Fee Agreement (Australia)
Professional Services Fee Agreement — Australia
This Fee Agreement ('Agreement') is entered into on [Agreement Date] between:
[Provider Name] (ABN [Provider ABN]) of [Provider Address], email: [Provider Email] ('Service Provider'); and
[Client Name] ([Client ABN]) of [Client Address] ('Client').
Together referred to as the 'Parties'.
1. SERVICES
1.1 The Service Provider agrees to provide the following services to the Client ('Services'):
[Services Description]
1.2 The Service Provider will commence the Services on [Services Start Date].
1.3 Any services outside the scope described above are not included in this Agreement and will be subject to a separate written variation or additional fee agreement.
2. FEES
2.1 The Client agrees to pay the Service Provider the following fees for the Services:
Fee type: [Fee Type]
Fee amount: [Fee Amount]
3. PAYMENT TERMS
3.1 The Service Provider will issue invoices: [Invoicing Schedule].
3.2 Payment is due within [Payment Due Days] days of the date of each invoice ('Due Date').
3.3 Payment must be made by bank transfer to the account nominated by the Service Provider on each invoice.
3.4 If any invoice is not paid by the Due Date, interest will accrue on the overdue amount at the rate of [Late Payment Rate] from the Due Date until payment in full is received.
3.5 If payment is overdue by more than 14 days, the Service Provider may suspend performance of the Services on 5 business days' written notice until all outstanding amounts are paid.
4. VARIATIONS
4.1 Either party may request a variation to the scope of Services or the fee. Any variation must be agreed in writing and signed by both parties before the additional or changed work is carried out.
4.2 If a variation results in an increase in the fee, the parties will agree the revised fee in writing before the varied Services commence.
5. TERMINATION
5.1 Either party may terminate this Agreement on 14 days' written notice to the other party.
5.2 On termination, the Client must pay all fees for Services performed up to the date of termination, plus all Disbursements incurred, within the payment period specified in clause 4.2.
5.3 The Service Provider may terminate this Agreement immediately if the Client fails to pay any amount due after 14 days' written notice of non-payment.
6. AUSTRALIAN CONSUMER LAW
6.1 Nothing in this Agreement excludes, restricts, or modifies any guarantee, right, or remedy conferred on the Client under the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010 (Cth)) that cannot be excluded, restricted, or modified by agreement.
6.2 To the extent permitted by law, the Service Provider's liability for a failure to comply with a consumer guarantee is limited to the re-supply of the Services or payment of the cost of re-supply.
7. GENERAL
7.1 This Agreement is governed by the laws of [Governing State], Australia.
7.2 This Agreement constitutes the entire agreement between the parties regarding fees for the Services and supersedes any prior discussions or understandings.
7.3 Any dispute arising under this Agreement that is not resolved by negotiation will be referred to mediation before either party commences court proceedings.
7.4 This Agreement may be executed electronically under the Electronic Transactions Act 1999 (Cth).
EXECUTED as an agreement on [Agreement Date].
Service Provider
________________
Signature
Date: ________________
Client
________________
Signature
Date: ________________
What Is a Fee Agreement (Australia)?
A Fee Agreement in Australia records the fee arrangement agreed between the parties and the specific obligations each side accepts, forming a binding agreement under the Corporations Act 2001 (Cth).
For many regulated professions in Australia, a written fee agreement (or costs agreement) is legally mandatory. Under the Legal Profession Uniform Law (LPUL) (applicable in NSW and VIC) and equivalent legislation in other states, solicitors must provide clients with a Costs Disclosure and Costs Agreement before commencing legal work, and must disclose their professional costs in a prescribed manner. Similarly, Australian financial services licensees (AFSLs) must provide clients with a Financial Services Guide and, where ongoing fees are charged, a Fee Disclosure Statement under the Corporations Act 2001 (Cth).
For non-regulated professionals and business service providers, there is no legislative requirement to have a written fee agreement, but the practical benefits are substantial. A clear written fee agreement: prevents misunderstandings about the scope of services and the fee; provides a basis for raising and collecting invoices; protects the service provider if a client disputes the fee; and satisfies any applicable Australian Consumer Law requirements about pricing transparency and avoiding misleading or deceptive conduct in relation to fees.
A Fee Agreement typically covers: the description of services to be provided; the fee structure (fixed fee, hourly rate, retainer, milestone-based, or success fee); GST treatment; invoicing schedule and payment terms; late payment provisions; disbursements (out-of-pocket expenses chargeable to the client); and dispute resolution. This template provides a thorough, professionally drafted Fee Agreement suitable for use by Australian service businesses and professionals.
The legal framework governing the Fee Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Parties executing a Fee Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Corporations Act 2001 (Cth) sets the foundational requirements.
When Do You Need a Fee Agreement (Australia)?
A Fee Agreement is required or strongly recommended in the following situations.
Legal and professional services: Lawyers, accountants, financial advisers, engineers, architects, and other regulated professionals in Australia must provide written fee disclosure and/or a costs agreement to clients under their respective professional legislation or licensing regime.
New client engagements: Any time a service business takes on a new client, a written fee agreement should be in place before work commences. This avoids later disputes about the scope of services and the agreed fee.
Milestone or project-based fees: For complex projects where fees are tied to milestones or deliverables, a written fee agreement clearly documents the milestone schedule and the associated payment obligations.
Retainer arrangements: Where a client retains a consultant or professional on an ongoing basis for a fixed monthly or annual fee, a written retainer agreement (which is a form of fee agreement) documents what services are included in the retainer and what will be charged as an extra.
Success fees and commissions: For arrangements where the fee is contingent on an outcome (such as a real estate agent's commission or an M&A advisor's success fee), a written fee agreement is essential to document the agreed fee percentage, the trigger event, and the payment mechanism.
Dispute prevention: The most common source of disputes between service providers and clients in Australia is disagreement about fees — what was agreed, what was included, and whether the work justified the charge. A written fee agreement signed by the client before work commences is the best protection against fee disputes.
Parties in Australia should prepare a Fee Agreement (Australia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Fee Agreement (Australia)
A well-drafted Australian Fee Agreement should include the following key elements.
Description of services: A clear and specific description of the services to be provided — sufficient to distinguish them from services that are not included. Vague or open-ended descriptions (e.g., 'provide advice') often lead to scope disputes.
Fee structure: The agreed fee basis — fixed fee, hourly rate (with the applicable rate per hour), retainer fee (with a clear statement of what is included), milestone fee, percentage fee, or success fee. For hourly engagements, the agreement should address what happens if the work takes longer than estimated.
GST: A statement that fees are exclusive of GST (for most B2B arrangements) and that GST will be added to each invoice at the applicable rate of 10%. The service provider's ABN should be included to confirm GST registration.
Invoicing and payment terms: When invoices will be issued (on completion, monthly, at milestones), the payment due date (e.g., 14 or 30 days from invoice), and acceptable payment methods.
Late payment: Interest on overdue invoices (typically a commercially reasonable rate above the RBA cash rate), and any suspension of services rights for non-payment.
Disbursements: Whether out-of-pocket expenses (travel, printing, filing fees, expert costs) are charged to the client and on what basis (at cost, with a markup, or within a budget).
Variations: The process for agreeing changes to the scope of services and consequential changes to the fee.
Termination: The parties' rights to terminate the engagement and what fees are payable on termination (pro-rata for work done, or otherwise).
Dispute resolution: The process for resolving fee disputes, which may include an independent assessment process for legal costs or other regulated fees.
Additional compliance elements for a Fee Agreement (Australia) used in Australia include: Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Fee Agreement (Australia) (Australia) [Legal document template]. Forms Legal. https://forms-legal.com/australia/business/contracts/fee-agreement-australia
"Fee Agreement (Australia) (Australia)." Forms Legal, 2026, https://forms-legal.com/australia/business/contracts/fee-agreement-australia.
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title = {Fee Agreement (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/business/contracts/fee-agreement-australia}},
note = {Free legal document template. Based on Corporations Act 2001 (Cth)}
}Also available for these jurisdictions:
Frequently Asked Questions
A Fee Agreement is a written contract that documents the agreed fees for professional or business services. In Australia, professional bodies such as the Law Society, the Institute of Chartered Accountants (ICAA/CPA), and Engineers Australia require their members to have written fee agreements with clients. Even where not professionally mandated, a written Fee Agreement protects both the service provider and the client by clearly recording what services will be provided, at what cost, on what payment terms, and what happens in the event of a dispute. Under the Australian Consumer Law, service providers must not engage in misleading or deceptive conduct about fees. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Yes for lawyers: Under the Legal Profession Uniform Law (LPUL) (applicable in NSW and VIC) and the Legal Profession Act in other states and territories, solicitors are required to provide clients with a Costs Disclosure and a Costs Agreement before commencing legal work. The Costs Agreement is a mandatory written fee agreement that must comply with the relevant Legal Profession Act requirements, including disclosure of the basis for fees, an estimate of total costs, and the client's right to seek an independent assessment of costs. Other regulated professions (accountants, financial advisers, mortgage brokers) also have mandatory fee disclosure requirements under their respective licensing regimes. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Under the A New Tax System (Goods and Services Tax) Act 1999 (Cth), most professional services supplied by GST-registered businesses are taxable supplies subject to 10% GST. The fee agreement should clearly state whether quoted fees are inclusive or exclusive of GST. For B2B engagements, fees are typically quoted exclusive of GST, with GST payable in addition. The service provider must issue a valid tax invoice for each payment, which must include: the words 'Tax Invoice'; the supplier's ABN; the date; a description of the supply; and the GST amount (or a statement that the amount includes GST). Failure to issue a valid tax invoice may affect the client's ability to claim an input tax credit. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Yes. A fee agreement can and should include provisions for interest on overdue invoices. Under Australian contract law, a contractual interest rate is enforceable provided it is not a penalty (i.e., it must be a genuine pre-estimate of the cost of late payment, not a punitive amount). Common commercial rates are 2-5% above the Reserve Bank of Australia's cash rate. Some businesses also apply a flat late payment fee. The Penalty Interest Rates Act 1983 (VIC) sets the court rate for interest on judgments in Victoria. The Late Payment of Commercial Debts legislation that exists in the UK does not apply in Australia — so the contractual rate in the fee agreement is the primary mechanism for compensating late payment. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
A Fee Agreement (Australia) does not legally require a lawyer in Australia, and individuals and businesses may draft and execute the document independently. The Corporations Act 2001 (Cth) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Australia lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Federal Court of Australia has jurisdiction over disputes arising from this type of document, and Australian Securities and Investments Commission (ASIC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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