From 1 July 2026, all applications for, and extensions of, grant funding under the Independent Legal and Assistance Service (ILARS) program will be assessed under new funding criteria. These changes follow amendments to the Personal Injury Commission Act 2020 and supporting updates to the Personal Injury Commission Regulation 2020, expected to be gazetted shortly.
The new legislation introduces a merit test that will apply to all funding applications from 1 July 2026. This includes new applications, requests for additional (top-up) funding, and applications for funding of stages of a matter that have not previously been approved. The legislation requires the merit test to be applied in all such cases and does not provide discretion to depart from this requirement. The commencement date of 1 July 2026 has been set by the Government and must be applied.
In the lead-up to these changes, the Independent Review Office (IRO) continues to assess applications in accordance with the current ILARS Funding Guidelines (2021). Due to a recent increase in application volumes, urgent matters are being prioritised, and every effort is being made to determine applications under the current guidelines where possible.
However, applications received on or after 24 June 2026 may not be finalised before the new criteria take effect on 1 July 2026. Similarly, applications returned for further information may not be determined before this date.
Approved lawyers are encouraged to clearly indicate where urgent funding is required when submitting applications. Urgent matters may include circumstances where a stay is in place, an injured worker requires immediate medical treatment, or funding is sought for an appeal. Approved lawyers are also requested to address the new funding criteria in all new applications to assist timely assessment once the changes commence.
To enable the changes I will amend the ILARS Funding Guidelines (2021) by issuing a new ILARS Amending Instrument which is planned to be gazetted on Friday 26 June 2026, and will be available on the NSW Legislation website. The amendments made by the Amending Instrument will apply to all grants of funding made on or from 1 July 2026.
Jody Grima,
Acting Independent Review Officer