Changes to Family Law funding

Date created: 22 February 2008

A message from Tony Parsons to practitioners:

VLA's Commonwealth funded programs are facing some financial pressures. The VLA Board has recently given effect for the following strategies to be adopted until the end of this financial year when they will be reviewed in light of VLA’s financial circumstances at that time.

VLA has been approving record numbers of grants in recent years primarily due to having substantial Commonwealth reserves.  However, those reserves are almost exhausted and we are no longer in a position where we can afford to spend more than we receive in Commonwealth revenue.  Until we know whether our appeal to the Commonwealth for increased funding from the May Federal Budget is successful, we cannot provide assistance for all matters that were previously funded.  VLA continues to have a dialogue with the Commonwealth Attorney-General’s Department about Victoria’s need for additional financial support. 

Whilst the measures described below to stem expenditure have been taken with considerable regret, VLA is endeavouring to ensure that we continue to provide assistance to a substantial number of disadvantaged Victorians, despite the current budgetary constraints.  

Matters for which funding is no longer available

Whilst VLA will continue to provide assistance for the vast majority of family law matters, assistance will not be granted for the following:

Property

For new grants of aid, VLA will no longer fund property matters including those that are associated with children’s issues. 

Consent orders and advice and negotiation

From Monday 18 February 2008, for new grants of aid the only pre-litigation grant that will be available is through RDM.  Other grants for negotiation and/or formalising consent orders are not available. 

Contravention and enforcement of court orders

As of the 18 February 2008, VLA will no longer fund contravention and enforcement of court orders.  

Where a practitioner has sought and obtained a grant of assistance prior to this date VLA will certify payment for work undertaken under the existing extension.

Instructing solicitor at trial

VLA will not pay for an instructing solicitor to attend court to instruct counsel in family law matters.  This includes Independent Children’s Lawyers.   This applies to all court proceedings after 22 February 2008.

Independent Children’s Lawyers (ICLs)

VLA is adopting a more restrictive approach in relation to approving assistance for the separate representation of children in family law matters in order to reduce the number of grants for these matters.  An ICL will only be appointed in the clearest and most compelling cases. 

Funding above the fee ceiling

VLA officers will strictly apply the guideline relating to Family Law Costs Management (guideline 19) and, in particular, those matters where the fee ceiling has been reached.  This may include considering whether alternative means of funding is appropriate or limiting funding to a particular course of action.

Unless VLA determines that a family law matter is a 'new matter', when calculating how much remains within the fee ceiling we will take into account all previous family law files that were case finalised on or after 1 January 2000.  For further information about what VLA considers a new matter please refer to the Notes on Guidelines below.

In relation to matters where funding has already been approved over ceiling, VLA will not vary the grants made in these matters but may not provide additional funding if a request for further assistance is made.

Family welfare report

VLA will not normally fund a private family welfare report unless assistance has been approved for preparation for trial (stage 3 under the fee schedule).  In determining whether to grant assistance for a private family welfare report at an interim stage, VLA will require detailed reasons outlining the necessity for the report at the interim stage.  Furthermore, VLA must be satisfied that the order for the report was made by the Court and not made by consent of the parties and that there is clear evidence that the Court’s counselling section is unable to prepare the report.

Child support matters

Assistance will only be approved for child support matters where the applicant is unable to access the services of VLA’s Child Support Unit or some other appropriate external service provider such as a community legal centre.

The assets test

The allowable threshold for equity in an applicant’s principle place of residence has been reduced to $100,000.  Where an applicant’s equity is in excess of $100,000, they will not receive a grant of assistance.

For those applicants whose equity is less than $100,000 VLA will continue to seek an equitable charge to secure the cost of providing legal assistance.

New fee schedule 1L

Fee schedule 1K has been replaced with new fee schedule 1L, which reflects the changes in VLA’s new funding regime.  A copy of this can be found below.

These measures are necessary to ensure that we continue to provide assistance to those Victorians most in need while we carefully manage our current financial pressures. 

Thank you for your ongoing commitment to providing legal aid services to the Victorian community.

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