Federal Government invites feedback on legal professional privilege in commonwealth investigations

Submissions are open until 28 February

Federal Government invites feedback on legal professional privilege in commonwealth investigations

The federal government has released a discussion paper on using legal professional privilege in Commonwealth investigations, inviting public feedback to inform potential reforms.

In a joint announcement, Treasurer Dr. Jim Chalmers and Attorney-General Mark Dreyfus said that the new initiative forms part of the government’s response to the PwC tax leaks scandal and broader efforts to strengthen trust in regulatory systems.

Legal professional privilege protects communications between lawyers and clients. However, concerns about its potential misuse in obstructing investigations have prompted this review, jointly led by the Attorney-General’s Department and Treasury.

The discussion paper explores issues identified through initial consultations with approximately 100 stakeholders from the government, the legal profession, academia, and industry. These consultations aim to strike a balance between preserving the integrity of legal professional privilege and ensuring its application does not undermine investigative processes.

The review, first announced in August 2023, is part of a broader package of reforms introduced in response to the PwC tax leaks. The reforms aim to rebuild confidence in the regulatory systems supporting Australia’s tax and financial markets.

The discussion paper is available on the Attorney-General’s Department website, and submissions are open until 28 February. The government has emphasised that all members of the public are welcome to contribute, with a particular focus on input from regulatory agencies, legal professionals, academics, and industry stakeholders.

Submissions will inform the development of a final options paper to be released in 2025, outlining potential reforms for further consultation. While public contributions may be published, confidential submissions are protected under the Freedom of Information Act 1982 and the Privacy Act 1988.

The government has reiterated its commitment to addressing misconduct and ensuring robust legal and regulatory compliance frameworks. “We are cracking down on misconduct and rebuilding confidence in the systems that keep our tax system and capital markets strong,” said Chalmers and Dreyfus.

Feedback can be submitted through the Attorney-General’s Department’s consultation hub.