With over half of Sydney’s tax lawyers setting their hourly rack rate at over $900 per hour the city’s tax lawyers sit as some of the most costly legal professionals in the country.
Despite, or perhaps because of their comparative expense, Sydney’s tax lawyers sit at the bottom of the field when it comes to the adoption of alternative pricing methods with only 71% of market participants listing their use.
Of those who did use alternative pricing models, fixed (86%) and capped (72%) were the most common models adopted. 15% of firms also used performance/outcome based models and 8% of firms listed the use of retainer arrangements.
While in most practice areas across the Sydney legal market there is a significant volume of quality offerings priced well under the $700 per hour mark. Not so when it comes to the city’s tax lawyers where only 10% of the market sets an hourly rack rate below that level.
With some 76% of the market sitting above $800 per hour there are few “value” options when it comes to tax advice in the Sydney legal market. Indeed on 3% of the market positioned themselves within the typical mid-tier pricing “sweet-spot” of $500-$600 per hour and only 2% of the market sat under $500 per hour. To put this in perspective, when it comes to the state’s corporate lawyers almost three times that amount sat under $600 per hour.