What to do today
Before you sign anything, read the Victorian Legal Services Board + Commissioner (VLSB+C) page on no win, no fee cost agreements. It is short and written for clients.
The clock that matters most is the cooling-off period. A no win, no fee agreement must let you cancel it by written notice for at least 5 clear business days after you sign (Legal Profession Uniform Law s 181(4)). If you cancel in that window, the lawyer can charge only for work you asked for and knew was being done, and cannot charge any uplift fee (s 181(5)).
What it costs you depends on the agreement itself, so ask for the written costs estimate the lawyer is required to give you, and keep a copy of everything you sign.
Separately, your injury claim has its own deadlines. For a transport accident common law claim, the TAC says you usually have six years from the accident (or six years from turning 18 if you were a child). Do not let a decision about lawyers' fees eat into those time limits.
This is general legal information about Victorian law, not legal advice about your situation.
What no win, no fee actually means
"No win, no fee" is the everyday name for a conditional costs agreement. In Victoria the rules come from the Legal Profession Uniform Law, which applies here as Schedule 1 to the Legal Profession Uniform Law Application Act 2014 (Vic).
Under s 181, payment of some or all of the lawyer's fees can depend on a successful outcome. The agreement must:
- be in writing and in plain language (s 181(2)(a))
- set out what counts as a successful outcome (s 181(2)(b))
- be signed by you, and say you were told of your right to get independent legal advice before signing (s 181(3))
- include the cooling-off period of at least 5 clear business days (s 181(4))
Read the "successful outcome" clause slowly. The VLSB+C gives common examples: a settlement before court, a court award, accepting a settlement offer on your lawyer's advice, or rejecting a settlement offer your lawyer recommended you accept. The VLSB+C also notes that a lawyer may be able to charge you if you drop the case or change lawyers part way through.
No win, no fee agreements cannot be used for criminal cases or Family Law Act proceedings (s 181(7)). The VLSB+C says they are mostly used in personal injury, estate, employment and class action matters.
Uplift fees and the ban on a percentage of your payout
An uplift fee is an extra amount added to the normal fees, charged because the lawyer took the risk of not being paid. It is allowed (s 182(1)). In a litigious matter (one that involves, or is likely to involve, a court or tribunal case):
- the lawyer must reasonably believe a successful outcome is reasonably likely before an uplift can be included (s 182(2)(a))
- the uplift cannot be more than 25% of the legal costs, excluding disbursements, that would otherwise be payable (s 182(2)(b))
The agreement must say how the uplift is calculated and give an estimate of it, or a range with an explanation of what will change it (s 182(3)). If an agreement breaks these rules, the lawyer cannot recover the uplift and must repay any uplift already received (s 185(3)).
The 25% is worked out on the lawyer's fees, not on your compensation. The VLSB+C puts it this way: the maximum uplift is 25% of the legal fees charged, not a percentage of what the other side paid you.
A contingency fee, where the lawyer's fee is calculated as a share of your settlement or award, is prohibited (s 183(1)). A practice that signs one cannot recover any fees for that matter and must repay what it received (s 185(4)). The TAC tells its clients the same thing in plain words: a lawyer cannot charge you a percentage of your compensation as legal costs.
The exception is a group costs order in a class action. Under s 33ZDA of the Supreme Court Act 1986 (Vic), the Supreme Court of Victoria can order, on the lead plaintiff's application, that the lawyers' costs be a percentage of any award or settlement, with the percentage set by the Court. If it does, the law firm becomes liable for any costs owed to the defendant and for any security for costs the Court orders (s 33ZDA(2)). This applies only to group proceedings in the Supreme Court. It does not let a lawyer take a percentage in an individual injury claim.
What you can still pay, whether you win or lose
Disbursements. These are payments to other people for your case, such as court filing fees, medical and expert reports, and barristers' fees. The agreement can make you pay these whatever the outcome (s 181(6)). The VLSB+C says your lawyer must include an estimate of them in the agreement if you will have to pay them.
The other side's costs. If your case goes to court and you lose, you may have to pay part of the other side's legal costs. A no win, no fee agreement with your own lawyer does not cover this. The VLSB+C suggests asking your lawyer how much this could cost if the case goes to court and you lose.
Litigation funding. Some firms arrange a litigation lender to pay disbursements along the way. The VLSB+C says the lender is repaid out of the settlement, with interest.
When you win. You pay your lawyer's fees under the agreement (including any uplift), the disbursements, and any loan with interest. In some injury matters you may also have to repay weekly benefits you already received. The other side often pays part of your legal costs. The VLSB+C says this is usually on a "party and party" basis, which it describes as usually 60 to 75% of your fees, and less commonly on a "solicitor and client" basis, which it describes as closer to 80 to 90%. The gap between what the other side pays and your lawyer's full bill is yours to pay.
Before you sign a settlement in a court or tribunal matter, your lawyer must give you a reasonable estimate of the legal costs you will pay if it settles (including any of the other side's costs) and of any contribution the other side is likely to make (s 177). That estimate is how you work out what you will actually take home.
Costs disclosure and your bill
Your lawyer must tell you in writing, when or soon after you first give instructions, how fees will be calculated and an estimate of the total (s 174(1)(a)). They must also tell you about significant changes as they happen (s 174(1)(b)). The disclosure must explain your right to negotiate the costs agreement and the billing method, to receive a bill and request an itemised one, and to get help from the regulator if there is a dispute (s 174(2)).
The VLSB+C explains the thresholds set in the Uniform Rules: a written costs disclosure is required if legal costs are likely to be more than $750, and a more detailed disclosure applies above $3,000 (both excluding GST and disbursements). A no win, no fee agreement must be in writing and signed whatever the amount.
If the lawyer breaks the disclosure rules, the costs agreement is void and you do not have to pay until the costs are assessed or the dispute is decided (s 178(1)).
Itemised bill. If you get a lump sum bill, you can ask for an itemised one within 30 days after the costs become payable (s 187(2)). The lawyer must give it to you within 21 days (s 187(3)). The lawyer cannot sue you for the bill until at least 30 days after you receive the bill, or the itemised bill if you asked for one, and not while the VLSB+C is dealing with a costs dispute (s 194(2)).
Complaining to the VLSB+C. A costs dispute must be lodged within 60 days after the costs become payable, or 30 days after an itemised bill you requested is provided (s 272(3)). Late complaints can be accepted only in limited cases, within four months after that period, and not if the lawyer has already started court action for the costs (s 272(2)). The VLSB+C says a bill more than six months old is too old for it to formally consider. Its service is free.
The VLSB+C's dollar limits from 1 July 2026: if your total legal bills are up to $31,440, it can try informal resolution and may review the costs and decide the dispute. Between $31,440 and $314,330 it can help with informal resolution or mediation but cannot decide the dispute. Above $314,330 it can only attempt informal resolution. In the last two cases it will explain your options at VCAT or the Costs Court of the Supreme Court of Victoria.
Costs assessment. You can apply to have the bill assessed within 12 months after it was given to you (s 198(3)). A late application can be allowed if it is just and fair (s 198(4)).
TAC and WorkSafe claims have their own costs rules
Transport accidents. The TAC says you do not legally need a lawyer for it to consider whether you are eligible for common law compensation, but you will need one to negotiate and settle it. It says costs are calculated using a court scale and are payable only for work actually done, and that a lawyer must give you an estimate of the total costs, including what the TAC pays. If your common law claim succeeds, the TAC may pay some of your legal costs directly to your lawyer, but this may not cover all of them. The TAC also encourages choosing a lawyer who follows its Common Law Protocols.
Workplace injuries. WorkSafe Victoria says the legislation sets out when legal costs are payable in a common law damages claim and how much WorkSafe or a self-insurer can pay towards them. The amounts are set by Legal Costs Orders for pre-litigated claims and for court proceedings. In court, the statutory offer and counter offer decide whether one side pays the other's costs.
Ask any lawyer handling a TAC or WorkSafe claim how these scheme rules fit with their conditional costs agreement.
Worked example
Priya slips on a wet floor in a Melbourne shopping centre on 3 February 2026 and hurts her back.
- Tuesday 3 March 2026: first meeting with a personal injury lawyer. She asks for the costs disclosure, the estimate of disbursements, and what counts as a "successful outcome".
- Tuesday 10 March 2026: she signs a conditional costs agreement. It includes an uplift fee with a written estimate, which cannot be more than the 25% cap in s 182. The 5 clear business days of cooling-off are 11, 12, 13, 16 and 17 March, so she can cancel by written notice up to the end of Tuesday 17 March 2026.
- Tuesday 29 September 2026: after a settlement, the lawyer gives her a lump sum bill, payable that day.
- Tuesday 6 October 2026: she asks for an itemised bill, inside the 30-day window that ends Thursday 29 October 2026. The lawyer must provide it within 21 days, by Tuesday 27 October 2026.
- Tuesday 20 October 2026: the itemised bill arrives. If she wants to lodge a costs dispute with the VLSB+C, she has 30 days from this date, to Thursday 19 November 2026. Her deadline for applying for costs assessment is 12 months from the original bill, Wednesday 29 September 2027.
Free and low-cost help
Victoria Legal Aid gives free legal information and advice. Call Legal Help on 1300 792 387 or use Legal Help Chat (contact Victoria Legal Aid).
Community legal centres give free, confidential legal help to people in need. Search by topic and postcode with the Federation of Community Legal Centres Victoria finder.
Check a lawyer is registered. The VLSB+C register of lawyers shows whether someone holds a current practising certificate and any disciplinary action.
For a transport accident, the TAC says you can get a free half-hour consultation with the law firm you choose to discuss your claim and possible costs.
Your first meeting: what to bring and ask
Bring the injury date and place, photos, names of witnesses, any incident report, your medical certificates and reports, records of time off work and lost pay, receipts for expenses, and any TAC, WorkSafe or insurer claim numbers and letters.
Questions people commonly ask, drawn from the VLSB+C and TAC lists:
- Will I be charged for this meeting?
- How are your fees calculated, and what is your total estimate, including disbursements?
- Is there an uplift fee? How is it worked out, and what is your estimate of it?
- What exactly counts as a "win" in your agreement? What do I pay if I stop the claim or change lawyers?
- Which disbursements do I pay if I lose, and when?
- If this goes to court and I lose, what might I owe the other side?
- Will a litigation lender be used, and on what terms?
- For TAC claims: do you follow the TAC Common Law Protocols?
- When will I be billed, and how much time will I have to pay?
People commonly use a lawyer for a serious injury claim, a claim the insurer disputes, or anything heading to court. Some first get free information from Victoria Legal Aid or a community legal centre.
If you are looking for a personal injury lawyer in Melbourne, see personal injury lawyers in Melbourne: the firms we picked and every firm Google lists.
Legislation: Legal Profession Uniform Law (Victoria), Schedule 1 to the Legal Profession Uniform Law Application Act 2014 (Vic): ss 174 (costs disclosure), 177 (settlement disclosure), 178 (non-compliance), 181 (conditional costs agreements), 182 (uplift fees), 183 (contingency fees prohibited), 185 (void agreements), 187 (itemised bills), 194 (restriction on suing for costs), 198 (costs assessment), 272 (time limits for costs disputes). Supreme Court Act 1986 (Vic) s 33ZDA (group costs orders).