Legal Aid NSW under the axe:
Federal budget sees drastic reduction in eligibility for funding in parenting and property proceedings.
Following the release of the Federal Budget on 12 May 2026 and a reported 30% increase growth in people using Legal Aid NSW’s family law advice services over the last three years, which is alarming given the bar to get Legal Aid is already so low and Legal Aid funding barely covers the legal costs of the matters, Legal Aid NSW has announced sweeping changes to the level of service they are able to provide in parenting and property proceedings, with the earliest changes coming into effect on 1 July 2026.
Currently, in order to be eligible for Legal Aid NSW to fund a parenting proceeding, you would need to demonstrate that you are in a state of financial hardship and then that your matter had a reasonable prospect of success and was sufficiently serious to warrant legal representation but was otherwise open for anyone to apply for funding. In our experience, Legal Aid rarely funds property matters.
From 1 July 2026, Legal Aid NSW only be able to provide funding in property and parenting proceedings to victims of domestic violence and Aboriginal people, though they will likely still need to establish that they are in a state of financial hardship and that their matter has a reasonable prospect of success. Unfortunately, other vulnerable and low-income people needing help in family law will, unless they are victims of domestic violence and/or Aboriginal people, will no longer be eligible.
Legal Aid NSW have also announced that additional costs-cutting measures will be implemented before the end of the year but have been unable to provide a timeline of the changes or what the full extent of the changes will be.
We do know from Legal Aid’s press release that at some point after 1 July 2026, Independent Children’s Lawyers (“ICL”) will only appear in final hearings where one or both parties are self-represented. Currently ICL’s can be appointed in any parenting proceeding where the court deems it in the best interests of the child for an independent lawyer be appointed to represent and act in the child’s best interests regardless of whether all parties to the proceedings are privately funded. The reduced presence of ICLs in parenting proceedings going forward will be a great loss given the benefit to children having independent representation and an impartial voice in contested parenting matters.
These changes will only widen the existing gap between those who are unable to access justice as they are ineligible for Legal Aid and lack the funds to privately fund proceedings, and fly in the face of the rhetoric espoused in support of the 2024 amendments to the Family Law Act, which were meant to strengthen protections against family violence—including economic abuse—and update court procedures for better efficiency, with most changes commencing on 10 June 2025.
You can read Legal Aid’s media release here: Budget and family law changes media release
Voice Lawyers: Your Guide in Family Law Matters
This update is general in nature and is not legal advice. If you need help dealing with a parenting dispute or require assistance with a family law matter, at Voice Lawyers, we hear you.
If you are experiencing or contemplating separation, we suggest you seek legal advice as early as you can, even if you do not intend to separate for a few months or even years. We offer a 90 minutes early separation strategy session Voice Lawyers — Divorce, Separation and Family Law to prepare and inform clients of the process. Every family’s situation is different, and advice tailored to your specific circumstances can assist you in achieving your best possible outcome. We can assist if you would like a second opinion.
We help people navigate the complexities of family law with confident, practical advice. You can contact us at office@voicelawyers.com or call 02 9261 1954 to book a consultation to speak with one of our lawyers.