Reduction in interest on unpaid legal costs
Wed Aug 03 2016At its meeting on 2 August 2016, the Reserve Bank Board decided to lower the cash rate by 0.25% to 1.50%, effective 3 August 2016. Section 195 of the Legal Profession Uniform Law (NSW) and section 75 of Legal Profession Uniform General Rules 2015 provide for interest on unpaid legal costs, where the rate of interest is the rate that is equal to the Cash Rate Target as at the relevant date, increased by 2 percentage points.
Accordingly, the maximum rate of interest chargeable on legal costs billed on or after that date is 3.50%. Note that this does not affect the maximum rate chargeable on costs billed before that date.