Introduction

Statutory Deposit accounts operate beside law practices' general trust accounts, similar to a high-interest savings account, with the additional interest earned going towards the Public Purpose Fund. These funds are used to fund regulatory activities and provide grants to support community-oriented initiatives such as the Pro Bono Scheme and Solicitor Referral Service.

Law practices are required to determine their contribution into their Statutory Deposit account once per quarter. Funds held in the Statutory Deposit account are available to the law practice at any time and can be withdrawn back into the general trust account on a needs basis.

Section 46 of the Legal Profession Uniform Law Application Act 2014 and rules 9 and 10 of the Legal Profession Uniform Law Application Regulation 2015 set out the requirements for statutory deposits including the amount to be held and when it should be transferred.

When and how to calculate

The amount a law practice must deposit into a statutory deposit account should be calculated quarterly using our online Statutory Deposit Calculator, as follows:

Request for determination of statutory deposit

In some circumstances, a law practice may request permission from the Law Society to contribute a lesser amount, by completing a Request for Determination of Statutory Deposit form, and sending it to StatutoryDeposit@lawsociety.com.au.

To assist with consideration of the Request for Determination of Statutory Deposit, please include the following:

• Specify your best estimate of the amount you could contribute to the Statutory Deposit
• Advise the reason for your request and any relevant information to support your request
• Ensure the request includes:
  1. Copies of trust account bank statements for the most immediate four-month period
  2. Trial balance statement as at the date of request
  3. Details of anticipated payments due to be made in the next 14 days

Opening/Depositing/Withdrawing a Statutory Deposit

• Each Bank has its own procedures regarding the operation of a Statutory Deposit account. In the first instance, you should approach your Bank’s relationship manager or designated point of contact with responsibility for Statutory Deposit accounts.
• When opening a new Statutory Deposit account, you must request the Bank open a Statutory Deposit account, entitled “Law Society of NSW-Special Account".
• It is important to note that no authorisation or documentation from the Law Society of NSW is required to open a new Statutory Deposit account.
• When withdrawing funds from the Statutory Deposit account, you do not need to obtain permission from the Law Society before doing so.
• If, for any reason, the Bank are unable to assist, contact us at statutorydeposit@lawsociety.com.au.