Final nail in the coffin for billable hours? Alternative billing goes mainstream, new legal market report reveals

87% of top Australian law firms offer clients billing choice, including fixed or task fees

AUGUSTA, Ga., May 29, 2025 /PRNewswire/ -- A clear shift away from billable hours, with widespread adoption of fixed fee and capped fee billing, has been confirmed in the Best Law Firms™ – Australia Legal Market Report, released today by Best Lawyers^®.

The global legal network's inaugural survey of Australia's top 162 law firms, encompassing 13,400 employees, uncovers trends for key industry issues such as billing, client service and revenue and reveals emerging trends around diversity, ESG and pro bono work.

On billing, the Report found fixed fees are the most common alternative offering (for 9 in 10 firms) with capped (77% of firms), retainer (52%) and event or task-based (51%) fees also proving popular.

Best Lawyers Vice President of Research and Development, Elizabeth Petit, said that the report paints a picture of a legal sector that is working hard to keep up with modern client demands by moving away from traditional, default billing options.

"The days of relying on the billable hours model are numbered, with new approaches offering clients greater transparency and predictability and enabling firms to clearly articulate their value while mitigating delayed payment and client bill shock," Ms Petit said.

"Our Report also highlights a visible shift in how and where firms are investing their resources in a challenging economy, with DEI and sustainability seeing less engagement despite remaining part of the values framework," she said.

The report found 57% of Australian firms consider diversity a part of their recruiting program and firm ethos, but few firms have programs in place to support DEI - only 6% of firms had a full-time DEI professional, and 39% of respondents did not answer the DEI question at all.

Similarly, a low number of respondents (35%) to questions on ESG policies and committees signals a shift in the sector where some strategic line items remain important on paper but not yet in practice, Ms Petit said.

Best Lawyers CEO, Phillip Greer, said that the Report is the next evolution of Best Lawyers' service offering in Australia.

"Australia has one of the most dynamic and resilient legal markets globally. By capturing real-time data about the state of the market through our rigorous and anonymous survey, our data helps legal professionals stay on top of domestic trends and benchmark their strategies against the top firms in the country," Mr Greer said.

Best Law Firms – Australian Legal Market Report findings

• 15% of the top firms think they only do an average job of providing clients "value for money and cost-effectiveness", revealing room for improvement
• Just under 50% of those surveyed run a pro bono program, with smaller firms reporting that number is closer to 30%. Senior lawyers are pulling their weight: 80% of firms say their partners participate in pro bono initiatives. More than a third (39%) put no limit on pro bono hours for which their lawyers can receive credit
• Top firms with fewer than 20 lawyers reported an annual median revenue of $2.5 million, while firms with greater than 20 lawyers reported $22,950,000 per annum
• Firms with fewer than 20 lawyers reported a median 80 active clients on their books, with that number increasing over six-fold for firms with more than 20 lawyers
• The median tenure of a Managing Partner at the top participating firms is six and half years
• Indigenous Australians represent 3.8% of Australia's population¹, but according to the survey results they make up just 0.12% of law professionals in total
• Representation among LGBTQIA+ and non-binary people, plus those with a disability, is extremely low, with their combined numbers comprising less than 1% of the workforce

"Our Report spotlights where firms are actually allocating their budgets and human resources, allowing us to understand the future direction of Australian law," Mr Greer said.

Survey responses represent the top ranked firms across the country according to The Best Lawyers in Australia™ rankings released last month.

Further strengthening its position in the Australian legal market, Best Lawyers has also announced the 2026 Best Law Firms - Australia today.

This year's rankings spotlight the top 5% of law firms across Australia, backed by thousands of lawyer votes, client references and in-depth interviews. The distinctions this year reflect input from more than 4,500 lawyers surveyed, nearly 160 law firm surveys, more than 2,000 client references that offered feedback on service excellence and nearly 200 practice group leader interviews. 

Read the full Best Law Firms – Australia Legal Market Report and search the 2026 Best Law Firms – Australia rankings to find firms delivering the standard of service clients trust. See which names are setting the benchmark for the profession, with results by firm name, region and/or practice area.

About Best Lawyers^®

Best Lawyers^® is the most established global network of legal professionals, providing elite lawyers and law firms with tools to enhance visibility, credibility and client engagement. Built on a rigorous peer-review process, Best Lawyers delivers data-driven legal recognition while offering industry insights and tech-forward marketing solutions. Powering Best Law Firms^®, we simplify the law firm selection process, fostering confidence between firms and clients. Learn more at www.bestlawyers.com and www.bestlawfirms.com.

¹ Estimates and projections, Australian Aboriginal and Torres Strait Islander population, 2011 to 2031 | Australian Bureau of Statistics

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SOURCE BEST LAWYERS