The Complete Guide to Legal Time Recording in Australia (2026)

Time recording is the foundation of revenue for the vast majority of Australian law firms. Whether you are a newly admitted solicitor at a mid-tier firm or a senior partner at a boutique practice, accurate time recording directly determines how much revenue your firm captures — and how much slips away unrecovered.

Yet time recording remains one of the most disliked tasks in legal practice. Surveys consistently show that lawyers rank time entry as their top administrative burden. According to Actionstep's 2026 Australian Midsize Law Firm Priorities Report, billing and time recording are among the leading sources of daily workflow friction, cited by 31% and 24% of respondents respectively.

This guide covers everything you need to know about legal time recording in Australia: the 6-minute unit system, how to write professional billing descriptions, compliance obligations, the software tools available, and how AI is transforming the entire process.

Understanding the 6-Minute Unit System

Australian law firms almost universally use 6-minute billing units, where each unit equals 0.1 of an hour. This system divides each hour into ten equal segments:

The rounding convention varies by firm. Some firms round up to the nearest unit (so a 2-minute phone call becomes 0.1 hours), while others use a minimum threshold. Your firm's policy should be clearly documented in your cost agreement with clients, as required under the Legal Profession Uniform Law and equivalent state legislation.

Why 6-minute units?

The 6-minute unit became standard because it provides a balance between precision and practicality. Billing in 1-minute increments would be more accurate but impractical to record; 15-minute blocks would be simpler but would significantly overcharge or undercharge for short tasks. The 6-minute unit has been the Australian convention for decades and is deeply embedded in every major practice management system.

Writing Professional Billing Descriptions

The quality of your billing descriptions directly impacts two things: whether clients pay without dispute, and whether your entries survive internal write-down review. A vague description like "Work on matter" invites scrutiny; a specific one like "Reviewing and marking up clause 4.2 of the share purchase agreement re: warranty limitations" communicates clear value.

The anatomy of a good billing description

Every billing description should contain three elements:

1. The action — what you did (e.g., Drafting, Reviewing, Attending, Preparing, Corresponding, Researching, Advising)
2. The subject — what you worked on (e.g., statement of claim, lease agreement, deed of settlement, witness statement)
3. The context — why or with whom, where relevant (e.g., "re: proposed amendments to Schedule 3", "with opposing counsel regarding discovery timetable")

Examples by practice area

Commercial / Corporate:

• Reviewing and marking up shareholders agreement; preparing summary of key commercial terms for client review
• Attending conference call with vendor's solicitors regarding completion adjustments under clause 8.3
• Drafting board resolution and accompanying minutes for extraordinary general meeting

Litigation:

• Preparing outline of submissions for interlocutory application re: strike-out of paragraphs 12–18 of amended statement of claim
• Reviewing affidavit evidence filed by respondent; noting inconsistencies with earlier discovery documents
• Attending upon counsel for conference regarding strategy for cross-examination of plaintiff's expert witness

Property / Conveyancing:

• Reviewing contract for sale of land and vendor's disclosure statement; preparing requisitions on title
• Corresponding with purchaser's solicitors regarding extension of settlement date and penalty interest calculation
• Searching Land Registry Services NSW; reviewing registered easements affecting Lot 12 DP 654321

Family Law:

• Drafting initiating application and supporting affidavit for parenting orders; reviewing client's proposed parenting plan
• Attending Family Dispute Resolution conference with client and mediator via Microsoft Teams (2.5 hours)
• Reviewing respondent's financial statement and property valuations; preparing comparative schedule for client

Employment / Workplace:

• Advising client on obligations under section 117 of the Fair Work Act 2009 (Cth) regarding notice of termination
• Reviewing proposed enterprise agreement and preparing compliance checklist against National Employment Standards
• Drafting response to General Protections application lodged in Fair Work Commission

Common mistakes to avoid

• Block billing — combining multiple unrelated tasks in a single entry (e.g., "Emails, phone calls, and research re: various matters"). Many clients and firms explicitly prohibit this.
• Vague descriptions — "Attention to matter", "Various attendances", "Further work". These tell the client nothing about the value delivered.
• Excessive abbreviations — While "T/C" for telephone call and "Ltr" for letter are widely understood, overuse of abbreviations can make entries difficult for clients to interpret.
• Missing date specificity — Each entry should correspond to the date the work was performed, not the date it was recorded.

Compliance and Disclosure Obligations

Under the Legal Profession Uniform Law (applicable in NSW and Victoria, with equivalent provisions in other states), solicitors have specific obligations around cost disclosure and billing:

• Cost agreements must be provided to clients before or as soon as practicable after a retainer is established, disclosing the basis of charging (e.g., hourly rate, fixed fee), an estimate of total costs, and the client's right to negotiate costs.
• Billing transparency requires that invoices provide sufficient detail for the client to understand the work performed and assess its reasonableness.
• Itemised bills must be provided on request, showing each item of work, the time spent, the hourly rate applied, and GST.
• Cost assessment — clients have the right to apply for a costs assessment if they believe charges are unfair or unreasonable.

Accurate and detailed time recording is your best protection against cost disputes. Entries that clearly describe the work performed, on which date, and for what duration are far easier to justify in a cost assessment proceeding.

Practice Management Software in Australia

Most Australian law firms use one of four major practice management platforms for time recording and billing:

Each platform has its own time entry format and import template. If you generate billing entries outside of your practice management system — for example, from meeting recordings or email summaries — you will need to ensure the data is formatted correctly for import. This includes matching field names, date formats (DD/MM/YYYY for Australian systems), and using the correct decimal format for hours (0.1 increments, not minutes).

How AI Is Changing Legal Time Recording

The biggest shift in legal time recording in 2026 is the adoption of AI-powered tools that automate the most tedious part of the process: converting raw work into structured billing entries.

Traditional time recording requires lawyers to manually recall what they worked on, estimate how long it took, write a description, assign a matter number, and enter it into their practice management system. This process is slow, error-prone, and typically done at the end of the day (or worse, the end of the week), when details have faded from memory.

AI billing tools take a fundamentally different approach. Instead of asking the lawyer to reconstruct their work from memory, they work from source material:

• Audio recordings — record a client meeting or phone call, upload it, and AI transcribes the audio and identifies billable work automatically
• Transcripts — paste meeting notes or dictation, and AI extracts individual billable tasks with time allocations
• Emails and documents — upload a chain of client emails or a legal document, and AI generates time entries based on the work reflected in the content

The result is structured time entries with professional descriptions, time in 0.1-hour increments, dates, and matter references — ready for review and export into your practice management system.

The key advantage of AI billing is not just speed — it is completeness. Lawyers who record time manually typically capture only 60–70% of their billable work. AI tools that work from source recordings or documents can capture work that would otherwise be forgotten or under-recorded.

AI billing tools vs passive time tracking

It is worth distinguishing between two categories of AI time recording tools:

Passive time trackers (like Billables AI, PointOne, and MagicTime) run in the background on your computer, monitoring which applications, documents, and websites you use throughout the day. They then use AI to assemble a timesheet based on your activity. These tools are always-on and work best for lawyers who do most of their work on a computer.

Source-based billing tools (like LexUnits) take a different approach. Instead of monitoring your activity, you provide the source material — a meeting recording, a transcript, an email, or a document — and the AI generates billing entries from that specific input. This approach works well for lawyers who spend significant time in meetings, on calls, or working from documents and correspondence.

The best choice depends on your practice. Many lawyers find that a combination of approaches captures the most complete picture of their billable work.

Best Practices for Maximising Billable Recovery

Regardless of the tools you use, these principles will help you record more complete and accurate time:

1. Record in real time — the closer to the moment of work, the more accurate the entry. If you cannot enter time immediately, make a brief note (even a voice memo on your phone) to capture the key details.
2. Be specific in descriptions — "Reviewing contract" captures less value than "Reviewing and marking up asset sale agreement, focusing on conditions precedent and completion mechanics". Clients are far less likely to query detailed entries.
3. Record all billable work — short phone calls, emails, and quick document reviews all add up. A 3-minute call is still 0.1 hours. Ten of those per day is an hour of billing you might otherwise lose.
4. Use your firm's minimum unit policy — if your firm rounds up to the nearest 6 minutes, apply this consistently. Under-recording is the most common source of revenue leakage.
5. Review before submitting — check that matter numbers are correct, descriptions are professional, and time allocations are reasonable. A quick review before submission prevents write-downs at the billing partner stage.
6. Leverage technology — use timers in your practice management system for real-time tracking, and consider AI tools for meeting recordings, emails, and documents that are difficult to time-record manually.

Frequently Asked Questions

What is the standard billing unit for Australian law firms?

The standard billing unit in Australia is 6 minutes, equal to 0.1 of an hour. Most practice management systems (Actionstep, LEAP, Clio, Smokeball) use this convention by default. Hours are recorded in decimal format: 0.1, 0.2, 0.3, and so on up to 1.0 for a full hour.

Do I need to include GST on time entries?

GST is applied at the invoice level, not on individual time entries. However, your practice management system will need to know whether your rates are GST-inclusive or GST-exclusive for correct invoice calculation. LEAP, for example, typically uses GST-exclusive rates. Check your firm's configuration.

What should I do if I forget to record time?

Reconstruct the entry as accurately as possible from your calendar, emails, documents, and any notes. Be honest about the time spent — over-recording is a professional conduct risk. If you regularly forget to record time, consider using a passive time tracker or recording meetings for later processing with an AI billing tool.

Can AI billing tools replace my practice management software?

No — and they are not designed to. AI billing tools like LexUnits are "last mile" accelerators that complement your existing practice management system. They generate structured time entries that you review and then export into Actionstep, LEAP, Clio, or Smokeball using the platform's standard import format. Your PMS remains the system of record for billing, trust accounting, and matter management.

How do I import time entries from an external tool into my practice management system?

Each platform has its own import process. Generally, you export entries as a CSV file formatted to match your PMS's import template, then use the platform's bulk import function. For detailed steps, see our guides for importing into Actionstep, LEAP, and Clio.

Last updated: March 2026. This guide is for general informational purposes and does not constitute legal advice. Check your state or territory's Legal Profession Act and your firm's internal billing policies for specific requirements.