When you’ve been injured and are facing time off work or mounting medical bills, the last thing you need is more financial stress. That’s why many Queenslanders turn to No Win, No Fee, No Catch® arrangements, to get legal support without paying upfront.
Yet, one common question still causes confusion: how much of your compensation will actually end up in your pocket?
In this guide, we break down how legal fees work under Queensland law. Plus, we explain what you can expect from a No Win, No Fee agreement, and the key protections that are in place to ensure you’re treated fairly.
Understanding "No Win, No Fee" Arrangements in Queensland
A "No Win, No Fee" agreement means you only pay legal fees if your claim is successful. If your claim fails, you don't pay for the legal work done by your lawyer. This arrangement removes the financial barriers to justice for people injured in accidents or due to negligence.
Queensland's Approach is Different
Unlike some other jurisdictions, Queensland personal injury lawyers cannot simply charge a fixed percentage of your compensation. Instead, legal fees are calculated based on the actual work performed (usually tracked through hourly rates and itemised tasks). They are also subject to a strict statutory cap known as the 50/50 rule.
The 50/50 Rule: Queensland's Legal Fee Protection
What Is the 50/50 Rule?
The 50/50 rule is a key protection for clients under Queensland law. Set out in section 347 of the Legal Profession Act 2007 (Qld), it caps how much your lawyer can charge. This rule helps ensure you receive at least half of your compensation after specific costs are deducted.
According to the Queensland Law Society, this rule guarantees that you’ll receive at least half of your net settlement. No matter how much legal work was involved in winning your case, you’ll always receive 50% of your compensation claim.
How the 50/50 Rule Works
Here’s how the 50/50 rule is calculated:
- Start with your total compensation amount (the full settlement).
- Subtract any statutory refunds such as Medicare, Centrelink, or WorkCover repayments.
- Subtract all disbursements, such as medical report fees, court filing costs, and other out-of-pocket expenses.
- Divide what’s left by two.
That final figure is the maximum your lawyer can charge in professional fees (including GST).
Example Calculation
Let's see how this works with a real-life example:
Say your injury claim settles for $80,000. That means:
- Statutory refunds: $10,000 (to Medicare, WorkCover)
- Disbursements: $10,000 (medical reports, barrister fees)
Therefore, the calculation works like this:
- Net settlement: $80,000 – $10,000 – $10,000 = $60,000
- Maximum legal fees: $60,000 ÷ 2 = $30,000
This means you must receive at least $30,000, even if your lawyer's actual work was worth more.
How the 50/50 Rule Protects You
The 50/50 rule isn’t just about numbers, it also provides real protection for clients by ensuring fairness and transparency. Here’s what it helps safeguard:
Prevents Excessive Legal Costs
No matter how complex your case is or how much legal work it takes, you’re guaranteed to receive at least half of your net compensation. Under the law, your lawyer can’t take more than that.
Protects Against Unexpected Outcomes
If your condition improves and your claim ends up being worth less than expected, the 50/50 rule still applies. Even if your legal team put in significant work, you’re guaranteed at least half of the final settlement amount.
Ensures Transparency
In Queensland, your lawyer must give you a clear cost agreement upfront. Additionally, they’re required to keep you informed if your legal fees start approaching the 50/50 cap.
Actual Fees Are Often Lower Than the Maximum
While the 50/50 cap sets a firm upper limit, most clients pay well below that amount. According to the Queensland Legal Services Commission, legal fees typically make up a much smaller percentage, especially in higher-value claims, because the work involved doesn’t scale directly with the size of the settlement.
Take this example: if your claim settles for $300,000 and your legal fees total $40,000, that’s only about 13% of the net amount, not even close to the cap.
Key Points to Remember
- No Win, No Fee, No Catch® means you only pay legal fees if you win
- Fees are based on actual work done, not a fixed percentage
- The 50/50 rule is a maximum cap, not a standard fee
- Disbursements (out-of-pocket costs) are deducted before the 50/50 cap is applied
- You always receive at least half of your net compensation after refunds and disbursements
What Are Disbursements?
Disbursements are out-of-pocket expenses your lawyer covers on your behalf while preparing your case. These are essential costs that help build strong evidence and move your claim forward. They may include:
- Medical report fees
- Court filing fees
- Expert witness costs
- Investigation expenses
- Barrister fees (if needed)
These costs are deducted from your total compensation before the 50/50 rule is applied, meaning they’re not part of your lawyer’s professional fees.
Next Steps - Deciding if You Need to Seek Legal Advice
Whether you need a lawyer after a personal injury in Queensland depends on the specifics of your situation. For serious injuries, complex claims, or when dealing with insurance companies, seeking legal advice can help clarify your options.
If you're considering your legal options, you can request a free case review online or call 1800 960 482.
Smith's Lawyers provides risk-free injury compensation claims across Queensland, including Brisbane, Gold Coast, Sunshine Coast, Logan, Ipswich, and regional areas such as Cairns, Toowoomba, and Townsville. All claims have no upfront costs under our No Win, No Fee, No Catch® promise.
Frequently Asked Questions
Does the 50/50 rule mean my lawyer will always take 50% of my compensation?
No. The 50/50 rule is a maximum cap. In most cases, actual legal fees are much lower, especially for larger settlements. You are only charged for the work done, not a fixed percentage.
What if my claim is small and legal fees are high?
The 50/50 rule ensures you still receive at least half of your net settlement, even if the legal work required was significant. Your lawyer cannot take more than this amount, regardless of the hours worked.
Are disbursements included in the 50/50 cap?
No. Disbursements (out-of-pocket expenses for things like medical reports) are deducted from the settlement before the 50/50 cap is applied. The cap only applies to professional legal fees.
Can a lawyer charge a "success fee" or "uplift fee" on top of the 50/50 rule?
No. In Queensland, the 50/50 rule is an absolute maximum for legal fees, including any GST or uplift fees.
How can I be sure what I'll pay?
Your lawyer must provide a clear cost agreement and update you as your case progresses. If you have questions, ask for an itemised estimate before you agree to proceed.
