The Justice Committee has examined the Legal Services (Distribution of Special Fund) Amendment Bill and recommends that it be passed. We recommend all amendments unanimously.

The Lawyers and Conveyancers Special Fund collects interest from banks on the nominated trust accounts of solicitors and licensed conveyancers. Section 298 of the Lawyers and Conveyancers Act 2006 provides that money in the Special Fund must be paid to the Secretary for Justice for the purpose of funding community law centres.

Section 94(1) of the Legal Services Act 2011 enables the Secretary to enter into contracts with community law centres to purchase community legal services. However, because this provision is narrow, it is unclear whether community law centres can use money from the Special Fund to meet indirect costs incurred when providing services, such as leases or utilities. Where the Special Fund cannot be used to meet costs, Crown funding is required instead. The bill seeks to clarify how money in the Special Fund can be spent. It would do so by allowing the Secretary to contract with community law centres to fund, facilitate, and otherwise support the provision of community legal services by those centres.

As part of our consideration of the bill, we have examined its consistency with principles of legislative quality. We have no issues regarding the legislation’s design to bring to the attention of the House.

This commentary covers the one amendment we recommend to the bill as introduced. Clause 2 states that the Act would come into force on 1 July 2025. As this date has already passed, we recommend amending the commencement date to the day after Royal assent.