National Competition Policy Review of the Legal Profession Act 1987


Terms of Reference

Review of the Legal Profession Act 1987

I. The review of the Legal Profession Act 1987 shall be conducted in accordance with the principles for legislation reviews set out in the Competition Principles Agreement. The guiding principle of the review is that legislation should not restrict competition unless it can be demonstrated that:

A. the benefits of the restriction to the community as a whole outweigh the costs; and

B. the objectives of the legislation can only be achieved by restricting competition.

II. Without limiting the scope of the review, the review is to:

A. clarify the objectives of the legislation, their continuing appropriateness, and whether the Act remains appropriate for securing those objectives;

B. identify the nature of the restrictive effects on competition

C. analyse the likely effect of any identified restriction on competition on the economy generally

D. assess and balance the costs and benefits of the restrictions identified; and

E. consider alternative means for achieving the same result, including non-legislative approaches.

III. When considering the matters in (2), the review should also:

A. identify any issues of market failure which need to be, or are being addressed by the legislation, and

B. consider whether the effects of the legislation contravene the competitive conduct rules in Part IV of the Trade Practices Act 1974 (Cth) and the NSW Competition Code.

IV. The review is to consider the functions of the Legal Services Commissioner, the Legal Profession Advisory Council, the Attorney General's Department and costs assessors.

V. The review shall consider and take account of relevant regulatory schemes in other Australian jurisdictions, and any recent reforms or reform proposals, including those relating to competition policy in those jurisdictions.

VI. The review shall consult with and take submissions from the Law Society, Bar Association, other organisations representing members of the legal profession, the Legal Services Commissioner, the judiciary, the Legal Profession Advisory Council, consumers, representatives of business and the insurance industry, and other interested parties.

The review is being conducted by the Attorney General's Department. A reference group has been appointed by the Attorney General to advise on the review. The Reference Group is chaired by Mr Laurie Glanfield, Director General of the Attorney General's Department, and consists of representatives of the Cabinet Office, the Insurance Council, the Australian Consumers' Association, the Law Society, the Bar Association, the courts, and the Legal Services Commissioner.