No win no fee 50/50 rule in Queensland explained (2026)
The no win no fee 50/50 rule caps what a Queensland law practice can charge in a speculative personal injury claim. Under s 347 of the Legal Profession Act 2007, claim-related costs can’t exceed half of your payout. You work out that half after refunds and disbursements come out. It is a ceiling, not a set fee.
Key takeaways
What the no win no fee 50/50 rule is
The no win no fee 50/50 rule is a legal cap on what a law practice can take from an injury payout. You’ll find it in section 347 of the Legal Profession Act 2007 (LPA). So it is law, not just a guideline or a firm’s promise.
The rule applies to a “speculative personal injury claim”. Under s 346, that is a claim mainly for personal injury damages. The firm’s right to charge must depend on your success. In other words, it covers “no win, no fee” arrangements. Our guide to personal injury lawyer fees in Queensland explains the wider fee rules. This article goes deeper on the 50/50 cap.
The same formula also reaches CTP and other injury claims. For example, MAIA s 79 and PIPA s 71E borrow the s 347 formula. They apply where s 347 itself does not cover the practice.
The no win no fee 50/50 rule formula, step by step
Section 347(1) says the maximum claim-related costs, including GST, must not be more than this amount:
[E – (R + D)] × 0.5
First, take what the judgment or settlement gives you. Then subtract refunds and disbursements. Finally, halve what is left. Under the no win no fee 50/50 rule, the result is the most the firm can charge and recover.
|
Letter |
What it means under s 347(1) |
|---|---|
|
E |
The amount a judgment or settlement gives you, including any amount for costs |
|
R |
The total you must refund on receiving that amount, under an Act, a Commonwealth law or otherwise |
|
D |
Disbursements or expenses you are liable for, incurred by the firm or on its advice, to progress the claim |
A worked example of the no win no fee 50/50 rule
For example, here is how the numbers might fall in a simple case. We made up the figures for illustration only.
Refunds are often amounts that Services Australia recovers, such as Centrelink or Medicare payments. Our pillar guide covers these in more detail. In this example, claim-related costs could not exceed $60,000. That stays true even if the fees under the agreement came to more.
|
Step |
Amount |
|---|---|
|
Settlement, including costs (E) |
$150,000 |
|
Less refunds (R) |
– $12,000 |
|
Less disbursements (D) |
– $18,000 |
|
Amount left |
$120,000 |
|
Maximum claim-related costs (× 0.5) |
$60,000 |
What counts towards the no win no fee 50/50 rule cap
The no win no fee 50/50 rule caps “claim-related costs”, not just professional fees. Under s 347(8), these are the firm’s legal costs plus any “additional amounts”. Legal costs include interest on those costs. However, they exclude disbursements.
Section 347(8) lists the additional amounts. They include:
Why these extra amounts matter
These amounts sit inside the cap, so they don’t reduce the “D” figure. As a result, a firm can’t dodge the cap with a separate loan or a third-party fee. The Act also gives an example. Say you pay for medical reports with a loan on the firm’s advice. The reports fall within D, but the loan interest does not.
The definition has a narrow carve-out for some barrister fees incurred after the claim notice. However, the detail is technical, so ask the firm how it treats barrister fees.
The no win no fee 50/50 rule is a ceiling, not a fee
The no win no fee 50/50 rule does not entitle a lawyer to half your payout. Instead, your actual costs depend on your costs agreement and the work done. So they may be well below the cap.
The Queensland Law Society has reminded lawyers of this. It said the rule “is not to be used as the basis for calculating a client’s legal costs” (QLS Proctor, April 2023). It also warned that charging 50% of the amount recovered breaches the contingency fee ban in s 325.
As a result, that breach has serious results. For instance, under s 327, a costs agreement that breaches s 325 is void. Also, the firm can’t recover any amount for its legal services in the matter. It must repay what it received.
When a firm can charge more than 50%
Sometimes the costs under an agreement come to more than the cap. In that case, the firm must apply in writing under s 347(2) and (3). A solicitor’s firm applies to the Queensland Law Society. A barrister whom no other law practice has retained applies to the Bar Association.
Under s 347(4), the regulator may approve, in writing, an amount up to the greater amount. Without approval, however, the cap stands. In addition, s 347(6) says the section applies despite the costs agreement rules. So a clause in your agreement can’t override it.
How the 50/50 rule fits with other no win no fee rules
The 50/50 cap works alongside the other fee rules in the LPA. First, a “no win, no fee” agreement is a conditional costs agreement under s 323. It must define a successful outcome and include a cooling-off period of at least 5 clear business days.
Next, the agreement may include an uplift fee under s 324. The Act’s definition in s 300 treats an uplift fee as additional legal costs. So it forms part of the legal costs that the cap limits. Our uplift fee guide explains the 25% limit. Finally, the formula deducts disbursements as D, and our guide to disbursements in an injury claim explains what they are.
Questions to ask about the no win no fee 50/50 rule
Before you sign, it can help to ask how the cap may affect your claim. Later, before a litigious matter settles, the firm must estimate your legal costs. It must also estimate any contribution from another party (s 312).
If you think the cap was exceeded
First, ask the firm to explain its bill. You can also ask for an itemised bill. The firm must give it within 28 days and can’t charge for it (s 332).
If you still disagree, you can generally apply for a costs assessment. The deadline is 12 months after the bill or request for payment (s 335). The Legal Services Commission explains the process. If an assessment cuts the bill by 15% or more, the firm usually pays for the assessment (s 342). You may also want independent legal advice.
Frequently asked questions
Sources
Related guides
About the author
Marshall Fenech, Editor
Marshall Fenech is the editor of Compare Personal Injury Lawyer QLD. He researches Queensland personal injury law firms and claim rules, checks every fact against public sources such as the Queensland Law Society, MAIC, WorkCover Queensland and Queensland legislation, and dates each check. He does not give legal advice.
Firms that handle this kind of claim
See Queensland firms ranked for each claim type and area, or put any two or three side by side. Every fact is checked and dated.