Canberra’s Law Firm Contracts Go Boom
A dramatic reset of the Australian Government’s legal services panel has sparked a contract bonanza for select law firms, with some firms more than doubling their federal billings. Top-tier firm Clayton Utz walked away with the lion’s share, locking in a massive $71 million in government contracts, more than twice its average from the past four years.
Government Legal Panel Overhaul Doubles BigLaw Contracts in Canberra
A revamp of Australia’s federal legal panel has reshaped the government law game, leading to a surge in contract wins for major firms like Clayton Utz, Holding Redlich, and Sparke Helmore. Despite government pledges to reduce outsourced legal spend, top 20 firm contracts soared from $230m to $430m in the past financial year.
Other firms also got a sweet taste of Canberra gold:
- Sparke Helmore: From $30M to $66M
- Mills Oakley: From $2.3M to $14M
- Maddocks: From $16M to $25M
- HWL Ebsworth & MinterEllison: Both at $30M
- Holding Redlich: A standout—up from $6.5M to $22.3M
And it’s not just about the cash. It’s about power, positioning, and panel access.
Holding Redlich’s Canberra Coup
Elizabeth Carroll, Holding Redlich’s Canberra managing partner, says the legal panel overhaul dramatically reshaped who gets through the government’s door. With an aggressive hiring spree (including two partners poached from MinterEllison) and a fast-expanding office, the firm has elbowed its way into the top 10 public sector legal billers.
“We’ve seen the Commonwealth ask who’s delivering the best value,” Carroll said. “We’re proud to be one of the answers.”
The Panel Power Play
The legal services panel is the gatekeeper to federal work across six key legal areas—corporate, property, workplace, public law, and others. Last year’s shake-up cut many firms off the list entirely, as part of Labor’s broader cost-cutting campaign to save over $11.7 billion on outsourced services by 2026–27.
Still, some firms held their ground:
- Clayton Utz, Ashurst, and Gilbert + Tobin were the only top-tier firms to clinch a spot across all panel areas.
- Ashurst, despite winning $33M in contracts, later scaled back, losing 60 lawyers and seven partners to Thomson Geer, citing cost pressures.
And despite promises of frugality, the total value of top 20 firm contracts doubled to $430 million—a reminder that cutting costs and cutting lawyers are not always the same thing.
Behind the Numbers
- While contract values recorded in AusTender reflect the maximum payable, actual spend often differs—sometimes significantly.
- In 2022-23, $220M was the contracted value—but $448M was actually spent.
- Record-keeping across departments remains patchy, with contracts added long after they begin.
Although government work can mean thinner margins and steeper discounts, it offers consistency, prestige, and resilience in down markets. For firms willing to play the long game (and the panel game), Canberra remains a high-stakes, high-reward arena.
