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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Claim Farming Practices Prohibition Bill 2025
Contents
Page
Part 1 Preliminary
1 Name of Act 2
2 Commencement 2
3 Definitions 2
Part 2 Certain contact and referral payments prohibited
4 Application of part 3
5 Prohibited contact in relation to potential claims 3
6 Claim referrals for consideration prohibited 4
7 Exceptions for advertisements of legal services 5
Part 3 Miscellaneous
8 Time within which proceedings for offences may be commenced 6
9 Nature of proceedings for offences 6
10 Review of Act 6
11 Regulations 6
Schedule 1 Savings, transitional and other provisions 7
Schedule 2 Amendment of Legal Profession Uniform Law Application Act 2014
No 16 8
I certify that this public bill, which originated in the Legislative Assembly, has finally passed
the Legislative Council and the Legislative Assembly of New South Wales.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2025
New South Wales
Claim Farming Practices Prohibition Bill 2025
Act No , 2025
An Act to prohibit certain contact with potential civil liability claimants and the payment and
receipt of referral fees; and for related purposes.
I have examined this bill and find it to correspond in all respects with the bill as finally
passed by both Houses.
Assistant Speaker of the Legislative Assembly.
Claim Farming Practices Prohibition Bill 2025 [NSW]
Part 1 Preliminary
The Legislature of New South Wales enacts--
Part 1 Preliminary
1 Name of Act
This Act is the Claim Farming Practices Prohibition Act 2025.
2 Commencement
This Act commences on the date of assent to this Act.
3 Definitions
(1) In this Act--
associate, of a law practice, has the same meaning as in the Legal Profession
Uniform Law (NSW).
claim includes a potential claim.
consideration means a fee or other benefit.
law practice has the same meaning as in the Legal Profession Uniform Law (NSW).
legal services has the same meaning as in the Legal Profession Uniform Law (NSW).
potential claimant--see section 5(1).
Note-- The Interpretation Act 1987 contains definitions and other provisions that affect the
interpretation and application of this Act.
(2) In this Act, a reference to a law practice, other than a reference to a purchasing law
practice, includes a reference to an associate of a law practice.
Page 2
Claim Farming Practices Prohibition Bill 2025 [NSW]
Part 2 Certain contact and referral payments prohibited
Part 2 Certain contact and referral payments prohibited
4 Application of part
This part--
(a) applies to claims for personal injury damages, within the meaning of the Civil
Liability Act 2002, section 11, other than claims related to a kind of civil
liability referred to in that Act, section 3B(1)(b)-(h), and
(b) is intended to have extraterritorial application as far as the legislative powers
of the State permit.
5 Prohibited contact in relation to potential claims
(1) A person commits an offence if the person--
(a) contacts another person (a potential claimant) to solicit the potential claimant
to make a claim, and
(b) the person making the contact--
(i) receives consideration because of the contact, or
(ii) agrees or expects to receive consideration because of the contact, or
(iii) asks for someone else to receive consideration because of the contact, or
(iv) agrees to someone else receiving consideration because of the contact.
Maximum penalty--500 penalty units.
(2) A person commits an offence if the person--
(a) contacts a potential claimant to refer the potential claimant to another person
to provide a service in relation to a claim, and
(b) the person making the contact--
(i) receives consideration because of the contact, or
(ii) agrees or expects to receive consideration because of the contact, or
(iii) asks for someone else to receive consideration because of the contact, or
(iv) agrees to someone else receiving consideration because of the contact.
Maximum penalty--500 penalty units.
(3) A person must not arrange for a third party to contact a potential claimant in
contravention of subsection (1) or (2).
Maximum penalty--500 penalty units.
(4) This section does not apply--
(a) if a potential claimant is contacted by a notice given under the Civil Procedure
Act 2005, section 175, or a corresponding law, in relation to representative
proceedings, however described, or
(b) if a law practice--
(i) contacts a potential claimant that the practice has provided legal
services to, and
(ii) reasonably believes the potential claimant will not object to the contact,
or
(c) if a law practice contacts a potential claimant after receiving--
(i) a request to do so by a representative of a community legal service or
industrial organisation, and
(ii) confirmation the representative reasonably believes the potential
claimant will not object to the contact.
Page 3
Claim Farming Practices Prohibition Bill 2025 [NSW]
Part 2 Certain contact and referral payments prohibited
(5) Subsection (4) places an evidential burden on the accused.
(6) This section applies regardless of whether the potential claimant--
(a) is entitled to make a claim, or
(b) has decided to make, or has made, a claim.
(7) In this section--
community legal service has the same meaning as in the Legal Profession Uniform
Law (NSW).
contact a potential claimant includes personally approaching or contacting the
claimant--
(a) in person or by mail, telephone, email or another form of electronic
communication, and
(b) individually or as a member of a class of persons.
corresponding law means the following--
(a) the Federal Court of Australia Act 1976 of the Commonwealth, Part IVA,
(b) a law of another State or Territory that relates to representative proceedings,
however described,
(c) another law prescribed by the regulations.
industrial organisation has the same meaning as in the Industrial Relations Act
1996.
solicit includes induce.
6 Claim referrals for consideration prohibited
(1) A person must not--
(a) receive consideration for referring a claim to another person, or
(b) agree to receive consideration for referring a claim to another person, or
(c) arrange for a third party to receive consideration for the person referring a
claim to another person.
Maximum penalty--500 penalty units.
(2) A person (the payer) must not--
(a) provide consideration to another person for the referral of a claim, or
(b) agree to provide consideration to another person for the referral of a claim, or
(c) arrange for a third party to provide consideration to another person for the
referral of a claim.
Maximum penalty--500 penalty units.
(3) Subsection (2) applies whether a claim is referred for the purpose of--
(a) the payer providing a service in relation to the claim, or
(b) someone else providing a service for the claimant.
(4) This section does not apply--
(a) if, in acting for a claimant, a law practice refers a matter relating to a claim to
another person to provide a service in relation to the claim, or
(b) if all or part of a law practice is being sold to a purchasing law practice and--
(i) the referral, including details of the consideration, is disclosed to the
claimant, and
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Claim Farming Practices Prohibition Bill 2025 [NSW]
Part 2 Certain contact and referral payments prohibited
(ii) the consideration provided by the purchasing law practice is not more
than the unbilled legal costs of the claimant at the time of the sale of all
or part of the practice, and
(iii) the claimant is advised the referral may be refused, and
(iv) the claimant approves the referral.
(5) Subsection (4) places an evidential burden on the accused.
(6) In this section--
claimant includes a potential claimant.
legal costs has the same meaning as in the Legal Profession Uniform Law (NSW).
referral, in relation to a claim, includes--
(a) a referral arising from services provided to a claimant, and
(b) the disclosure of a claimant's personal details.
sale, of a law practice, includes the referral of the files of a retiring associate of the
law practice.
7 Exceptions for advertisements of legal services
A person does not commit an offence under this part by--
(a) advertising, marketing or promoting a law practice to the public, or
(b) providing or receiving consideration relating to advertising, marketing or
promoting a law practice to the public.
Page 5
Claim Farming Practices Prohibition Bill 2025 [NSW]
Part 3 Miscellaneous
Part 3 Miscellaneous
8 Time within which proceedings for offences may be commenced
(1) Proceedings for an offence under this Act may be commenced--
(a) within but not later than 2 years after the date on which the offence is alleged
to have been committed, or
(b) within but not later than 2 years after the date on which evidence of the alleged
offence first came to the attention of a police officer.
(2) If subsection (1)(b) is relied on, the court attendance notice--
(a) must contain particulars of the date on which evidence of the offence first
came to the attention of the police officer, and
(b) is not required to contain particulars of the date on which the offence was
committed.
(3) The date on which evidence first came to the attention of a police officer is the date
specified in the court attendance notice unless another date is established.
(4) This section applies despite any provision of the Criminal Procedure Act 1986 or
another Act.
9 Nature of proceedings for offences
Proceedings for an offence under this Act may be dealt with summarily before the
Local Court.
10 Review of Act
(1) The Minister must review the operation of this Act to determine whether--
(a) the policy objectives of the Act remain valid, and
(b) the terms of the Act remain appropriate for securing the policy objectives.
(2) The review must be undertaken as soon as practicable after the period of 2 years from
the commencement of this Act.
(3) A report on the outcome of the review must be tabled in each House of Parliament as
soon as practicable after the review is undertaken.
11 Regulations
The Governor may make regulations about a matter that is--
(a) required or permitted by this Act to be prescribed, or
(b) necessary or convenient to be prescribed for carrying out or giving effect to
this Act.
Page 6
Claim Farming Practices Prohibition Bill 2025 [NSW]
Schedule 1 Savings, transitional and other provisions
Schedule 1 Savings, transitional and other provisions
Part 1 General
1 Regulations
(1) The regulations may contain provisions of a savings or transitional nature consequent
on the commencement of--
(a) a provision of this Act, or
(b) a provision amending this Act.
(2) A savings or transitional provision consequent on the commencement of a provision
must not be made more than 2 years after the commencement.
(3) A savings or transitional provision made consequent on the commencement of a
provision is repealed 2 years after the commencement.
(4) A savings or transitional provision made consequent on the commencement of a
provision may take effect before the commencement but not before--
(a) for a provision of this Act--the date of assent to this Act, or
(b) for a provision amending this Act--the date of assent to the amending Act.
(5) A savings or transitional provision taking effect before its publication on the NSW
legislation website does not--
(a) affect the rights of a person existing before the publication in a way prejudicial
to the person, or
(b) impose liabilities on a person for anything done or omitted to be done before
the publication.
(6) In this section--
person does not include the State or an authority of the State.
Part 2 Provision consequent on enactment of Act
2 Application of Act to conduct before commencement
(1) This Act applies only in relation to acts done or omitted to be done on or after the
commencement of this Act.
(2) Despite subsection (1), section 6 does not apply if consideration is provided or
received after the commencement of this Act in relation to a written agreement
relating to the referral of a claim if--
(a) the agreement was entered into before the commencement of this Act, and
(b) the referral was completed before the commencement of this Act.
(3) In this section--
referral has the same meaning as in section 6.
Page 7
Claim Farming Practices Prohibition Bill 2025 [NSW]
Schedule 2 Amendment of Legal Profession Uniform Law Application Act 2014 No 16
Schedule 2 Amendment of Legal Profession Uniform Law
Application Act 2014 No 16
[1] Section 61A
Insert after section 61--
61A Contravention of claim farming practices prohibition--no costs recoverable
(1) This section applies if a law practice or an associate of a law practice is
convicted of an offence under the Claim Farming Practices Prohibition Act
2025, Part 2.
(2) Despite any other provision of legal costs legislation, the law practice--
(a) is not entitled to charge or recover legal costs in relation to the claim to
which the conviction relates, and
(b) must immediately refund legal costs received in relation to the claim to
the person who paid the costs.
(3) Money owing to a person under subsection (2)(b) is recoverable as a debt in a
court of competent jurisdiction.
[2] Section 165B Conduct capable of constituting unsatisfactory professional conduct
or professional misconduct
Insert ", the Claim Farming Practices Prohibition Act 2025, Part 2" after "local
regulations" in section 165B(1).
Page 8
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