The broad variety of service provider types and sizes in the Victorian tax legal market delivers one of the more effective and varied pricing environments in the Australian legal market.
Pricing methods other than the hourly rate are almost universal in the Victorian tax legal market with 96% of individuals noting their use. As is generally the cased fixed (100%) and capped fees (87%) were the most common alternative pricing models offered. 36% of firms offered performance/outcome based pricing methods and 12% used retainer-style models.
Just over one third of Victoria’s tax lawyers set their rack rate at over $900 per hour. This pricing level is the benchmark for the traditional “top-tier” and international firms.
The “mid-tier” of Victoria’s tax lawyer typically sits at a pricing level between $100-$200 per hour higher than it does in other practice areas with 24% of the market falling in the $700-$800 per hour band and 17% within the $600-$700 band.
“Value” propositions are able to found with 7% of the marketing residing in the $500-$600 per hour band and 4% sitting in the $400-$500 per hour band.