The Motor Accidents Compensation Regulation 2015 has been amended to cap legal costs for CTP Green Slip claims made on or after 1 November 2016, regardless of a prior costs agreement.
The changes implement a proposal made by the Bar Association, Law Society and Australian Lawyers Alliance in March this year to reduce the cost of legally represented small claims to the CTP scheme.
- Prohibit contracting out of maximum solicitor-client costs for claims for a settlement or award of not more than $50,000.
- Protect the first $50,000 of a settlement or award from solicitor-client costs. (This means that the maximum solicitor-client costs cannot be more than party-party costs plus the difference between the settlement/award and $50,000).
- Limit legal costs to $5,000 for claims made by children under 18 years of age where the settlement or award amount is not more than $25,000 or if the same legal practice is bringing a claim on behalf of another occupant of the same vehicle.
- Limit legal costs to $10,000 for claims made by children under 18 years of age where the settlement or award amount is between $25,000 and $50,000.