Australia’s legal market enters 2026 from a position of strength.
Globally, the legal services sector continues to expand at a steady pace, driven by regulatory complexity, cross-border investment, litigation demand, and the growing integration of technology into legal practice. Australia remains firmly part of this trajectory. For international law firms, it represents both a mature legal system and a strategic gateway into the broader Asia-Pacific region.
Over the past 15 years, global firms have steadily built and scaled their Australian presence, drawn by strong corporate activity and the depth of local talent. This expansion has reshaped the competitive landscape. National firms have responded by refining their hiring strategies, increasing compensation, and focusing on retention.
Over the past year, recruitment processes have ranged from just two days to under four weeks from first interview to offer. For sought-after candidates, particularly in high-demand practice areas, firms are acting decisively to avoid losing talent to competitors.
Mid-Level Lawyers Remain in Highest Demand
Competition is most pronounced at the mid-associate level, typically between 3 and 8 PQE.
At this stage, lawyers have developed strong technical capability, gained meaningful client exposure, and can manage matters with greater independence. They are able to support partners, mentor junior lawyers, and contribute commercially, without the longer ramp-up period associated with more junior hires. For firms, this combination of capability and readiness makes mid-level associates among the most valuable hires in the market.
Movement at this level continues to create opportunities. Many associates pursue international roles in London, New York, Hong Kong, and Singapore, while others transition in-house or into alternative careers. This natural attrition leaves gaps within teams and increases pressure on firms to recruit experienced lawyers who can contribute immediately.
As a result, strong associates are benefiting from greater leverage. Firms are demonstrating increased flexibility on salary, progression, and overall packages to secure the right hires.
International Firms Continue to Raise Compensation
International and US firms in Australia, particularly in Sydney, continue to offer a clear salary premium. Base salaries are typically around 10% higher than comparable domestic roles, with wider bands and greater flexibility depending on experience and competing offers.
Sign-on bonuses have also become increasingly common, featuring in approximately 70% of associate offers. In many cases, firms are using compensation strategically to secure talent quickly and remain competitive in a fast-moving hiring environment.
International mobility also continues to influence the domestic market. In 2025, a significant proportion of lawyers placed into Australian roles relocated from overseas, reinforcing Australia’s position as a globally connected legal hub. At the same time, global hiring conditions in markets such as London and New York directly affect talent availability locally, shaping demand, leverage, and hiring urgency.
Why Understanding the Market Matters
Even for lawyers not actively considering a move, understanding market conditions is critical.
Hiring cycles, salary trends, and global mobility patterns all influence your long-term career trajectory. Knowing where demand is building, how your experience is valued, and when firms are most active allows you to make more informed and strategic decisions.
This is precisely why we created the Australia Legal Salary Guide 2026.
Download the Full Australia Legal Salary Guide 2026
Our latest guide provides:
- Detailed salary benchmarks by PQE across Sydney and Melbourne
- Insights into hiring trends across top-tier, international, and US firms
- Analysis of compensation structures, including bonuses and premiums
- Market commentary informed by real hiring activity and placements
- Practical insight to help you assess your positioning and career options
Whether you are actively considering a move or simply want to understand your market value, this guide provides the clarity needed to navigate the Australian legal market in 2026.
→ Download here.
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