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A new bill seeks to prohibit so-called “claim farming” in Australia’s most populous state.
The NSW government is introducing the Claim Farming Practices Prohibition Bill 2025, which will prohibit contacting another person to solicit them to make a relevant claim, the buying or selling or relevant claim referrals, and prevent lawyers who are convicted of these offences from charging legal costs in relation to the claim, and to require them to refund any costs already received.
The bill will prohibit claim farming for personal injury claims under the Civil Liability Act 2002 and arising from intentional torts (intentional acts that result in injury or death, including child abuse, assault, and deprivation of liberty).
In a statement, the NSW Attorney-General’s Department said that claim farmers often use unethical and high-pressure tactics to target those such as child abuse victim-survivors and that they may obtain someone’s personal information without consent to make unsolicited contact and use high-pressure tactics such as harassment and intimidation.
“The practices used by claim farmers can cause distress to victim-survivors who are pressured to lodge civil compensation claims,” the statement said.
The move from NSW follows the banning of claim farming in Queensland in mid-2022. Last year, the South Australian government commenced consultation of draft legislation to ban the practice.
Speaking about the bill, NSW Attorney-General Michael Daley (pictured) said: “It’s abhorrent that individuals and organisations are seeking to profit off vulnerable people such as victim-survivors of child sexual abuse.
“The NSW government is listening to advocates who have called for a ban on this predatory and exploitative practice that worsens the trauma experienced by victim-survivors.
“We have carefully consulted with the community and are moving to stop the harm inflicted by this egregious behaviour.”
Existing offences such as fraud will still apply in addition to the claim farming bill, the A-G’s Department noted. Moreover, prohibiting claim farming will not prevent abuse victims from bringing a claim for compensation, which can be done by contacting a lawyer directly.
In 2018, then-president of the Law Society of NSW Doug Humphreys expressed concern that claim farming could “bring the profession into disrepute” and argued there must be a reassessment of lawyers’ ethical boundaries.
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Jerome Doraisamy is the managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.
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Jerome Doraisamy
