Disbursements in a Personal Injury Claim

Disbursements are out-of-pocket expenses paid to third parties to advance the claim, including medical reports, expert witness reports, barrister fees, and court filing fees. The disbursement bill on a personal injury claim in Queensland typically runs from $5,000 to $15,000 on a CTP motor vehicle accident matter, $10,000 to $25,000 on a public liability or workers' compensation matter, and $25,000 to $80,000 or more on a complex medical negligence matter, with medical negligence claims carrying the highest disbursement spend of any personal injury claim type.

Disbursements are funded under one of three models in the Queensland market. A firm-funded model where the law firm self-funds the disbursement spend out of working capital, a litigation loan model where a third-party disbursement funder pays the disbursements with interest accruing at 9% to 15% per annum, or a claimant-funded model where the claimant pays disbursements as they are incurred. The funding model determines the claimant's cash-flow exposure during the claim, the worst-case outcome if the claim fails, and the interaction with the 50/50 rule under section 347 of the Legal Profession Act 2007 (Qld). Interest on a litigation loan recommended or facilitated by the law firm is now counted within the 50/50 cap following the Personal Injuries Proceedings and Other Legislation Amendment Act 2022 (Qld), which commenced on 30 June 2022.

The disbursement bill sits alongside professional fees, uplift fee, and GST as the four main components of the legal cost picture, with disbursements deducted from the gross settlement before the 50/50 cap is calculated. Cost recovery on a successful matter typically returns 30% to 50% of the disbursement spend through party-and-party costs orders against the at-fault party, with the unrecovered portion paid out of the claimant's settlement. The funding model, the No Win No Fee treatment of disbursements in the costs agreement, and the firm's policy on commissioning expert reports are the three variables that have the largest effect on the claimant's net outcome.

What are disbursements in a personal injury claim?

Disbursements in a personal injury claim are out-of-pocket expenses paid to third parties to advance the claim, including medical reports, expert witness reports, barrister fees, and court filing fees. In simpler terms, disbursements are the costs of building the case including the expenses paid to doctors, experts, barristers, and the court that the law firm cannot produce in-house. These costs sit on a personal injury bill as their own line item, separate from the lawyer's professional fees.

Disbursements matter to the claimant because they directly reduce the final payout and can be the largest single financial exposure if the claim is unsuccessful. The disbursement spend on a personal injury claim is recovered from the gross settlement before the claimant receives their net amount, and on a failed claim the disbursement bill may still be owed depending on the funding model and the wording of the costs agreement. A claimant weighing whether to pursue a claim can produce an indicative estimate of likely gross compensation using a personal injury compensation calculator, which provides the starting figure against which the projected disbursement spend can be assessed.

Disbursements exist because a personal injury claim cannot be properly investigated, valued, or resolved without third-party evidence and procedural work. A medical specialist must examine the claimant and write an independent report. A barrister may need to be briefed for advice or to appear at compulsory conference. A court filing fee must be paid to the court registry if proceedings issue. Each of these expenses is paid to a third party and recovered from the claimant's settlement at the end of the matter, or written off if the claim is unsuccessful and the costs agreement provides for that outcome.

The distinction between disbursements and professional fees matters because the two cost categories are treated differently in the costs agreement, in the bill, and under Queensland's statutory cost rules. Professional fees are calculated on time and tasks performed by the lawyer. Disbursements are passed through at the third party's invoiced amount (sometimes with GST added). On most personal injury claims, disbursements are the second largest cost component after professional fees and ahead of uplift fees and GST.

A typical Queensland personal injury claim involves between $5,000 and $80,000 in total disbursements depending on the claim type, the complexity of the injuries, and whether the matter resolves at compulsory conference or proceeds to trial.

What are the main types of disbursements in a personal injury claim?

The main types of disbursements in a personal injury claim are medical evidence, expert reports, barrister fees, court and procedural fees, investigation costs, and administrative outlays. Each category covers a different function in the claim, and the mix varies depending on the claim type, the severity of the injuries, and whether the matter proceeds toward litigation or resolves at compulsory conference.

Six categories of disbursement appear on most Queensland personal injury claim files, as outlined below.

• Medical evidence disbursements. Medical evidence disbursements cover the cost of obtaining medical records and reports needed to prove the injuries and their impact. The medical evidence category includes independent medical examination (IME) reports, treating doctor reports, GP and specialist clinical records, hospital records, radiology and imaging records, functional capacity evaluations, and psychiatric or psychological assessments. Medical evidence is the largest single disbursement category on most personal injury files.

• Expert report disbursements. Expert report disbursements cover specialist opinions outside the medical field that are needed to value the claim or prove liability. Common expert reports include forensic accountant reports for economic loss, vocational assessor reports for future earning capacity, occupational therapist or care needs reports for future care costs, and engineering or accident reconstruction reports for liability questions in motor vehicle and public liability claims.

• Barrister fees. Barrister fees are the costs of briefing counsel for written advice, conferences, and court appearances. Barrister fees are treated as a disbursement on the solicitor's bill rather than as part of the law firm's professional fees, because the barrister is a separate third party providing a discrete service. Counsel are most commonly briefed at the compulsory conference stage and again at trial if the matter does not settle.

• Court and procedural fees. Court and procedural fees are the filing, hearing, and registry fees paid to a court if a personal injury claim issues as proceedings. Fees in this category include the originating filing fee, hearing fees, mediation fees, subpoena issue fees, and transcript fees. Court and procedural fees only arise once a claim moves into the court system, which happens in a small minority of personal injury matters in Queensland.

• Investigation costs. Investigation costs cover the work done by factual investigators to gather evidence about how the incident occurred. Investigation work includes locating and interviewing witnesses, retrieving CCTV footage, obtaining accident or incident reports, and inspecting the scene of the incident. Investigation costs are most commonly incurred in public liability and motor vehicle accident claims where the cause of the incident is contested.

• Administrative outlays. Administrative outlays are the smaller disbursements that accumulate over the life of a claim. Administrative outlays include title searches, certified document fees, interpreter fees for non-English-speaking claimants, and travel and accommodation costs for clients or experts located outside the firm's region.

The total disbursement spend on a personal injury claim is the sum of all six categories incurred over the life of the matter, and a higher proportion of the total typically falls into medical evidence and expert reports rather than the other four categories combined.

How much do disbursements cost in a personal injury claim?

Disbursements in a Queensland personal injury claim typically range from $5,000 to $15,000 for a CTP motor vehicle accident matter, $10,000 to $25,000 for a public liability or workers' compensation matter, and $25,000 to $80,000 or more for a medical negligence claim. The total spend depends on the number of medical and expert reports required, whether barrister advice is briefed, and whether the matter resolves at compulsory conference or proceeds into litigation.

Individual disbursement items have well-established price bands in the Queensland personal injury market. Medico-legal reports from independent medical examiners typically cost $3,000 to $8,000 per report, with more specialised assessments (such as neuropsychological or psychiatric reports) at the higher end of the range. Expert liability reports from engineers, accident reconstructionists, or other technical experts typically cost $3,000 to $15,000 depending on the complexity of the question being asked. Forensic accountant reports for economic loss calculations sit in a similar range. Barrister fees for written advice and compulsory conference attendance commonly fall between $5,000 and $15,000 for a standard claim, with trial briefs running significantly higher.

Total disbursement spend varies most sharply by personal injury claim type. CTP claims under the Motor Accident Insurance Act 1994 (Qld) sit at the lower end of the range because liability is often clear (or accepted by the CTP insurer), and the number of contested expert questions is limited. Public liability claims under the Personal Injuries Proceedings Act 2002 (Qld) typically cost more because liability investigations often require engineering, premises inspection, or accident reconstruction work. Medical negligence claims sit at the highest end because they almost always require multiple specialist reports from doctors of equivalent seniority to the treating practitioner whose conduct is in question, and these reports are scarce, time-intensive, and accordingly expensive. 

The disbursement bill on a single matter can shift significantly if the claim does not settle at compulsory conference. Once court proceedings issue, additional reports may be required to update earlier evidence, further barrister conferences become necessary, and court and procedural fees begin to accumulate. A claim that runs to trial typically carries disbursements two to three times higher than the same claim resolved at compulsory conference.

A claimant signing a costs agreement should expect to receive a written estimate of likely disbursements at the outset of the matter, broken down by category, with the firm's costs disclosure obligations under section 308 of the Legal Profession Act 2007 (Qld) requiring an updated estimate when circumstances materially change.

Who pays for disbursements in a personal injury claim?

Who pays for disbursements in a personal injury claim depends on the funding model in the costs agreement, with three main approaches available in Queensland. Either the firm self-funds the disbursements out of working capital, a third-party lender funds the disbursements via a litigation loan, or the claimant funds the disbursements as they are incurred. The funding model determines who carries the cash-flow burden during the claim, who is exposed if the claim is unsuccessful, and whether interest or financing costs are added to the disbursement bill.

Three funding models cover most Queensland personal injury matters.

• Firm-funded. Firm-funded disbursement funding is where the law firm pays disbursements out of its own working capital as they are incurred, then recovers the disbursement spend from the settlement at the end of the matter. The firm carries the cash-flow burden during the claim and may also write off the disbursement spend if the claim is unsuccessful, depending on the costs agreement.

• Litigation loan. Litigation loan funding is where a third-party disbursement funder pays the disbursements directly, with interest accruing on the drawn balance and the loan repaid from the settlement. The claimant signs a separate loan agreement alongside the costs agreement, and the financing cost reduces the net settlement at the end of the matter.

• Claimant-funded. Claimant-funded disbursement funding is where the claimant pays for medical reports, barrister fees, and other disbursements as the firm incurs them, with no firm advance and no third-party loan. The claimant has direct out-of-pocket exposure during the matter and cannot recover the disbursement spend if the claim is unsuccessful.

The funding model on a personal injury claim is one of the most important commercial terms in the costs agreement, and it is also the area where Queensland firms differ most. Hybrid funding models also exist: some firms self-fund routine disbursements (clinical records, smaller medical reports) but use a litigation loan for larger items such as $5,000 to $8,000 IME (independent medical examination) reports or expensive expert reports in medical negligence claims. Other firms self-fund all disbursements up to a dollar threshold, with anything above that threshold either paid by the claimant or funded externally.

A claimant comparing personal injury law firms should ask each firm three specific questions about disbursements before signing: who pays disbursements during the claim, what happens to disbursements if the claim is unsuccessful, and whether interest or financing costs are charged on disbursements. The answers to those three questions vary significantly between firms and have a direct effect on the claimant's net outcome, which is why choosing a personal injury lawyer requires evaluating disbursement policy as one of the key commercial terms.

What is firm-funded disbursement funding?

Firm-funded disbursement funding is a funding model in which the law firm pays all disbursements on a personal injury claim out of its own working capital as they are incurred, then recovers the disbursement spend from the settlement at the end of the matter. The firm carries the cash-flow burden during the claim and, under a clean No Win No Fee agreement, also carries the loss if the claim is unsuccessful.

Self-funding removes the financing layer that a litigation loan introduces. There is no third-party lender, no interest accruing on the disbursement balance over the life of the matter, and no loan agreement that the claimant signs alongside the costs agreement. The firm pays the medico-legal report invoice when it arrives, pays the barrister's fee when briefed, and pays the court filing fee at the registry, recording each item against the matter and recovering the total from the settlement.

A firm-funded model carries a substantial cash-flow commitment for the law firm. A medium-sized Queensland personal injury firm running 200 active matters with average disbursements of $12,000 each carries roughly $2.4 million in unrecovered disbursements at any given time. Firms that self-fund absorb the cost of money internally as part of running a personal injury practice on a No Win No Fee basis, and firms that decline to self-fund typically pass the financing cost on to the claimant via a third-party lender.

Self-funding does not always mean disbursements are written off if the claim is unsuccessful. Some Queensland firms pay disbursements out of working capital during the claim but include a clause in the costs agreement requiring the claimant to repay disbursements out of pocket if the claim fails, separate from the No Win No Fee treatment of professional fees. Other firms apply No Win No Fee to both professional fees and disbursements, meaning the claimant owes nothing if the matter is unsuccessful. The distinction matters because the disbursement bill is often the largest financial exposure the claimant faces if the claim fails, and which version of self-funding applies depends entirely on the wording of the costs agreement.

The net settlement calculation under a firm-funded model is the simplest of the three funding approaches. The settlement amount has the disbursement spend deducted at face value, with no interest, no financing fee, and no loan administration charge. Statutory refunds and professional fees are deducted next, and the balance is paid to the claimant.

What is a disbursement loan?

A disbursement loan is a third-party loan arranged through the law firm to pay the disbursements on a personal injury claim, with the loan repaid from the settlement at the end of the matter, plus accrued interest. A disbursement loan is also referred to as a litigation loan or claim cost funding, with several Queensland-active providers marketing the product to personal injury law firms.

The firm draws down on the loan facility as disbursements are incurred, the loan provider pays the third-party invoice directly, and interest accrues on the drawn balance from the date of each drawdown. Repayment is made out of the settlement at the end of the matter. Interest rates on Australian disbursement loans typically fall between 9% and 15% per annum, with the rate, calculation method, and any administration fees set out in a separate loan agreement the claimant signs alongside the costs agreement with the law firm.

Two structural variants of the disbursement loan exist in the Queensland market. A "no win no pay" loan structure waives repayment if the claim is unsuccessful, with the loan provider absorbing the loss in the same way the law firm absorbs unrecovered professional fees under a No Win No Fee agreement. An unconditional loan structure requires repayment regardless of outcome, with the claimant remaining personally liable for the principal and accrued interest if the claim fails.

A disbursement loan shifts the cash-flow burden of disbursements from the law firm to a third party, which is why some firms prefer the model. The trade-off is that the financing cost is passed through to the claimant as interest, an administration fee, or both, and that cost reduces the claimant's net settlement at the end of the matter.

The interaction between a disbursement loan and the 50/50 rule changed materially in 2022. Interest on a disbursement loan recommended or facilitated by the law firm is now treated as part of the firm's claim-related costs and counts within the 50/50 cap under section 347(8) of the Legal Profession Act 2007 (Qld), following the Personal Injuries Proceedings and Other Legislation Amendment Act 2022 (Qld), which commenced on 30 June 2022. The amendment was designed to prevent firms from using a recommended loan to extract additional cost beyond the statutory ceiling on legal fees. The major providers of litigation loans in the Australian personal injury market price their products differently on interest rate, calculation method, and treatment of the loan if the claim is unsuccessful, with these terms set out in the loan agreement the claimant signs alongside the costs agreement.

Are disbursements counted in the 50/50 rule?

No. Disbursements are not counted within the 50/50 rule cap, but are deducted from the gross settlement before the cap is calculated, meaning a higher disbursement spend reduces the pool against which the maximum legal fee is calculated. The cap itself applies only to the law firm's claim-related legal costs, which include professional fees, uplift fees, additional percentage fees, GST on legal services, and (since the 2022 amendments) interest on any litigation loan recommended or facilitated by the firm.

The mechanic of the 50/50 rule is best understood as a two-step calculation. The gross settlement is reduced first by statutory refunds (Medicare and Centrelink) and disbursements, producing a net settlement figure. The maximum legal fee the firm can charge is then capped at 50% of that net settlement. Disbursements sit outside the cap as a pure pass-through cost paid to third parties, but their dollar value directly compresses the pool against which the cap is calculated.

A worked example shows how the mechanic plays out. A claimant settles a public liability claim for $80,000. Statutory refunds total $5,000 (Medicare and Centrelink combined). Disbursements paid by the firm during the claim total $10,000. The net settlement after refunds and disbursements is $65,000. The maximum the firm can charge in claim-related legal costs is 50% of $65,000, which is $32,500. The claimant receives at least $32,500 in their hand, with the firm limited to $32,500 in professional fees, uplift, additional percentage fees, GST, and any facilitated litigation loan interest combined.

A higher disbursement spend on the same gross settlement compresses the cap further. The same $80,000 settlement carrying $20,000 in disbursements rather than $10,000 would produce a net settlement of $55,000, and the 50% cap would limit total legal costs to $27,500. The disbursement spend has reduced the available legal fee pool by $5,000 without changing the gross settlement amount. The same dynamic is why a disbursement-heavy claim (medical negligence, complex public liability) often produces a tighter fee outcome for the firm than a disbursement-light claim of the same headline value.

The treatment of litigation loan interest within the cap is the most recent change to how the 50/50 rule operates. Interest on a litigation loan recommended or facilitated by the law firm is treated as part of the firm's claim-related costs under section 347(8) of the Legal Profession Act 2007 (Qld) and counts toward the 50% ceiling. Interest on a litigation loan that the claimant arranges independently sits outside the cap because the firm has no commercial relationship with the lender.

What is the 50/50 rule?

The 50/50 rule is a statutory cap that prevents a Queensland personal injury lawyer from charging total claim-related legal costs exceeding 50% of the damages received by the claimant after disbursements and statutory refunds are deducted. The cap is set under section 347 of the Legal Profession Act 2007 (Qld) and applies to professional fees, uplift fees, additional percentage fees, GST, and interest on any litigation loan recommended or facilitated by the firm. The 50/50 rule operates as a backstop on the bill rather than the standard fee, with most Queensland firms charging well below the 50% ceiling on time and tasks performed and the cap only engaging on smaller settlements where time-based fees would otherwise exceed the statutory limit.

Can disbursements be recovered from the at-fault party?

Yes, disbursements can be partially recovered from the at-fault party in a Queensland personal injury claim through a party-and-party costs order, but the recovery is typically a contribution rather than full reimbursement, and the amount depends on statutory cost recovery thresholds and the basis of the costs order. The unrecovered portion of the disbursement spend is paid out of the claimant's settlement at the end of the matter.

Cost recovery on a Queensland personal injury claim is governed by the statutory framework that applies to the specific claim type. Motor vehicle accident claims under the Motor Accident Insurance Act 1994 (Qld) operate under the section 100A cost recovery thresholds, which set fixed and graduated cost recovery bands by reference to the settlement amount. For 2024-25, a claimant is entitled to recover legal costs (including disbursements) from the CTP insurer only if the matter resolves for $54,850 or more, with a fixed recovery of approximately $4,590 if the settlement falls between $54,850 and $91,460, and a more substantial recovery available where the settlement exceeds $91,460. The threshold figures are indexed periodically, so a current matter may operate under slightly different amounts. Public liability and medical negligence claims under the Personal Injuries Proceedings Act 2002 (Qld) operate under the section 75A declared threshold framework, which applies a similar tiered structure. Workers' compensation common law claims have their own framework, with full cost recovery generally only available where the worker's whole person impairment is assessed at 20% or higher.

Cost recovery in practice typically covers 30% to 50% of the firm's actual legal costs and disbursements, even where the claimant has won the matter outright. The shortfall arises because the party-and-party basis on which costs are usually awarded recognises only "necessary or proper" costs at scale rates, while the firm's actual time-based costs and disbursement invoices reflect commercial market rates that are higher than scale. The unrecovered portion is paid out of the settlement at the end of the matter and forms part of the disbursement spend that is deducted before the 50/50 rule cap is calculated.

Interest on a litigation loan is not recoverable from the at-fault party on a party-and-party basis. The CTP insurer, public liability respondent, or healthcare respondent in a personal injury claim is liable for the cost of disbursements actually incurred in advancing the claim, but is not liable for the financing cost the claimant has paid to a third-party disbursement funder. The full interest cost on a litigation loan is therefore borne by the claimant out of the settlement, regardless of whether the claim is otherwise successful in recovering costs from the at-fault party.

The cost recovery position changes if the matter proceeds to trial and the claimant beats a formal offer made by the at-fault party. A successful trial outcome above a Calderbank or Uniform Civil Procedure Rules 1999 (Qld) formal offer can result in costs being awarded on the indemnity basis rather than the party-and-party basis, which produces materially higher cost recovery (often 80% or more of actual costs and disbursements). The reverse is also true: a claimant who fails to beat a formal offer at trial faces an adverse costs order in favour of the at-fault party from the date of the offer onward, which is one of the principal financial risks of running a personal injury claim through to trial.

What are party-and-party costs?

Party-and-party costs are the standard basis on which legal costs and disbursements are recovered from the unsuccessful party in Queensland civil litigation, allowing recovery only of costs that were necessary or proper to advance the claim, calculated at the court's scale rates rather than the firm's commercial rates. The party-and-party basis typically produces cost recovery between 30% and 50% of the firm's actual costs, with the shortfall paid out of the claimant's settlement. The alternative is the indemnity basis, which is reserved for circumstances where the conduct of the unsuccessful party justifies a higher level of cost recovery (such as an unreasonable refusal of a formal settlement offer that the claimant later beats at trial), and which typically produces 80% or more cost recovery.

Do you have to pay disbursements if your claim is unsuccessful?

Whether you have to pay disbursements if your claim is unsuccessful depends on the funding model and the wording of the costs agreement, with three possible outcomes. Either the firm writes off the disbursements under a clean No Win No Fee agreement, the claimant remains personally liable for disbursements that the firm paid out of working capital, or the claimant remains liable for repaying a litigation loan that funded the disbursements. The disbursement bill is often the largest financial exposure a claimant faces if a personal injury claim fails, and the position depends entirely on the costs agreement signed at the start of the matter.

A clean No Win No Fee agreement covers both professional fees and disbursements, meaning the claimant owes nothing if the claim is unsuccessful. The firm absorbs the loss on its time-based work and also writes off the disbursement spend it has paid to medical specialists, barristers, the court, and other third parties. The clean No Win No Fee version produces the cleanest claimant outcome on an unsuccessful matter, but it is not the only version offered in the Queensland personal injury market, and the wording of the costs agreement determines whether disbursements are inside or outside the No Win No Fee treatment.

A No Win No Fee agreement that covers professional fees but not disbursements leaves the claimant personally liable for the disbursement spend if the claim fails. The firm has paid the disbursements out of working capital during the claim, the costs agreement records those payments as recoverable from the claimant, and the claimant remains liable for repayment regardless of the outcome of the matter. The disbursement bill on a failed personal injury claim under this version of No Win No Fee can run to $5,000 to $80,000 depending on the claim type, and the claimant has no settlement from which to pay it.

A litigation loan funding model produces an outcome that depends on the loan structure. A "no win no pay" loan written by a specialist disbursement funder typically waives repayment if the claim is unsuccessful, with the lender absorbing the loss in the same way the law firm absorbs unrecovered professional fees under a No Win No Fee agreement. An unconditional litigation loan requires repayment of principal and accrued interest regardless of the outcome of the claim, leaving the claimant exposed to the full loan balance if the matter fails. Which version applies is set out in the loan agreement the claimant signs alongside the costs agreement.

A claimant signing a costs agreement should confirm three specific points before proceeding. The first is whether disbursements are covered under the No Win No Fee treatment or sit outside it as a separate liability. The second is whether the firm uses a litigation loan to fund disbursements, and if so, whether the loan is "no win no pay" or unconditional. The third is whether any portion of the disbursement spend is the claimant's personal responsibility regardless of outcome. The answers to those three questions determine the claimant's worst-case financial exposure if the claim is unsuccessful.

A separate financial risk applies if a personal injury claim proceeds to trial and the claimant fails to beat a formal offer made by the at-fault party. An adverse costs order in those circumstances exposes the claimant to the at-fault party's legal costs and disbursements from the date of the offer onward, which can run to $50,000 to $200,000 depending on the complexity of the matter and the duration of the trial. The adverse costs risk sits separately from the claimant's exposure on the firm's own disbursement bill and applies regardless of the funding model used during the claim. Less than 1% of personal injury claims in Queensland proceed to trial, so the adverse costs risk affects a small proportion of claimants, but the financial exposure when it crystallises is significant.

Is GST charged on disbursements in a personal injury claim?

Yes, GST is charged on most disbursements in a Queensland personal injury claim where the third-party supplier is GST-registered, with the GST component added to the supplier's invoice and passed through to the claimant as part of the disbursement bill. A small number of disbursements are GST-free or input-taxed, but the majority of the disbursement spend on a typical personal injury matter carries GST at 10%.

GST treatment depends on the nature of each disbursement and the GST status of the supplier providing the service. Medical specialists providing IME (independent medical examination) reports are generally GST-registered and charge GST on their report fees, which means the medico-legal report invoice is grossed up by 10% before being passed through to the claimant. Barrister fees attract GST in the same way. Expert reports from forensic accountants, engineers, occupational therapists, and similar non-medical experts are also GST-inclusive at the supplier's invoiced rate. The GST component on these disbursements is typically the largest single GST exposure on a personal injury claim.

Court and procedural fees are treated differently. Filing fees, hearing fees, and other registry charges paid to a Queensland court are GST-free, because they are regulatory charges paid to a government body rather than a taxable supply for GST purposes. Subpoena fees and transcript fees are similarly treated. The court component of the disbursement bill therefore carries no GST, regardless of how large the court fees become if the matter proceeds into litigation.

GST on legal services is treated separately from GST on disbursements. The law firm's professional fees attract GST at 10% on the firm's invoiced amount, and that GST is part of the firm's claim-related legal costs sitting within the 50/50 cap under section 347 of the Legal Profession Act 2007 (Qld). The GST charged on disbursements by third-party suppliers is not part of the firm's claim-related legal costs and sits outside the cap, but it does form part of the disbursement total deducted from the gross settlement before the cap is calculated.

The GST treatment of disbursements affects the claimant's net outcome by approximately 10% of the GST-inclusive portion of the disbursement bill. A claim with $15,000 in GST-inclusive disbursements (medical reports, expert reports, barrister fees) and $1,500 in GST-free court fees carries roughly $1,360 in GST on the disbursement spend, which is recovered from the settlement at the end of the matter alongside the underlying disbursement principal. Some firms claim back GST credits on disbursements paid through their trust account on behalf of the claimant, depending on the firm's GST registration position and the structure of the disbursement payment, but the net effect on the claimant's bill is typically the same.

When are disbursements incurred during a personal injury claim?

Disbursements are incurred across the life of a personal injury claim, with most spend concentrated at three points: the early evidence-gathering phase after the notice of claim is given, the lead-up to compulsory conference where major medical and expert reports are commissioned, and (if the claim does not settle) the litigation phase where additional reports, barrister fees, and court fees accumulate. The total disbursement bill on a claim that settles at compulsory conference is typically 30% to 50% lower than the bill on the same claim run through to trial.

The early phase of a personal injury claim carries a relatively low disbursement spend. Initial GP records, hospital records, and treating doctor reports are obtained at low cost, and the work done in this phase is largely about establishing the basic injury and incident facts before the formal claim is lodged. Some preliminary expert advice may be sought on liability questions in motor vehicle and public liability claims, but the major medical and expert reports are usually deferred until after the notice of claim has been given and the at-fault party has responded.

The pre-compulsory-conference phase is where the largest single tranche of disbursement spend is incurred. Once the claim has been formally lodged and the respondent has accepted or denied liability, the firm commissions IME (independent medical examination) reports from independent medical specialists, expert reports on economic loss and future care, and barrister advice on settlement value. Each of these items typically falls in the $3,000 to $15,000 range, and a typical claim accumulates $10,000 to $30,000 in disbursements during this phase. The objective is to assemble a complete evidentiary picture that allows the claim to be valued and settled at compulsory conference.

The litigation phase is the most expensive phase of a personal injury claim. A claim that does not settle at compulsory conference moves into court proceedings, with the firm filing originating proceedings in the appropriate court (Magistrates Court for claims up to $150,000, District Court for $150,000 to $750,000, Supreme Court for claims above $750,000), paying court filing and hearing fees, briefing counsel for trial preparation, obtaining updated medical reports to reflect the claimant's condition closer to trial, and commissioning additional expert reports on issues that emerge in pleadings. The disbursement spend in the litigation phase typically doubles or triples the spend incurred up to compulsory conference. The increased disbursement bill is the principal reason litigation is reserved for matters that cannot be resolved through pre-court procedures.

The decision to incur a disbursement is made by the firm in consultation with the claimant, balancing the value the disbursement adds to the claim against the cost. A medical specialist report that is unlikely to materially change the value of the claim is generally not commissioned, even if it is technically available, because the cost of the report would reduce the net settlement without producing an offsetting recovery from the at-fault party. The cost-benefit logic on each disbursement decision is part of the firm's professional obligation to advance the claim on reasonable prospects under section 345 of the Legal Profession Act 2007 (Qld), which requires legal costs (including disbursements) to be reasonable and proportionate to the matter.

What is a compulsory conference?

A compulsory conference is a mandatory pre-court settlement meeting required under the Personal Injuries Proceedings Act 2002 (Qld) and the (Qld), held after evidence has been exchanged, at which the parties attempt to settle the claim before court proceedings issue. The conference is attended by the claimant, the respondent, their respective lawyers, and (in most cases) a barrister briefed for each party. Final written settlement offers are exchanged at or shortly after the conference, and a matter that does not resolve at compulsory conference becomes eligible for the claimant to commence court proceedings. Most personal injury claims in Queensland settle at or shortly after the compulsory conference, which is why the disbursement spend tends to peak in the lead-up to that stage.

What should you ask a personal injury lawyer about disbursements before signing?

Before signing a costs agreement, a claimant should ask a personal injury lawyer six specific questions about disbursements to determine the claimant's financial exposure during the claim, the worst-case outcome if the claim fails, and the net settlement at the end of a successful matter. Disbursement-specific questions sit alongside a broader set of questions to ask a personal injury lawyer covering experience, accreditation, communication, fee structure, and resolution strategy. 

The six key questions below target a different dimension of the claimant's disbursement exposure under the costs agreement.

• “Who pays disbursements during the claim?” Asking who pays disbursements during the claim establishes whether the firm self-funds out of working capital, uses a third-party litigation loan, or expects the claimant to pay disbursements as they are incurred. The answer determines the claimant's cash-flow exposure during the matter.

• “What happens to disbursements if the claim is unsuccessful?” Asking what happens to disbursements if the claim is unsuccessful establishes whether the No Win No Fee treatment in the costs agreement covers disbursements as well as professional fees, or whether disbursements remain a personal liability of the claimant regardless of outcome. The disbursement bill on a failed claim can run to $5,000 to $80,000 depending on the claim type, so the answer to this question determines the claimant's worst-case financial exposure.

• “Is interest charged on disbursements?” Asking whether interest is charged on disbursements establishes whether the firm uses a litigation loan to fund disbursements, and if so, what interest rate applies and whether the interest is calculated on a simple or compound basis. Interest on a long-running, disbursement-heavy claim can add $3,000 to $25,000 to the disbursement bill, depending on the loan structure.

• “Will a third-party disbursement funder be used?” Asking whether a third-party disbursement funder is used identifies whether the loan is "no win no pay" (waived if the claim fails) or unconditional (repayable regardless of outcome). The distinction is critical to the claimant's worst-case exposure if the matter is unsuccessful, because an unconditional loan leaves the claimant personally liable for the principal and accrued interest with no settlement to draw from.

• “Is GST charged on disbursements?” Asking whether GST is charged on disbursements clarifies how the disbursement bill is presented and whether the firm passes through GST credits where applicable. Most disbursements from medical specialists, barristers, and expert report providers carry GST at 10%, while court and procedural fees are GST-free, so the GST exposure varies depending on the mix of disbursements on the claim.

• “Are major disbursements going to be pre-authorised?” Asking whether major disbursements are pre-authorised with the claimant establishes whether the firm seeks the claimant's approval before incurring large items (such as a $6,000 IME report or a $10,000 expert liability report) or whether the firm makes the decision unilaterally under a general authority in the costs agreement. Pre-authorisation gives the claimant visibility over the disbursement bill as it accumulates and is a feature of cost-conscious firm practice.

How do disbursements interact with a No Win No Fee agreement?

Disbursements interact with a No Win No Fee agreement in one of three ways depending on the wording of the costs agreement: disbursements are covered under the No Win No Fee treatment and written off if the claim fails, disbursements sit outside No Win No Fee and remain a personal liability of the claimant regardless of outcome, or disbursements are funded by a third-party litigation loan with the loan repayment terms determining the claimant's exposure. Whether disbursements fall inside or outside the No Win No Fee treatment is one of the most consequential terms in the costs agreement and is the area where Queensland personal injury firms most differ from one another.

A No Win No Fee agreement is a fee arrangement where a personal injury lawyer agrees not to charge professional fees unless the claim is successful, with both the firm's time-based work and the firm's exposure to disbursements depending on the wording of the agreement. The standard understanding of No Win No Fee is that the claimant pays nothing if the claim fails, but that understanding is only fully accurate where the costs agreement extends the No Win No Fee treatment to disbursements as well as professional fees. A costs agreement that is silent on disbursements, or that explicitly excludes disbursements from the No Win No Fee treatment, leaves the claimant liable for the disbursement spend regardless of outcome.

The Queensland market includes firms taking each of the three positions. Some firms run a clean No Win No Fee model that covers both professional fees and disbursements, with the firm absorbing the entire loss on an unsuccessful matter. Some firms cover professional fees under No Win No Fee but require the claimant to repay disbursements out of pocket if the claim fails, sometimes with the firm having self-funded the disbursements during the claim and recovering them from the claimant on conclusion. Some firms use a third-party litigation loan to fund disbursements, with the No Win No Fee treatment of professional fees sitting alongside a separate loan agreement that may or may not waive repayment if the claim is unsuccessful.

The interaction between disbursements and No Win No Fee also affects the dollar exposure of the claimant during the life of the claim. A clean No Win No Fee model means the claimant has no out-of-pocket payments while the matter is running, with all disbursements paid by the firm and recovered (or written off) at the end. A litigation loan model means the claimant has signed a loan agreement but typically makes no payments until settlement, similar to the firm-funded model from a cash-flow perspective. A claimant-funded model means the claimant pays disbursement invoices as they are incurred, which can be a meaningful financial commitment over a multi-year claim with $10,000 to $30,000 in pre-compulsory-conference disbursement spend.

A claimant evaluating a No Win No Fee offer should treat the disbursement treatment as a distinct commercial term from the professional fee treatment, and should read the costs agreement specifically for whether the disbursement spend is covered, partially covered, or excluded from the No Win No Fee position. The way a No Win No Fee agreement handles disbursements is one of the most important variables in the claimant's overall financial exposure on a personal injury claim.

How does a personal injury lawyer charge for their work?

A personal injury lawyer in Queensland is paid from the claimant's settlement at the end of the matter under a No Win No Fee arrangement, with total legal fees capped by law at 50% of the net settlement after disbursements and statutory refunds are deducted. The bill the claimant sees at the end of a successful matter typically has four components: professional fees calculated on time and tasks performed, an uplift fee (if the costs agreement provides for one), GST on the legal services, and disbursements recovered as a separate pass-through cost.

A personal injury lawyer's professional fees are calculated by reference to the lawyer's hourly rates and the time spent on the matter, with most Queensland firms charging in the range of $300 to $700 per hour depending on the seniority of the practitioner. The total professional fees on a typical personal injury claim run from $20,000 to $60,000 depending on claim complexity, with disbursement-heavy matters (medical negligence, complex public liability) often producing higher professional fees due to the additional work involved in commissioning, reviewing, and acting on expert evidence. The professional fees component sits alongside the uplift fee and GST inside the 50/50 rule cap.

Disbursements sit separately on the bill from professional fees and are not included in the firm's fee calculation. A claimant looking at a final settlement statement will see the disbursement spend listed as its own line item, recovered at the third party's invoiced amount (plus any GST charged by the supplier). The disbursement total is deducted from the gross settlement before the 50/50 rule cap is calculated, which is why the disbursement spend on a claim affects the available pool for legal fees but does not itself form part of the legal fee cap calculation.

A claimant evaluating personal injury law firms should expect to receive a written cost disclosure at the outset of the matter, broken down into estimated professional fees, estimated disbursements, and any applicable uplift. The cost disclosure obligation is set out in section 308 of the Legal Profession Act 2007 (Qld), which requires the firm to provide an updated estimate when circumstances materially change. Personal injury claimants in Queensland typically keep 60% to 75% of the gross settlement after professional fees, uplift, GST, disbursements, and statutory refunds are deducted, with the exact figure depending on how much a personal injury lawyer costs for the specific claim type and firm fee structure.

What is an uplift fee?

An uplift fee is an additional percentage charged on top of base professional fees if a personal injury claim succeeds, capped at 25% of the legal costs (excluding disbursements) for litigious matters. The uplift is paid only if the claim is successful, compensates the firm for the No Win No Fee risk it has carried during the matter, and must be set out in the costs agreement before the claimant signs.

An uplift fee applies to professional fees but does not apply to disbursements. The 25% cap is calculated on the firm's time-based legal costs, not on the disbursement spend, which means the disbursement bill on a personal injury claim is unaffected by whether the firm charges an uplift and at what percentage. A claimant who sees a "25% uplift" line in the costs agreement should read it as 25% of the firm's professional fees only, not 25% of the entire bill.

The exclusion of disbursements from the uplift calculation is set out in section 324 of the Legal Profession Act 2007 (Qld), which authorises an uplift on legal costs in litigious personal injury matters and limits the uplift to 25% of those costs. A worked example shows the mechanic. A claim with $40,000 in professional fees and $12,000 in disbursements carries a maximum uplift of $10,000 (25% of $40,000), not $13,000 (25% of $52,000). The total bill the claimant sees is $40,000 in professional fees, $10,000 in uplift, $12,000 in disbursements, plus GST on the legal services component.

The uplift fee and the disbursement spend interact through the 50/50 rule. The uplift forms part of the firm's claim-related legal costs that are subject to the 50% cap calculated on the net settlement after disbursements have been deducted. A higher disbursement spend reduces the net settlement pool, which compresses the cap, which can in turn force the firm to write down the uplift (or the underlying professional fees) to keep total legal costs within the statutory ceiling. The dynamic means a claim with substantial disbursements often results in the firm charging less than the maximum uplift the costs agreement permits.

Not all Queensland personal injury firms charge an uplift fee. Firm policy on the uplift varies from 0% (no uplift charged) through to the full 25% statutory ceiling, with some firms applying a tiered approach (lower uplift on early settlements, higher uplift on litigated matters). The uplift fee policy of a personal injury firm is one of the variables a claimant should evaluate before signing a costs agreement, alongside the disbursement funding model and the firm's broader fee structure.

How do disbursements affect claim length?

Claim length and disbursement spend move together: longer personal injury claims accumulate more disbursements, and disbursement-heavy claims often take longer to resolve because the evidence-gathering process drives the matter's timeline. A typical Queensland personal injury claim takes 12 months to 3 years from the date of injury to settlement, with the disbursement bill scaling from $5,000 on a fast-resolving CTP matter to $80,000 or more on a multi-year medical negligence claim.

The duration of a personal injury claim drives disbursement spend in three ways. The first is medical evidence updating: a long-running claim requires additional IME (independent medical examination) reports and treating doctor reports as the claimant's condition evolves, with each updated report typically costing $3,000 to $8,000. The second is expert report development: complex claims that take longer to resolve often require additional expert opinions on emerging issues such as future care costs, vocational capacity, or economic loss as the picture of the claimant's injury settles. The third is procedural cost accumulation: a claim that progresses into court proceedings incurs filing fees, hearing fees, and additional barrister fees that do not arise on matters that settle at compulsory conference.

Litigation loan interest compounds the relationship between claim length and disbursement cost. A claimant funding disbursements through a litigation loan accrues interest on the drawn balance from the date of each drawdown, and a claim that runs for three years rather than 18 months can double the interest exposure on the same disbursement principal. A medical negligence matter running for four years with $50,000 in front-loaded disbursements can accumulate $15,000 to $25,000 in litigation loan interest by the time of settlement, which is recovered from the gross settlement at the end of the matter and reduces the claimant's net outcome accordingly.

The relationship between claim length and disbursement spend can run in the other direction as well. A disbursement-heavy claim often takes longer to resolve because the evidence-gathering process is itself the rate-limiting step. A medical negligence claim requires multiple specialist reports from doctors of equivalent seniority to the treating practitioner whose conduct is in question, and these reports are scarce, time-intensive, and often take 6 to 12 months to commission and finalise. The claim cannot be properly valued or settled until the medical evidence is complete, which means disbursement-heavy claim types are inherently slower than disbursement-light claim types. The factors that determine how long a personal injury claim takes include the severity of the injuries, the complexity of the liability question, whether the matter settles at compulsory conference or proceeds into litigation, and the responsiveness of the at-fault party's insurer, with each of these factors also affecting the disbursement spend on the claim.

What types of personal injury claims have the highest disbursements?

Medical negligence claims carry the highest disbursements of any personal injury claim type in Queensland, typically running from $25,000 to $80,000 or more, followed by complex public liability claims at $10,000 to $25,000, with workers' compensation common law claims and CTP motor vehicle accident claims sitting at the lower end at $5,000 to $15,000. The disbursement profile of a claim is driven primarily by the type and number of expert reports required to prove liability and value the injuries, which varies sharply across personal injury claim types.

Medical negligence claims sit at the top of the disbursement scale because they require expert evidence from multiple specialists of equivalent seniority to the treating practitioner whose conduct is in question. A medical negligence matter typically requires reports from a specialist in the same field as the defendant doctor (to establish breach of duty), an independent medical examiner (to establish causation and quantum), and one or more expert reports on future care, economic loss, and life expectancy. Each report costs $5,000 to $15,000, and the cumulative cost on a complex matter routinely exceeds $50,000. The high disbursement profile is one of the principal reasons medical negligence claims are mostly run by a smaller subset of specialist firms rather than the broader personal injury market.

Public liability claims sit in the mid-range of disbursement cost because they often require liability investigation work that motor vehicle and workers' compensation claims do not. A slip-and-fall claim against a supermarket, for example, may require an engineering report on floor surface coefficients, a premises inspection by a safety expert, accident reconstruction work, and liability witness investigation. These investigation costs run alongside the standard medical evidence costs that all personal injury claims incur. A complex public liability matter can accumulate $20,000 to $25,000 in disbursements before compulsory conference, with simpler matters resolving for less.

Workers' compensation common law claims and CTP motor vehicle accident claims sit at the lower end of the disbursement scale because liability is often clear or accepted at an early stage. CTP claims are run against the at-fault driver's compulsory third party insurer, which typically accepts liability where police records or witness evidence supports the claimant's version of events, and the matter proceeds primarily on quantum (the value of the injuries). A typical CTP claim accumulates $5,000 to $15,000 in disbursements, almost entirely on medical evidence. Workers' compensation common law claims follow a similar profile, with disbursements concentrated on medical reports and economic loss expert evidence.

Two further claim types sit outside this main profile. Sexual abuse and institutional abuse claims often involve significant psychological evidence costs and historical document retrieval costs, with disbursements that can rival medical negligence on complex matters. Total and permanent disability (TPD) claims through superannuation schemes typically have low disbursements (often under $5,000) because the matter turns on insurance policy interpretation and the claimant's medical evidence already obtained for treatment purposes, rather than expert evidence commissioned specifically for the claim.

The disbursement profile of a personal injury claim is one of several factors a claimant should consider when evaluating the financial dynamics of pursuing the matter, alongside the available compensation, the time to resolution, and the strength of the liability and quantum evidence.

How does disbursement policy differ among personal injury law firms?

Disbursement policy varies significantly between Queensland personal injury law firms, with the main differences being whether the firm self-funds disbursements or uses a third-party lender, whether interest is passed on to the claimant, whether disbursements are written off if the claim fails, and whether the firm operates a cost-vs-benefit threshold on commissioning expert reports. The disbursement policy of a firm has a direct effect on the claimant's cash-flow exposure during the claim, the worst-case outcome if the matter fails, and the net settlement at the end of a successful claim.

Four dimensions of disbursement policy distinguish Queensland personal injury law firms as outlined in detail below. .

• Funding source. The funding source is the most visible policy difference and determines whether the firm self-funds disbursements out of working capital or arranges a third-party litigation loan to fund the disbursement spend. Self-funded firms absorb the cash-flow burden internally; firms using a third-party lender shift the burden to the loan provider but typically pass the financing cost on to the claimant.

• Interest treatment. The interest treatment determines whether the claimant pays interest on the disbursement balance during the claim. A self-funded firm typically charges no interest on disbursements (recovering only the principal at the end of the matter); a litigation loan model charges interest at the lender's rate (commonly 9% to 15% per annum) on the drawn balance from the date of each drawdown.

• Unsuccessful claim treatment. The unsuccessful claim treatment determines whether the claimant remains liable for disbursements if the matter fails. A clean No Win No Fee model writes off both professional fees and disbursements; a partial No Win No Fee model writes off professional fees but leaves disbursements as a personal liability of the claimant; a "no win no pay" litigation loan waives loan repayment if the claim fails, while an unconditional litigation loan requires repayment regardless of outcome.

• Cost-vs-benefit threshold. The cost-vs-benefit threshold determines whether the firm seeks the claimant's pre-authorisation before commissioning major disbursements such as $5,000 to $15,000 expert reports, and whether the firm declines to incur disbursements that are unlikely to materially change the value of the claim. Cost-conscious firms apply a tight cost-vs-benefit filter on each disbursement decision; less disciplined firms commission reports that produce limited additional recovery, increasing the disbursement bill without proportionate benefit to the claimant.

A claimant comparing personal injury law firms should treat the four dimensions of disbursement policy as distinct commercial terms and should seek a clear answer on each before signing the costs agreement. The four dimensions interact with the firm's broader fee structure, professional fees policy, and uplift policy to produce the claimant's overall financial exposure on a personal injury claim, and choosing a personal injury lawyer involves evaluating disbursement policy alongside experience, accreditation, communication, and resolution strategy.