When entering into a legal agreement, it is important to understand the costs agreement threshold. This term refers to the amount of legal costs at which a client is required to give written informed consent before the lawyer can continue to provide services.

The costs agreement threshold is set in place to protect clients from unexpected legal costs. By requiring written consent, clients are able to make informed decisions about the services they are receiving and the associated costs.

In Australia, the costs agreement threshold is determined by each state and territory. For example, in New South Wales, the threshold is $750 while in Victoria, it is $3,000. It is important to note that the threshold does not apply to disbursements, which are costs incurred by the lawyer on behalf of the client, such as court fees or barrister fees.

When entering into a legal agreement, it is important to review the costs agreement carefully. This document will outline the legal services being provided and the associated costs. The costs agreement should also include information about the costs agreement threshold and when written consent will be required.

Clients should also be aware of their rights when it comes to legal costs. This includes the right to receive itemised bills outlining the services provided and the associated costs. Clients also have the right to dispute legal costs if they believe they are excessive or unreasonable.

In summary, the costs agreement threshold is an important factor to consider when entering into a legal agreement. By understanding this term and reviewing the costs agreement carefully, clients can make informed decisions about the legal services they are receiving and ensure they are not hit with unexpected costs.