No win, no fee agreements: what they can still cost

What the agreement actually is

Victoria’s legal regulator describes these as conditional costs agreements, generally used where a client has limited money to pay for legal help and the lawyer thinks there is a realistic chance of winning. They are a legally binding contract. NSW’s Legal Services Commissioner puts it more bluntly: it is usually just an agreement to defer payment of costs until the matter succeeds, after which the lawyer is paid, usually out of the settlement.

What you may still pay

Two more items can come out of a settlement. If a litigation lender paid for reports along the way, it is repaid with interest; and in some personal injury matters, weekly benefits already received must be paid back. In a Queensland CTP claim, the insurer may also have to repay Medicare from settlements over $5,000, and that amount is deducted from your total.

A lawyer taking a percentage of your payout is a “contingency fee”. Victoria’s regulator says this is illegal there in all court disputes except certain class actions approved by the court.

A worked example

The figures below are invented to show the arithmetic. They are not typical fees, and real bills vary widely.

Part of that may come back from the other side. In personal injury matters, Victoria’s regulator says it is common for the other side to pay part of your legal costs, usually on a “party and party” basis of around 60–75% of your fees. CTP schemes add their own limits: in South Australia you recover part of your legal fees only if you receive more than $25,000, and Queensland sets thresholds each year. The figures are in do I need a car accident lawyer?

What counts as a “win”

The agreement must say what a successful outcome is. Victoria’s regulator gives common examples:

• an out-of-court settlement where you receive compensation
• a court or tribunal decision awarding you compensation
• accepting advice to agree to the other side’s settlement offer
• rejecting a settlement offer your lawyer recommends you accept

A lawyer may also be entitled to charge if you drop the case or change lawyers before it ends. And NSW’s Commissioner notes that an amount less than you hoped for may still be a successful outcome.

Your rights before you sign

• In writing, in plain language, signed by you.
• A cooling-off period of at least five business days, during which you can end the agreement in writing. In Victoria, the lawyer may still charge for work done before you end it.
• A statement that you can get independent legal advice before signing.
• An estimate of total legal costs, including how fees are calculated, the disbursements, and any uplift fee and how it is worked out.
• Costs disclosure. In Victoria, a lawyer must give a written estimate if the work will cost more than $750. In Queensland, disclosure is required when costs are likely to exceed $1,500, and detailed disclosure above $3,000, both excluding GST and disbursements.
• Updates when costs change. Disclosure continues through the matter, not only at the start.

These points are drawn from the Victorian and Queensland regulators, as at October 2026. Other states have their own rules: check with your state’s legal services regulator or law society.

If you think the bill is wrong

Victoria’s regulator suggests raising it with the lawyer first, where you may be able to negotiate a reduction. After that:

• Victoria: the Victorian Legal Services Board + Commissioner takes costs disputes within strict limits: 30 days for itemised bills and 60 days for lump sum bills, from when the bill is payable.
• Queensland: you have the right to apply for a costs assessment, and to ask the Supreme Court or QCAT to set aside an agreement that isn’t fair and reasonable.
• NSW: a costs dispute can be referred to the NSW Legal Services Commissioner or for costs assessment; the Commissioner’s fact sheets explain the steps.

Before you get to an agreement at all, it is worth knowing whether your CTP claim needs a lawyer and how engaging one can change a deadline.