expectation that agencies will consult and share information about Commonwealth legal work with one another, where they consider it appropriate, even where these Directions do not require it.\n\n","sortOrder":24},{"sectionNumber":"23","sectionType":"section","heading":"Consultation","content":"23  Consultation\n\n  If an entity (the requesting entity) proposes to obtain legal advice (whether from counsel, an external or government legal services provider, or its in-house legal area) on the interpretation of legislation administered by another entity (the administering entity), the requesting entity must give the administering entity:\n\n (a) a reasonable opportunity to consult on the proposal; and\n\n (b) a copy of the request for advice; and\n\n (c) a copy of the draft advice (if any); and\n\n (d) the following:\n\n (i) a reasonable opportunity to consult on the matter before any finalised advice is provided;\n\n (ii) if the advice is provided in draft—a reasonable opportunity to consult on the draft advice before it is finalised;\n\n (iii) if the advice is not provided in draft—a reasonable opportunity to consult on the finalised advice;\n\n  including consultation with the requesting entity’s legal services provider, as required by the administering entity; and\n\n (e) a copy of the finalised advice.\n\nNote 1: The Administrative Arrangements Order sets out which non‑corporate Commonwealth entities administer which pieces of legislation.\n\nNote 2: There are various exceptions to these consultation requirements below.\n\nNote 3: The Attorney-General may also grant exemptions from those requirements (and other obligations imposed by these Directions) under section 8.\n\n \n\n","sortOrder":25},{"sectionNumber":"24","sectionType":"section","heading":"Exception to consultation requirement—urgency","content":"24  Exception to consultation requirement—urgency \n\n (1) If the requesting entity needs advice of a kind covered by section 23 on an urgent basis, the entity:\n\n (a) need not comply with section 23; and\n\n (b) must instead, as soon as practicable after receiving the advice:\n\n (i) consult with the administering entity; and\n\n (ii) give the administering entity a copy of the request and the advice.\n\nNote: For instance, this section would apply where the requesting entity needs the advice to enable a response to an urgent request by a Minister or a request arising without notice in litigation.\n\n (2) In subsection (1), a reference to advice means:\n\n (a) draft advice, if:\n\n (i) the advice is provided in draft; and\n\n (ii) it is reasonably practicable, in light of the urgency, to comply with subsection (1) before instructing that the advice be finalised; and\n\n (b) otherwise—finalised advice.\n\n","sortOrder":26},{"sectionNumber":"25","sectionType":"section","heading":"Exception to consultation requirement—where disclosure inappropriate or unlawful","content":"25  Exception to consultation requirement—where disclosure inappropriate or unlawful\n\n (1) Section 23 does not apply to a requesting entity where compliance (such as disclosing the request or advice) would result in:\n\n (a) a breach of law; or\n\n (b) the inappropriate disclosure of a Cabinet, law enforcement or national security matter.\n\n (2) In circumstances where section 23 would have applied but for subsection (1), the requesting entity must instead, to the extent that is possible without giving rise to a result mentioned in paragraph (1)(a) or (b):\n\n (a) inform the administering entity that it has requested the advice in question; and\n\n (b) disclose the substance of the advice, once received.\n\n","sortOrder":27},{"sectionNumber":"26","sectionType":"section","heading":"Exception to consultation requirement—routine matters","content":"26  Exception to consultation requirement—routine matters \n\n (1) A requesting entity need not comply with section 23 where it considers that the advice sought is likely to involve no more than the application of a settled interpretation of the law to particular facts (a routine matter).\n\n (2) However, where the entity subsequently discovers that a matter is not routine, it must comply with section 23 (to the extent it is applicable in the circumstances) from that time on.\n\n (3) To avoid doubt, a matter is not routine where:\n\n (a) the advice:\n\n (i) relates to a legislative provision that has not yet been considered by a court, unless the requesting entity considers that the interpretation of the provision is nevertheless well‑understood; or\n\n (ii) is inconsistent with existing policy; or\n\n (iii) could raise new policy issues in respect of the legislation; or\n\n (b) the matter could create a precedent; or\n\n (c) the requesting entity has identified a potential weakness in the legislation.\n\n","sortOrder":28},{"sectionNumber":"27","sectionType":"section","heading":"Exception to consultation requirement—written agreements","content":"27  Exception to consultation requirement—written agreements\n\n  A requesting entity need not comply with section 23 where:\n\n (a) it has a written agreement with the administering entity setting out alternative sharing and consultation arrangements, which is designed to operate in place of section 23; and\n\n (b) OLSC has been notified of that agreement; and\n\n (c) the requesting entity complies with the arrangements.\n\n","sortOrder":29},{"sectionNumber":"28","sectionType":"section","heading":"Responsibility of administering entity upon consultation","content":"28  Responsibility of administering entity upon consultation\n\n  If an administering entity is consulted in accordance with this Part, it must carefully consider the advice to determine whether it indicates any ambiguity or other issue in the legislation that may require the administering entity to take remedial action (such as proposing a legislative amendment to the responsible Minister).\n\n","sortOrder":30},{"sectionNumber":"29","sectionType":"section","heading":"Resolving disagreements about interpretation of legislation","content":"29  Resolving disagreements about interpretation of legislation\n\n (1) The requesting entity and administering entity must, so far as possible, resolve any disagreement as to the correct interpretation of legislation by negotiation.\n\n (2) If an entity seeks further advice from the Solicitor-General to resolve the matter, it must refer the issue to OLSC.\n\n","sortOrder":31},{"sectionNumber":"30","sectionType":"section","heading":"Sharing advice with the Attorney-General","content":"30  Sharing advice with the Attorney-General\n\n  An entity must, upon request and subject to any legislative restriction, give the Attorney-General a copy of any legal advice it has.\n\nNote: Legal professional privilege is not waived by providing advice to the Attorney‑General in accordance with these Directions: see subsection 55ZH(4) of the Act.\n\n","sortOrder":32},{"sectionNumber":"31","sectionType":"section","heading":"Sharing advice that may be significant to other Commonwealth agencies","content":"31  Sharing advice that may be significant to other Commonwealth agencies\n\n  Where an entity requests or receives legal advice (whether in draft or final form) that it considers likely to be significant to another Commonwealth agency, it must take such steps as are reasonable in the circumstances to:\n\n (a) notify that agency of the request or advice; and\n\n (b) make the advice available to the agency.\n\nNote 1: In some circumstances, it may be reasonable not to take any steps to notify the agency or share the advice; for instance, in the circumstances mentioned in subsection 25(1) or 26(1).\n\nNote 2: To avoid doubt, this obligation extends to sharing advice with operational and portfolio agencies where the entity considers that the advice is likely to be significant to them.\n\n","sortOrder":33},{"sectionNumber":"Div 3","sectionType":"division","heading":"Advice on constitutional law issues","content":"Division 3—Advice on constitutional law issues\n\n","sortOrder":34},{"sectionNumber":"32","sectionType":"section","heading":"Advice on constitutional law issues","content":"32  Advice on constitutional law issues\n\n (1) An entity that seeks legal advice on a constitutional law issue from AGS, or from counsel briefed by AGS, must:\n\n (a) at the time it makes a written request for the advice—give a copy of the request to the Attorney‑General’s Department; or\n\n (b) for an oral request—as soon as practicable:\n\n (i) confirm the request in writing; and\n\n (ii) give a copy of the written request to the Attorney‑General’s Department.\n\nNote: The Attorney‑General’s Department or AGS may consult with the Solicitor‑General about whether the advice should be given by the Solicitor‑General or AGS.\n\n (2) Where AGS, or counsel briefed by AGS, provides final legal advice on a constitutional law issue to an entity, AGS must:\n\n (a) provide a copy of the advice to the Attorney‑General’s Department; and\n\n (b) make that advice available to the Solicitor‑General.\n\nNote 1: AGS may make advice available to the Solicitor-General by, for example, including it in a database to which the Solicitor-General has access. \n\nNote 2: Copies of the Solicitor‑General’s advices will be given to the Attorney‑General’s Department and AGS.\n\n \n\n \n\n","sortOrder":35},{"sectionNumber":"Part 4","sectionType":"part","heading":"Reporting on significant issues","content":"Part 4—Reporting on significant issues\n\n","sortOrder":36},{"sectionNumber":"33","sectionType":"section","heading":"Simplified outline—who must comply with this Part?","content":"33  Simplified outline—who must comply with this Part?  \n\nThis Part also applies to some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\n","sortOrder":37},{"sectionNumber":"34","sectionType":"section","heading":"Purpose of this Part","content":"34  Purpose of this Part   \n\nThe purpose of this Part is to ensure that entities report legal issues that are significant to the Attorney-General. Reporting gives the Attorney-General (through OLSC) visibility of the most important legal issues affecting the Commonwealth, as a means of ensuring that they are managed consistently, effectively, and in accordance with government policy. \n\nDivision 2—Directions about significant issues \n\n","sortOrder":38},{"sectionNumber":"35","sectionType":"section","heading":"Reporting on significant issues","content":"35  Reporting on significant issues\n\n (1) Where a significant issue arises in the performance of Commonwealth legal work, the entity for which that work is performed must:\n\n (a) report the issue to the Attorney‑General, via OLSC, as soon as practicable after it arises or the entity becomes aware of it; and\n\n (b) update the Attorney-General, via OLSC, on any subsequent developments involving that issue as soon as practicable after they occur or the entity becomes aware of them.\n\nNote: These Directions do not detract from entities’ obligations elsewhere at law regarding how they are to handle personal or sensitive information.\n\n (2) Significant issues include the following:\n\n (a) issues where the size of the claim, the identity of the parties or the nature of the matter raises sensitive legal, political or policy issues;\n\n (b) issues in respect of which a significant level of co-ordination between different Commonwealth agencies is required;\n\n (c) the existence of a dispute or disagreement between 2 or more Commonwealth agencies (other than in a matter arising under legislation that contemplates that such agencies may be on different sides in a dispute);\n\n (d) the existence of a dispute or disagreement with a State or Territory, or a body established for a public purpose by or under a law of a State or Territory;\n\n (e) issues involving formal dispute processes under public international law;\n\n (f) the possibility that a court will make a ruling that would have significant precedential consequences for the Commonwealth;\n\n (g) where there is a reasonable prospect that the Commonwealth, or a Minister or officer of the Commonwealth in their official capacity, will be found liable (including by way of vicarious liability) for:\n\n (i) false imprisonment (however described); or\n\n (ii) misfeasance in public office; or\n\n (iii) the tort of malicious prosecution or conspiracy; or\n\n (iv) any other civil or criminal wrong based on malfeasance, fraud, bad faith or unlawful conduct.\n\n","sortOrder":39},{"sectionNumber":"36","sectionType":"section","heading":"Settling claims and litigation that give rise to significant issues","content":"36  Settling claims and litigation that give rise to significant issues\n\n  Where a significant issue reportable under section 35 arises in the handling of a claim or conduct of litigation, an entity must not settle the claim or litigation without the Attorney-General’s approval.\n\n","sortOrder":40},{"sectionNumber":"Part 5","sectionType":"part","heading":"Claims and litigation","content":"Part 5—Claims and litigation\n\n","sortOrder":41},{"sectionNumber":"37","sectionType":"section","heading":"Simplified outline of this Part","content":"37  Simplified outline of this Part  \n\nThis Part deals with various aspects of how the Commonwealth, and certain Commonwealth entities, are to handle claims and conduct litigation. \n\nDivision 2 deals with the model litigant obligation. This sets out the standards of honesty and fairness that the Commonwealth, and certain Commonwealth entities, must comply with when handling claims and conducting litigation.\n\nDivision 3 deals with claims and litigation by or against the Commonwealth and entities. Amongst other things, it requires entities to handle claims and conduct litigation in accordance with legal principle and practice, and in compliance with the Attorney-General’s instructions.\n\nDivision 4 deals with the obligations of certain corporate Commonwealth entities in respect of claims and litigation, particularly when they become involved in litigation that gives rise to a constitutional issue. \n\nDivision 5 sets out when certain Commonwealth entities must obtain the Attorney-General’s approval before objecting to the jurisdiction of certain State and Territory courts, or submitting or objecting to the exercise of certain powers by other State and Territory bodies.\n\nDivision 6 deals with the circumstances in which entities may use in-house lawyers to conduct court litigation.\n\nDivision 7 sets out how the responsibility for making public interest immunity claims is to be distributed amongst relevant Commonwealth entities.\n\nDivision 8 sets out when entities must plead limitation defences and oppose applications for the extension of limitation periods.\n\n \n\nDivision 2—The model litigant obligation\n\n","sortOrder":42},{"sectionNumber":"38","sectionType":"section","heading":"Simplified outline—who must comply with this Division?","content":"38  Simplified outline—who must comply with this Division?  \n\nThis Division applies to the Commonwealth, and Commonwealth entities other than GBEs. It also applies to some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\n","sortOrder":43},{"sectionNumber":"39","sectionType":"section","heading":"Informational note—policy of this Division","content":"39  Informational note—policy of this Division  \n\nConsistently with the Attorney‑General’s responsibility for the maintenance of proper standards in litigation, the Commonwealth, and Commonwealth entities other than GBEs, are to behave as model litigants in the handling of claims and the conduct of litigation.\n\n","sortOrder":44},{"sectionNumber":"40","sectionType":"section","heading":"The model litigant obligation","content":"40  The model litigant obligation\n\n  The Commonwealth, and a Commonwealth entity other than a GBE:\n\n (a) must handle claims and conduct litigation in accordance with sections 41 to 43 (the model litigant obligation); and\n\n (b) must not start legal proceedings unless satisfied that litigation is the most suitable method of dispute resolution.\n\n","sortOrder":45},{"sectionNumber":"41","sectionType":"section","heading":"Nature of the obligation","content":"41  Nature of the obligation\n\n  The Commonwealth, and a Commonwealth entity other than a GBE, must act honestly and fairly in handling claims and litigation brought by or against it by doing the following:\n\n (a) dealing with claims promptly and not causing unnecessary delay in the handling of claims and litigation;\n\n (b) making an early assessment of:\n\n (i) its prospects of success in legal proceedings that may be brought against it; and\n\n (ii) its potential liability in claims against it;\n\n (c) paying legitimate claims without litigation, including making partial settlements of claims or interim payments, where it is clear that liability is at least as much as the amount to be paid;\n\n (d) acting consistently in the handling of claims and litigation;\n\n (e) endeavouring to avoid or prevent legal proceedings wherever possible, or limit their scope, including by:\n\n (i) giving consideration in all cases to alternative dispute resolution before initiating legal proceedings; and\n\n (ii) participating in alternative dispute resolution processes where appropriate;\n\n (f) where it is not possible to avoid litigation, keeping the costs of litigation to a minimum, including by:\n\n (i) not requiring the other party to prove a matter which it knows to be true; and\n\n (ii) not contesting liability if it knows that the dispute is really about quantum; and\n\n (iii) monitoring the progress of the litigation and using methods that it considers appropriate to resolve the litigation, including settlement offers, payments into court or alternative dispute resolution; and\n\n (iv) ensuring that a person participating in any settlement negotiations on its behalf has the authority to enter into a settlement of the claim or legal proceedings in the course of the negotiations;\n\n (g) not taking advantage of a claimant who lacks the resources to litigate a legitimate claim;\n\n (h) not relying on technical defences unless its interests would be prejudiced by the failure to comply with a requirement;\n\n (i) not appealing a decision unless it believes that the appeal:\n\n (i) has reasonable prospects of success; or\n\n (ii) is otherwise justified in the public interest;\n\n (j) apologising where it is aware that it or its lawyers have acted wrongfully or improperly.\n\nNote 1: The obligation applies to litigation (including before courts, tribunals, inquiries, and in arbitration and other alternative dispute resolution processes) involving the Commonwealth and Commonwealth entities such as Departments, as well as Ministers and officers where the Commonwealth provides a full indemnity in respect of an action for damages brought against them personally. Ensuring compliance with the obligation is primarily the responsibility of the Commonwealth or entity which has responsibility for the litigation. In addition, lawyers engaged in such litigation, whether AGS, in‑house or external, will need to act in accordance with the obligation, and assist their client agency to do so.\n\nNote 2: In essence, being a model litigant requires that the Commonwealth and Commonwealth entities other than GBEs, as parties to litigation, act with complete propriety, fairly and in accordance with the highest professional standards. The expectation that the Commonwealth and entities will act as a model litigant has been recognised by the courts. See, for example, Melbourne Steamship Co Ltd v Moorehead [1912] HCA 69; (1912) 15 CLR 333 at 342; Kenny v State of South Australia [1987] SASC 9905; (1987) 46 SASR 268 at 273; Yong v Minister for Immigration and Multicultural Affairs [1997] FCA 495; (1997) 75 FCR 155.\n\n Note 3: The obligation to act as a model litigant may require more than merely acting honestly and in accordance with the law and court rules. It also goes beyond the requirement for lawyers to act in accordance with their ethical obligations.\n\nNote 4: The obligation does not prevent the Commonwealth or Commonwealth entities from acting firmly and properly to protect their interests. It therefore does not preclude them from:\n\n(a) taking all legitimate steps to pursue their own claims, and testing or defending claims against them; or\n\n(b) pursuing litigation in order to clarify a significant point of law even if the other party wishes to settle the dispute.\n\n The commencement of an appeal may be justified in the public interest where it is necessary to avoid prejudice to the interests of the Commonwealth or Commonwealth entity pending the receipt or proper consideration of legal advice, provided that a decision whether to continue the appeal is made as soon as practicable.\n\n In certain circumstances, it will be appropriate for the Commonwealth or Commonwealth entity to pay costs (for example, for a test case in the public interest).\n\nNote 5: The obligation does not prevent the Commonwealth, or a Commonwealth entity other than a GBE, from enforcing costs orders or seeking to recover its costs.\n\n","sortOrder":46},{"sectionNumber":"42","sectionType":"section","heading":"Merits review proceedings","content":"42  Merits review proceedings\n\n (1) The obligation to act as a model litigant extends to merits review proceedings.\n\n (2) The Commonwealth, and a Commonwealth entity other than a GBE, should use its best endeavours to assist the tribunal to make its decision.\n\nNote: The term litigation is defined in section 4 in terms that encompass merits review before tribunals. There are particular obligations in relation to assisting a tribunal engaged in merits review to arrive at a decision. It is important to pay close attention to the legislation under which a tribunal is established, and any practice directions issued by the tribunal. In the case of the Administrative Review Tribunal, see, in particular, section 56 of the Administrative Review Tribunal Act 2024.\n\n","sortOrder":47},{"sectionNumber":"43","sectionType":"section","heading":"Alternative dispute resolution","content":"43  Alternative dispute resolution\n\n (1) The Commonwealth, or a Commonwealth entity other than a GBE, must not start court proceedings unless they have considered other methods of dispute resolution (for example, alternative dispute resolution or settlement negotiations).\n\n (2) When participating in alternative dispute resolution, the Commonwealth, or a Commonwealth entity other than a GBE, must ensure that its representatives:\n\n (a) participate fully and effectively; and\n\n (b) have authority to settle the matter so as to facilitate appropriate and timely resolution of a dispute.\n\nDivision 3—Claims and litigation by or against the Commonwealth or entities\n\n44  Simplified outline—who must comply with this Division?  \n\n45  Entities must comply with instructions from the Attorney‑General\n\n (1) An entity must comply with any instructions given by the Attorney-General under this subsection about the handling of claims or the conduct of litigation (whether in general or in a specific matter), including:\n\n (a) instructions to provide information about a particular claim or piece of litigation; or\n\n (b) instructions to provide copies of, or access to, material relating to the claim or litigation; or\n\n (c) instructions regarding the arguments that the entity must put to the court, or the lawyers who must act for the entity, in the claim or litigation.\n\nNote 1: The need to give instructions could arise where, for example, constitutional or whole-of-government issues arise, or where the proposed conduct of a matter might be inconsistent with the Attorney‑General’s First Law Officer role (for instance, the Attorney‑General’s responsibility for ensuring that the Commonwealth acts as a model litigant). The entity will be responsible for any costs incurred by it or the lawyers involved in complying with the instruction.\n\nNote 2: Other provisions of these Directions may also be relevant to the handling of a claim by or against the Commonwealth, including the requirements:\n\n(a) to act in accordance with Division 2 (the model litigant obligation); and\n\n(b) to settle monetary claims in accordance with Part 6; and\n\n(c) to engage counsel in accordance with Part 7.\n\n (2) The Attorney‑General may issue guidelines about:\n\n (a) the allocation of responsibility for litigation between entities; and\n\n (b) the handling of litigation where more than one entity may be involved.\n\n","sortOrder":48},{"sectionNumber":"46","sectionType":"section","heading":"Acting in accordance with legal principle and practice","content":"46  Acting in accordance with legal principle and practice\n\n  An entity must handle claims and conduct litigation in accordance with legal principle and practice, taking into account:\n\n (a) the legal rights of the parties; and\n\n (b) the financial risk to the Commonwealth and the entity of pursuing their rights.\n\nNote 1: Some examples of handling claims and conducting litigation in accordance with legal principle and practice are:\n\n(a) acting in the financial interest of the entity and the Commonwealth to defend, fully and firmly, claims where a defence is properly available, subject to the desirability of settling claims wherever possible and appropriate; and\n\n(b) generally enforcing costs orders in favour of the Commonwealth or the entity.\n\nNote 2: In addition to the obligations arising under these Directions, section 11 of the Public Governance, Performance and Accountability Rule 2014 requires accountable authorities of non‑corporate Commonwealth entities to pursue the recovery of debts owing to the Commonwealth.\n\n","sortOrder":49},{"sectionNumber":"47","sectionType":"section","heading":"Disclosure of terms of settlement","content":"47  Disclosure of terms of settlement\n\n (1) An entity may only agree that the terms of a settlement are confidential and cannot be disclosed, or seek to include such a condition in a settlement, if the entity:\n\n (a) satisfies itself (including by raising the matter with a party requesting the condition) that such a condition is necessary to protect the Commonwealth’s interests; and\n\n (b) seeks to incorporate an exception to enable voluntary disclosure of the settlement (in whole or in part) to the Parliament or to a Parliamentary Committee; and\n\n (c) where practicable, consults the responsible Minister before agreeing to a settlement inhibiting voluntary disclosure to the Parliament or to a Parliamentary Committee.\n\n (2) An entity must tell the other party to a confidential settlement that disclosure of the settlement may nevertheless be required by law, and in particular, to the Parliament or to a Parliamentary Committee which has power to compel disclosure.\n\nNote: For example, it may be in the Commonwealth’s interests to agree to a confidential settlement if the Commonwealth seeks to settle a claim against it on the condition that the terms of settlement not be disclosed, with a view to avoiding prejudice in responding to other similar claims against it.\n\n","sortOrder":50},{"sectionNumber":"48","sectionType":"section","heading":"Entities to receive written legal advice before starting court proceedings","content":"48  Entities to receive written legal advice before starting court proceedings\n\n (1) An entity must not start court proceedings unless:\n\n (a) the entity has received written legal advice from lawyers whom the entity is allowed to use in the proceedings indicating that there are reasonable grounds for starting the proceedings; or\n\n (b) in urgent cases—the entity has received oral legal advice from such lawyers that there are reasonable grounds for starting the proceedings.\n\n (2) Where paragraph (1)(b) applies, the entity must obtain written confirmation of the oral advice at the earliest opportunity.\n\n","sortOrder":51},{"sectionNumber":"49","sectionType":"section","heading":"Suppression orders","content":"49  Suppression orders\n\n (1) An entity must not apply for an order to prohibit or restrict the disclosure or publication of evidence or information (a suppression order) in a proceeding unless it considers suppression of the evidence or information to be reasonably necessary to protect the interests of the Commonwealth.\n\n (2) An entity must not apply for a suppression order for the sole purpose of avoiding the disclosure or publication of evidence or information that may be embarrassing to the Commonwealth or a Commonwealth agency.\n\nNote 1: The entity must comply with the relevant rules of court for an application to the court.\n\nNote 2: This section does not prevent an application for a suppression order for evidence or information that may be embarrassing to the Commonwealth or a Commonwealth agency if the application is made in order to protect legitimate Commonwealth interests in accordance with subsection (1).\n\n","sortOrder":52},{"sectionNumber":"Div 4","sectionType":"division","heading":"Obligations of corporate Commonwealth entities with respect to claims and litigation","content":"Division 4—Obligations of corporate Commonwealth entities with respect to claims and litigation\n\n","sortOrder":53},{"sectionNumber":"50","sectionType":"section","heading":"Obligations of corporate Commonwealth entities","content":"50  Obligations of corporate Commonwealth entities\n\n  A corporate Commonwealth entity, other than an entity mentioned in paragraph 7(1)(a) or a GBE, must:\n\n (a) where it becomes involved in litigation (including threatened or proposed litigation) which gives rise to a constitutional issue:\n\n (i) inform the Attorney‑General or OLSC of the details of the litigation; and\n\n (ii) comply with instructions given by the Attorney‑General under this subparagraph concerning the conduct of that litigation (including as to the choice of lawyers to be used and the arguments to be put on constitutional issues); and\n\n (b) inform the Attorney‑General or OLSC of any claim or litigation proposed to be brought against, or involving, another Commonwealth agency.\n\n \n\n","sortOrder":54},{"sectionNumber":"Div 5","sectionType":"division","heading":"Jurisdiction of State and Territory bodies","content":"Division 5—Jurisdiction of State and Territory bodies\n\n","sortOrder":55},{"sectionNumber":"51","sectionType":"section","heading":"Simplified outline—who must comply with this Division?","content":"51  Simplified outline—who must comply with this Division?  \n\nSection 52 applies to:\n\nSection 53 applies to Commonwealth agencies.\n\n","sortOrder":56},{"sectionNumber":"52","sectionType":"section","heading":"Attorney‑General must approve objection to the jurisdiction of State and Territory courts","content":"52  Attorney‑General must approve objection to the jurisdiction of State and Territory courts\n\n  An entity must not object on behalf of the Commonwealth to the jurisdiction of a State or Territory court on the basis that it is not a court authorised under section 56 of the Act without the approval of the Attorney‑General.\n\nNote: The High Court has held that section 56 of the Act does not limit the jurisdiction conferred on State courts by subsection 39(2) of that Act, but enables the Commonwealth to object to a court proceeding which is not authorised under section 56: Breavington v Godleman [1988] HCA 40; (1988) 169 CLR 41. An objection is normally only to be taken if the Commonwealth is prejudiced by the plaintiff’s choice of court (for example, due to the location of witnesses or differences in applicable law).\n\n","sortOrder":57},{"sectionNumber":"53","sectionType":"section","heading":"Attorney‑General must approve submission or objection to the powers of certain State and Territory bodies","content":"53  Attorney‑General must approve submission or objection to the powers of certain State and Territory bodies\n\n  The Commonwealth, or a Commonwealth agency, must not, without the Attorney‑General’s approval:\n\n (a) submit or object to the exercise of compulsory powers or decision-making authority by a State or Territory body that is not a court within the meaning of Chapter III of the Constitution; or\n\n (b) agree to submit or object to the exercise of such powers or authority.\n\nNote 1: The purpose of this provision is to ensure that any engagement with relevant State and Territory bodies is consistent with the position of the Commonwealth on the scope and limitations of its constitutional and statutory powers.\n\nNote 2: Commonwealth agency is defined in section 4 to mean a non-corporate Commonwealth entity, a corporate Commonwealth entity or a Commonwealth company.\n\nDivision 6—Use of in-house lawyers for court litigation\n\n54  Simplified outline—who must comply with this Division?  \n\n55  Use of in‑house lawyers for court litigation\n\n (1) An entity may only use an in‑house lawyer to conduct court litigation as solicitor on the record or as counsel with the Attorney‑General’s approval.\n\n (2) In deciding whether to grant an approval, the Attorney-General must consider whether the entity:\n\n (a) can demonstrate a capacity to conduct the litigation properly and efficiently; and\n\n (b) can conduct the litigation at a lower cost than using external solicitors, taking into account accrual accounting and, where relevant, competitive neutrality principles; and\n\n (c) has a statutory charter which gives it an operation independent of government.\n\nNote: This subsection does not limit the matters that the Attorney-General may take into account.\n\n (3) The entity must comply with any conditions the Attorney-General imposes on an approval.\n\n","sortOrder":58},{"sectionNumber":"Div 7","sectionType":"division","heading":"Public interest immunity","content":"Division 7—Public interest immunity\n\n","sortOrder":59},{"sectionNumber":"56","sectionType":"section","heading":"Simplified outline—who must comply with this Division?","content":"56  Simplified outline—who must comply with this Division?  \n\nThis Division applies to a Commonwealth entity other than a GBE. It also applies to some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\n","sortOrder":60},{"sectionNumber":"57","sectionType":"section","heading":"Public interest immunity","content":"57  Public interest immunity\n\n (1) If:\n\n (a) a Commonwealth entity other than a GBE that is handling litigation (a litigating entity) receives a request or demand to provide documents or information in the conduct of the litigation; and\n\n (b) that request or demand could give rise to a public interest immunity claim (PII claim) for which a non‑corporate Commonwealth entity other than the litigating entity has administrative responsibility (the PII entity);\n\nthe litigating entity must refer the decision as to whether to make the PII claim to the PII entity or the PII entity’s Minister.\n\nNote: The appropriate PII entity or Minister will vary according to the nature of the material, and more than one entity or Minister may need to be involved. The following entities are commonly involved in PII claims:\n\n(a) the Australian Federal Police for some law enforcement matters;\n\n(b) the Attorney‑General’s Department and the Australian Security Intelligence Organisation for national security matters;\n\n(c) the Department of the Prime Minister and Cabinet for Cabinet matters (see also the Cabinet Handbook);\n\n(d) the Department of Foreign Affairs and Trade for matters relating to relations with foreign countries.\n\n For example, in the course of litigation about a contract with a foreign government agency, a Cabinet document relating to international relations might be identified as relevant to the proceedings. In such a case, the litigating entity must refer the document in question to the Departments of the Prime Minister and Cabinet and Foreign Affairs and Trade for decision about any PII claim that might be made.\n\n (2) If another party in litigation is resisting a PII claim, the PII entity must take responsibility for handling that PII claim after consultation with the litigating entity.\n\n (3) If:\n\n (a) a disagreement arises between the PII entity and the litigating entity as to the handling of the PII claim; and\n\n (b) the entities cannot resolve the disagreement;\n\neither the PII entity or the litigating entity must refer the matter to the Attorney‑General or OLSC.\n\n \n\nDivision 8—Reliance on limitation periods\n\n58  Simplified outline—who must comply with this Division?  \n\n59  Reliance on limitation periods\n\nEntity must generally plead limitation period defences and oppose extensions\n\n (1) An entity must plead a defence based on the expiry of an applicable limitation period unless:\n\n (a) the Attorney-General gives approval for the entity not to do so; or\n\n (b) where the entity proposes to settle a claim—the entity:\n\n (i) has obtained legal advice recommending settlement, based (among other things) on an assessment of the plaintiff’s prospects of success regarding the limitation period issue; and\n\n (ii) to the extent that there are perceived to be weaknesses in the plaintiff’s position on that issue—takes those weaknesses into account when determining an appropriate discount to the offer of settlement.\n\nNote: For paragraph (a), approval will normally be given only in exceptional circumstances; for example, where the Commonwealth has through its own conduct contributed to the delay in the plaintiff bringing the claim.\n\n (2) An entity must oppose an application for an extension of a limitation period unless the Attorney-General has given approval to consent to the application.\n\nNote: Approval will normally be given only in exceptional circumstances which would justify not pleading a limitation defence, or where it is expected that the application will succeed (in which case not consenting would be likely to result in unnecessary costs and delay).\n\nMeaning of limitation period\n\n (3) In this section, limitation period means only the initial commencement of court proceedings where the court is exercising original jurisdiction, and not, for example:\n\n (a) a time limit applicable to a procedural step in litigation (such as time for filing a statement of claim or providing discovery); or\n\n (b) a period in which to appeal (for example, from a single Judge of the Federal Court to the Full Court of the Federal Court); or\n\n (c) a time limit that applies to the judicial or merits review of an administrative decision.  \n\n","sortOrder":61},{"sectionNumber":"Part 6","sectionType":"part","heading":"Settling monetary claims","content":"Part 6—Settling monetary claims\n\n","sortOrder":62},{"sectionNumber":"60","sectionType":"section","heading":"Simplified outline—who must comply with this Part?","content":"60  Simplified outline—who must comply with this Part?  \n\nThis Part applies to:\n\nThis Part also applies to accountable authorities of entities, as well as some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\n","sortOrder":63},{"sectionNumber":"61","sectionType":"section","heading":"Purpose of this Part","content":"61  Purpose of this Part\n\nThe purpose of this Part is to set out directions about settling monetary claims. This Part does not confer any power to enter into arrangements or make commitments to spend public money on settling a monetary claim. Rather, it seeks to control the circumstances in which relevant arrangements are entered into or commitments are made.\n\nThese directions also work alongside the various statutory duties to which accountable authorities are subject under the Public Governance, Performance and Accountability Act 2013, including the duty in paragraph 15(1)(a) to promote the proper use and management of public resources.\n\n","sortOrder":64},{"sectionNumber":"62","sectionType":"section","heading":"Claims in respect of which this Part applies","content":"62  Claims in respect of which this Part applies\n\n (1) This Part applies in respect of a monetary claim made by or against the Commonwealth or an entity, if the claim is not required to be determined under a legislative or contractual mechanism.\n\nNote: For example, this Part would not apply in respect of the determination and payment of a Comcare benefit, the arbitration of a disputed contractual right, or an action to obtain or enforce a penalty imposed under Commonwealth legislation.\n\n (2) This Part also applies, with appropriate modifications, in respect of a monetary claim made by or against an eligible person within the meaning of Part 9, where a decision-maker grants an approval mentioned in that Part that covers the costs of settling the claim.\n\nDivision 2—Directions about settling monetary claims\n\n","sortOrder":65},{"sectionNumber":"63","sectionType":"section","heading":"Settling monetary claims involving the Commonwealth or an entity","content":"63  Settling monetary claims involving the Commonwealth or an entity\n\n (1) An entity must not settle a monetary claim involving it or the Commonwealth except in accordance with this Part.\n\n (2) To avoid doubt, this Part applies in addition to, and does not override, section 36 (settling claims and litigation that give rise to significant issues).\n\nNote: Section 36 requires that, where a significant issue arises in the handling of a claim or conduct of litigation, an entity must not settle the claim or litigation without the Attorney-General’s approval.\n\n","sortOrder":66},{"sectionNumber":"64","sectionType":"section","heading":"Criteria for settling monetary claims against the Commonwealth or an entity","content":"64  Criteria for settling monetary claims against the Commonwealth or an entity\n\n (1) An entity must not settle a monetary claim brought against the Commonwealth or the entity unless the settlement is in accordance with legal principle and practice and either:\n\n (a) there is at least a meaningful prospect of liability being established against the Commonwealth or the entity; or\n\n (b) both of the following apply:\n\n (i) the entity and the claimant have agreed to the claim being dismissed, discontinued, or otherwise resolved;\n\n (ii) neither the Commonwealth nor the entity gives any financial commitments to the claimant, or makes any financial concessions (other than agreeing not to seek a costs order against the claimant).\n\n (2) To avoid doubt, it is not consistent with subsection (1) for an entity to settle a clearly spurious claim merely to avoid the cost of defending it, unless paragraph (1)(b) could be relied on.\n\n (3) If there is a meaningful prospect of liability, for the settlement to be in accordance with legal principle and practice, the factors that the entity must take into account in assessing a fair settlement amount include:\n\n (a) the prospects of the claim succeeding in court; and\n\n (b) the costs of continuing to defend the claim; and\n\n (c) any prejudice to the Commonwealth in continuing to defend the claim.\n\nNote: For example, prejudice to the Commonwealth may include risks of disclosing confidential Commonwealth information.\n\nSettlements not exceeding $100,000\n\n (4) If the settlement amount for the claim together with any related claims would not exceed $100,000, the accountable authority, or their delegate, may approve the settlement if the accountable authority (or delegate) is satisfied, on a common-sense basis, that the settlement is in accordance with legal principle and practice.\n\nSettlements exceeding $100,000\n\n (5) If the settlement amount for the claim together with any related claims would exceed $100,000, the accountable authority, or their delegate, may approve the settlement if:\n\n (a) the entity obtains written advice from AGS, an external legal services provider or counsel confirming that the settlement is in accordance with legal principle and practice; and\n\n (b) the accountable authority (or delegate) agrees with the settlement.\n\n","sortOrder":67},{"sectionNumber":"65","sectionType":"section","heading":"Criteria for settling monetary claims commenced by the Commonwealth or an entity","content":"65  Criteria for settling monetary claims commenced by the Commonwealth or an entity\n\n (1) If an entity settles a monetary claim brought by the Commonwealth or the entity:\n\n (a) it must do so in accordance with legal principle and practice; and\n\n (b) it must consider that the settlement is in the interests of the Commonwealth.\n\n (2) For the purposes of subsection (1), the factors that the entity must take into account in assessing a fair settlement amount include:\n\n (a) the prospects of the claim succeeding in court; and\n\n (b) the costs of continuing to pursue the claim; and\n\n (c) any prejudice to the Commonwealth in continuing to pursue the claim.\n\nNote: For example, prejudice to the Commonwealth may include risks of disclosing confidential Commonwealth information.\n\nConcessions not exceeding $100,000\n\n (3) If the settlement amount for the claim together with any related claims would involve a concession by the Commonwealth or the entity that does not exceed $100,000, the accountable authority of the entity, or their delegate, may approve the settlement if the accountable authority (or delegate) is satisfied, on a common-sense basis, that the settlement is in accordance with legal principle and practice.\n\nConcessions exceeding $100,000\n\n (4) If the settlement amount for the claim together with any related claims would involve a concession by the Commonwealth or the entity that exceeds $100,000, the accountable authority of the entity, or their delegate, may approve the settlement if:\n\n (a) the entity obtains written advice from AGS, an external legal services provider or counsel confirming that the settlement is in accordance with legal principle and practice; and\n\n (b) the accountable authority (or delegate) agrees with the settlement.\n\nNote: In subsections (3) and (4), the value of a concession by the Commonwealth or an entity refers to the difference between the total settlement sum and the lesser of the following:\n\n(a) the amount claimed by the Commonwealth or entity;\n\n(b) the amount that the Commonwealth or entity’s legal representatives assess would be payable to the Commonwealth or entity if its claim were successful.             \n\n","sortOrder":68},{"sectionNumber":"66","sectionType":"section","heading":"Exceptional circumstances—referral to OLSC","content":"66  Exceptional circumstances—referral to OLSC\n\n  If an entity considers that a claim raises exceptional circumstances that justify a departure from section 64 or 65, it must refer the matter to OLSC.\n\n","sortOrder":69},{"sectionNumber":"67","sectionType":"section","heading":"Release and indemnity","content":"67  Release and indemnity\n\n (1) If an entity settles a monetary claim, it must do so on terms that include a condition that the claimant:\n\n (a) signs a suitable release; and\n\n (b) if appropriate—provides an indemnity against any claims by third parties arising from the event that gave rise to the settlement.\n\n (2) Subsection (1) does not apply if:\n\n (a) the claimant is the Commonwealth or an entity; or\n\n (b) the entity is satisfied that exceptional circumstances apply to the monetary claim or settlement that justify settling on terms that do not include a suitable release or an indemnity.\n\n \n\n","sortOrder":70},{"sectionNumber":"Part 7","sectionType":"part","heading":"Engagement of Counsel","content":"Part 7—Engagement of Counsel\n\n","sortOrder":71},{"sectionNumber":"68","sectionType":"section","heading":"Simplified outline—who must comply with this Part?","content":"68  Simplified outline—who must comply with this Part? \n\nThis Part applies to a Commonwealth entity other than a GBE. It also applies to some other persons or bodies in certain circumstances: see Division 2 of Part 1. \n\n","sortOrder":72},{"sectionNumber":"69","sectionType":"section","heading":"Commonwealth policy on selecting and engaging counsel","content":"69  Commonwealth policy on selecting and engaging counsel\n\nThe Commonwealth’s policy is to seek to rely on its position as a major purchaser of legal services in agreeing the rates payable to counsel engaged by or on behalf of the Commonwealth or a Commonwealth entity other than a GBE.\n\nEngaging entities and their legal services providers, when selecting counsel, are encouraged to consider a broad range of candidates, including:\n\n (a) women counsel; and\n\n (b) counsel who identify as LGBTIQA+; and\n\n (c) counsel who identify as First Nations; and\n\n (d) counsel who identify as culturally and linguistically diverse; and\n\n (e) counsel with disability.\n\nSubject to compliance with this Part, the choice of counsel is a matter for the engaging entity, taking into account any advice from its legal services provider.\n\nEngaging entities or their instructing solicitors should inform OLSC if they have any concerns about the operation of this Part (whether in general, or as it applies to a specific matter).\n\n","sortOrder":73},{"sectionNumber":"70","sectionType":"section","heading":"Engagements to which this Part applies","content":"70  Engagements to which this Part applies\n\n  This Part applies to the engagement of counsel by or on behalf of a Commonwealth entity other than a GBE (an engaging entity), including:\n\n (a) engagements in respect of litigation; and\n\n (b) briefs to advise.\n\nNote 1: Litigation is defined in section 4 to include proceedings before courts, tribunals, inquiries, in arbitration and other alternative dispute resolution processes, and the preparation for such proceedings.\n\nNote 2: See section 4 for the definition of counsel, which:\n\n(a) includes a legal practitioner who is engaged as counsel to provide legal services; and\n\n(b) does not include a legal practitioner who is engaged in any other capacity to provide legal services.\n\n Each jurisdiction has laws limiting who is entitled to engage in legal practice. In some jurisdictions, for instance, a person may be admitted as a barrister and solicitor, and may practise as both. \n\n A reference to counsel extends to a legal practitioner who, although not from the bar, is engaged as counsel to conduct or advise on litigation. It does not extend, for example, to a legal practitioner who is engaged to provide advice in their capacity as a solicitor.\n\n \n\n \n\nDivision 2—Engagement of counsel\n\n","sortOrder":74},{"sectionNumber":"71","sectionType":"section","heading":"Content of briefs—model litigant obligation","content":"71  Content of briefs—model litigant obligation\n\n  An engaging entity must ensure that a brief to counsel in a matter to which Division 2 of Part 5 (the model litigant obligation) applies:\n\n (a) encloses a copy of that Division; and\n\n (b) instructs counsel to comply with it.\n\n","sortOrder":75},{"sectionNumber":"72","sectionType":"section","heading":"Content of briefs—rates","content":"72  Content of briefs—rates\n\n  An engaging entity must either:\n\n (a) mark briefs with an hourly rate up to a maximum daily rate inclusive of conferences, consultations, preparation and other necessary work; or\n\n (b) mark a “fee on brief” (inclusive of preparation time), if it considers this more economical than paying a fee based on counsel’s agreed hourly or daily rate.\n\n","sortOrder":76},{"sectionNumber":"73","sectionType":"section","heading":"Content of briefs—bankruptcy","content":"73  Content of briefs—bankruptcy \n\n (1) An engaging entity must ensure that a brief requires counsel to:\n\n (a) warrant that they have not, at any time, become bankrupt; or\n\n (b) if they have:\n\n (i) inform the entity of the bankruptcy; and\n\n (ii) inform the entity whether a professional body has made an adverse disciplinary finding about the circumstances of that bankruptcy.\n\n (2) The entity must not, except with the Attorney‑General’s approval, engage counsel where:\n\n  (a) that counsel has, at any time, become bankrupt; and\n\n (b) a professional body has made an adverse disciplinary finding about the circumstances of that bankruptcy.\n\n","sortOrder":77},{"sectionNumber":"74","sectionType":"section","heading":"Directions about the selection of counsel","content":"74  Directions about the selection of counsel\n\n (1) An engaging entity must ensure that:\n\n (a) counsel are selected for their skill and competence; and\n\n (b) the entity’s process for selecting counsel takes into account the interests of the Commonwealth in securing suitable and expert counsel in a particular case, but not in a manner which results in only a narrow pool of counsel being used for any particular category of Commonwealth legal work; and\n\n (c) the entity considers a broad range of candidates for potential engagement, including, to the extent practicable:\n\n (i) counsel of diverse gender identity, sexual orientation, race or religion; and\n\n (ii) counsel with disability; and\n\n (iii) counsel who identify as First Nations.\n\n (2) An engaging entity must ensure that, in the selection of counsel, all reasonable endeavours are made to:\n\n (a) identify a range of counsel in the relevant practice area; and\n\n (b) genuinely consider engaging such counsel; and\n\n (c) regularly monitor and review its processes for engaging counsel; and\n\n (d) select women counsel with relevant seniority, expertise and experience in the relevant practice area, with a view to women counsel accounting for:\n\n (i) at least 40% of all the entity’s briefs; and\n\n (ii) at least 40% of the total value of all the entity’s briefs.\n\nNote: Entities are encouraged to publish annually, in a manner that does not disclose the rates paid to individual counsel, information that makes it possible to assess whether the entity is meeting the target in paragraph (2)(d).\n\n","sortOrder":78},{"sectionNumber":"75","sectionType":"section","heading":"Daily rates and other fees payable to counsel","content":"75  Daily rates and other fees payable to counsel\n\nDaily rate thresholds\n\n (1) An engaging entity must not, without the Attorney-General’s approval:\n\n (a) pay senior counsel a daily rate above $5,000 (inclusive of GST); or\n\n (b) pay junior counsel a daily rate above $3,300 (inclusive of GST);\n\nas indexed in accordance with section 80.\n\nNote: The indexed amounts would be published on the Attorney‑General’s Department’s website (https://www.ag.gov.au).\n\nCancellation fees\n\n (2) An engaging entity must not:\n\n (a) pay a cancellation fee to counsel other than where:\n\n (i) counsel has been engaged for trial; and\n\n (ii) there are exceptional circumstances that warrant the payment of the fee; or\n\n (b) agree to pay a cancellation fee contrary to paragraph (a).\n\nNote: For example, there might be exceptional circumstances warranting the payment of a cancellation fee where a matter is resolved shortly before a lengthy trial.\n\n (3) Any such fee:\n\n (a) must be agreed at the time counsel is engaged for trial; and\n\n (b) must not, without the Attorney-General’s approval, exceed the equivalent of 2 days of counsel’s agreed daily rate.\n\nPaying retainers to counsel\n\n (4) An engaging entity must not agree to pay a retainer to counsel concerning their availability for future matters, both new and renewed, unless:\n\n (a) it considers this to be justified in the particular case; and\n\n (b) the Attorney‑General has approved the terms of the proposed agreement.\n\n","sortOrder":79},{"sectionNumber":"76","sectionType":"section","heading":"Negotiating hourly rates","content":"76  Negotiating hourly rates  \n\n  When agreeing to a daily rate with counsel, an engaging entity must also negotiate an appropriate hourly rate, having regard to:\n\n (a) the nature and complexity of the brief; and\n\n (b) securing value for money for the entity.\n\n","sortOrder":80},{"sectionNumber":"77","sectionType":"section","heading":"Other matters regarding counsel fees","content":"77  Other matters regarding counsel fees \n\n (1) An engaging entity must not treat the daily rates mentioned in subsection 75(1) as the standard or starting point for negotiations.\n\nNote: In many cases, the normal market rates of counsel may be less than the threshold rates.\n\n (2) An engaging entity must not pay counsel more than the reasonable costs of accommodation or travel, taking into account the accommodation and travel allowances for Senior Executive Service officers in the Australian Public Service.\n\n","sortOrder":81},{"sectionNumber":"78","sectionType":"section","heading":"Entity must give information to OLSC","content":"78  Entity must give information to OLSC\n\n  An engaging entity must, upon request, give OLSC information or access to information about the engagement of all or certain counsel.\n\n","sortOrder":82},{"sectionNumber":"79","sectionType":"section","heading":"Seeking approvals regarding counsel rates","content":"79  Seeking approvals regarding counsel rates\n\n (1) If an engaging entity seeks an approval mentioned in section 75, it must:\n\n (a) request that approval as far as possible in advance of the scheduled date for the delivery of a brief to counsel; and\n\n (b) direct the request to OLSC.\n\n (2) In deciding a request to pay counsel above a rate specified in section 75, the following factors will be taken into account:\n\n (a) the special expertise or skill of the counsel who is proposed to be engaged;\n\n (b) the availability of counsel generally to appear in the matter;\n\n (c) the probable total cost of counsel’s fees in the matter;\n\n (d) the specific request of an engaging entity that a particular person be engaged and the reasons for that preference;\n\n (e) the importance of the matter, including any special sensitivity;\n\n (f) the normal market daily rate at which the relevant counsel is briefed.\n\n (3) If:\n\n (a) an engaging entity has obtained an approval to pay a daily rate in excess of a limit in subsection 75(1); and\n\n (b) the approval describes that rate as a “one‑off” rate;\n\nthe entity must, if it seeks to pay that rate to the same counsel in a subsequent case, seek a further approval in accordance with this section.\n\n","sortOrder":83},{"sectionNumber":"80","sectionType":"section","heading":"Indexing daily rate thresholds","content":"80  Indexing daily rate thresholds   \n\n (1) Starting on 1 July 2027, an amount mentioned in paragraph 75(1)(a) or (b), or such an amount as previously indexed in accordance with this section, is to be indexed on the first day of every second financial year (the indexation year) by:\n\n (a) multiplying the amount by the indexation factor for 1 June in the financial year 2 years before the indexation year; and\n\n (b) multiplying the amount resulting from paragraph (a) by the indexation factor for 1 June in the financial year that immediately preceded the indexation year; and\n\n (c) rounding the result to the nearest $100.\n\nNote: The indexed amounts would be published on the Attorney‑General’s Department’s website (https://www.ag.gov.au).\n\n (2) The indexation factor for 1 June in a financial year is the number worked out as follows:\n\nMethod statement\n\nStep 1. Add:\n\n (a) the index number for the quarter ending on 31 March in that financial year; and\n\n (b) the index numbers for the 3 quarters that immediately preceded that quarter.\n\nStep 2. Add:\n\n (a) the index number for the quarter ending on 31 March in the immediately preceding financial year; and\n\n (b) the index numbers for the 3 quarters that immediately preceded that quarter.\n\nStep 3. The indexation factor for 1 June in the financial year is the amount under step 1 divided by the amount under step 2.\n\n (3) The indexation factor is to be worked out to 3 decimal places, rounding up if the fourth decimal place is 5 or more.\n\n (4) If the indexation factor would be less than 1, it is to be increased to 1.\n\n","sortOrder":84},{"sectionNumber":"81","sectionType":"section","heading":"Meaning of index number","content":"81  Meaning of index number\n\n (1) The index number for a quarter is the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.\n\n (2) Subject to subsection (3), if, at any time before or after the commencement of these Directions:\n\n (a) the Australian Statistician has published or publishes an index number in respect of a quarter; and\n\n (b) that index number is in substitution for an index number previously published by the Australian Statistician in respect of that quarter;\n\ndisregard the publication of the later index number for the purposes of this section.\n\n (3) If, at any time before, upon or after the commencement of these Directions, the Australian Statistician has changed or changes the index reference period for the Consumer Price Index, then, for the purposes of applying this section after the change took place or takes place, have regard only to index numbers published in terms of the new index reference period.\n\n","sortOrder":85},{"sectionNumber":"Part 8","sectionType":"part","heading":"Procurement of external legal services providers","content":"Part 8—Procurement of external legal services providers\n\n","sortOrder":86},{"sectionNumber":"82","sectionType":"section","heading":"Simplified outline—who must comply with this Part?","content":"82  Simplified outline—who must comply with this Part?  \n\nThis Part applies to a Commonwealth entity other than a GBE. It also applies to some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\n","sortOrder":87},{"sectionNumber":"83","sectionType":"section","heading":"Meaning of pro bono legal work","content":"83  Meaning of pro bono legal work  \n\n  In these Directions, pro bono legal work has the same meaning as “pro bono legal services” in the Australian Pro Bono Manual: A practice guide and resource kit for law firms developed by the Australian Pro Bono Centre, as it stood at the time this instrument was made.\n\nNote: The Australian Pro Bono Manual: A practice guide and resource kit for law firms was, in 2025, available on the Australian Pro Bono Centre’s website (https://www.probonocentre.org.au).\n\nDivision 2—Procurement of external legal services providers\n\n","sortOrder":88},{"sectionNumber":"84","sectionType":"section","heading":"Pro bono and other matters to be taken into account in selecting external legal services providers","content":"84  Pro bono and other matters to be taken into account in selecting external legal services providers\n\n (1) A Commonwealth entity other than a GBE must take the following matters into consideration when determining whether to engage a particular external legal services provider to undertake Commonwealth legal work:\n\n (a) the amount and kind of pro bono legal work the provider has undertaken or will undertake;\n\n (b) whether the provider has signed up to the National Pro Bono Target of the Australian Pro Bono Centre.\n\nNote: Information about the National Pro Bono Target was, in 2025, available on the Australian Pro Bono Centre’s website (https://www.probonocentre.org.au).\n\n (2) Subsection (1) does not limit the matters that may be taken into consideration.\n\n","sortOrder":89},{"sectionNumber":"85","sectionType":"section","heading":"Obligation to provide assistance, documents and information","content":"85  Obligation to provide assistance, documents and information\n\n  A Commonwealth entity other than a GBE must:\n\n (a) provide all reasonable assistance in response to an inquiry from the Attorney‑General or the Attorney‑General’s Department in relation to its procurement of legal services from an external legal services provider; and\n\n (b) without limiting paragraph (a)—comply with any request for a document or information relating to its procurement of legal services from an external legal services provider, where the request is made by the Attorney‑General or a person authorised by the Attorney‑General for the purposes of subsection 55ZH(2) of the Act.\n\n","sortOrder":90},{"sectionNumber":"Part 9","sectionType":"part","heading":"Assistance to eligible Commonwealth employees and officials in legal proceedings etc","content":"Part 9—Assistance to eligible Commonwealth employees and officials in legal proceedings etc\n\n","sortOrder":91},{"sectionNumber":"86","sectionType":"section","heading":"Simplified outline—who must comply with this Part?","content":"86  Simplified outline—who must comply with this Part?\n\nThis Part applies to the following persons and bodies:\n\n(a) an entity;\n\n(b) the accountable authority of an entity;\n\n(c) a Minister of the Commonwealth.\n\nEntity means a non-corporate Commonwealth entity, and the corporate Commonwealth entities mentioned in paragraph 7(1)(a).\n\n","sortOrder":92},{"sectionNumber":"87","sectionType":"section","heading":"Purpose of this Part","content":"87  Purpose of this Part\n\nThis Part deals with the provision of financial assistance to certain individuals who are involved in legal proceedings, inquests or inquiries, or are responding to compulsory notices, arising out of the performance of their official roles.\n\nThis Part does not confer the power to spend or grant indemnities\n\nProviding financial assistance will involve approving expenditure, and, potentially, granting indemnities. This Part regulates how these things are to be done, but does not confer the power to do them; that power must be found elsewhere. For instance, for a decision-maker in a non-corporate Commonwealth entity:\n\n(a) section 23 of the Public Governance, Performance and Accountability Act 2013 may confer the necessary authority to spend; and\n\n(b) section 60 of that Act may confer the authority to grant an indemnity.  \n\nThe purpose of this Part is to guide decision-makers in the exercise of powers to spend and grant indemnities, including by specifying:\n\n(a) the kinds of circumstances in which they may or must not approve the provision of assistance; and\n\n(b) the kinds of factors they must take into account when doing so; and\n\n(c) the kinds of conditions they must consider placing on approvals.\n\n","sortOrder":93},{"sectionNumber":"88","sectionType":"section","heading":"Key terms","content":"88  Key terms\n\n  In this Part:\n\ncompulsory notice means:\n\n (a) a subpoena; or\n\n (b) any other notice, however described, requiring a person to provide information or documents, answer questions, or give evidence.\n\neligible person: if this Part applies in respect of a request by an individual as a result of section 89, that individual is an eligible person.\n\nentity to which this Part applies, in relation to an individual who makes a request for financial assistance, means:\n\n (a) an entity; or\n\n (b) a Commonwealth agency other than an entity, if that agency (or the part of the agency to which the individual’s duties related) had become an entity (or part of thereof) by the time the request for assistance was made.\n\ngrant an approval means approve the provision of financial assistance mentioned in section 89.\n\nofficial has the meaning given by section 13 of the Public Governance, Performance and Accountability Act 2013.\n\nproceeding to which this Part applies means:\n\n (a) a civil or criminal proceeding (including a potential proceeding); or\n\n (b) an inquest or inquiry; or\n\n (c) responding to a compulsory notice.\n\nresponsible entity means the person or body with responsibility for assistance sought by, or provided to, an eligible person.\n\nNote: In most cases, the responsible entity for an eligible person will be the Commonwealth.\n\nstatutory office-holder has the meaning given by subsection 14(3) of the Public Service Act 1999.\n\n","sortOrder":94},{"sectionNumber":"89","sectionType":"section","heading":"Requests to which this Part applies","content":"89  Requests to which this Part applies   \n\n  This Part applies to a request by an individual for financial assistance if:\n\n (a) the request relates to a proceeding to which this Part applies; and\n\n (b) the individual, at the time of the event or occurrence that gave rise to the proceeding:\n\n (i) was employed by a Minister on behalf of the Commonwealth as a member of the Minister’s staff under the Members of Parliament (Staff) Act 1984; or\n\n (ii) was employed in an entity to which this Part applies; or\n\n (iii) was an accountable authority or member of an accountable authority of an entity to which this Part applies; or\n\n (iv) was a statutory office-holder who was an official of an entity to which this Part applies; and\n\n (c) the proceeding arose out of, or in connection with, the individual’s performance (or non-performance) of the role mentioned in paragraph (b).\n\nNote: For paragraph (c), for a person who is employed by a Minister on behalf of the Commonwealth as a member of the Minister’s staff under the Members of Parliament (Staff) Act 1984, the person’s role refers to their duties assisting the Minister in performing ministerial duties.\n\n","sortOrder":95},{"sectionNumber":"90","sectionType":"section","heading":"Matters outside the scope of this Part","content":"90  Matters outside the scope of this Part\n\nRequests under particular legislation or schemes\n\n (1) This Part does not apply to financial assistance under:\n\n (a) section 73 of the Public Service Act 1999; or\n\n (b) the Special Circumstances Scheme administered by the Attorney-General’s Department; or\n\n (c) other similar schemes.\n\nNote 1: Section 73 of the Public Service Act 1999 enables the Public Service Minister to authorise the making of payments to a person if the Minister considers it appropriate to do so because of special circumstances that relate to, or arise out of:\n\n(a) the payee’s employment by the Commonwealth; or\n\n(b) another person’s employment by the Commonwealth.\n\n This may, for example, permit the reimbursement of certain legal costs incurred by employees.\n\nNote 2: The Special Circumstances Scheme deals with the provision of financial assistance to employees for legal costs and related expenses in various circumstances where no other scheme is available. Funding in respect of proceedings brought by or against the employee may be provided, in accordance with the criteria specified in the guidelines for the Scheme. In 2025, information about the scheme was available on the Attorney-General’s Department’s website (https://www.ag.gov.au).\n\nTypes of challenges and proceedings \n\n (2) This Part does not apply to a request for financial assistance in respect of:\n\n (a) an administrative law challenge that does not include a claim for damages; or \n\n (b) a disciplinary proceeding against an eligible person that is initiated by, or on behalf of, the responsible entity.\n\nNote: For paragraph (a), the costs of defending administrative law challenges are paid by the Commonwealth. However, where an administrative law challenge is coupled with a damages claim, this Part may apply in respect of the damages claim.\n\nDivision 2—Who is the decision-maker?\n\n","sortOrder":96},{"sectionNumber":"91","sectionType":"section","heading":"Decision-maker","content":"91  Decision-maker\n\nDecision-maker needs the power to grant the underlying approvals\n\n (1) The person who decides a request for assistance (the decision-maker) must be a person who holds the power to approve any expenditure and grant any indemnities necessary to provide that assistance.\n\nNote: Providing legal assistance involves approving expenditure, and, in some cases, granting indemnities. It will be necessary to consider who has the power elsewhere at law to do these things in each case.\n\n For a non-corporate Commonwealth entity, the authority to spend may stem from the executive power. This might be exercised by the accountable authority (see, for example, section 23 of the Public Governance, Performance and Accountability Act 2013), or, in some instances, a Minister in the relevant portfolio.\n\n For a non-corporate Commonwealth entity, the authority to approve indemnities might be found in section 60 of the Public Governance, Performance and Accountability Act 2013 (which is held by the Finance Minister, but may be delegated to certain persons under section 107 of that Act).\n\nDecision-maker is usually the accountable authority or Minister\n\n (2) Unless subsection (1) requires otherwise, the decision-maker must be the following person:\n\n (a) for requests involving a current or former employee, or a former statutory office-holder or accountable authority of an entity—the current accountable authority of the relevant entity;\n\n (b) for a current statutory office-holder or accountable authority—a Minister in the relevant portfolio;\n\n (c) for an employee mentioned in subparagraph 89(b)(i)—the Minister with responsibility for the Members of Parliament (Staff) Act 1984, subject to the condition that the Minister must consult with the Attorney‑General before making a decision.\n\nSubstitute when ordinary decision-maker cannot act\n\n (3) If the decision-maker mentioned in subsection (2):\n\n (a) has a conflict of interest; or\n\n (b) would not be an appropriate person to consider a particular request for any other reason; or\n\n (c) does not have the power to approve the relevant expenditure or grant the relevant indemnity (see subsection (1)); \n\nthe responsible entity must refer the request to a person mentioned in subsection (4).\n\n (4) Where subsection (3) applies, then, subject to subsection (1), the request must be referred to:\n\n (a) a relevant portfolio Minister, if the decision-maker would otherwise have been an accountable authority; or\n\n (b) the Attorney-General or a person chosen by the Attorney-General, if the decision-maker would otherwise have been a Minister.\n\nNote: So far as possible, requests should be considered in a timely and responsive manner. While it may be necessary to seek further information from an applicant or defer a decision on assistance, decision‑makers and responsible entities should use their best endeavours to provide certainty to individuals about the status and outcome of requests for assistance.\n\nDivision 3—General rules: when approvals must not be granted \n\n","sortOrder":97},{"sectionNumber":"92","sectionType":"section","heading":"Cases in which decision-maker must not grant approval","content":"92  Cases in which decision-maker must not grant approval  \n\n  A decision-maker must not grant an approval in respect of the following:\n\n (a) activities undertaken by an individual for a corporate Commonwealth entity or Commonwealth company, to the extent that the individual is indemnified or insured by the entity or company in respect of those activities;\n\n (b) a defamation proceeding commenced by an eligible person;\n\n (c) an action commenced by an eligible person relating to alleged defamation, including assistance to uphold the person’s reputation, to challenge comments damaging to their reputation, or to obtain an apology;\n\n (d) a legal proceeding in respect of an event (for instance, a motor vehicle accident) for which an eligible person has, or ought to have had, insurance coverage.\n\nNote: For paragraphs (b) and (c), an approval must not be granted even if the employee offers to pay the responsible entity any damages they may receive.\n\n","sortOrder":98},{"sectionNumber":"93","sectionType":"section","heading":"Cases in which decision-maker needs Attorney-General’s approval—challenges to validity or conduct of inquiries","content":"93  Cases in which decision-maker needs Attorney-General’s approval—challenges to validity or conduct of inquiries\n\n  A decision-maker must not grant an approval for a challenge to the validity or conduct of an inquiry without the Attorney-General’s approval.\n\nNote: Applications for the Attorney‑General’s approval should, in the first instance, be made to OLSC.\n\nDivision 4—General rules: what financial assistance may be granted?\n\n","sortOrder":99},{"sectionNumber":"94","sectionType":"section","heading":"Types of costs that may be approved","content":"94  Types of costs that may be approved \n\n (1) An approval may only cover costs of the following kinds:\n\n (a) the costs of an eligible person’s legal representation in connection with:\n\n (i) the proceedings, inquest or inquiry; or\n\n (ii) responding to the compulsory notice;\n\n (b) other costs (such as travel costs) related to the person’s involvement in the proceedings, inquest or inquiry, or to the process of responding to the compulsory notice;\n\n (c) the amount of any award of costs against the person;\n\n (d) an amount payable by the person in settlement of proceedings; \n\n (e) the amount of any damages awarded against, or fines or penalties imposed on, the person.\n\nNote: Of the types of assistance mentioned in this subsection, paragraph (1)(e) is most likely to involve the grant of an indemnity (to which, for a non-corporate Commonwealth entity, section 60 of the Public Governance, Performance and Accountability Act 2013 may be relevant).\n\n (2) An approval does not apply to an appeal, or consideration of a possible appeal, unless expressly stated in the approval.\n\n","sortOrder":100},{"sectionNumber":"95","sectionType":"section","heading":"Amount of assistance that may be approved","content":"95  Amount of assistance that may be approved\n\n (1) For costs mentioned in paragraphs 94(1)(a) to (d), a decision-maker may only grant an approval to pay an amount that is reasonable, having regard to the nature of the proceedings, inquest, inquiry or compulsory notice in question.\n\n (2) When granting an approval that covers the costs of an eligible person’s legal representation, the decision-maker must ensure that any costs approved for counsel fees are consistent with Part 7 (engagement of counsel).\n\nNote: For instance, the amount approved must not be premised on counsel being paid a daily rate that would exceed the caps in section 75 without the Attorney-General’s approval.\n\nDivision 5—The decision-making process: considerations relevant to grant of approvals\n\n","sortOrder":101},{"sectionNumber":"96","sectionType":"section","heading":"Granting approvals—the primary consideration","content":"96  Granting approvals—the primary consideration  \n\nProvision of assistance is of some benefit to the responsible entity\n\n (1) In deciding whether to grant an approval, the decision-maker must take into account, as the primary consideration, that the provision of financial assistance would be of some benefit to the responsible entity.\n\nCircumstances in which there would usually be a relevant benefit\n\n (2) The provision of financial assistance would generally be of some benefit to the responsible entity where it would protect:\n\n (a) the entity’s financial interests (in particular, its interest in avoiding or limiting any vicarious liability); or\n\n (b) the entity’s general interests (in particular, its interest in acting properly as an employer in supporting individuals who have acted reasonably and responsibly).\n\nCircumstances in which there would usually not be a relevant benefit \n\n (3) The provision of financial assistance would generally not be of some benefit to the responsible entity where it is likely that, if an action were to be brought against the entity in relation to the event or occurrence that gave rise to the proceeding to which this Part applies, the entity would seek a contribution or indemnity from the individual in question.\n\nNote: Subsection (3) would be relevant where, for example, the individual’s conduct involved serious or wilful misconduct or culpable negligence.\n\n","sortOrder":102},{"sectionNumber":"97","sectionType":"section","heading":"Refusing an application where the eligible person failed to give notice in reasonable time","content":"97  Refusing an application where the eligible person failed to give notice in reasonable time\n\n  A decision-maker must consider refusing to grant an approval where:\n\n (a) the eligible person failed to notify the responsible entity of the proceeding, inquest, inquiry or compulsory notice within a reasonable time of becoming aware of it; and\n\n (b) the delay may prejudice the entity’s position.\n\n","sortOrder":103},{"sectionNumber":"Div 6","sectionType":"division","heading":"The decision-making process: deferral, conditions and consultation","content":"Division 6—The decision-making process: deferral, conditions and consultation\n\n","sortOrder":104},{"sectionNumber":"98","sectionType":"section","heading":"Deferral of approvals","content":"98  Deferral of approvals\n\n (1) A decision-maker must consider whether it is appropriate, in the circumstances, to defer all or part of a decision to grant an approval.\n\nNote: For instance, deferral may be appropriate where the decision-maker does not have enough information to give the request proper consideration, or to be satisfied that granting an approval would be consistent with this Part, but has reason to believe that the necessary information will become available in due course.\n\n (2) Where a request relates to criminal proceedings, the decision-maker must, unless they consider this inappropriate in the circumstances, defer the decision as to whether to grant an approval to the eligible person for any damages, fines, penalties or costs awarded against them until the proceedings are concluded.\n\nParties must have separate representation while decision deferred\n\n (3) Where:\n\n (a) a decision is wholly or partly deferred; and\n\n (b) the responsible entity is or becomes a party to the proceedings, inquest, inquiry or the matter giving rise to the compulsory notice in question;\n\nthe entity must not, during the deferral period, have the same legal representation as the eligible person.\n\n","sortOrder":105},{"sectionNumber":"99","sectionType":"section","heading":"Placing conditions on approvals","content":"99  Placing conditions on approvals\n\n (1) A decision-maker must consider whether it is appropriate, in the circumstances, to place conditions on an approval.\n\nNote: This will be subject to the decision-maker having the power elsewhere at law to place such conditions on the approval (for instance, through an agreement with the eligible person entered pursuant to section 23 of the Public Governance, Performance and Accountability Act 2013, or as part of a statutory power to grant an indemnity).  \n\nCondition relating to consultation\n\n (2) A decision‑maker must, where appropriate, place a condition on an approval that requires the eligible person to consult the responsible entity about the disclosure or non-disclosure of official documents or information in relation to the proceeding to which this Part applies.\n\nConditions relating to compliance with Part 6\n\n (3) A decision-maker must ensure that the conditions of an approval enable the entity to comply with its obligations under Part 6.\n\nNote: Part 6 (settling monetary claims) applies, with modified effect, where a decision-maker grants an approval that covers the costs of settling a claim brought by or against the eligible person (see subsection 62(2)).\n\nConditions relating to compliance with Part 7\n\n (4) Where a decision-maker proposes to grant an approval that would cover the costs of an eligible person’s legal representation, they must consider placing conditions on the approval that would assist the responsible entity to comply with section 106.\n\nNote: Section 106 provides that the responsible entity must use its best endeavours to ensure that counsel for the eligible person are engaged in accordance with Part 7 (engagement of counsel).\n\n","sortOrder":106},{"sectionNumber":"100","sectionType":"section","heading":"Conditions on approvals for certain costs—civil proceedings","content":"100  Conditions on approvals for certain costs—civil proceedings\n\n  A decision-maker must not grant an approval that involves agreeing to pay:\n\n (a) any costs or damages payable by an eligible person to another party in civil proceedings; or\n\n (b) the costs of settling a civil claim;\n\nunless the person agrees that:\n\n (c) their defence will be controlled by the responsible entity; and\n\n (d) they will provide all assistance that entity requires them to provide in the conduct of the defence; and\n\n (e) where the entity is or becomes a party to the proceedings—the person will be represented by the same solicitors engaged to represent the entity.\n\nNote: Paragraph (e) is intended to reduce legal costs and assist in the proper conduct of the proceedings. The agreement required under paragraphs (c) and (d) will prevent a conflict of interest from arising.\n\n","sortOrder":107},{"sectionNumber":"101","sectionType":"section","heading":"Conditions that must not be placed on approval—criminal proceedings","content":"101  Conditions that must not be placed on approval—criminal proceedings\n\n  If a decision-maker grants an approval that involves agreeing to pay:\n\n (a) costs awarded against an eligible person in criminal proceedings; or\n\n (b) any penalty payable by the person as a result of those proceedings;\n\nthat approval must not be subject to a condition that the person agree to their defence being controlled by the responsible entity.\n\nNote: This does not affect the other sections of this Part. For instance, the decision-maker may still only grant an approval to pay an amount that is reasonable, in accordance with subsection 95(1), and must, unless they consider this inappropriate in the circumstances, defer the decision as to whether to approve assistance to cover the cost of any damages, fines, penalties or costs awarded against them until the proceedings are concluded (see subsection 98(2)).\n\n","sortOrder":108},{"sectionNumber":"102","sectionType":"section","heading":"Consultation with OLSC in sensitive cases","content":"102  Consultation with OLSC in sensitive cases\n\n  A decision-maker must consult with OLSC before deciding whether to grant an approval where the decision-maker considers that the request in question raises sensitive legal, political or policy issues.              \n\n","sortOrder":109},{"sectionNumber":"103","sectionType":"section","heading":"Seeking exemption from requirements of this Part—exceptional circumstances","content":"103  Seeking exemption from requirements of this Part—exceptional circumstances\n\n  Where a decision-maker considers that a request raises exceptional circumstances that would justify a departure from the requirements of this Part, the decision-maker must refer the matter to OLSC.\n\nNote: OLSC might refer the matter to the Attorney-General to consider whether to grant an exemption under section 8 from one or more provisions of this Part.\n\n \n\nDivision 7—Obligations where assistance has been approved\n\n","sortOrder":110},{"sectionNumber":"104","sectionType":"section","heading":"Entity must monitor costs on an ongoing basis","content":"104  Entity must monitor costs on an ongoing basis   \n\n  Where a decision-maker has granted an approval, the responsible entity must monitor the conduct of the matter to ensure that the following remain within reasonable limits:\n\n (a) the costs mentioned in paragraphs 94(1)(a) to (d), so far as they are covered by the approval;\n\n (b) the responsible entity’s potential exposure to liability under the approval.\n\nNote: The decision-maker may wish to consider whether it is appropriate to seek legal advice on whether a particular payment would be reasonable.\n\n In particular, this may be desirable to ensure that payments for an eligible person’s legal representation are reasonable in the circumstances. Obtaining legal advice in appropriate cases may be consistent with an accountable authority’s duty to govern their entity in a way that promotes the proper use and management of public resources (see section 15 of the Public Governance, Performance and Accountability Act 2013).\n\n","sortOrder":111},{"sectionNumber":"105","sectionType":"section","heading":"Refusing to pay assistance where condition not followed","content":"105  Refusing to pay assistance where condition not followed\n\n  Where a decision-maker has granted an approval, but the eligible person does not comply with a condition on that approval, the person administering the relevant arrangement with the employee must consider whether to refuse to make further payments under that arrangement.\n\n","sortOrder":112},{"sectionNumber":"106","sectionType":"section","heading":"Ensuring that counsel are engaged in accordance with Part 7","content":"106  Ensuring that counsel are engaged in accordance with Part 7\n\n  Where a decision-maker grants an approval that covers the costs of an eligible person’s legal representation, the responsible entity must use its best endeavours to ensure that counsel for the eligible person are engaged in accordance with Part 7 (engagement of counsel).\n\n","sortOrder":113},{"sectionNumber":"107","sectionType":"section","heading":"Compliance with model litigant obligation","content":"107  Compliance with model litigant obligation\n\n (1) This section applies where a decision-maker grants an approval that covers:\n\n (a) the costs of an eligible person’s legal representation; and\n\n (b) at least one other type of cost that may be approved in accordance with this Part (see subsection 94(1)).\n\n (2) The responsible entity must use its best endeavours to ensure that the relevant claim or litigation is handled in accordance with Division 2 of Part 5 (model litigant obligation) as if the claim or litigation had been brought by or against the entity.  \n\nPart 10—Entity responsibility and compliance\n\nDivision 1—Responsibilities of accountable authorities\n\nSubdivision 1—Preliminary\n\n108  Simplified outline—who must comply with this Division? \n\nSections 109 and 110 apply to:\n\n(a) the accountable authority of a non-corporate Commonwealth entity; and\n\n(b) an accountable authority of a corporate Commonwealth entity mentioned in paragraph 7(1)(a).\n\nThese corporate and non-corporate Commonwealth entities are referred to as entities below. Section 111 applies to the entity itself.\n\nSection 112 applies to the accountable authority of a corporate Commonwealth entity other than a GBE or an entity mentioned in paragraph 7(1)(a).\n\nFurther, this Division applies to some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\n","sortOrder":114},{"sectionNumber":"Subdiv 2","sectionType":"subdivision","heading":"Responsibilities of entities and their accountable authorities","content":"Subdivision 2—Responsibilities of entities and their accountable authorities\n\n","sortOrder":115},{"sectionNumber":"109","sectionType":"section","heading":"Responsibilities of accountable authority—compliance with directions and related matters","content":"109  Responsibilities of accountable authority—compliance with directions and related matters\n\n (1) The accountable authority of an entity must ensure that:\n\n (a) the entity’s arrangements for legal services, especially any litigation for which the entity is responsible, are handled efficiently and effectively; and\n\n (b) the entity has appropriate management strategies and practices to achieve compliance with these Directions; and\n\n (c) the entity’s legal services expenditure is appropriately recorded and monitored; and\n\n (d) by 30 October each year, the entity makes records of its legal services expenditure for the previous financial year publicly available; and\n\n (e) upon publishing the records mentioned in paragraph (d), the entity notifies OLSC of where it can find that information; and\n\n (f) legal services providers and counsel providing legal services to the entity:\n\n (i) are aware of these Directions; and\n\n (ii) are required to assist in ensuring that the entity complies with them; and\n\n (iii) are—through contractual arrangements, where possible—required to comply with these Directions; and\n\n (g) the entity gives reports as soon as practicable to the Attorney‑General or OLSC about any:\n\n (i) possible, alleged or apparent non-compliance with these Directions by the entity of which it is aware; and\n\n (ii) corrective steps that have been taken, or are proposed to be taken, by the entity; and\n\n (h) the entity reports to OLSC about the entity’s legal services expenditure and legal work, using a template approved by OLSC that specifies the matters to be reported, within 60 days after the end of each financial year; and\n\n (i) the entity promptly raises any matters required to be approved by the Attorney‑General; and\n\n (j) the entity promptly notifies the Attorney-General or OLSC of any matters of which they are required to be informed.\n\nNote 1: Legal services expenditure is defined in section 4 to capture both internal and external legal expenditure. It includes expenditure on counsel, and on legal services obtained from a government legal services provider.\n\nNote 2: The protection that is to be given to classified material is set out in the Protective Security Policy Framework (PSPF). It is advisable that the entity’s contracts with legal services providers require the providers to maintain an appropriate level of security for classified material (including electronic material) that comes into their possession, as well as material that is subsequently provided by the legal services provider to a third party, in the course of providing services to the entity. Any questions about the requirements of the PSPF can be made using the contact details provided on the Protective Security Policy Framework website, which, in 2025, was https://www.protectivesecurity.gov.au.\n\n (2) The accountable authority must give OLSC, within 60 days after the end of each financial year, a certificate setting out the extent to which the accountable authority believes the entity has complied with these Directions.\n\n (3) A certificate mentioned in subsection (2) should:\n\n (a) give details of any apparent or possible non-compliance with these Directions not previously reported to OLSC; and\n\n (b) give details of actions taken to address the causes of any non-compliance with these Directions during the financial year; and\n\n (c) give details of the following aspects of the entity’s use of persons appointed by the Attorney‑General under section 63 of the Act to receive service in proceedings to which the Commonwealth is a party:\n\n (i) the names of appointed persons who have received service;\n\n (ii) the title of proceedings in which appointed persons have received service;\n\n (iii) the issues raised in proceedings in which appointed persons have received service;\n\n (iv) the nature of each document served on an appointed person and the date on which it was served;\n\n (v) the date on which the entity or OLSC was advised of the receipt of service of each document by the appointed person;\n\n (vi) any other information requested by OLSC; and\n\n (d) set out any other information relevant to the entity’s compliance with these Directions.             \n\n","sortOrder":116},{"sectionNumber":"110","sectionType":"section","heading":"Responsibilities of accountable authority—pro bono work by legal services providers","content":"110  Responsibilities of accountable authority—pro bono work by legal services providers\n\nPro bono work by legal services providers\n\n (1) The accountable authority of an entity must ensure that the entity, when selecting and retaining legal services providers, does not adversely discriminate against providers that have acted, or may act, pro bono for clients in legal proceedings against the Commonwealth or Commonwealth agencies.\n\nMatters that raise a conflict of interest\n\n (2) Subsection (1) does not apply if, were a legal services provider to be selected or retained by the entity, an actual conflict of interest would arise between the provider and the entity because of the provider’s pro bono work.\n\n (3) For subsection (2), circumstances in which an actual conflict of interest would arise include the following:\n\n (a) if a legal services provider already acts for the Commonwealth or a Commonwealth agency in legal proceedings and accepts a request to act pro bono in those proceedings for another client;\n\n (b) if a legal services provider has, because it has previously provided legal services to the Commonwealth or a Commonwealth agency, confidential information about the Commonwealth or a Commonwealth agency that would make it unreasonable for the provider to act pro bono for another client against the Commonwealth or Commonwealth agency.\n\n","sortOrder":117},{"sectionNumber":"111","sectionType":"section","heading":"Third parties","content":"111  Third parties\n\n (1) An entity, when entering into a contract with a third party that includes a right of subrogation in favour of the third party, must use its best endeavours to ensure that the contract includes a provision requiring the third party and its agents:\n\n (a) to comply with Division 2 of Part 5 (the model litigant obligation) when undertaking that litigation on behalf of the Commonwealth or the entity; and\n\n (b) to consult with the entity if any matters relevant to Part 2 (tied areas of Commonwealth legal work) and Division 2 of Part 3 (sharing advice within Government) arise in the course of undertaking that litigation on behalf of the Commonwealth or the entity.\n\n (2) The operation of these Directions extends to any legal services which the entity has the ability to control as a result of an indemnity given to, or an arrangement made with, another body or person.\n\n","sortOrder":118},{"sectionNumber":"Subdiv 3","sectionType":"subdivision","heading":"Accountable authorities of certain corporate Commonwealth entities","content":"Subdivision 3—Accountable authorities of certain corporate Commonwealth entities\n\n","sortOrder":119},{"sectionNumber":"112","sectionType":"section","heading":"Responsibilities of accountable authority of certain corporate Commonwealth entities","content":"112  Responsibilities of accountable authority of certain corporate Commonwealth entities\n\n (1) This section applies to the accountable authority of a corporate Commonwealth entity other than a GBE or an entity mentioned in paragraph 7(1)(a) (the CCE).\n\nResponsibilities of accountable authority—pro bono work by legal services providers\n\n (2) The accountable authority must comply with section 110 (pro bono work by legal services providers) in respect of the CCE.\n\nResponsibilities of accountable authority—reporting to OLSC\n\n (3) The accountable authority must ensure that the CCE reports to OLSC about its legal services expenditure and legal work, using a template approved by OLSC that specifies the matters to be reported, within 60 days after the end of each financial year.\n\n (4) The accountable authority must give OLSC, within 60 days after the end of each financial year, a certificate setting out details of the following aspects of the CCE’s use of persons appointed by the Attorney‑General under section 63 of the Act to receive service in proceedings to which the Commonwealth is a party:\n\n (a) the names of appointed persons who have received service;\n\n (b) the title of proceedings in which appointed persons have received service;\n\n (c) the issues raised in proceedings in which appointed persons have received service;\n\n (d) the nature of each document served on an appointed person and the date on which it was served;\n\n (e) the date on which the CCE or OLSC was advised of the receipt of service of each document by the appointed person; and\n\n (f) any other information requested by OLSC.\n\n \n\nDivision 2—Addressing non-compliance with these Directions\n\n","sortOrder":120},{"sectionNumber":"113","sectionType":"section","heading":"Simplified outline—who must comply with this Division?","content":"113  Simplified outline—who must comply with this Division? \n\nSection 114 applies to a Commonwealth agency. It can also apply to some other persons or bodies in certain circumstances: see Division 2 of Part 1.\n\nSection 115 applies to any person or body.\n\n","sortOrder":121},{"sectionNumber":"114","sectionType":"section","heading":"Contractual provisions regarding penalties for non-compliance with these Directions","content":"114  Contractual provisions regarding penalties for non-compliance with these Directions\n\n  A Commonwealth agency must ensure that each contract it enters for legal services provides for the imposition of appropriate penalties in the event of a failure to comply with these Directions to which the legal services provider has contributed, including the termination of the contract in an appropriate case.\n\nNote: Commonwealth agency is defined in section 4 to mean a non-corporate Commonwealth entity, a corporate Commonwealth entity or a Commonwealth company.\n\n","sortOrder":122},{"sectionNumber":"115","sectionType":"section","heading":"Issuing instructions in relation to non-compliance","content":"115  Issuing instructions in relation to non-compliance  \n\n  Where a person or body does not comply with these Directions, the person or body must comply with any instructions given by the Attorney-General in relation to that non-compliance.\n\n \n\n \n\n \n\n","sortOrder":123},{"sectionNumber":"Part 11","sectionType":"part","heading":"Obligations of persons appointed under section 63 of the Act","content":"Part 11—Obligations of persons appointed under section 63 of the Act\n\n","sortOrder":124},{"sectionNumber":"116","sectionType":"section","heading":"Obligations of persons appointed under section 63 of the Act to receive service","content":"116  Obligations of persons appointed under section 63 of the Act to receive service\n\n (1) A person or body who is:\n\n (a) mentioned in section 55ZG(1) of the Act; and\n\n (b) appointed by the Attorney‑General under section 63 of the Act to receive service;\n\nmust report to the Commonwealth agency responsible for managing the suit mentioned in that section:\n\n (c) by close of business on the next business day after they have received service; and\n\n (d) using a template approved by OLSC that specifies the matters to be reported.\n\n (2) If it is not clear which Commonwealth agency the person must report to under subsection (1) in a particular case, the person must report to OLSC using the template mentioned in paragraph (1)(d).\n\nNote: Section 63 relevantly provides that, where the Commonwealth is a Party to a suit, all process in the suit required to be served upon the Commonwealth shall be served upon the Attorney‑General, or upon some person appointed by the Attorney-General to receive service.\n\n \n\n","sortOrder":125},{"sectionNumber":"Part 12","sectionType":"part","heading":"Application, transitional and savings provisions","content":"Part 12—Application, transitional and savings provisions\n\n","sortOrder":126},{"sectionNumber":"117","sectionType":"section","heading":"Decisions and instruments made before commencement","content":"117  Decisions and instruments made before commencement\n\n (1) A decision or instrument (however described) that was in force under a provision of the Legal Services Directions 2017 immediately before the repeal of those directions is to be treated, on and after the commencement of these Directions, as if it were a decision or instrument made under the corresponding provision of these Directions.\n\n (2) Without limiting subsection (1), this section extends to the following things made, issued, given or imposed under the Legal Services Directions 2017:\n\n (a) an exemption;\n\n (b) an agreement, approval or permission, and the conditions (if any) upon it;\n\n (c) an instruction;\n\n (d) guidelines.\n\n","sortOrder":127},{"sectionNumber":"118","sectionType":"section","heading":"Processes begun before commencement","content":"118  Processes begun before commencement\n\n A process that:\n\n (a) was begun under a provision of the Legal Services Directions 2017 before its repeal; and\n\n (b) was not completed by the commencement of these Directions;\n\nis to be treated, on and after that commencement, as if it had been begun under the corresponding provision of these Directions.\n\nNote: Examples of such processes include consulting a Minister or entity, or referring a decision to a Minister.\n\n","sortOrder":128},{"sectionNumber":"119","sectionType":"section","heading":"Obligations incurred before commencement","content":"119  Obligations incurred before commencement\n\n  If:\n\n (a) before the repeal of the Legal Services Directions 2017, something occurred that required action to be taken under a provision of those directions; and\n\n (b) the action had not been taken before the commencement of these Directions;\n\nthen the action must be taken under the corresponding provision of these Directions.\n\nNote: Examples of such actions include reporting, giving notice of, or seeking approval of matters.\n\n","sortOrder":129},{"sectionNumber":"120","sectionType":"section","heading":"Financial years","content":"120  Financial years\n\n  Unless indicated otherwise, a reference in these Directions to a financial year is to be treated, on and after the commencement of these Directions, as a reference to any financial year that ends after commencement.\n\n","sortOrder":130},{"sectionNumber":"121","sectionType":"section","heading":"Non-compliance with the Legal Services Directions 2017","content":"121  Non-compliance with the Legal Services Directions 2017\n\n  Section 115 applies with appropriate modifications in relation to non-compliance with the Legal Services Directions 2017 that occurred before the repeal of those directions.\n\n","sortOrder":131},{"sectionNumber":"122","sectionType":"section","heading":"References to the Legal Services Directions 2005 or the Legal Services Directions 2017","content":"122  References to the Legal Services Directions 2005 or the Legal Services Directions 2017\n\n  A reference to the Legal Services Directions 2005 or the Legal Services Directions 2017 in an instrument or document that is in force on or after the commencement of these Directions is to be treated, on and after that time, as a reference to these Directions.\n\n","sortOrder":132},{"sectionNumber":"Sch 1","sectionType":"schedule","heading":"Summary of application of these Directions","content":"Schedule 1—Summary of application of these Directions\n\nNote: This Schedule sets out an overarching summary of how these Directions apply. It is not a complete statement of the persons and bodies who are subject to these Directions: see Division 2 of Part 1. In the case of an inconsistency between this Schedule and a direction mentioned in column 2 of the table below, the direction prevails.\n\n \n\n- Which persons or bodies are bound by which directions\n- Column 1Person or body Column 2Direction\n- 1 The following:(a) a non-corporate Commonwealth entity;(b) a corporate Commonwealth entity mentioned in paragraph 7(1)(a). The whole of this instrument, other than:(a) Division 4 of Part 5; and (b) sections 112 and 116.\n- 2 Any other corporate Commonwealth entity that is not a GBE The following:(a) subsection 15(2);(b) Division 2 of Part 5;(c) Division 4 of Part 5; (d) section 53;(e) Division 7 of Part 5;(f) Part 7; (g) Part 8;(h) sections 112, 114 and 115.\n- 3 A Commonwealth company other than a GBE The following:(a) subsection 15(2);(b) section 53;(c) sections 114 and 115.\n- 4 A GBE The following:(a) subsection 15(2);(b) section 53;(c) sections 114 and 115.\n- 5 A person or body who is:(a) mentioned in subsection 55ZG(1) of the Act; and(b) appointed by the Attorney-General under section 63 of the Act to receive service. Sections 115 and 116.\n\nNote: For items 1 and 2, some of the provisions listed in column 2 apply to the accountable authority of the entity as well as, or instead of, the entity itself.\n\n For example, for item 1, see sections 109 and 110; for item 2, see section 112.  \n\n","sortOrder":133},{"sectionNumber":"Sch 2","sectionType":"schedule","heading":"Repeals","content":"Schedule 2—Repeals\n\nLegal Services Directions 2017\n\n","sortOrder":134},{"sectionNumber":"1","sectionType":"section","heading":"The whole of the instrument","content":"1  The whole of the instrument\n\nRepeal the instrument.\n\n \n\n \n","sortOrder":135}],"analysis":{"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"This instrument replaces the Legal Services Directions 2017 and preserves the overarching framework for whole‑of‑government legal management while introducing new and more prescriptive measures: expanded reporting and certification duties for accountable authorities, explicit tied‑work routing and approval processes, caps and indexing rules for counsel fees, diversity and pro bono criteria in counsel selection, and more detailed decision rules for assistance to officials and settlements. Those additions broaden prescriptive oversight and compliance obligations compared with the prior Directions, while retaining the same core purpose of coordinating Commonwealth legal work."},"complexity_factors":["Large, multipart structure with many cross‑references and definitions (Parts 1–12) increasing navigational complexity","Discretionary powers vested in the Attorney‑General (exemptions, approvals, instructions) requiring case‑by‑case decision‑making (see s8, s18, s45)","Detailed tied‑work regime restricting who may do Cabinet, constitutional, national security and public international law work and requiring approvals and notices (see ss12–20)","Extensive reporting, certification and public‑disclosure obligations on accountable authorities, with specific timelines and templates (see ss109(1)(d),(h)–(i), (2))","Model litigant obligations and litigation governance that impose substantive conduct standards and procedural constraints (ss40–43, 46–49)","Complex engagement rules for counsel, including daily rate caps, approval processes, indexing methodology and monitoring requirements (ss71–81)","Decision‑making framework for providing financial assistance to officials involving threshold tests, conditions, deferrals and consultation with OLSC (Part 9, ss91–107)","Procurement and selection requirements that incorporate pro bono considerations and non‑discrimination rules (ss84, 110)","Enforcement and compliance mechanics via contractual penalties and Attorney‑General instructions (ss114–115)","Technical transitional and savings provisions tied to repeal of the 2017 Directions and treatment of existing instruments (Part 12, Schedule 2)"],"plain_english_summary":"These Directions set binding rules for how Commonwealth entities obtain, manage and report legal services, specify which legal work must be handled by particular government legal offices (so‑called “tied” work), set model‑litigant standards, controls on settlements and litigation, rules for engaging counsel (including rate caps and diversity targets), and processes for providing assistance to officials. They apply to non‑corporate Commonwealth entities and several specified agencies and replace the 2017 Directions. Who pays: the entities (and ultimately the Commonwealth) meet legal costs. Who decides: the Attorney‑General and OLSC retain approval and exemption powers. Behaviour changes: tighter briefing, reporting, approval gates, and fee and engagement constraints that increase compliance tasks for accountable authorities."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"_metrics":{"provider":"moonshot","completionTokens":3209},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"This instrument replaces the Legal Services Directions 2017, continuing a framework first established in 2005. While the 2025 version adds granular detail (such as the 40% briefing target for women counsel, specific indexation formulas, and expanded procedural rules for financial assistance), it remains within the original statutory scope of section 55ZF of the Judiciary Act 1903: coordinating Commonwealth legal work, controlling legal expenditure, and maintaining standards of litigation conduct. The core functions—managing tied work, enforcing model litigant obligations, and overseeing settlements—are consistent with the original intent of the Directions regime."},"complexity_factors":["12 Parts with multiple Divisions and Subdivisions, creating a highly segmented structure","Five distinct categories of regulated bodies (Schedule 1) with different obligations: non-corporate entities, specific corporate entities, other corporate entities, Commonwealth companies, and GBEs","Extensive defined terms (section 4) including technical concepts like 'tied work', 'model litigant obligation', and 'public international law work' with multi-paragraph definitions","Nested conditional logic and exceptions: for example, section 23 imposes consultation requirements, but sections 24-27 create four separate exceptions (urgency, unlawfulness, routine matters, written agreements)","Mathematical formulas for biennial indexation of daily rate caps using Consumer Price Index calculations (section 80)","Cross-referencing between Parts: Part 9 (financial assistance) incorporates Part 7 (counsel engagement) and Part 6 (settling claims) by reference","Threshold-based compliance: different rules apply based on monetary values ($100,000 settlement thresholds) and temporal triggers (financial years, commencement dates)","Dual-layered application: some obligations bind the entity, others bind the 'accountable authority' (the agency head), requiring careful parsing of who must act"],"plain_english_summary":"The Legal Services Directions 2025 set binding rules for how Commonwealth entities must obtain legal advice, run litigation, settle claims, and engage counsel. They primarily bind non‑corporate Commonwealth entities and some corporate bodies, with lighter duties for GBEs.\n\nThe Directions reserve sensitive “tied” work to government lawyers, enshrine a “model litigant” standard, restrict and prescribe approvals for settlements and legal cost assistance to staff, require diversity and procurement rules when briefing counsel, and impose reporting and transparency obligations."}},"importantCases":[],"_links":{"self":"/api/acts/legal-services-directions-2025","history":"/api/acts/legal-services-directions-2025/history","analysis":"/api/acts/legal-services-directions-2025/analysis","conflicts":"/api/acts/legal-services-directions-2025/conflicts","importantCases":"/api/acts/legal-services-directions-2025/important-cases","documents":"/api/acts/legal-services-directions-2025/documents"}}