New regulatory obligations

Law firms and other Tranche 2 entities coming to terms with regulation under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) need to be aware that AML/CTF compliance is not their only new regulatory obligation.

Section 6E of the Privacy Act 1988 (Cth) provides that a reporting entity under the AML/CTF legislation is an Australian Privacy Principles entity for the purposes of the Privacy Act 1988. This applies regardless of the entity’s turnover. The effect is that law firms previously exempt from compliance with the Privacy Act regime because they qualify as a small business with a turnover of less than $3M are no longer exempt.

As a result, law firms that are reporting entities under the AML/CTF regime must comply with the Privacy Act and the 13 Australian Privacy Principles.

The Australian Privacy Principles regulate the collection, use, disclosure, storage, security, access, correction, retention, and destruction of personal information. They also impose obligations concerning privacy governance, transparency, and accountability.

Compliance measures

For many law firms, particularly smaller practices that previously fell within the small business exemption, this will involve implementing formal privacy compliance measures for the first time.

Among other things, firms will need to:

• adopt and maintain a compliant privacy policy and notify clients of it;
• take reasonable steps to protect personal information from misuse, loss, unauthorised access, modification, or disclosure;
• establish procedures for responding to privacy complaints and data breaches;
• destroy or de-identify personal information when it is no longer required and there is no legal obligation to retain it; and
• provide appropriate privacy notifications when collecting personal information.

Australian Privacy Principle 5 requires individuals to be notified of certain matters when personal information is collected. This will generally require delivering a Privacy Collection Notice to the client at the commencement of the engagement, explaining how and why personal information is collected, used, stored, and disclosed.

Publication updates

To assist firms in meeting these obligations, the By Lawyers Practice Management guide, including the Staff Handbook, has been updated. 

The updates include new commentary on the application of the Privacy Act and the Australian Privacy Principles, a new precedent Privacy Collection Notice to send to clients, and a privacy Policy the firm can adopt immediately or adapt to its needs.

Practitioners can now access a full suite of AI prompts in By Lawyers publications, with the tools slotted into matter plans across an expanding list of practice areas.

The prompts have been drafted and tested by experienced lawyers with a focus on delivering practical tools that help law firms work more efficiently while reducing risk. They are integrated into By Lawyers matter plans so practitioners can leverage AI in a structured and reliable way, while maintaining professional standards and best-practice processes.

New prompts

The new prompts cover drafting, review, analysis, and client communication needs in areas including:

• Conveyancing and property;
• Family law;
• Wills and lifetime planning;
• Estate administration;
• Sale and purchase of business;
• Companies;
• Trusts;
• Partnerships;
• Joint ventures;
• Criminal and traffic offences; and
• Immigration.

Among the tasks now covered:

• Checking draft agreements against client instructions, spanning joint venture agreements, leases, loan agreements, trust deeds, partnership agreements, shareholder agreements, and business sale contracts;
• Drafting letters to clients that explain documents, court orders, judgments, and next steps in the process;
• Pulling together estate administration summaries and final estate accounts;
• Drafting advice to support family law matters; and
• Preparing submissions for criminal matters.

These prompts are built for LEAP's Matter AI, joining a library of more than 200 AI prompts spanning Affidavits, Letters, Statutory Declarations, Briefs to Counsel, and other core document types. They're also accessible directly through the By Lawyers website.

Full list of By Lawyers prompts currently available

By Lawyers AI prompts are available in all Australian jurisdictions. A full list of prompts is available below.

Conveyancing and Property:

• Prompt for letter to client with summary of contract and disclosure statement
• Prompt for letter to client with summary of Law Society contract
• Prompt for letter to client with summary of By Lawyers contract and vendor statement
• Prompt for letter to client with summary of LIV contract and vendor statement
• Prompt for letter to client with summary of REIWA contract of sale of land or strata title
• Prompt for letter to client with summary of strata inspection report
• Prompt for letter to client with advice on retail lease
• Prompt comparing instructions with draft lease
• Prompt comparing instructions with draft loan agreement
• Prompt for summary of loan terms
• Prompt for letter to client with advice on commercial and industrial lease
• Prompt for letter to client with advice on retail lease
• Prompt for letter to client with advice on rural lease
• Prompt for checklist for contract review for compliance with retirement villages legislation
• Prompt for contract review for compliance with retirement villages legislation
• Prompt for letter to client on moving out
• Prompt for outline of contract

Family Law:

• Prompt for letter to client with advice when agreement has been drafted by other side's solicitor
• Prompt for letter to client with advice when agreement has been drafted by us

Wills and Lifetime Planning:

• Prompt comparing retainer instructions with draft wills

Estate Administration:

• Prompt for initial summary of estate assets and liabilities
• Prompt for letter to executor summarising estate, responsibilities and action to be taken
• Prompt for statement of assets, liabilities and distribution

Sale and Purchase of Business:

• Prompt comparing instructions with draft sale of business agreement
• Prompt for letter to client with a summary of the contract for sale of business

Companies:

• Prompt comparing instructions with draft shareholders agreement
• Prompt for letter to client with advice on shareholders agreement

Partnerships:

• Prompt for letter to client with advice on partnership agreement
• Prompt comparing instructions with draft partnership agreement

Trusts:

• Prompt comparing instructions with draft trust deed
• Prompt for letter to client with advice on discretionary trust deed
• Prompt for Letter to client with advice on unit trust deed

Joint Ventures:

• Prompt comparing instructions with draft joint venture agreement
• Prompt for letter to client with advice on joint venture agreement

Criminal and Traffic Offences:

• Prompt for brief to counsel in a criminal matter
• Prompt for letter to medico-legal expert requesting a report for criminal sentencing
• Prompt for Section 10 application
• Prompt for Section 9 application

Prompt for Submissions for section 19 application - No conviction

The By Lawyers Companies guide has been updated with 6 new precedents to assist practitioners with common company formation, administration and corporate governance tasks. The new resolutions, letters and policy document include a consent of occupier, share offers and applications, share-issue and dividend resolutions, and a dividend payment policy.

The new precedents are:

• Consent of occupier for using premises as registered office;
• Letter of offer of shares to existing shareholders;
• Application for shares;
• Company resolution – Issue shares;
• Dividend payment policy; and
• Company resolution – Dividend payment.

These precedents help practitioners document key company decisions correctly and consistently, from confirming a registered office to issuing new shares and declaring dividends. Rather than drafting these documents from scratch each time, practitioners can rely on precedents that are prepared and kept current by experienced legal professionals, reducing the risk of errors or omissions that could expose a company, or its officers, to compliance issues down the track.

Using up-to-date precedents also means lawyers aren't left checking whether a document reflects the latest legislative requirements and market practice. By Lawyers monitors relevant law and practice on an ongoing basis, so firms can be confident that every resolution, letter and policy in the Companies guide is accurate and ready to use. This saves valuable drafting time, supports consistent processes across the firm, and lets practitioners focus on advising their clients rather than maintaining a precedent library themselves.

These new precedents reflect By Lawyers ongoing commitment to giving practitioners the practical tools they need to serve their clients efficiently.

The By Lawyers Self Managed Superannuation Fund guide has been updated with seven new precedents to assist practitioners with the administration of SMSFs. The new resolutions and letter cover three common and compliance-sensitive areas of fund administration: transferring real property to a member, acquiring assets from a member or related party, and paying death benefits. 

The new precedents are:

• Resolution of individual trustees - Transfer of real property to member;
• Resolution of corporate trustee - Transfer of real property to member;
• Resolution of individual trustees - Acquiring asset from a member or related party;
• Resolution of corporate trustee - Acquiring asset from a member or related party;
• Resolution of individual trustees - Payment of death benefit;
• Resolution of corporate trustee - Payment of death benefit; and
• Letter to superannuation beneficiary requesting details.

These precedents help practitioners document trustee decisions correctly, supporting compliance with the Superannuation Industry (Supervision) Act 1993 and the fund’s trust deed. Rather than drafting resolutions from scratch, practitioners can rely on tested precedents, saving time, reducing the risk of errors, and giving trustees clear records to satisfy auditors and the ATO.

At By Lawyers, we work with law firms to ensure they have all the precedents they need to handle a matter, so nothing has to be drafted from scratch or tracked down separately. As a result of a recent user request in our Property Settlement guide, we have added 2 new letters for the appointment of a valuer to value matrimonial property when required by court orders:

• Letter to the Australian Property Institute requesting nomination of a valuer; and
• Letter to the Real Estate Institute of New South Wales requesting appointment of a valuer.

These letters, along with hyperlinks to the relevant application forms, can be found in folder H. Finalising the matter on the Property Settlement matter plan.

Getting the valuer appointment process right is an important step in finalising a property settlement. Errors or delays at this stage can hold up the whole matter. Having a trusted, ready-to-use precedent for this correspondence means practitioners don't need to draft these letters from scratch or track down the correct application forms each time a valuation is required.

By Lawyers precedents are written by experienced lawyers and are continually reviewed to stay current with the relevant forms and requirements. This gives practitioners confidence that the correspondence they're sending is accurate and appropriate, reducing the risk of error that could lead to delay or complaint, and helping firms manage property settlement matters efficiently and consistently.

By Lawyers team of experienced practitioners are currently reviewing and enhancing the precedents in our Estates publications across all jurisdictions to ensure they remain practical, comprehensive, and aligned with current legal practice.

Regular reviews of legal precedents are essential to maintaining an efficient and risk-adverse legal practice. Estates matters often require practitioners to deal with a wide range of institutions, government agencies, and professional service providers. Using carefully drafted and up-to-date precedents helps ensure requests are clear, appropriate, and effective, reducing delays and minimising the risk of overlooking important procedural requirements.

Most recently, the Estates review has seen the Gathering Information folder on the Probate and Letters of Administration matter plans renamed to Notifications and Requests, reflecting the purpose and use of the precedents contained within that section.

As part of the review, several existing precedents have been enhanced for ease of use:

• Retainer instructions – Estate administration
• Executor checklist
• Applicant and administrator checklist
• Letter with general authority to obtain documents
• Letter to previous solicitor with authority to obtain documents
• Letter to client re caveat
• Letter to caveator’s solicitor for details
• General authority to obtain documents
• Authority of applicant to obtain will from another solicitor
• Authority to obtain will and other documents

The review has also resulted in the addition of several new precedents:

• Initial letter to client with costs disclosure – Probate – Concise
• Initial letter to client with costs disclosure – Probate – Extensive
• Initial letter to client with costs disclosure – Letters of administration – Concise
• Initial letter to client with costs disclosure – Letters of administration – Extensive
• Letter with general authority to obtain documents
• Letter to previous solicitor with authority from applicant to obtain will
• Letter to previous solicitor with authority from executor to obtain will
• Letter to caveator for details 
• Authority from executor to obtain will
• Authority to act and obtain documents - ATO
• Authority to receive payment with optional indemnity

Other updates include:

• New, amended, and renamed Initial letters to beneficiaries, with more helpful options and enhanced content;
• An amended and renamed Letter to Registry of BDM with hard copy application for a death certificate for situations where the application is not made online;
• An enhanced Letter to renouncing executor with renunciation; and
• Enhanced Deeds of disclaimer for when beneficiaries or those entitled on intestacy are disclaiming their inheritance;

By Lawyers publications are written and maintained by experienced practitioners who understand the realities of everyday practice. This helps firms work efficiently, manage risk, and practise with confidence using resources they can trust.

We value feedback from the firms using our precedents. Listening to practitioners is an important part of our commitment to practicality and helping lawyers enjoy practice more.

Comments on these updates to our Estates precedents are welcome at askus@bylawyers.com.au.

A new rule 12 has been added to the Legal Profession Uniform Legal Practice (Solicitors) Rules 2015, which provides that a retainer agreement should, in addition to any other provisions about ending the retainer, inform the client that:

• solicitors are subject to statutory obligations, including reporting obligations that may require the disclosure of confidential information;
• the retainer may be terminated where continuing to act would require a breach of ethical duties or professional responsibilities; and
• the law may prevent a reason from being provided to the client for ending the retainer in those circumstances.

The new rule is in response to the anti-money laundering and counter-terrorism financing reforms that extend to legal practices from 1 July 2026.

While this new rule only applies to jurisdictions that have adopted the Legal Profession Uniform Law framework, as the anti-money laundering and counter-terrorism financing reforms apply to the legal profession in all jurisdictions from 1 July 2026, this clause has been added to all costs agreements. This clause will be reviewed as professional conduct rules are updated in the other jurisdictions to ensure strict compliance with those rules.

All By Lawyers costs agreements have been updated to meet the new requirement. A sub-clause has been added to the Termination of this agreement clause covering the matters above. The updated costs agreements are now available on all By Lawyers matter plans.

The Workers Compensation Legislation Amendment Act 2025 and the Workers Compensation Legislation Amendment (Reform and Modernisation) Act 2026 introduce substantial reforms to the workers compensation scheme. 

The reforms have commenced in stages, with administrative amendments effective from 27 March 2026 and the principal reforms affecting primary psychological injuries on 1 July 2026.

New statutory framework for compensation

A new statutory framework governs when a primary psychological injury is compensable. To satisfy the statutory test, the injury must:

• arise from a relevant event or series of relevant events;
• have a real and direct connection with the worker's employment; and
• be mainly attributable to the worker’s employment.

The reforms also amend the operation of the reasonable management action exclusion by:

• expanding the categories of management action considered reasonable; and
• clarifying that a primary psychological injury is not compensable if it was predominantly caused by reasonable management action taken or proposed to be taken by an employer. 

Bullying, harassment and excessive work demands

A new claims process applies for primary psychological injury claims arising from bullying, racial or sexual harassment, and excessive work demands.

Pending the insurer's liability decision, eligible workers are entitled to receive interim weekly compensation and medical treatment expenses. The insurer must determine liability within 42 days. 

If liability is disputed on the basis that the alleged conduct did not occur, an internal review must first be sought before the matter can be referred to the Industrial Relations Commission for the determination of the relevant conduct. 

Thresholds and limits

The reforms increase the required whole-person impairment thresholds for permanent impairment compensation and work injury damages claims for primary psychological injuries from 15% to 25%. 

Weekly compensation for most workers with a primary psychological injury is limited to 130 weeks, unless the statutory requirements for ongoing entitlement are met.

The By Lawyers Workers Compensation (NSW) publication has been updated to reflect these amendments.

The Workers Compensation Legislation Amendment Act 2025 introduces significant changes to the Independent Legal Assistance and Review Service (ILARS) from 1 July 2026.

The reforms introduce new statutory funding criteria, including a merit test requiring the Independent Review Office (IRO) to consider:

• whether funding is justified by the likely benefit to the worker or to workers generally;
• the reasonable prospects of success of the matter; and
• whether a prudent self-funded person would incur the expense.

The new statutory funding criteria apply to all ILARS applications, including applications for additional funding and funding for later stages of a matter. The reforms also extend ILARS funding to new matters created by the workers' compensation reforms, including relevant conduct proceedings in the Industrial Relations Commission.

The ILARS Funding Guidelines have been amended by an Amending Instrument, with new consolidated guidelines expected to be published later in 2026.

The By Lawyers Workers Compensation (NSW) guide has been updated to reflect these amendments. 

A new Supreme Court of Victoria Practice Note SC CL 3 – Personal Injuries commenced on 1 July 2026, replacing the previous SC CL 3 – Personal Injuries List (Second revision).

The new practice note consolidates the court's procedures for the:

• Personal Injuries List;
• Institutional Liability List; and 
• Dust Diseases List. 

The revised practice note provides a consistent framework for the case management of personal injury proceedings in the Common Law Division. It also reflects current court practices, with an emphasis on pre-action procedures, active case management, efficient interlocutory processes, early identification of issues, appropriate use of alternative dispute resolution, and modern electronic procedures. 

The By Lawyers Personal Injury (VIC) Guide has been updated accordingly. The commentary dealing with Supreme Court proceedings has been reviewed and amended to reflect the new practice note.

This update is part of By Lawyers ongoing commitment to keeping our publications current with changes to legislation, court practice and procedure, ensuring practitioners can rely on practical, up-to-date guidance and precedents.

Minor amendments to Chapters I and II of the County Court Civil Procedure Rules, effective from 13 July 2026 in the Common Law and Commercial Divisions, include:

• a new definition of, and provision for service on, persons under a disability;
• provision for costs by agreement on discontinuance or withdrawal; and
• other miscellaneous amendments to improve the operation of the rules.

The relevant sections of commentary in the By Lawyers County Court (VIC) Acting for the plaintiff and Acting for the defendant guides have been updated accordingly.