This Practice Direction applies to any application for the
taxation of costs lodged with the Tribunal on or after 20 April
Practice Direction for the Procedure of Taxation of Costs The
Practice Direction for the Procedure of Taxation of Costs provides
the Tribunal with a formal process by which it can handle the
taxation of costs. An application can be made to the Tribunal by
either party for costs to be taxed in situations where an agreement
cannot be made on the amount of costs.
The key points of this Practice Direction are as follows:
The Tribunal may order that a party to a proceeding pay the
costs incurred by another party through the process of
Costs that are assessed by the Tribunal are assessed on a
party/party basis. These costs can include witness expenses,
disbursements and professional costs. Professional costs should be
assessed as set out in the Federal Court Rules 2011 (Cth).
If costs are to be disputed, a disputed itemised bill must be
lodged with the Tribunal and a copy must be served on the other
Parties are then notified of the Taxing Officer for the matter
and may lodge a short written summary of any objections.
Objections must include the ground of the objection and the
amount (if any) the party is prepared to pay. This objection
summary must also be provided to the party who lodged the itemised
Following the lodging of the itemised bill, the Taxation Officer
provides a written estimate of costs likely to be payable. Should
the parties disagree, a written notification of the parties
disagreement to the estimate must be provided to Tribunal within 10
days of receipt of the estimate. If parties agree on the written
estimate, the Taxation Officer will issue a Certificate of Taxation
for the amount of the estimate. If they do not agree, the Tribunal
will notify the parties of a time and date for a conference to
If no agreement is made at the conference, notice that Taxation
is required must be given to the Taxation Officer within 10 working
days of the conference. At this stage, the parties will proceed to
Taxation. The Taxation Officer will notify the parties, in writing,
of the date and time of the taxation. Following the completion of
Taxation, the Taxation Officer will issue a Certification of
Parties should be aware that no written reasons for the Taxation
amount will be provided automatically. However, either or both of
the parties can request written reasons be provided. This request
must be made within 28 days of the Taxation.
There is an obligation for parties to follow the rules set out
in the Federal Court Rules 2011 and only charge what is deemed as
reasonable and proper. If costs are disputed between the parties,
the procedure of this Practice Direction should be followed to
achieve a process that results in costs being resolved at the
earliest possible opportunity. The Practice Direction formalises
the informal procedure that is already being followed by the
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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