What a business lawyer costs in Australia depends on the work and how your lawyer charges. Many small business lawyers offer fixed fees for set pieces of work, like a client service agreement, while disputes are usually charged by the hour. But the real cost also includes what you pay when you don't get advice: a restructure, a contract you can't enforce, or a dispute can cost many times more than getting it right upfront.
"How much does a lawyer cost?" is one of the first questions business owners ask me. And rightly so. You need to plan your expenses, and you need to know your spending fits your budget.
I can't give you one number that fits every business. What I can do is explain how business lawyers charge, what drives the cost, what I charge, and why the better question is often a different one: what does it cost you not to get advice?
How do business lawyers charge in Australia?
Business lawyers usually charge in one of four ways:
Fixed fee: one agreed price for a defined piece of work. Best for contracts, website terms, privacy policies and other set projects.
One-off consultation: a set fee for a session of advice. Best for a specific question, a second opinion, or a decision you're weighing up.
Hourly rates: you pay for the time spent. Best for open-ended matters, like disputes, where the scope can't be known upfront.
Ongoing or fractional support: a retained, predictable arrangement. Best for growing businesses with regular contracts, team and commercial decisions.
Hourly rates vary widely, from a few hundred dollars an hour for a junior lawyer to $1,000 or more for a partner at a large firm. A lower rate doesn't always mean a lower bill. What matters is how long the work takes, and whether your lawyer already understands businesses like yours.
What affects the cost of a business lawyer?
The main things that move the price:
What you need. A single document costs less than a suite of documents, and a quick review costs less than drafting from scratch.
How tailored it is. Documents built around how your business actually works take more thought than a lightly edited template, and they're worth more to you.
Complexity and risk. A contract with a personal guarantee, a commercial lease or a business sale carries more risk, and needs more care.
Experience. An experienced lawyer often works faster and spots problems sooner, which can make the total cost lower even at a higher rate.
Urgency. Work needed tomorrow usually costs more than work planned ahead.
How prepared you are. Clear instructions and the right information upfront save time, and time is money when you're paying by the hour.
What does TM Legal Atelier charge?
I work on fixed fees wherever I can, so you know the price before the work starts and there are no surprise invoices:
A tailored client service agreement, with advice and implementation support, starts at $2,495 + GST.
My core package of a client service agreement, website terms and conditions and a privacy policy starts at $3,650 + GST.
An Ask+Answer Session, up to one hour of strategic advice on your questions, is $825 + GST.
Fractional in-house counsel is tailored to your business, with a fixed, predictable engagement.
Payment plans over three months are available for fixed-fee work. Every quote is in writing, and it sets out exactly what's included.
Should my lawyer tell me the cost before starting?
Yes. In NSW, Victoria and Western Australia, the Legal Profession Uniform Law says that if your legal costs are likely to be more than $750, your lawyer must give you a written estimate of the total costs. They must also tell you about your rights, including your right to negotiate a costs agreement and the billing method, and to ask for an itemised bill. Other states and territories have similar rules.
Before you engage any lawyer, ask:
Can you do this for a fixed fee, and what exactly is included?
What isn't included, and how will changes in scope be handled?
Who will do the work?
What support is there after the work is delivered?
If a lawyer can't give you clear answers, that tells you something.
What's the real cost of not having a business lawyer?
This is the question I'd encourage you to ask instead. I can't put a dollar figure on most of what follows, but I've seen every one of them happen.
The wrong business structure. If your structure doesn't suit your business, you'll pay to restructure, which can mean starting again, and you may face significant tax consequences on top. I can't overstate the value of getting this right with your accountant and your lawyer from the start.
Documents that don't protect you. You've heard the saying "buy cheap, buy twice". If you take shortcuts with your legal documents, you won't know whether they protect your business until you need to rely on them, and by then it's too late. Sometimes it only takes one rogue client or one difficult project to bring a business unstuck. And since November 2023, using an unfair term in a standard form contract with a consumer or a small business can attract penalties of up to $50 million for a company. Older and overseas templates often contain exactly those kinds of terms.
A poor first impression. Your documents, proposals and website are all extensions of your business. They need to protect you, but they also need to look professional and meet your clients' expectations. You only get to make a first impression once.
Disputes. Despite best efforts, disputes happen in business. I spent the first 12 years of my career as a litigation and disputes lawyer, and I know that legal fees for a dispute can quickly run into the tens of thousands of dollars. That's before you count the lost time, lost revenue, stress and potential damage to your reputation, while you're dealing with the dispute instead of running your business.
Prevention is better than cure. The cost of getting the right advice early is almost always far less than the cost of fixing a problem later.
Why have a business lawyer on your team?
Your business lawyer should be part of your team, alongside your accountant and insurance broker. Someone who knows your business inside out, understands what it stands for, and cares how it goes.
That means before you sign a new contract, take on a big client, or deal with a tricky situation with a client, supplier or team member, you can pick up the phone and talk it through. You get an objective perspective you might not otherwise have had, and someone who has your back.
For established businesses, that's what fractional in-house counsel provides: a senior commercial lawyer embedded in your business on a part-time, retained basis. Read more about why growing businesses are turning to fractional legal counsel.
If this article has you wondering about gaps in your business, that's a good thing. Book an introduction call and we'll work out what you need, and what it will cost, before any work starts.
This article provides general information only and does not constitute legal advice. Your obligations depend on your specific circumstances.
Frequently asked questions
How much does a business lawyer cost in Australia?
It depends on the work and how the lawyer charges. Many small business lawyers offer fixed fees for set pieces of work. At TM Legal Atelier, a tailored client service agreement starts at $2,495 + GST, and a one-hour Ask+Answer Session is $825 + GST.
Is a fixed fee better than paying by the hour?
For defined work, like a contract or website terms, a fixed fee is usually better because you know the cost upfront. For open-ended matters like disputes, hourly billing is common because the scope can't be known in advance, so ask for a written estimate and regular updates.
Does my lawyer have to tell me the cost before starting?
In NSW, Victoria and Western Australia, if your legal costs are likely to be more than $750, your lawyer must give you a written estimate of the total costs and tell you about your rights, including the right to negotiate a costs agreement and ask for an itemised bill. Other states and territories have similar rules.
Is it cheaper to use legal templates?
Upfront, yes. But a template can't reflect how your business works, and it may be missing critical clauses that your business needs, or it could contain terms that are unfair or unenforceable under Australian law. Fixing a template problem later usually costs far more than getting your documents right at the start.
Can I pay legal fees in instalments?
Many lawyers offer payment plans. At TM Legal Atelier, payment plans over three months are available for fixed-fee work.
