SA Law Soc lauds reform to raise cap on Legal Practitioners’ Fidelity Fund

The Law Society of South Australia has welcomed legislative reforms, which received assent on 20 November 2025, which intend to increase the interest rate ceiling on the Legal Practitioners’ Fidelity Fund in an effort to future-proof it. 

Upon the new laws coming into operation, one can calculate the fund’s cap by multiplying $11,500 by the number of practising certificate (PC) holders. 

According to the law society’s media release, the cap increase seeks to help: 

• Safeguard the Fidelity Fund against fluctuating interest rates 
• Generate a steady return on investments 
• Ensure the long-term funding of the legal profession’s regulatory framework 
• Fund strategic initiatives to support legal practice and tackle access to justice issues, especially in rural, regional, and remote SA 
• Sustain the funding pool’s depth for those seeking reimbursement in situations involving fiduciary or professional default 

“Forecasts show that, with these reforms, the new, higher cap would be reached in 2028 and the Fund would then be self-sustainable under normal conditions,” the law society’s media release said. “Importantly, forecasts indicate that the Fund would produce a surplus of $3 million, gradually growing year on year, for distribution to the Legal Services Commission.”