Fines of up to $50,000 and referrals to the Legal Profession Conduct Commissioner could be doled out to individuals and legal practitioners who are caught luring victims into civil injury claims.
The practice of contacting victims of abuse or personal injury without their knowledge and consent to encourage them to make compensation claims has been banned in South Australia.
The practice, known as “claim farming”, now carries a maximum penalty of $50,000 and could result in referrals to the Legal Profession Conduct Commission for disciplinary action.
The Statutes Amendment (Claim Farming) Bill was first read in March and last week was received by the House of Assembly, which agreed to and returned it without amendment.
Under the reforms, legal practices convicted of claim farming will also not be entitled to recover any fees or costs, including disbursements, which relate to the provision of services for the claim.
The practice will be made to return any amount already received.
Attorney-General Kyam Maher told the ABC that claim farming was both “immoral” and “predatory behaviour”.
“Targeting vulnerable people who have been injured, including victims of abuse, at a point in their life where they desperately need help and support simply to try and make a quick buck – is gutter behaviour,” Maher told the national broadcaster.
Claim farming has been banned in NSW and Queensland.
In March, the NSW Attorney-General’s Department said the Claim Farming Practices Prohibition Bill 2025 was passed after community consultation to “stop the harm inflicted by this egregious behaviour”.
“The practices used by claim farmers can cause distress to victim-survivors who are pressured to lodge civil compensation claims,” the statement added.
In a note to the Victorian legal profession, CEO and commissioner of the Legal Services Board, Fiona McLeay, said it was imperative lawyers maintained “the highest professional and ethical standards when engaging with all their clients”.
“If Victorians are aware of lawyer involvement in claim farming, we urge them to report it to our office,” McLeay added.
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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