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Bell CJ slams PLT costs, welcomes proposed changes
The escalating costs of practical legal training have raised concerns from NSW’s top judge, who cautions that these excessive fees place a significant financial burden on aspiring lawyers.
Grace Robbie
Speaking at last week’s NSW Law Society’s Opening of Law Term Dinner, Chief Justice Andrew Bell voiced serious concerns over the substantial cost of practical legal training (PLT) and questioned whether the prevailing pricing structure serves the best interests of the legal profession.
During the same speech, His Honour professed his grave concern for the “distressing and terrifying rise” in anti-Semitic activities across Australia and deliberated on the evolving role of artificial intelligence within the legal profession.
Bell CJ noted that last year’s fees for PLT, a prerequisite for admission to practice in the state, ranged between $11,000 and $12,000.
His Honour expressed concern over the financial strain these fees impose, particularly for law graduates, as these costs exacerbate the already substantial financial obligations incurred during their university education.
“This is an extremely large amount of money, which may well present a significant barrier to entry to the legal profession, especially given the increasing cost of university fees,” Bell CJ said.
Regarding several large firms covering PLT fees as an incentive for graduates to join their ranks, His Honour acknowledged that, while not inherently problematic, this practice creates an uneven competitive landscape, disadvantageous to those who aspire to work in public service roles.
“Generally, large law firms cover these fees for new graduates as an incentive to take up a position with that firm on condition that they stay for a number of years.
“There is, of course, nothing wrong with that, and I make no criticism of it, although, given their very significant amount, the combination of the high fees and assistance offered by some firms no doubt operates as a disincentive to young lawyers otherwise wishing to commence their professional life in a public sector firm or office such as Crown solicitors, the DPP, Legal Aid, the Aboriginal Legal Service or community legal centres,” Bell CJ said.
In light of these concerns, His Honour undertook a review of the financial statements of the College of Law, the foremost provider of PLT in NSW and across Australia, where he uncovered a substantial surplus.
“I discovered (to my surprise, to put the matter mildly) that the College of Law has been generating an average ‘surplus’ of almost $16 million per annum over the past decade and has accumulated ‘retained earnings’ of just under $180 million.
“The retained earnings and 2024 surplus for the College of Law ‘parent entity’ are even higher: $186,820,736 and $19,848,089, respectively,” Bell CJ said.
In response to these revelations, His Honour, alongside Justice Tony Payne, raised their “profound concern about the level of charging to the chairman and chief executive of the College of Law, especially the practice of generating very substantial annual surpluses by a not-for-profit body, from students required to undertake PLT”.
As a result, Bell CJ revealed that “the College of Law has announced that it will significantly reduce the standard PLT tuition fee to a newly adjusted base of $9,200, with arrangements in place for ongoing review mechanisms into the future”.
To further evaluate the current state of PLT in Australia, His Honour said the Legal Profession Admission Board (LPAB) has conducted a survey intended to collect insights regarding the experiences of recent PLT graduates and additional measures that may be required to enhance the PLT framework.
“The LPAB, with my support, has engaged Urbis to undertake a survey of the profession’s views about PLT. This survey has been developed with input from the Law Society, the Bar, the Legal Services Council, the LPAB, the Law Admissions Consultative Committee, which includes a representative of the national body representing PLT providers,” Bell CJ said.
“We are interested to understand not only the experiences of those who have undertaken PLT in the last decade but also to gain the views of more experienced practitioners involved in the supervision of recent graduates.”
Bell CJ said the survey is anticipated to “form the initial basis for the development of proposals for the reform of PLT” to enhance both the accessibility and effectiveness of PLT.
