Mirai Legal Interest on Unpaid Legal Costs Policy
Introduction
Law practices are permitted to charge interest on unpaid legal costs pursuant to s 321 of the Legal Profession Act 2007 (Qld) (LPA).
Applicable Interest Rate
Interest Rates are prescribed under s 72 of the Legal Profession Regulations 2017 (Qld) (LPR), s 59(3) of the Civil Proceedings Act 2011 (Qld) and Supreme Court Practice Direction 07/2013.
For a given invoice, the Applicable Interest Rate is the prescribed rate as at the invoice date. The prescribed rate is calculated by reference to the Reserve Bank of Australia (RBA) Cash Rate, and is adjusted half-yearly, as follows:
Invoice Date | Prescribed Rate |
1 January — 30 June | RBA Cash Rate as at 31 December, plus 6.00%pa |
1 July — 31 December | RBA Cash Rate as at 30 June, plus 6.00%pa |
The table below sets out the current and most recent prescribed interest rates.
Invoice Date | RBA Cash Rate (%pa) | Additional Rate (%pa) | Prescribed Rate (%pa) |
* — TBA* | TBA* | + 6.00% | TBA* |
— * | 3.85% | + 6.00% | 9.85% |
— | 4.35% | + 6.00% | 10.35% |
(*subject to future RBA Cash Rate determinations.)
A full table of historical interest rates can be accessed on the Queensland Courts Website. Current and historical RBA Cash Rate data can be viewed on the RBA Website.
Policy
We have adopted the following policy regarding charging of interest on unpaid legal costs which forms part of our Terms of Retainer:
Interest on Unpaid Legal Costs Policy
When may interest be charged?
- Interest may be charged on the balance of all oustanding invoice amounts, including outstanding professional fees and disbursements.
How will interest be calculated and applied?
- Interest will be calculated in accordance with the applicable rate (see table above):
- from the due date of the relevant invoice;
- until the date that payment is received.
- If charged, the applicable interest will be calculated and separately invoiced to the payer at regular intervals.
- Interest will be calculated in accordance with the applicable rate (see table above):
Interest on third party disbursements
- For third party disbursements, we may on-charge any late payment fees, interest or other penalties incurred by us from the third party. Such amounts will be separately invoiced as applicable.
Revision History
Date | Revision |
Updated to clarify explanation of prescribed rate calculation. | |
Updated with June 2025 RBA Cash Rate. Include links to legislation and court practice directions. Note: Revisions to update Rates will no longer be shown in revision history. | |
Updated with December 2024 RBA Cash Rate. | |
Updated with June 2024 RBA Cash Rate. Include link to RBA Website. | |
Original Version. |
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Mt Gravatt East Queensland 4122
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