Important note
This information is part of our broader privacy program. You can learn more in our Privacy Program overview.
APP 11.2 requires that personal information be destroyed or de-identified when it is no longer needed for any purpose for which it may be “used or disclosed under the APPs."[1]
Retention for risk management or to assist in the administration of justice can justify the decision to keep information beyond the minimum period. You should consider the kinds of work you do and decide how long specific files will be kept and be prepared to defend the decision if called upon to do so.
It is much cheaper to store physical files with a specific destruction period together. This permits the entire box to be destroyed simultaneously rather than record-by-record. A destruction certificate should be requested if available. If being destroyed, in-house keep a record of what was destroyed, by whom and by what method.
[1] Australian Privacy Principle 11. See: Chapter 11: Australian Privacy Principle 11 — Security of personal information paragraphs 11.29 et seq.
Key retention requirements for law firms
The seven-year period for AML/CTF designated service records[2] aligns with the trust account retention requirement under the Legal Profession Act[3] and general file retention obligation under the ASCR.
Note that a separate retention requirement relating to Client Due Diligence records exists. While it is also seven years, the start date for the time clock is the end of the relationship, not the date the file is closed.[4]
[2]Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), s 107 (7-year record retention requirement).
[3]Legal Profession Act 2007 (Qld), s 261(2)(d) (retention of trust records) and Legal Profession Regulation 2017 (Qld), Reg 59 2(a) (See also s 44(3)(d)) – from finalisation of the matter.
[4] Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), s 111
Minimum vs prudent retention periods.
The general recommendation of seven years for client files reflects the six-year limitation period for most civil claims[5] plus a buffer.
Longer retention is appropriate for some types of matters, although only certain elements of the file might be relevant for long term storage.[6]
Record Type | Minimum Period | Source |
AML/CTF CDD records (Also e-conveyancing VOI Data) | 7 years after relationship ends (*) | AML/CTF Act s 111 ARNECC MPR 2 – VOI |
Designated service transaction records | 7 years after transaction | AML/CTF Act s 107, 108 |
Trust account records | 7 years | Legal Profession Act 2007 (Qld) |
General client files | 7 years mandatory | ASCR |
Wills and estate planning | For as long as the will may be valid, plus additional time if a subsequent will is disputed | Not all of the file required – client instructions & testamentary capacity evidence is especially important |
Special files, such as establishing Trusts, acting for children, criminal files where long-term imprisonment is the outcome | Various | See QLS Guidance |
Employment/HR records | 7 years after employment ends | Various employment legislation |
[5] Limitation of Actions Act 1974 (Qld), ss 10, 10A (6-year limitation period for contract and tort claims); s 11 (12-year limitation period for claims on deeds).
[6] Queensland Law Society, qls.com.au/content-collections/guides/document-retention-guide
Client Due Diligence records – when does the clock start to run?
Section 111 of the AML/CTF Act requires retention for 7 years after the “business relationship ends” or the firm “completes the provision of the occasional transaction”.
This is not necessarily the same as “matter closing.”
Where you reasonably expect the client to provide ongoing instructions the relevant destruction date is 7 years after the final designated service you provide for them. This is difficult given that you may have no real way of knowing whether the client will return or not.
Your retention schedule
Your retention schedule should outline your firm’s plan for document retention, having regard to requirements of the Privacy Act, Legal Profession Act 2007 (Qld), QLS Document Retention Guidance. For each record category, the schedule should specify:
- The minimum retention period;
- The trigger date (e.g., matter completion, relationship end);
- The legal basis for the retention period;
- Action required after the retention period (destroy, review, archive).