Lawyers are often portrayed to be rich males and females in suits debating and fighting in court. Unfortunately, the media’s portrayal of lawyers is only partly true. Only one thing is likely true – they make a lot of money. But how much do they make exactly? In this article, we’ll take a deeper look at the factors that influence a lawyer’s salary, as well as the real figures of how much lawyers make in Australia.
Are you concerned about the cost of a lawyer? It’s understandable. Lawyers can be expensive, but there are alternatives. You might not realize it, but lawyers are more affordable than you think.
With its reputation as one of the priciest fields to work in, you might think that lawyers made millions of dollars a year. Well, you’d be right. But how much money lawyers actually make never fails to astound those outside of the legal field.
Many people ask how much lawyers make. Indeed, it seems like a simple question, but it’s actually a bit more complex and difficult to answer than you might think. There are a handful of factors that go into establishing your lawyer salary, such as your location and practice area. Below I give an overview of the main factors affecting a lawyer’s salary.
What Factors Influence a Lawyer’s Salary?
Naturally, a lawyer’s years of experience greatly dictates how much he or she earns. For instance, a criminal lawyer with only about one year of experience in the field has an average income of about $50,000 to $62,000. That is certainly not bad at all. However, a criminal lawyer with more than a decade of experience can earn anywhere from $100,000 to $150,000! That is simply how years of experience can influence how much a lawyer makes.
A lawyer’s position in a firm is also a significant factor. Lawyers employed in Australia’s biggest law firms are expected to command six-figure salaries. Meanwhile, those working for non-profit organizations may make significantly less than others. Moreover, the type of cases a lawyer handles also affects how much he or she makes. Is the lawyer representing a multi-million dollar company? Or is he or she representing an individual in court?
Lastly, there are different kinds of lawyers. Although it might seem like lawyers only go to courts and attend hearings, the profession is actually diverse and filled with opportunities. Criminal lawyers are the most commonly portrayed type of lawyer in the media. However, there are different types of lawyers; and what type of lawyer they also greatly influence how much they make.
What Are the Different Types of Lawyers?
You might not be aware of it but there are so many types of lawyers in Australia. Australian laws are complex and because of this, lawyers specialize in one area to provide their best counsel to individuals and companies.
Criminal Lawyer
Criminal lawyers are typically barristers who deal with individual persons and companies charged with criminal activity. Typically, these lawyers can defend the accused or specialise in prosecution. In Australia, the states primarily handle criminal law. Only a few crimes are being tried at a federal level.
Property Lawyer
Property lawyers deal with residential or commercial property laws. These lawyers are often referred to as real estate attorneys in other countries such as the United States.
Commercial or Corporate Lawyer
Commercial or corporate lawyers are experts in terms of commercial law. They provide legal counsel to businesses in various circumstances such as in mergers and acquisitions (M&A). Moreover, other lawyers who are involved in this practice also specialize in securities law.
Immigration Lawyer
Immigration lawyers help individuals, businesses, and companies work through the complex immigration laws of a state or country.
Personal Injury and Compensation Lawyer
Personal injury and compensation lawyers help injured individuals secure compensation for their losses. They provide legal counsel and advice for a variety of claims such as motor vehicle accident claims, workers’ compensation claims, insurance claims, etc.
Family Lawyer
Family lawyers provide legal counsel and assistance with regard to the family laws of the state. This involves child support, dispute resolutions, family violence interventions, divorce, etc.
How Much Exactly Do Lawyers Make?
Last July 2020, the Australian Taxation Office or ASO released their statistics report on the top 10 highest paying jobs in Australia. Judicial and other legal professionals ranked 7th, with an average yearly income of $184,958.
Unfortunately, there is still an income gap for lawyers based on gender. In the statistics report by the ASO for 2017-2018, male lawyers (solicitors) earned an average of $148,487. Meanwhile, female lawyers (solicitors) earned an average of $112,731. For lawyers (barristers), the gap is even more significant. Males had an average income of $190,454 while females’ income didn’t even reach half that of males at $70,227. However, female magistrates tend to earn higher at $277,129. Male magistrates’ average income is at $272,394.
For the financial year 2017-2018, New South Wales ranked the highest-earning state in Australia; with lawyers having an average yearly pay of $242,428. Next on the list is Victoria, with an average income of $196,816. This is followed by Western Australia at $167,090. Tasmania ranks the last at $85,030.
Meanwhile, if considering the type of lawyer, general-in-house lawyers earn the most with an average annual income of $128,988. The second highest-earning lawyer is constructions lawyers, earning an average of $124,041 per year. Next are corporate lawyers and commercial lawyers, earning $118,558. Tax lawyers come last, with an average annual income of $118,212.
If you’re wondering how much hiring a lawyer or solicitor costs per hour, it also depends on their field of expertise and years of experience. This may range from $200-800 per hour.
Why Do Lawyers Make a Lot of Money?
So, you get it. Lawyers make a ton of money. But what exactly enabled them to make these amounts of money? The most common reason is the amount of money that needs to be invested to become a lawyer. Becoming a lawyer, just like getting any graduate or doctorate degree, requires a lot of money. Typically, lawyers take out thousands of dollars’ worth of student loans.
Apart from that, the nature of lawyers’ work also affects how much they are paid. Lawyers typically work long hours and are always on call. Cases can take a long time to work on; this often drags on for months or even years. Lastly, lawyers spent years getting their degree and studying to get licensed. That, on top of their years of experience, also enables them to make a lot of money.
What Kind of Lawyer Should You Be?
The first question to ask yourself is what kind of lawyer you want to be. Are you interested in becoming a criminal defense lawyer? An immigration attorney? A family law practitioner?
Being an attorney generally involves working long hours, so being able to find a niche area and focus your practice on that area can make things easier for you. You might also be interested in working with a particular type of client (for example, children or seniors) or working for a specific type of organization (such as government agencies).
Conclusion
Contrary to the stereotype, lawyers are part of the working class. Even associates at law firms labor for relatively low pay compared to their legal counterparts in other professions such as physicians or even consultants. Still, common knowledge would say that it doesn’t matter how much you do or don’t make, as long as you can find a job with a reputable and well-paying law firm.
Once you know how to go about getting a job as a lawyer, you should be able to choose the right job with just enough income to support your lifestyle. Making a ton of money may end up hurting your love life and mental well-being.
The average lawyer salary is $119,970. This number comes from the Bureau of Labor Statistics and includes lawyers across all areas of law. While the numbers may fluctuate, I believe this figure is a fair estimate that accounts for differences in law practices and geographic location.
FAQs
- What is the average salary for lawyers in Australia?
The average salary for lawyers in Australia is $119,970.
- How do lawyer salaries in Australia compare to other countries?
Australia ranks 8th in the world for lawyer salaries, behind the United States, United Kingdom, Canada, and a few other countries.
- What is the average salary for lawyers in different states of Australia?
There is no definitive answer to this question as lawyer salaries can vary greatly depending on the state or territory in which they practice. Generally speaking, lawyer salaries in New South Wales and Victoria are higher than in other states, while salaries in Tasmania and the Northern Territory are lower.
- What are the most common industries for lawyers in Australia?
There are a number of industries in which lawyers in Australia can work, with the most common being corporate law, criminal law, family law, and property law.
- What are the most common law firms for lawyers in Australia?
There are a number of law firms in Australia, with the most common being Allens, Freehills, Gilbert + Tobin, and Mallesons.