The Australian Law Reform Commission (ALRC) has recommended 45
changes to the handling of claims of client legal privilege over
material sought by federal investigatory bodies and royal commissions
of inquiry. The ALRC report Privilege in Perspective:  Client Legal Privilege in Federal Investigations, follows litigation on this issue during the
AWB Royal Commission.

The net effect of the recommendations in this Report is to affirm the importance of client legal privilege as a fundamental principle of the common law that only may be abrogated in exceptional circumstances, and to provide, through federal client legal privilege legislation, a confirmation of the default principles in relation to privilege and a framework for making and resolving claims of client legal privilege in federal investigations.

The central idea behind the ALRC’s recommendations is the
need for a single federal statute addressing the application of
privilege in all federal investigations.

Other key proposals include:

• extending privilege to advice on tax law
  provided by accountants, where that advice is sought by the Australian
  Taxation Office (ATO)—in effect, formalising the ATO ‘accountants
  concession’.
• introducing a model fast-track procedure for resolving disputes about privilege;
• improving
  lawyers’ understanding of their legal and ethical obligations in this
  complex area, through targeted legal education; and
• clarifying and strengthening the professional disciplinary
  procedures to apply in cases where the assertion or maintenance of
  privilege claims may amount to unethical conduct.