Introduction

Law practices are permitted to charge interest on unpaid legal costs pursuant to the Legal Profession Act 2007 (Qld) (LPA).

Applicable Interest Rate

Interest Rates are prescribed under the LPA and s 59(3) of the Civil Proceedings Act 2011 (Qld).

The applicable interest rate is the prescribed rate as at the date of the relevant invoice. Pursuant to Supreme Court Practice Direction 07/2013, the prescribed interest rate is 6.00%pa above the Reserve Bank of Australia Cash Rate as at 30 June and 31 December each year, and is adjusted twice yearly on 1 January and 1 July.

(*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:

1. Interest may be charged on the balance of all oustanding invoice amounts, including outstanding professional fees and disbursements.
2. Interest will be calculated in accordance with the applicable rate from the due date of the relevant invoice until the date that payment is received.
3. If charged, the applicable interest will be calculated and separately invoiced to the payer at monthly intervals.
4. 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.