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^{27 March 2023}

Legal Aid services deliver $600 million in economic and societal benefits each year
 

A new report from PwC estimates Legal Aid services deliver over $600 million in benefit to the country each year, highlighting the vital need for continued investment in legal assistance.

The analysis shows a Benefit Cost Ratio (BCR) of 2.25 when considering the $267 million in annual Commonwealth funding that the Legal Aid Commissions around the country receive, including South Australia’s Legal Services Commission.

“For every dollar invested in Legal Aid services by the Commonwealth government, there is a benefit of $2.25 delivered, in terms of avoided costs to the justice system, to individuals, and to government – this is an enormous Benefit Cost Ratio when it comes to public finances,” Legal Services Commission CEO Gabrielle Canny said.

“This $2.25 benefit for every dollar in funding shows that it’s an absolute no-brainer for governments to continue to invest in the legal assistance sector, when you consider that road and infrastructure projects with a BCR of greater than one represent investments which should get the go ahead.

“This report from PwC is a significant body of work which was commissioned by National Legal Aid, and we’re very pleased that the analysis demonstrates what we’ve long known here at Legal Services – that there are enormous economic benefits, costs savings and broader societal benefits when governments invest in legal assistance services.”

Commissioned by National Legal Aid, PwC’s report – The benefits of providing access to justice – outlines the benefits delivered by Commonwealth funded matters for Legal Aid services, which relate to family law matters and federal civil law. The approximately $601 million in benefit each year includes:

• Efficiency of the justice system: the improved operational capacity of the courts

• Value to individuals: the benefits derived by individuals who achieve improved legal outcomes

• Wider government and societal outcomes: the benefits derived by government and society when an individual achieves an improved legal outcome.

“The provision of Legal Aid services greatly helps with alleviating court backlogs, by improving the operational capacity of the courts,” Ms Canny said.

“Put simply, keeping people and matters out of court saves money – for the people involved and taxpayers at large. But importantly, there are also broader societal benefits, by helping people avoid the stress and potential mental health impacts that can arise out of legal proceedings.

“PwC’s report demonstrates just how vital and valuable Legal Aid is to our entire nation.”

Media Contact: Simon Halliwell – 0421 611 856