Benchmarking costs of law practice in New Zealand

The Law Society’s Costs of Practice Report for March 2024 provides a detailed analysis of the expenses associated with law practice in New Zealand. It highlights the increasing overhead costs across different types and sizes of law practices, with a specific focus on staff-related costs as the primary expense driver, escalating significantly each year. The report points out the challenges of rising costs in all operational areas, including administrative, rental, utilities, financial, and insurance costs, emphasising the pressure these are placing on law practices.

Moreover, the report discusses the impact of regulatory and compliance requirements and the substantial difference in overhead costs between legal aid and non-legal aid providers, with legal aid providers facing notably higher expenses. Key issues like the cost of technology upgrades, managing cash flow, and the difficulty of recruiting and retaining qualified staff are also extensively covered. The document underscores a growing administrative burden and a need for law practices to adapt to increasing operational costs while maintaining profitability and efficiency.

Read the full article here, or download the PDF of the report.

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