Extra short-term Budget funding for legal aid

Budget 2011 includes $103.5 million of new spending for legal aid over the next two years while the Government addresses longer-term sustainability issues facing the system.

The new spending is split into $34.1 million for 2010/11 and $69.4 million for 2011/12, Justice Minister Simon Power says.

“This extra funding will ensure legal aid services continue to be funded at current levels in the short-term, while the Government addresses how to close the $402 million gap between forecast demand for legal aid and baseline funding over the next five years,” Mr Power says.

“Gross spending on the legal aid system has increased from $111 million in 2006/07 to $172 million in 2009/10 – an increase of 55 per cent.

“Two-thirds of that cost increase stems from the previous Government’s decisions to extend eligibility for legal aid in 2006, and increase lawyer remuneration in 2008.

“Last month, the Government announced a series of policy changes to save $138 million over the four years to 2014/15, but even with these changes and the additional budget funding, there is still a gap which needs to be addressed.

“I will report to Cabinet in September with further options to address the remaining funding gap after officials provide me with advice on a closer review of the purpose of legal aid and associated costs, predominantly in the Family Court.”