Corporations Amendment (Improving Outcomes for Litigation Funding Participants) 2021

# Corporations Amendment (Improving Outcomes for Litigation Funding Participants) Bill 2021 ## What it does This bill updates rules for companies that fund class action lawsuits (where groups of people sue together). It creates clearer definitions of how litigation funding schemes work and what counts as money recovered for class members—including court judgments, settlements, and legal cost awards. ## Why it matters Class actions help ordinary Australians pursue compensation for shared grievances (like faulty products or workplace issues) without needing to fund expensive legal battles alone. Better rules around litigation funding make it clearer how that money gets divided between what members receive versus what funders take as their cut. ## Key details - The bill defines "claim proceeds" as the total compensation awarded to class members *before* costs are deducted—so the full picture of what was actually won is transparent - It establishes what counts as a "class action litigation funding scheme" and spells out the agreement between funders and members - The law takes effect the day after it receives Royal Assent (the Governor-General's sign-off), with no delayed implementation period