Notice to the Profession - Legal costs and GST

1. The Chief Justice has authorised the issue of this Notice.
2. On 27 November 2025 the Judges of the Court amended the Supreme Court (General Civil Procedure) Rules 2025 to provide for amounts referable to GST to be included, in certain circumstances, in awards of costs as between opposing parties as from 1 January 2026. Amendments have also been made to Practice Note SC GEN 11 Costs Court. 
3. Under new r 63.42.1 of the Rules, the Court or the costs assessor (as the case may be) will have an express discretionary power, on the taxation of costs as between parties, to allow an amount for GST incurred by the entitled party in respect of legal work done on or after 1 January 2026.
4. The discretionary power will arise where the entitled party satisfies the Court or costs assessor that an amount for GST has been included in a relevant professional charge or disbursement incurred by that party and that the entitled party has no ability to claim an input credit in relation to it.
5. Even if these conditions are satisfied, the power remains discretionary, including as to quantum. While claims that meet the preconditions would usually be allowed, other factors - such as any ability of the entitled party or a related party to counteract the economic impact of the GST charge by direct or indirect means - may come into consideration.
6. In a taxation or other costs process where an amount for GST is sought, the parties must follow the procedural requirements of r 63.42 (bills of costs) and r 63.47 (objections), as elaborated in Part 4 of Practice Note SC Gen 11 Costs Court.

Vivienne Mahy
Executive Associate to the Chief Justice
1 December 2025