Key Takeaways from the National Costs Law Conference 2026Recently, members of the Rose Legal team, Kieran, Brendan, and Alexander, attended the Law Institute of Victoria’s National Costs Law Conference 2026 in Melbourne. The conference brought together leading practitioners, barristers, and judicial speakers to explore emerging developments in legal costs law, including artificial intelligence in legal practice, alternative fee structures, gross sum costs applications, recent case law, and professional ethics. For a firm focused exclusively on costs law and costs assessments, events like these are essential. They allow our team to stay at the forefront of developments affecting cost recovery, billing practices, and legal costs disputes across Australian jurisdictions. Below are some of the key themes that emerged from the day.
AI and the Courts
Justice Jane Needham of the Federal Court delivered the opening keynote addressing the increasing role of artificial intelligence in legal practice. Her central message was clear: professional and ethical obligations remain unchanged regardless of the tools lawyers use.
Courts across Australia have already begun responding to the rise of AI, with practice directions in New South Wales, Queensland, and Victoria restricting the use of AI-generated affidavits and expert reports. Additional guidance from the judiciary is expected as the technology becomes more embedded in legal workflows.
Presenters Simon Libbis (Head of Ethics and Practitioner Support at the Law Institute of Victoria) and David Bowles (Special Counsel, Ethics, Queensland Law Society) examined the issue through the lens of legal costing and billing practices. Their view was unequivocal: if AI reduces the time required to complete a task, the benefit belongs to the client, not the firm. Billing AI-assisted work as though it were completed manually may raise serious professional conduct issues.
For costs lawyers and costs assessors, the ability to identify and interrogate these billing practices within a Bill of Costs is becoming increasingly important.
Fixed Fees and Alternative Pricing Models
Jennie Pakula, Principal of The Lawyer’s Friend, delivered an insightful session distinguishing between legal costs and legal pricing.
While costs are assessed retrospectively, typically based on hourly rates or scale rates, pricing models such as fixed fees, modular billing, or subscription arrangements are determined prospectively. Importantly, regardless of the billing model adopted, the Legal Profession Uniform Law still requires costs to be fair and reasonable under section 172, and disclosure obligations under section 174 continue to apply.
Understanding how alternative pricing models interact with the statutory costs assessment framework is critical when advising clients on whether a former lawyer’s fees may be open to challenge.
Gross Sum Costs Applications
A significant portion of the conference focused on the developing body of case law surrounding gross sum costs applications across federal and state jurisdictions.
Recent decisions confirm that courts scrutinise methodology closely. Expert evidence remains essential, and broad-brush approaches are unlikely to succeed. Importantly, the paying party must be given a genuine opportunity to respond to the methodology relied upon.
Cases such as BBHF Pty Ltd v Sleeping Duck Pty Ltd [2024] VSC 352 and Idoport Pty Ltd v National Australia Bank Ltd [2007] NSWSC 23 illustrate both the complexity and strategic importance of these applications. As always, the quality and precision of the underlying costs analysis is often decisive.
Emerging Case Law
The conference also provided a valuable review of recent costs law developments across Australia.
Among the cases discussed was Adams v PlayUp Ltd [2026] NSWSC 89, which emphasised the importance of correctly identifying a client’s legal status for the purposes of the Legal Profession Uniform Law. Other sessions explored developments in Queensland concerning skill and care uplifts and issues surrounding privilege waiver in costs assessments.
Remaining across developments like these allows costs specialists to identify arguments and opportunities that might otherwise be overlooked in costs disputes and assessments.
What This Means for Our Clients
Events like the National Costs Law Conference reinforce Rose Legal’s commitment to remaining at the forefront of legal costs law in Australia.
With offices in Sydney and Melbourne, our team provides national capability across costs assessments, gross sum costs applications, Bills of Costs, and costs disputes. We regularly assist solicitors, barristers, and in-house counsel with complex costing issues and strategic recovery advice.
We also provide complimentary tailored CPD seminars designed for your firm, preliminary advice on any costs question, costs agreement, or file management issue.
If you would like to discuss a matter, you can contact us directly:
info@rose-lawyers.com
https://rose-lawyers.com.au
Melbourne: (03) 9070 9851
Sydney: (02) 8089 3167
Join Our Upcoming Seminar
As part of our commitment to professional development, Rose Legal regularly hosts CPD-accredited seminars for legal practitioners.
Our next session on Mastering Costs & Contracts will take place on:
Thursday, 19 March 2026 | 4:15 PM – 6:30 PM
Level 11, 456 Lonsdale Street, Melbourne
The seminar will explore legal costs strategy, solicitor/client costs disputes, and contract litigation involving Heads of Agreement, and attendees will earn two CPD points, including Ethics.
If you are interested in attending or would like to learn more, please click here.
